HEADLINES: Thai agencies in uproar over 'draconian' order

<p>Thailand's advertising industry is bracing for potential disaster </p><p>following the implementation of Article 40, which will dramatically </p><p>change the nature of television content and commercial airtime </p><p>rates. </p><p><BR><BR> </p><p>The draconian order specifies that 60 per cent of all television </p><p>programming must be used for educational programming, government public </p><p>awareness campaigns, or non-government organisation (NGO) </p><p>promotions. </p><p><BR><BR> </p><p>The Advertising Association of Thailand (AAT) president and Young & </p><p>Rubicam co-chairman, Parames Rachjaibun, said local small to </p><p>medium-sized advertising agencies would be hard pressed to survive. </p><p><BR><BR> </p><p>"Local agencies who traditionally use TV as primary media won't be able </p><p>to afford television airtime once Article 40 takes effect. </p><p><BR><BR> </p><p>"They will have to pay for other media or consolidate with other </p><p>companies. </p><p><BR><BR> </p><p>It is going to be tough." </p><p><BR><BR> </p><p>In a worst case scenario, he said only 10 to 15 local agencies from the </p><p>existing 100 that are AAT members would survive. </p><p><BR><BR> </p><p>"It will create a disaster for our industry," Mr Parames predicted. </p><p><BR><BR> </p><p>He said that the new programming, which might not run TVCs, would cut </p><p>traditional entertainment programming and potential revenue generating </p><p>airtime to 40 per cent. </p><p><BR><BR> </p><p>"This is not clear but it is the assumption, and we are worried it is </p><p>more likely to happen than not. </p><p><BR><BR> </p><p>"For commercial airtime, the cake will shrink from 100 to 40 per cent, </p><p>and we are predicting the cost per minute will increase by as much as </p><p>100 per cent," Mr Parames, said. </p><p><BR><BR> </p><p>The industry is hoping these issues will be clarified when the Thai </p><p>government names a seven-person board later this month that will be </p><p>responsible for interpreting and implementing Article 40. </p><p><BR><BR> </p><p>However, many are concerned the board will not have any advertising or </p><p>media representation, and it will consist of only government officials </p><p>and representatives from NGOs. </p><p><BR><BR> </p><p>Mr Parames said the AAT will speak with the government to try and be </p><p>part of the panel. </p><p><BR><BR> </p><p>"I told the AAT that we will lobby the government to be part of the </p><p>board. </p><p><BR><BR> </p><p>"But we will have to treat the matter carefully as we don't know who the </p><p>seven panel members will be." </p><p><BR><BR> </p><p>Media specialists have also expressed concern about the impact of </p><p>Article 40 on programme quality. </p><p><BR><BR> </p><p>OMD managing director Martin Dufty said that television content </p><p>consisting of educational programming was hardly likely to drive ratings </p><p>through the roof. </p><p><BR><BR> </p><p>"A television programming environment consisting of government-dictated </p><p>content would be in no ones' interest," he said. </p><p><BR><BR> </p><p>Mr Dufty agreed with Mr Parames that Article 40 could theoretically lead </p><p>to significant inflation and spiralling media rates. </p><p><BR><BR> </p><p>He said that even China, which for years was a closed broadcast market, </p><p>was moving towards being a deregulated market. </p><p><BR><BR> </p><p>"It means effective regulation of the broadcast industry in Thailand, </p><p>while the current global trend is deregulation. </p><p><BR><BR> </p><p>"It will limit the expansion of small agencies by squeezing them out of </p><p>the market," he said. </p><p><BR><BR> </p>