Entertainment content on Modern Nine will increase from 24 to 32 percent

Bangkok Post
Friday, August 15, 2008

By Woranuj Maneerungsee

MCOT Plc, the operator of Modern Nine, Thailand's third most popular TV station, is moving toward entertainment content in anticipation of more advertising revenues and ratings.

President Wasan Paileeklee said that starting from this quarter, entertainment content would rise to 32% from 24% previously. The move will help the SET-listed broadcaster maintain revenues during the low season in the third quarter.

Meanwhile, the company's board would consider the proposal of TrueVisions, its concessionaire pay-TV operator, to earn revenue from commercials by offering MCOT a 6.5% share of total ad revenue.

Mr Wasan said MCOT had complied with the 2008 Broadcasting Act, which allows a broadcaster to broadcast entertainment content at a maximum of 70%.

"The newly appointed board agreed with the idea," he said.

MCOT aimed to expand its viewer base from children and adults to teenagers, entry-level workers and women.

However, news will remain its core content, accounting for 40% of all content and contributing lucrative income to the station. Evening news, in particular, generated nearly 200 million baht in the first half of the year, up 80% year-on-year.

The station projected revenue from news to double to 800 million baht by the end this year from last year.

MCOT this week reported a better-than-expected performance in the second quarter. Its total revenue rose by 29% year-on-year to 1.19 billion baht, with net profit surging by 68% to 406 million baht due largely to 45% revenue growth in the TV business.

In the first half, it reported 20% growth in total revenue to 2.1 billion baht, and net profit rose by 36% to 641 million baht.

The audience share of Channel 9 reached 10.6% as of June, after 44.7% for Channel 7 and 25.4% of Channel 3, according to media research AGB Nielsen.

Kematat Paladesh, the MCOT vice-president for marketing, said MCOT would maintain its revenue growth in the third quarter.

The station would realise incomes from seasonal programmes such as Academy Fantasia, which should generate about 50 million baht, the same as last year. As well, more income is expected from the upcoming Bangkok governor election campaign.

An analyst said MCOT had little room to manoeuvre apart from focusing more on entertainment content. It could not increase airtime utilisation, which stood at an already high level of 93% in the second quarter, compared with 79% in the previous quarter.

The same analyst viewed that with the knowledge-based character of MCOT, its entertainment content would be different from BEC World's Channel 3, which focuses on soap operas. Modern Nine may emphasise on talk shows and variety programmes.

As for MCOT's radio business, Mr Wasan said it had missed the target in the second quarter and a restructuring was in progress for its 53 stations upcountry and seven stations in Bangkok. The direction would be clearer by the end of this year.

MCOT shares closed yesterday on the Stock Exchange of Thailand at 23.40 baht, up 20 satang, in trade worth 3.03 million baht.

Date Posted: 8/15/2008