GMM Grammy in talks with YouTube on digital music service
GMM Grammy plans to add more digital music services to boost revenue and appeal to new-generation listeners while retaining existing ones.
Krij Thomas, chief operating officer for the music unit, said yesterday that the company was negotiating with YouTube (Thailand) to start GMM YouTube, the largest online video network. If this project is approved, GMM Grammy will gain access to millions of eyeballs in the social media both at home and overseas, just like VEVO.
This also could help the company protect its music against online piracy, he said.
GMM Grammy is joining with TJ Media, a leading South Korean manufacturer of karaoke players, to offer digital music playlist arrangement services in a karaoke format. The services will be embedded in the removable memory card in karaoke players, namely the AJ and Soken DVD models. Users of these DVD players can buy and download the latest playlist to get new songs at TJ Media's authorised dealers.
The service will be launched next month and is expected to generate Bt50 million in revenue from music downloads this year and Bt100 million next year.
GMM Grammy is interested in music- and video-streaming services that are similar to those on Apple TV. It plans to expand its distribution channels for physical and digital products to convenience store chains like 7-Eleven and B2S bookstores and online outlets like ensogo.com.
"We hope that such marketing efforts will be a key strategy to manage more than 700 songs that are produced by our composers each year," Krij said.
A satellite TV channel called GMM Music will be introduced at a cost of Bt100 million. Under the operation of GMM 1 Sky, the station will provide live music programmes, behind-the-music-production shows, talk shows by music professionals and interactive programmes to attract general viewers and music listeners as well as to recruit new blood artists.
The project is expected to realise Bt50 million in receipts this year and hit the break-even point by the middle of next year.
With revenue projected to increase to Bt2.2 billion this year, the music business should take the lead in driving all the businesses of GMM Grammy, except the media business and new business, namely GMM 1 Sky, he said.