Subscription-based video-on-demand (VOD) is emerging as a premium viewing choice for consumers and challenging cable TV operators.
VOD is still a new service for most Thai consumers, and there are few service providers in the market.
Advanced Info Service has said it will roll out the HBO Go application on its AIS network in March.
"The HBO Go app will increase viewing choices for consumers," said Artima Surapongchai, head of marketing of iflix Thailand, a Malaysia-based provider of VOD.
This means consumers can watch six channels from HBO, which were recently dropped from the TrueVisions platform, via the HBO Go app on the AIS network. Its content may be expensive compared with local content, but many consumers like it, she said.
For iflix, consumers can watch various content from different players, including movies from 50 studios, Asian series and local content.
"Competition will now focus on variety of content, the speed of new content release on platforms, and devices that support viewing," said Ms Artima.
She said the formal launch of Google Chromecast's device imported by AIS will be a positive factor to drive VOD locally.
Chromecast is a media-streaming device that plugs into the HDMI port of digital TVs, allowing content from a mobile phone to be displayed on a big TV screen. Users need not have an internet-connected TV, a set-top box or a wireless system.
The price of Chromecast is 1,490 baht.
"Consumers may like this experience and iflix is one of the VOD providers that can support Chromecast," Ms Artima said.
A source from one local movie-on-demand service provider said mobile operators need to partner with content providers to leverage the use of their networks.
Moreover, providers of VOD need to find their niche markets and select the right content for their target customers. Normally, users for paid content are adults over 30 as teenagers sometimes use pirated content, said the source.
Despite the emergence of VOD, cable TV operators can still survive with unique content such as live sports and news, said some operators.
Vichit Aearevorakul, managing director of Charoen Ying (8888) Co, said VOD service is emerging but is not a pure threat for cable TV as it targets a different audience and content is expensive.
"I believe the VOD platform from AIS Playbox, Netflix or iflix will not adversely affect the cable and satellite TV platform," he said.
Mr Vichit is interested in bringing HBO content on AIS Playbox to broadcast on his cable TV platform if Playbox doesn't secure the exclusive rights from HBO Asia.
"I think bringing high-quality HBO content to the mass market will benefit more people and a partnership with a strong mobile operator like AIS is good for our cable TV business," he said.
Media agencies agree VOD offers consumers a new viewing choice while giving marketers and advertisers a new channel to communicate with high-spending consumers.
Mana Treelayapewat, dean of the school of communication arts at the University of the Thai Chamber of Commerce, said media consumption is changing significantly, with a lot of potential for online and VOD TV.
He estimates many affected customers from TrueVisions dropping the HBO channels will move to AIS Playbox as HBO's quality content has been popular with Thais for decades.
"TrueVisions may lose its customers to AIS Playbox very soon, especially those who are moviegoers," said Mr Mana.
Digital TV channels should not be as affected by AIS Playbox because they offer free content, he said.
But digital TV operators should develop their content before online TV apps and VOD service have more influence in the media industry, Mr Mana said.