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Adjustment urged as digital TV channels face competition for TV viewers from online players

Jan 13. 2019
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Bangkok Bank, the creditor of over five digital TV broadcasters, said the bank’s borrowers have remained financially sound and their debts have not turned bad.

However, Senior Executive Vice President Virasak Sutanthavibul said these companies may have to adjust their strategies to keep pace with the current situation in the market when viewers are increasingly turning to watch TV programmes on online channels. 

Advertising spending on digital TV channels have also been declining amid competition from online TV platforms .

He said many digital TV broadcasters have already adjusted their business strategies through closer collaboration and seeking cash-rich investors for financial support. Some have opted to lay off staff as a cost-cutting measure. 

 He believes most digital TV broadcasters will soon undertake business restructure and focus more on developing online TV channels.

Meanwhile, Nielsen reported last week that advertising spending on magazines dropped significantly by 37 per cent year on year in December last year to only Bt108 million.

Advertising spending on newspapers declined by almost 20 per cent to about Bt511 million during the same month.

However, total advertising expenditures on media increased slightly by 0.8 per cent year on year in December last year to about Bt8.9 billion, compared with a 3.9 per cent in total advertising expenditure for 2018 to about Bt105.5 billion.

The report also revealed that advertising expenditures on cable and satellite TV dropped by 16.7 per cent year on year in December last year to about Bt180 million.

 Advertising spending on outdoor media also dropped by 4.7 per cent to Bt547 million in December, while spending on the internet also dropped 0.83 per cent to Bt119 million. Advertising spending on cinema shows the highest increase of 33 per cent year on year in December to about Bt750 million, while spending on in-store media posted an increase of 24.4 per cent to about Bt107 million. 

Terrestrial TV also recorded a growth of 0.78 per cent in advertising spending in December last year to about Bt5.57 billion. 

At the same time, advertising spending on radio surged by 7.9 per cent in December last year to Bt439 million, and by 8.5 per cent to Bt551 million for transit media.


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