Media Sector

Media Sector

Most TV and radio stations resume normal broadcasting
After the National Council for Peace and Order (NCPO) had ordered all public and private
television and radio stations, including cable and satellite television stations, to suspend
normal programming and only broadcast army feeds in order to ensure straightforward
information to the people, prevent spreading of distorted information to heighten the
ongoing conflicts, and regain peace to the society, recently according to the National
Broadcasting and Telecommunications Commission (NBTC):
1. six analog terrestrial television channels have resumed broadcasting;
2. 23 out of 24 digital television channels have resumed broadcasting, except for Voice
TV that is still under consideration;
3. 333 out of 538 satellite television channels have resumed broadcasting; 98 are still
under consideration of appropriateness of the program and advertisement contents; 95
have still not showed intention to participate in subscribed broadcasting, and other 13
still cannot broadcast because of the Announcement No.15 of the NCPO dated May 22,
2014.
- TV and movie theater businesses back to normal situation
The six free television channels had been closed only one day, the 23 digital television
channels had been closed five days, and the 333 satellite television channels had been
closed around ten days and just resumed their normal airing yesterday. The broadcast
resumption has benefited satellite television service providers like RS and GRAMMY.
Now RS owns one digital television channel (Channel 8), two pay TV channels (RS La
Liga and RS World Cup), and three satellite television channels (Channel 2, You
Channel, and Sabaidee TV). In 2Q14, digital television service providers have to start
booking expenses from amortization of the license and network cost and other relating
expenses for the first quarter after the NBTC ordered all digital television channels to be
fully broadcast since May 25. Regarding Channel 3, the NBTC has allowed Channel 3
analog programs to be aired on pay TV platform for another 100 days from May 26,
while BEC has filed its complaint against the NBTC over its must-carry rules, which
depends on the Administrative Court’s judgment. A movie theater business, likewise,
could resume its normal service after the curfew period was changed from 10pm – 5am
to 12pm – 4am since May 28. Another factor to boost the movie theater business is
blockbusting movies with possibly over B100m ticket sales scheduled to be aired in
2Q14, which are 1) Captain America – B165m, Spiderman – B180m, 3) X-Men, and 4)
King Naresuan 5, which has made a combined ticket sales at Bangkok and Chiang Mai of
B97m in its first four days.
- Maintain UNDERWEIGHT. RS and MAJOR are top picks
Adverse impacts from the digital television business would depress the sector’s profit in
2014 from last year. We, therefore, maintain UNDERWEIGHT and select RS and MAJOR
as top picks of the sector. RS (FV@B10) will have additional profit of B85bn from the
broadcasting rights of 2014 World Cup football matches starting since June 16, while
MAJOR ([email protected]) will benefit from many blockbusting movies and its subsidiary
MPIC that would have revenue of around B160m from selling of broadcasting rights of
movies to a digital television channel of MONO.