MCOT pursues synergy strategy, considers cutting revenue target

Director-general Sivaporn Chomsuvan admitted that the company had been facing huge challenges since last year when terrestrial-based digital television kicked off in this country. In this tough situation, MCOT had to refocus on synergising its own media in line with the development of its own TV content to survive the departure of business partners. 

“We know that our current partners will not stay with us forever. I understand the reality of the business, particularly amid rapidly changing circumstances. So we need to fall back on our own strengths and make things better,” said Sivaporn, who became head of the state media enterprise last December. 

After investing heavily in its two digital terrestrial channels, MCOT HD and MCOT Family, and its digital-TV transmission network, the company appears to be under heavy pressure internally. Meanwhile, strong players in the TV broadcasting industry are striving to cut into the revenue and audience shares of incumbent free-television stations, including MCOT’s Modernine TV. 

To deal with this, Sivaporn said all of his company’s business units including TV, radio and digital media must be well integrated. The listed state-media enterprise runs two nationwide TV stations, 62 FM radio stations and a news website. 

“With this synergy, we can offer more alternatives for our clients and advertisers to undertake marketing via our various media outlets,” he said.

On top of that, the company is putting more focus on developing its own content and talent. Last month, it established MCOT Modelling Agency to develop and manage new artists to support both in-house TV production and business partners.

To maintain growth in MCOT’s TV business, Sivaporn said he wanted to see in-house production provide 55 per cent of the programmes on its two digital channels, up from about 40 per cent now. 

For its digital-TV transmission network, the company is seeking new public-broadcasting clients. It has invested Bt1.8 billion in transmitters and related equipment, and in order to meet its goal of breaking even within six years, the network needs to be fully utilised. To that end, the company requires three more clients broadcasting in standard definition. 

Currently, the network serves the SD stations Springnews TV, Voice TV and its own MCOT Family channel, while its high-definition service is already at full capacity with MCOT HD and Thairath TV. 

Despite all these strategies to boost income, Sivaporn said his team would have to decide whether to revise this year’s revenue target.