Leading Thai record label RS Plc yesterday announced a long-term partnership deal with video-rental chain Tsutaya (Thailand) Co Ltd.

The deal will see RS CDs, DVDs and VCDs for rent in Tsutaya outlets, paving the way for RS, which has repositioned itself as an "entertainment-content provider", to open up other revenue streams for the company besides CD sales.

"We [RS] are not a music company any more, but rather an entertainment-content provider. Even the logos of our artists, such as Dan-Beam and Girly Berry, can generate income for the company," said chief executive Surachai Chetchotisak. "Our income will no longer be generated solely by sales of music CDs. Instead, revenue will come from other sources, such as online downloads and bundled with MP3s and MP4s. Providing a rental service for RS's recorded music in Tsutaya outlets will be another window for generating extra business and income for RS," he said, adding that the company would receive additional income from music licences provided to Tsutaya. RS will also allocate 10 per cent of rental revenues on its music products at Tsutaya to its artists.

"This new model will create an opportunity for business entrepreneurs and their artists to generate extra revenues. At the same time, it will allow consumers a wider variety of ways to enjoy the entertainment content," said Surachai.

Wanchai Phlaphongphanich, chief executive  of Tsutaya (Thailand) said more than 100 of the 270 local Tsutaya outlets would be renting out RS CDs, VCDs and DVDs by the end of the year. One-day rentals will be Bt20 each for CDs and VCDs and Bt30 for DVDs.

Surachai said an RS survey showed that more than 95 per cent of Thai teenagers listened to music from MP3s. About 50 per cent of household members also listen to music on portable CD players and 50 per cent on their PCs.

RS also announced an alliance with  Siam City Cement Plc in a major music-marketing campaign set to strengthen brand awareness for its Eagle cement. The alliance will see the recording company's singers  become product presenters and take part in below-the-line activities organised by business clients.

The  cement-maker hopes this "Ruam Pol Kon Niew Nan " [Promoting Loyalty Through Relationships] campaign will raise its brand awareness among Thai consumers. The campaign kicks off with a series of concerts across Thailand by young musical duo Dan-Beam.

"Music marketing is one of the key strategies being used by Eagle to build its brand awareness. Eagle has been quite successful following last year's "As I Wish" campaign, driven by popular singer Palapol Polkong-seng and his concerts," said Chan-tana Sukumanont, the cement firm's executive vice president for marketing and sales.

"We launched 'Ruam Pol Kon Niew Nan'  to boost our Eagle brand by focusing on the strength and endurance of our cement. The campaign also focuses on the importance of the family unit as happiness of a family does not depend on the strength of the house itself, but rather on the strength of the relationships inside it. Dan-Beam represents this relationship philosophy," she said.

Kwanchai Rungfapaisarn

The Nation