MCOT Plc, the state-run broadcaster of Modernine TV or Channel 9, is focusing on generating additional revenue from non-broadcast activities, particularly selling set-top boxes, network rental services and event organising.
"These non-broadcast activities will help MCOT maintain its 2014 revenue target at 6 billion baht amid fierce competition from 24 new digital-TV channels," said president Anek Permvongseni.
The company yesterday launched three set-top box models, ranging in price from 1,299 to 1,495 baht, each with a two-year guarantee.
Planet Communication Asia Plc and Createch Marketing and Trading Co, two leading set-top box producers, will provide guarantee services.
It intends to sell 1 million boxes this year and have 200 million baht profit.
Consumers can use subsidy coupons distributed by the National Broadcasting and Telecommunications Commission to get discounts when buying MCOT boxes. MCOT is the registered set-top box retailer.
The 15-year digital TV network business will also contribute to MCOT's revenue. Currently MCOT has five channels renting its network: Spring News, Voice TV, Thairath, MCOT HD and MCOT Kiddie.
MCOT will broadcast its analogue channel until 2019.
It will bring some programmes from analogue content to its high-definition (HD) channel numbered 30.
The new HD channel is positioned to focus on premium content for mass viewers with the concept of imaginative channel.
While its children’s channel named MCOT Kiddie numbered 14 will be newly produced partnering by foreign partners.
Both channels will invest about 200 million baht and start fully broadcasting around July.
It invested little when compared to other channels as MCOT is taking a wait-and-see approach with competitors over the first three to six months. After that, it will fully invest for content development in the next phase.
MCOT expects to generate 250 million baht in revenue from digital TV in the first year, due to lower network coverage.
"We will provide communication channels in line with the marketing trend of segmentation. It is not only TV channels, but it also includes websites, events and show biz," said Mr Anek.
MCOT aims to generate 6 billion baht this year with 1-2% growth comprising 3.6 billion baht from TV unit, 900 million baht from radio business, 900 million baht from concession, 350 million baht from satellite TV business and non-broadcast business at 900 million baht.
Last year, MCOT posted 5.9 billion baht in revenue, a stable figure compared with 2012 due to the increased costs from its own-produced programmes and lower ad loading factor.
MCOT shares closed yesterday on the SET at 29 baht, down 25 satang, in trade worth 7.68 million baht.