Great leap forward seen for cable television in audience and programming choice

"We expect cable TV viewers will increase to five million in two years and 10 million in 10 years," Kasem Inkaew, president of the Thailand Cable TV Association, said yesterday.

The association is upbeat despite the lack of the National Broadcasting and Telecommunications Commission (NBTC), which will regulate both the telecom and broadcasting industries.

Article 90 of the new Broadcasting Act allows the National Telecommunications Commission to oversee the broadcasting industry pending the NBTC's establishment, but restricts the NTC to granting licences only to existing cable TV operators and community radio stations.

Kasem said Thailand lagged behind other major countries such as Taiwan, Korea and the Philippines with less than 15 per cent of its population in households subscribing to cable TV services provided by 300 operators.

In the Philippines, about 60 per cent of the population has access to cable TV, while in Korea and Taiwan, the figure is 90-95 per cent.

Charlotte Donavanik, chief executive of Media of Medias, said cable and satellite TV was a new lucrative frontier, or "blue ocean", as it would open up great opportunities in the future for all stakeholders, including satellite and cable TV operators, content providers and rating agencies.

Besides charging subscriber fees and selling satellite dishes, pay TV operators can make revenue by selling ads to media agencies, organising events and carrying TV shopping channels. Marketers and product vendors turn to cable and satellite channels to reach their target audiences at a lower cost.

Grisanaporn Soempanich, deputy director-general of the Public Relations Department, said some companies are promoting products deemed as inappropriate on cable TV channels by exploiting the legal vacuum in the industry.

When the new broadcasting law went into effect in March, it superseded the broadcasting law of 1992 and its supporting regulations, leaving the Public Relations Department with no authority to regulate advertising on cable TV.

Wasan Paileeklee, president of MCOT Plc, operator of Modernine TV, warned the pay-TV industry that the yet established NBTC, under Article 28 of the new broadcasting law, might set a cap on commercial airtime of six minutes per hour.

AGB Nielsen is launching the first phase of local cable TV measurement, with a 100-household sample size, in which all fieldwork, recruitment and installation will be completed this month, and data will be released to its clients by next month.

The agency will increase its sample size to a minimum 200 homes in the second phase, which will be completed in 10-12 weeks.