ANALYSIS: Television - Newcomer spices up Thai TV fare. Thailand's new cable offer is a long way off in denting the cosy duopoly of local television

<p>With its grand plan to become a "superhighway for broadcasting", </p><p>Thailand's new cable operator initially raised hopes that it would bring </p><p>much-needed change to the television industry, now under the control of </p><p>what is described as a "cosy duopoly". </p><p><BR><BR> </p><p>But World Star TV faces an uphill climb, not least a battle to prove its </p><p>legality. An investigation into this very issue has been launched by the </p><p>Prime Minister's office. </p><p><BR><BR> </p><p>All this in an industry riddled by conflict, power plays and sometimes </p><p>open violence that has so far claimed the lives of two regulatory </p><p>officials. </p><p><BR><BR> </p><p>Despite its legal woes, executives insist that World Star is free to air </p><p>and has the right to carry advertising. World Star had initially planned </p><p>to broadcast 12 channels nationwide, until a Government body reminded it </p><p>that the concession specified analog broadcasts only. Jaising Narula, a </p><p>World Star executive, said the operator was broadcasting four analog </p><p>channels in the Bangkok area. </p><p><BR><BR> </p><p>Programming now includes foreign films, documentaries and public-service </p><p>programmes made by the National Police Office. If all goes according to </p><p>plan, programming will take many different forms as channels are </p><p>subcontracted to content providers. </p><p><BR><BR> </p><p>"We aim to be a superhighway for broadcasting; anybody can come to us </p><p>and secure their own channel," says Jaising, adding that it was talking </p><p>to a number of content providers. </p><p><BR><BR> </p><p>Confidence in the business plan appears to outweigh considerations about </p><p>the launch coinciding with an economic downturn. Jaising adds: "We will </p><p>be offering so much content on so many channels that we are not </p><p>concerned about today's soft market conditions." </p><p><BR><BR> </p><p>If World Star does what Jaising promises, it would mark the first </p><p>significant change in the industry since the creation in 1998 of </p><p>Universal Broadcasting Corporation (UBC) through the merger of former </p><p>cable rivals IBC and UTV. </p><p><BR><BR> </p><p>The last new channel on the scene was ITV, set up in the wake of the May </p><p>1992 democracy uprising as an independent voice. ITV is now owned in </p><p>part by Prime Minister Thaksin Shinawatra and has come under fire for </p><p>promoting the PM and his businesses. Significantly, it seems political </p><p>involvement in World Star will also be high, with a police general and a </p><p>vice-admiral among its investors. </p><p><BR><BR> </p><p>Political involvement aside, the World Trade Organisation has been </p><p>prodding Thailand to open up its industries, including television. </p><p>Officially, a series of radical broadcasting reform measures are </p><p>underway, aimed at reducing political and military interest and </p><p>influence in the media and opening up more opportunities to the private </p><p>sector. </p><p><BR><BR> </p><p>In reality, nothing much is happening, sources say. Political influence </p><p>is still rampant, as a recent controversy regarding a sacked announcer </p><p>who spoke out against the current Government demonstrates. Formation of </p><p>the National Broadcasting Commission to oversee media reform has stalled </p><p>in bickering over membership regulations, say insiders. </p><p><BR><BR> </p><p>Which leaves some industry quarters to conclude that little has changed </p><p>since the murder five years ago of Sangchai Sunthornvut, the director of </p><p>the Mass Communications Organisation of Thailand (MCOT), the broadcast </p><p>regulatory agency. </p><p><BR><BR> </p><p>According to Busakorn Suriyasarn, an academic who specialises in </p><p>Thailand's media industry, Sangchai was shot because the reform-minded </p><p>director challenged vested interests inside MCOT, an organisation </p><p>described as a "twilight zone" of corruption. </p><p><BR><BR> </p><p>Sangchai was the second broadcast executive to be murdered in 15 years </p><p>and just one very visible symbol of a decades-old drama of conflicts and </p><p>sometimes open vio- lence in the broadcasting industry. Sources paint a </p><p>picture of an industry regulated and tightly controlled by a powerful </p><p>group, comprising government officials, military figures and business </p><p>families, with little sign of change in the near term. </p><p><BR><BR> </p><p>The spoils of this industry are large: ACNielsen estimates that TV </p><p>advertising amounted to 30 billion baht (US$670 million) in 2000. </p><p>Fighting for a share of the spend are six free-TV operators. Three </p><p>free-to-air stations - Channels 3, 7, and ITV - are privately owned and </p><p>operated, while Channels 5, 9, and 11 are owned and operated by the </p><p>military or the state agencies. </p><p><BR><BR> </p><p>Although all free-TV stations except Channel 11 are allowed to sell </p><p>timeslots, the most valuable ad space is controlled by a "very cozy </p><p>duopoly", says one Thai media agency executive, referring to Channels 3 </p><p>and 7. </p><p><BR><BR> </p><p>Sources add that since the other channels generally serve as mouthpieces </p><p>for their respective controllers, the quality and style of their </p><p>programming are not optimised to gain competitive ratings. This leaves </p><p>Channel 3, a part of a media empire controlled by the Maleenont family, </p><p>and Channel 7, run by the powerful Kanasoot family, commanding control </p><p>of millions of dollars of ad time. </p><p><BR><BR> </p><p>The two channels are engaged in a constant ratings war. Channel 3 </p><p>currently has a slight ratings lead, but market analysts suggest that </p><p>Channel 7's offerings for the fourth quarter are strong. "Channel 3 is a </p><p>bit more attractive to advertisers interested in Bangkok, because the </p><p>programming is more cosmopolitan, but Channel 7 has a strong prime-time </p><p>drama line-up that should do well," says a Thai TV buyer. </p><p><BR><BR> </p><p>To get their ads shown, media buyers have to play by a curious set of </p><p>rules unique to Thailand. According to Busakorn, a struggle between the </p><p>state powers, wielding regulatory control, and commercial interests, </p><p>holding growing advertising revenue, led to the development in the 1960s </p><p>of a unique "quota" system of ad space brokerage that still prevails </p><p>today. </p><p><BR><BR> </p><p>The TV channels hold the reins of power in this situation, parcelling </p><p>out to the various media agencies a certain amount of ad space to run </p><p>their client's spots. </p><p><BR><BR> </p><p>An agency source who insisted on anonymity said the quotas were </p><p>generally allotted according to the size of the agencies' bookings and, </p><p>if not used to the satisfaction of the TV station, could be quickly </p><p>reassigned. "Media agencies are forced to compete fiercely for the </p><p>quotas, because without them you can't place your ads," said a </p><p>source. </p><p><BR><BR> </p><p>Despite the softening ad market, channels 3 and 7 command such a large </p><p>market share that they are not forced to offer discounts. In fact, the </p><p>two channels had recently announced plans to raise their rates, a </p><p>decision Channel 3 only rescinded after the dismal economic forecasts </p><p>following the US tragedy. Channel 7 has said it will stand by its rate </p><p>increase. </p><p><BR><BR> </p><p>Thailand's pay-TV sector is also defined by political power struggles </p><p>and unusual business practices. As the country's major cable operator, </p><p>UBC has a virtual monopoly in Thailand, but because its concession </p><p>states that it cannot carry advertising, the operator is in dire </p><p>financial straits, and has been unsuccessfully asking the Government to </p><p>allow it to carry pass-through ads. Financially crippled, UBC poses </p><p>little threat to the dominant free TV channels. </p><p><BR><BR> </p><p>Unless World Star can put its legal problems behind it and add a new </p><p>competitive dimension to the industry, Thailand's TV sector will </p><p>continue to function like a vestige of an outdated era. "Why should it </p><p>change? There is no outside force encouraging reform," says a source. </p><p>"The pitch has been set. We all have to play on it for now." </p><p><BR><BR> </p>