Seven digital TV operators ‘may break even this year’

SUNDAY, JANUARY 10, 2016
Seven digital TV operators ‘may break even this year’

AMID FIERCE industry competition, up to seven of the 17 terrestrial digital TV broadcasters are likely to break even this year, the industry regulator has said.

Natee Sukonrat, chairman of the broadcasting committee of the National Broadcasting and Telecommunications Commission (NBTC), cited research that found broadcasters would suffer losses in the first three to five years of operations.
The same thing happened in France when it kicked off digital TV broadcasting in 2005, Natee said.
He said that while digital TV broadcasters in France took four years to boost the number of households accessible to digital channels to 36 per cent of total households, Thai broadcasters could achieve the same rate in one and a half years.
He attributed part of the success in Thailand to the NBTC’s tools to support the country’s transit from the analogue TV era to the digital one, such as the giving away coupons worth Bt690 so households could purchase equipment to view digital TV channels.
He is confident that the number of households watching digital TV will surge to 60 per cent of total households this year. So he said it was possible six or seven digital TV broadcasters would break even this year.
Natee opposed a suggestion that the watchdog seek an order from the junta to empower it to revoke digital TV broadcasting licences so bank guarantees broadcasters placed with the NBTC were not seized by banks.
He added that struggling broadcasters should seek strong content to woo viewers or seek strategic partners to improve their operations.
Takorn Tantasith, secretary-general of the NBTC, said recently that the watchdog would form a panel in a bid to seek proper ways to save struggling digital-TV broadcasters as part of its goal this year to speedily clear up outstanding problems.
The panel will comprise all 24 holders of digital terrestrial TV licences, all five members of the NBTC broadcasting committee, and representatives of the Finance Ministry, the Office of the Attorney-General, the Council of State and the banks that guaranteed the 24 operators.
This panel will meet every week to hear industry complaints and possible solutions to issues and determine if the suggestions of operators can be put into practice.
The possible solutions must be selected within 90 days and forwarded to Prime Minister Prayut Chan-o-cha for consideration.
Thai TV Co – the operator of the Thai TV digital news station and the MVTV family channel – is an example of a broadcaster suffering in the intensely competitive digital-TV market.
Both digital channels run by Thai TV Co were ordered off air in November after the company refused to pay the second instalment of the upfront licence fee and the annual licence fee because it wanted to surrender its two licences.