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Fri, November 10, 2006 : Last updated 21:10 pm (Thai local time)



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Home > Business > New focus at MCOT, iTV 'should help Ch 3'





New focus at MCOT, iTV 'should help Ch 3'

BEC World expects more people to tune in to its entertainment-oriented Channel 3, following policy overhauls at MCOT and iTV to refocus more on news content.

BEC chief financial officer Chatchai Thiemthong yesterday said such a development would increase the company's bargaining power to raise its advertising rates, because so far it has faced competition from MCOT's Modernine TV and iTV, which until recently focused more on entertainment programming.

"If MCOT and iTV adjust their programming to focus more on news, Channel 3 should attract a bigger audience. Following the reshuffle, iTV's viewership could drop by half, to 7 per cent of total viewers. It could lose 5 per cent to Channel 3, and the remaining 2 per cent would go to other channels," Chatchai said.

"We've been unable to raise our advertising fees so far and even had to reduce them to match lower quotations by Modernine and iTV," he said.

Chatchai said Channel 3 was now closely monitoring the situation at MCOT and iTV and could reshuffle programmes probably next April, taking into account the new situation. The changes would affect weekend daytime programming, while prime-time entertainment would be left untouched.

Channel 3 also hopes to increase its news content to 50 per cent, from 40 per cent at present, in order to sustain ratings. However, the news could focus on situation updates, not something too heavy, he said.

His comments followed the recent chaos at MCOT and iTV. The former is facing a row between its new management and staff, who yesterday issued a third statement expressing their displeasure with new president Pongsak Payakwichian. Both sides met on Wednesday but could not sort out their differences. Meanwhile, iTV could soon face a demand to pay hefty fees as well as to refocus on news content.

BEC World yesterday reported a third-quarter net profit of Bt427 million, up 107 per cent, or Bt221 million, year on year. The boost came through a rise in ad revenues of Bt1.534 billion during the quarter, a jump of 30 per cent, or Bt350 million, year on year, thanks largely to Unilever Thailand, who pumped in Bt3.7 billion in the first three quarters - a whopping 136.5-per-cent increase for Channel 3.

The company estimates ad revenues for the year will exceed Bt6 billion.

For the third quarter, the station's ratings stood at 21 per cent, 4 per cent lower than the industry average of 25 per cent. In terms of audience share, Channel 3 had 22.2 per cent, which still trailed behind market leader Channel 7 by 20.7 per cent.

Channel 3 remained unfazed by the coming ban on alcohol-related advertising, since that activity accounted for only 1.88 per cent of total ad spending. On the contrary, it experienced a boost in the third quarter, as advertisers tried to exploit whatever little opportunity was still available. BEC also gained revenues from event organising, including the ATP Thailand Tennis Open and Disney on Ice. They are expected to be a consistent source of revenues, as the contracts with the Association of Tennis Professionals (ATP) and Disney expire only after five years.

BEC yesterday also announced a joint venture with online television network jumptv.com to launch Internet Protocol Television in the United States and Canada. Its programmes will stream from any broadband outlet and can be viewed through any third-generation mobile-phone device and even from an Apple iPod.

At jumptv.com, audiences view programmes on demand. With subscriptions priced at US$15 to $19 (Bt551 to Bt698), programmes will be marketed in areas with large Thai populations, such as Los Angeles, New York and Boston.

Ki Nan Tsui

The Nation





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