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Published on April 8, 2008

Media of Medias, a producer of television programmes, plans to adjust its business strategy this year to increase revenue by targeting more airtime on free channels.

"The adjusted business strategy should boost our income", CEO Charlotte Donavanik said yesterday.

The production house, 74-per-cent owned by Bangkok Broadcasting and Television, operator of Channel 7, this year plans to increase its airtime on free TV channels to 842 minutes a week, up from 726 minutes now.

If the new programmes have a high rating, this should help Media generate more ad revenue, she said.

A breakdown of last year's revenue showed it came mainly from seven self-produced programmes, representing 318 minutes per week. Another 226 minutes came from selling ads and 182 minutes came from time-sharing.

Under the new strategy, Media will be ready to apply for cable-TV licences for three channels after the new law governing broadcasting businesses allows it to have ads on cable channels. The new channels will be for news and variety programmes.

Media now operates one cable channel called the T Channel, but it has been operating at a loss and cannot sell ad time slots.

Charlotte said under the current law, cable operators could not generate other revenue besides from membership fees. As a result, most cable operators have faced losses, including Media, which has recorded more than Bt100 million in net losses.

However, new licences for operating cable TV must be approved by the National Telecommunications Commission.

At present, the total value of ads on free channels account for Bt60 billion a year, compared with Bt100 million for cable TV.

Ads on cable TV should not affect those on free channels, she said.

"For cable operators, a Bt100-million ad value is quite an interesting figure," she said.

Media established a new wholly own subsidiary named Media Studio in February, to produce news and other programmes for Channel 7.

The subsidiary has Nuti Khemayodhin as managing director, and professionals from TPBS, formerly iTV, help produce programmes.

Media closed at Bt5.80 last Friday, down 5 satang.

The company achieved Bt1.44 billion in revenue last year, up from Bt962.14 million in 2006. Last year's net profit was Bt345.07 million, up from 63.44 million in 2006.

Watcharapong Thongrung

The Nation