Hub Ho Hin Bangkok Co has clinched a deal to form a new film studio with SET-listed GMM Grammy Plc after the closing of GMM Tai Hub Co (GTH) tomorrow.
The new film studio is named GDH 559 and has 150 million baht in registered capital. It has 59 shareholders comprising Grammy, which holds a 51% stake, Hub Ho Hin 15%, and both companies' executives, staff, actors and actresses who used to work with GTH.
The name GDH comes from "gross domestic happiness".
GDH 559 will open its office next Tuesday with Jina Osothsilp, a top executive at Hub Ho Hin, the chief executive.
After the mutual agreement by three shareholders to shut down GTH, Hub Ho Hin and Grammy decided to carry on film production together and set up a new film studio, Ms Jina said.
Another GTH shareholder, Tai Entertainment, will produce movies on its own.
The shutdown of GTH after 11 years of operation may have surprised some Thai moviegoers.
"Most of the film production staff at GTH will be at GDH 559. We hope our experience and teamwork will help us achieve new success," Ms Jina said.
Busaba Daoruang, chief executive of Grammy and also president of GDH 559, said despite the closure of GTH, everyone is still good friends and ready to help each other. The goal of GDH 559 is to keep producing good content.
Grammy preferred a joint venture with a professional movie studio with a strong team of directors and production crew.
GDH 559 plans to spend 115 million baht to produce two movies categorised as a romantic drama and a thriller drama and four drama series to air on GMM 25 channel.
Some 50 million baht will be for movie production and 65 million for the four series.
"I don't expect revenue at GDH 559 will flourish next year as the local economy is still sluggish. But we are confident that we won't lose," Ms Jina said.
GTH helped develop the local film business and brought many Thai movies to screen abroad.
It produced several popular films such as Fan Chan and Pee Mak Phra Khanong, the latter the highest-grossing Thai film and the first to break 1 billion baht at the local box office.
She said next year the Thai movie industry would have a line-up of more international movies, particularly those from Hollywood. GDH 559 will have to be different to draw the attention of Thai moviegoers.
The new film studio would like to collaborate with other companies to co-produce entertainment content, she said, adding that having an alliance was the right way to enhance content production.