Modernine, TV5 could face struggle this year to maintain ad revenue
MCOT's Modernine TV and the Army's TV5 appear to be facing a big challenge this year to retain their positions in the Bt81-billion television-broadcasting business after seeing their expected revenue eaten into last year by some major digital TV stations.
"This year will be an exciting time for advertisers and advertising agencies. The TV broadcasting industry is being shaped into a new landscape after the arrival of digital terrestrial TV channels last year," Manee Eabe, managing director of Magna Global, a member of global agency IPG Mediabrands, told The Nation.
According to the latest data from Nielsen (Thailand), Intensive Watch, AQX and Arianna, advertising spending on the incumbent analog stations, including Channel 3, TV5, Channel 7, Modernine TV and NBT (National Broadcasting Television’s Channel 11), suffered an 8-per-cent drop from 2013. Cable and satellite TV channels were also hit hard as ad spending fell by 39 per cent to Bt7.177 billion from Bt11.85 billion in 2013.
Manee said the drop in spending on the analog channels was mainly seen at Modernine TV as leading content providers like Workpoint Entertainment decided to stop supplying TV programmes to that state media enterprise. This year, Workpoint is producing those programmes for its own digital channel, Workpoint Creative TV.
In addition, Exact, another key content provider for Modernine TV, has shifted some of its popular programmes to One HD channel, which is run by its affiliate.
The Royal Thai Army Radio and Television Channel 5 is facing the same fate after Workpoint, Exact and Scenario all decided to stop producing programmes for TV5.
"Though other leading TV production houses like TV Burapha and JSL Global Media still stay with MCOT and TV5, the big question is whether existing and new TV programmes produced by those houses will be able to attract audiences," Manee said.
On the other hand, advertising agencies are also questioning how those TV programmes will perform after moving from the analog channels.
"Can those TV programmes make a profit after the move?" she asked. "Because advertising rates at digital channels and TV audience ratings are considerably behind Modernine TV and TV5."
Apart from the shift in ad spending from analog stations to digital channels, she noted that Bt4.67 billion worth had migrated from cable and satellite TV to terrestrial-based digital, as some major satellite channels had transformed into digital players after obtaining appropriate licences from the national broadcasting regulator.
Another factor that helped total TV ad spending post 2.36-per-cent growth last year was due to advertising on the new digital stations.
The figures from the media-survey firms were based on rate cards provided by all TV stations.
