While UBC True CFO Vasili Sgourdos said the move resulted from poor performance by the music channels, insiders suggest that MTV left due to dissatisfaction with business terms, and a desire for non-exclusivity. "MTV was keen to negotiate a non-exclusive contract with UBC, as it has in China with various operators," said a source. "UBC put its foot down. "
"UBC True has been increasingly investing in content based on the evolving viewing habits of its subscribers and the decision to not renew the carriage of MTV and VH1 is in line with this," said Sgourdos. "The channels were not performing well and our research showed that consumers wanted more control over their music and showed significantly more interest in local content."
At Smile TV, MTV and VH1 will be distributed nationwide to more than two million households in Thailand on DTH and CATV via the ABS satellite. "Previously, MTV and VH1 were only available to approximately 400,000 homes in Bangkok and surrounding areas via UBC True," said an MTV spokesperson. "With the new distribution model, MTV and VH1 not only expand their distribution base, but are now able to offer a larger roster of advertising opportunities."
According to Smile TV MD Vilasinee Chivanond, the network will offer an eight-channel package direct to both individual viewers and small community cable operators.
In addition to MTV and VH1, the package will include Nickelodeon, Moviemania, Popper, Rakthai TV, Panorama 07 and World Fashion Thailand. "We expect larger revenues will come from sponsorship in the near future once we enjoy a large viewer base," she added.
UBC, meanwhile, has added three new documentary channels, as well as two music channels.
