Siam Commercial Bank (SCB) is taking a neutral stance on digital TV due to the high auction prices for licences.
Even so, it will provide financial support for TV infrastructure investment under its normal practice of loan analysis, while project feasibility and returns are key factors, said Arthid Nanthawithaya, the senior vice-president for wholesale banking.
But the business may take a long time to break even due to high costs, particularly from the auction prices for licences. The prices, which were generally higher than market expectations, do not include infrastructure investment.
"We're no experts in the TV business, but still we think the auction prices for the 15-year licences were quite high," Mr Arthid said.
Auctions for 24 digital TV channels late last month generated 50.9 billion baht, 2.3 times higher than starting prices on average. Seven winners for standard-definition variety channels tendered the highest prices for their licences, five times higher than starting prices.
With heavy competition, new strong players will be able to survive and grab market share from existing broadcasters.
Normally, the media industry represents a marginal proportion of the bank's corporate loan portfolio, Mr Arthid said.
Kasikorn Research Center reported digital TV will lead to a significant development in Thailand's media industry, adding 24 free TV channels to the existing six channels and creating tougher competition.
The change will benefit related businesses such as broadcasting services, commercial advertising, set-top boxes and home shopping.
The research house predicted the 2014 market value of content services will be 32.7 to 33.3 billion baht, growing by 14-16% year-on-year, while home shopping will be worth 6 to 6.25 billion, up by 20-25%.
The value of the digital TV and set-top box market will be 40.2 to 44.5 billion baht, up from 5.2 billion last year.
SCB, the country's third-largest bank in term of assets, will pay more scrutiny to loans sought by the property and tourism sectors, which are sensitive to political problems.
The sectors are affected immediately, while they need a long time to break even after investment.
However, the export sector is expected to rebound this year, in line with the improving world economy led by growth in the US, China and Japan.
Export-related businesses, trade finance and foreign exchange will facilitate revenue growth for corporate banking this year.
Mr Arthid said the real sector will not be directly hurt by political uncertainty. Many corporate customers are sticking to their plans for project investment and fund mobilisation.