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Digital terrestrial TV forecast to give industry massive boost

The debut of digital terrestrial TV broadcasting next year is projected to boost the value of the industry and related business sectors to Bt79 billion or more, according to the latest findings of Kasikorn Research Centre.

KResearch yesterday released this information to reflect the great benefits that both the business sector and audiences would obtain after 48 channels of digital TV broadcasting service commence operations.

Of the 48 channels, the National Broadcasting and Telecommunications Commission will start a two-day spectrum auction tomorrow for 24 commercial digital-TV channels.

Those channels are expected to take to the airwaves next quarter, while the remaining 12 public and 12 community-based channels will soon follow.

KResearch forecasts that the arrival of digital terrestrial TV will have both direct and indirect economic effects on the industry and related business.

Besides the Bt7.4-billion investment in four-year digital-TV network expansion by the Royal Thai Army, MCOT, the Public Relations Department and Thai Public Broadcasting Service (Thai PBS), the research centre also predicts that there will be more than Bt78.93 billion of expenditure next year in three key sectors related to the changing face of the broadcasting industry.

Of that expenditure, the business of TV content providers is expected to see a surge of 14-16 per cent in spending on newly produced programmes to between Bt32.7 billion and Bt33.25 billion, from about Bt28.8 billion this year.

This will result from increasing demand from new players in digital terrestrial TV broadcasting, which is growing from the current six analog terrestrial TV broadcasters: Channel 3, TV5, Channel 7, Modernine TV, NBT and Thai PBS.

Meanwhile, manufacturers and distributors of digital-TV converters such as integrated digital-TV sets - equipped with built-in digital-TV tuners - and set-top boxes are expected to enjoy huge growth in revenue from sales to end-consumers.

The research house forecasts that this segment will see Bt40.25 billion to Bt44.5 billion in income next year. Adding to this, digital-TV converters have been deployed into the market since early in the current quarter, bringing in about Bt5.2 billion in sales revenue.

KResearch also predicts that related business sectors such as home shopping will benefit from an increase in the number of channels in the coming year, and from the 24 commercial digital-TV channels in particular.

As revenue from TV commercials remains very important, those 24 digital-TV operators appear to require large amounts of advertising income, which will lure the operators of home-shopping business and small and medium-sized enterprises to spend their communication budgets via the newly established commercial media outlets.

Given this expected trend, the market value of home shopping is forecast to expand by 20-25 per cent to between Bt6 billion and Bt6.25 billion next year, from about Bt5 billion this year.



Estimated market value in 2014

Kasikorn Research Centre forecasts that the TV broadcasting industry will witness a surge in business-related content production, digital-TV converters and home shopping as a result of the debut of digital terrestrial TV in the coming year.

Estimated market value 2014 (Bt bn) 2013 (Bt bn) % change

Content production 32.69-33.26 28.78 14-16

Digital-TV converters 40.24-44.47 5.2* N/A

Home shopping 6-6.25 5 20-25

Note: *Digital-TV converters have begun to be deployed into the market during the current quarter.

Source: Kasikorn Research Centre, as of December 24


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