NBTC asks CTH to hold off on content cut

NBTC asks CTH to hold off on content cut

CTH marketing director Thanawat Nithichotevoraphat met with the NBTC to clarify why the company would stop supplying content for the KU-band satellite system. The regulator asked the company to first come up with a plan to help those who would be affected by the move.
CTH marketing director Thanawat Nithichotevoraphat met with the NBTC to clarify why the company would stop supplying content for the KU-band satellite system. The regulator asked the company to first come up with a plan to help those who would be affected by the move.

The National Broadcasting and Telecommunications Commission (NBTC) has asked loss-ridden pay TV operator CTH Plc to continue supplying content for the KU-band satellite system for 2-3 more months.

CTH had announced it would cut its content supply through the KU-band satellite system on Aug 1, which will hit at least 40,000 customers.

Supinya Klangnarong, a broadcasting commissioner, told CTH to delay the move for another 2-3 months in order for the company to come up with proper measures to help affected customers.

CTH's marketing director Thanawat Nithichotevoraphat said he would ask top managers at the company to consider postponing the move.

He initially met the regulator to clarify why CTH would cut the content supply for the KU-band satellite system. But the NBTC said that the company did not have a good solution to help those who would be affected by the decision.

Before the content cut for the KU-band satellite system, CTH earlier this year ceased its content supply to customers who watched TV via set-top boxes in the C-band satellite system, including PSI Holdings, RS Plc and GMM Z.

CTH is now facing a massive loss of 10 billion baht after failing to use its English Premier League content to attract subscribers and advertising revenue.

The company paid more than 9 billion baht to secure the EPL broadcast rights for the previous three seasons ending May 2016.

In another development, TV Pool, the network of five TV channels that will broadcast the Rio 2016 Olympics, is expected to face a massive loss as it has only filled 20% of its advertising air time schedule so far for the upcoming Olympic Games.

The TV Pool comprises Channel 3, Channel 5, Channel 7, Channel 9 (MCOT HD) and NBT.

Surin Krittayaphongphun, acting president of Bangkok Entertainment Co, a subsidiary of BEC World Plc which operates three digital channels of Channel 3, said he was concerned about the TV Pool's big investment to secure sub-licensing rights to broadcast the 2016 Summer Olympics.

At 450 million baht for the broadcasting rights, the 2016 Rio Olympics are the most expensive content the TV Pool has ever purchased.

"It will be very tough for us as the content cost has increased by about 5-6 times when compared with the previous Olympics," he said.

Advertising agency Dentsu Inc of Japan won the broadcast rights for Olympics in Asia, including Thailand.

Mr Surin said there is a slim chance for TV broadcasters to generate high profits from the broadcasting the Olympics, unlike the London 2012 Olympics.

"But this time, Thailand has a strong chance of winning some gold medals," he added. "If Thai athletes can make it happen, it will bring joy and happiness to the nation."

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