Digital TV as web takes over: Staff reductions to cut costs

26 พฤษภาคม 2560

Digital TV less profitable than expected due to changing viewing habits using phones, tablets & multiple screens.

BROADCASTING & TV

Digital TV business problems: Staff reduction to cut costs

Nanat Suchiva
26/05/2017

Most digital TV operators realise now that the huge amounts paid for digital TV licenses a few years ago were a big mistake.

Dreams of big profitable business opportunities have proven illusory as the web provides many more viewing options compared to the days when people were limited to TV.

Apart from business difficulties, changing audience behaviour means TV watching takes different forms, with traditional TV -- the so-called first screen -- losing popularity to mobile devices.

The younger generation prefers to watch TV on smartphones or tablets. Social media also vies for youthful attention spans.

DIGITAL TV SITUATION IMPROVING

This year, the local economy is expected to improve and big players like Channel 7, Channel 3, Workpoint TV, Mono 29 and Channel 8 are tipped to perform better.

According to the National Broadcasting and Telecommunications Commission (NBTC), 53% of the TV audience watched TV via digital TV system in December 2016, up from 39% in January of that year, and the momentum is set to continue this year.

TV COMPETITION TO GET TOUGHER VERY SOON

Competition in the digital TV sector is expected to intensify in the second half of the year.

Channels with interesting content and clear product positioning will be in the best position to survive.

This is according to Mana Treelayapewat, dean of the School of Communication Arts at the University of the Thai Chamber of Commerce.

TOP FIVE DIGITAL TV CHANNELS

According to Nielsen Thailand, the top five digital TV channels in April were:

1. BBTV's Channel 7,

2. BEC World's Channel 3,

3. Workpoint TV,

4. Mono 29 and...

5. Channel 8 by RS Plc.

Despite support from the Thai Rath newspaper, Thairath TV came in only 10th in the rankings of TV ratings nationwide.

RECOVERY IN ADVERTISING EXPECTED THIS YEAR

For its part, the advertising sector anticipates a clear recovery this year, with a 10% rise in total ad spending to 144 billion baht, said Triluj Navamara, chairman of the Media Agency Association of Thailand.

Reasons include the improving economy and stepped-up investment in infrastructure projects.

Nielsen Thailand said ad spending on digital TV surged by 6.3% to 7.35 billion baht in the first four months of 2017.

EARLY RETIREMENT TO REDUCE STAFF & CUT COSTS

More digital TV operators are likely to offer early retirement packages as they seek to cut costs, reduce staff and stay alive amid fierce competition.

According to media experts, the trend of staff reductions is getting clearer after Triple V Broadcast, the operator of Thairath TV, announced on Wednesday that it would offer early retirement packages to employees with service time of less than one year and up to three years.

SECOND ROUND OF STAFF REDUCTIONS

The move marks the second round of staff redundancy in the broadcasting industry.

Last year, Nation Multimedia Group, which runs the digital channels Nation TV and Now 26, and Thai PBS offered early retirement packages to staff.

Thairath TV opted for voluntary redundancy because it wanted to slash operating costs after pouring a few billion baht into content production and equipment over the past three years.

"It's a big burden for digital TV channels to shoulder a high staff expense, as many of them hunted too much talent to work for them three years ago," Mr. Mana said.

"Now it's time to cut some to become leaner."