Digital TV owners must be bold

A few measures have been announced by the government to help digital TV operators, who have been struggling across the board. The main problem, however, has not been addressed, because, to be fair to the Prayut administration, it directly concerns the entrepreneurs and their sources of income. No matter how licensing payments have been re-arranged and no matter how state rules concerning ownership and operations have been eased, digital TV remains a risky business in the long term.
Facing similar problems that have been battering the print media, the TV industry has a greater immunity because advertisers still have strong faith in it, although much of the money from commercials has gone to the social media. The biggest problem for the broadcasting industry is that the advertising income is being shared among a lot more players, meaning the money that was once abundant has suddenly become insufficient.
That the whole digital TV industry has virtually gone into a coma is tragic, but not surprising.
A few days ago, the government effected a series of measures intended to ease the operators’ ordeals. The short-term solutions include suspension of licence payments, leniency on ownership changes and some operational aspects. These measures address some of the key demands of the disillusioned digital TV owners.
However, the day will come when the operators will have to stand on their own again. They will have to fight a bloody business battle for advertising revenues again and, quite likely, they will have to struggle to stay afloat again.
There are no foolproof solutions. One thing all operators should do, however, is lower their expectations. Some six years ago, investors dreamt big because, suddenly, something that had been highly profitable and the exclusive turf of state-controlled operators was virtually “liberalised”. Big money was invested with staggering profits in mind.
Accepting realities is a must. Investors, old and new, must be realistic when they set their targets. Aiming too high will discourage them at best and cause panic affecting their employed labour at worst. Layoffs have been common in the digital TV industry over the past few years, partly because of genuine financial storms, and partly because of alarms caused by failures to reap profits as expected.
Unrealistic targets have led to an unhealthy situation. Largely, digital TV stations have not competed in creating unique, signature content, trying instead to copy one another’s success formula. Game shows, singing contests and soap operas have flooded the screen to attract mainstream advertisers.
“Niche content” were the buzzwords before digital TV licences were sold. Such content, though, did not inspire advertisers very much and, rather understandably, caused operators to shy away. As things turned out, emerging new stations showcased similar settings, similar styles of hosts and even similar programmes.
Accepting reality, therefore, must be backed up by being bold and brave. Quality signature content may be expensive – like documentaries about the rich Thai history and culture – or it may not attract big-name or rich advertisers, but someone somewhere will see its value.
Income from it may not be obscenely massive, but it, in the long run, can help create worthwhile human resources and ensure sustainability.
A great variety of content was what everyone aimed for when digital TV licences were first offered to bidders. Somewhere along the way, everyone retreated into the familiar comfort zone. That was one of the key things that went wrong for the business.