Live Issue... Government initative puts brakes on Thai TV duopoly

The fallout from the closure of Thai national broadcaster TiTV took yet another twist last month as Thai Premier Samak Sundaravej made fresh suggestions to set up a new independent TV station.

Speaking on his talkshow, Talking in Samak’s Style, Samak has suggested plans for a new station to provide employment for 835 retrenched staff of the now-defunct TiTV station. The former free-to-air channel closed on 15 January.

The proposed media outlet would also give TiTV’s replacement, Thai Public Broadcasting Service (TPBS), the country’s first public service and ad-free channel, a run for its money. TPBS began broadcasting in February with news, documentaries and children’s shows - a departure from the usual TV fare in the country.

Media agencies are intrigued by the possibility of another new channel. “There’s definitely a large male-viewer market for a sports channel. It should include overseas and local sports. That would make it a big hit with advertisers,” says Atipol Ithivatana, managing director of Starcom Thailand.

However, Preeyada Vuttipakdee, CEO of ZenithOptimedia Thailand, doubts this will happen. “It’s been proven which channels in Thailand sell better. There’ll be one more option, but no variety in terms of programme offering.”

TV advertising, which accounts for 59 per cent of total adspend in the country, fell 10 per cent, to 3.5 billion baht (US$110 million), in January 2008. Somyot Chairat, MD of Universal McCann Thailand, notes: “TiTV was unique and a good alternative for advertisers. Since it closed, media buyers have been holding out to ask whether they should migrate their accounts to Channel 3 and 7.”

State-owned Channels 7 and 3 boast a combined audience share of 70 per cent and 64 per cent of TV adspend. TiTV had a 15 per cent share before its closure.

Suporn Aroonpakmongkol, MD of MediaCom Thailand, is hoping the new channel will break this duopoly. “Competition will make our negotiations more flexible in terms of the creativity of advertising solutions and price.”

Rates at the two leading channels have also been steadily rising. A primetime drama slot on Channel 3 now costs US$14,000 per minute, up $1,000 from October 2007; on Channel 7, it would cost US$15,000 per minute, up from US$14,000.

“The closure of TiTV has strengthened the position of Channel 3 and 7. You can expect to see unreasonable inflation,” adds Suporn. “Channel 3 has indicated it will increase its prices again this year, so we’re expecting cost-per-rating to fluctuate highly.”

Prime Minister’s Office Minister Jakrapob Penkair admits that a new station would be impossible without the approval of the country’s Public Relations Department, while new laws to legalise such a move would take at least a year to put in place. However, media buyers are confident that the new channel will not be politically-motivated. “There’s no need for the new Government to do its PR on this new channel,” says Triluj Navamarat, head of media at Starcom Thailand. “Channel 11 would be that channel instead.”

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