Bold move puts Channel 8 on right track
AFTER JUMPING on the terrestrial digital-TV bandwagon almost two years ago, RS's flagship Channel 8 is "right on track".
“We made the right decision to secure only one licence for a terrestrial-based digital channel in the standard-definition category.
“The key to success in the TV broadcasting business is not image quality but the right content for| the targeted audience,” Surachai “Here Hor” Chetchotisak, chief executive officer of the music and entertainment conglomerate, said yesterday.
As Channel 8 is the spearhead of RS’s future, it continues to put more energy into content development in a bid to broaden its viewer base.
“We are enjoying very good feedback from our fans. Channel 8 is now being watched by about 480,000 people every single minute.
“Next year, we hope for 700,000-800,000 reaches per minute. This will help Channel 8 improve its ratings and advertising revenue,” he said.
RS has prepared at least Bt2 billion, mainly for a new programme line-up. The budget will be broken down into Bt1 billion for producing more than 30 dramas, Bt800 million for making variety, sports and news shows and Bt200 million for building brand awareness.
About 70 per cent of its budget is earmarked for Channel 8. The rest will go to its satellite TV outlets – Channel 2, Sabaidee TV and You Channel.
Playing a vital role
The satellite TV business remains important for RS. Though many changes have been made to the multibillion-baht broadcasting industry, satellite TV is still playing a vital role for advertisers and consumers, Surachai said.
“In terms of content production, our satellite stations must provide quality shows that both advertisers and sponsors want to get involved in.
“RS will use its satellite TV channels to compete with low-ranked digital TV channels that broadcast on satellite, as we believe that more than 70 per cent of all households in the country still watch television via satellite receivers,” he said.
RS believes that its satellite-TV business will complement its digital-TV business for a long time.
After the liberalisation of the broadcasting business, this was officially a losing game for the establishment, Surachai said.
“The incumbents now have to minimise the possible damage from the arrival of new rivals. The market appears to be not growing as fast as the number of new players.
“The strong players are going to gain bigger shares from those old players. This is the undeniable truth,” he said.
The top five players will be a group of survivors with healthy growth, he said. In the near future, that group will monopolise about 70 per cent of total TV ad spending, leaving the other players scrapping with one another for the remaining 30 per cent.
