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Published on March 10, 2008

Executives said the act would boost the advertising industry as a whole, as it would also allow free-TV channels to expand broadcasting networks.

"Pay and free networks focus on different audience groups," said Chatchai Tiamthong, BEC World vice president for finance, adding that the firm is also planning to offer a cable service, with a large news crew and huge stocks of local and imported programmes.

"Now we sell the programmes on CD and DVD. Soon we can offer programmes on cable and earn advertising revenue. More advertising revenue will allow us to source more quality programmes," Chatchai said.

MCOT's executive vice president Khemathat Phaladej said Channel 9 covered the mass market, while pay operators concentrate on niche markets, so there is no direct competition.

The new law will however force pay-TV operators - True Vision, which has about 700,000 subscribers, and provincial operators, who cover 2 million households - to categorise their programmes and sell airtime in the absence of a neutral rating company.

"Free stations are selling commercial spots at several hundreds of thousand of baht per minute during prime-time periods. What are the prime-time spots for pay TV and how will the fees be set to make them attractive?" he said.

"This also creates a challenge to advertisers who need to launch segmented campaigns."

MCOT is also tipped to earn more income from True Vision, which operates on its concession. Stock analysts said True, now allowed to broadcast up to 6 minutes per hour of advertising, was expected to benefit the most, along with MCOT, which is entitled to 6.5 per cent of the total revenue of True.

Advertisers also foresee a big boost in the industry following the legislative changes, with new advertising channels becoming available.

TBWA\Thailand managing director Chaipranin Visudhipol and Y&R advertising agency's chief executive Sorn Chongs-richarn said that niche products for the upper-middle class as well as companies that have never advertised their products would certainly be interested in advertising on cable TV.

Kwanchai Rungfapaisarn,

Nitida Asawanipont

The Nation