PSI Holdings, the country’s largest satellite network provider, will aggressively focus on high-definition (HD) set-top boxes and collect subscription fees from customers to survive fierce competition in the broadcasting industry.
It is now collaborating with pay TV operator CTH to supply more content and help with the subscription business.
PSI chief executive Somporn Teerarochanapong said his company's new HD box, the O2X, which was specially developed to speed up channel flipping, had more beauty features and supported both C and Ku-band satellite dishes.
Its price is set at 1,200 baht, down from 1,690 baht for the previous HD box, the O2.
Last year, PSI sold 1 million O2 set-top boxes and plans to sell 2 million O2X boxes by year-end.
It expects to double its HD channels to eight this year, while content for the four present ones is supplied by partners Workpoint Entertainment Plc and RS Plc.
Mr Somporn said this strategy was aimed at accelerating the migration to HD set-top boxes, with affordable prices for those who had HD TV sets.
Demand for standard-definition (SD) set-top boxes remains high.
Many households, particularly upcountry, still watch traditional TV sets that cannot receive HD signals.
PSI sold 200,000 SD set-top boxes last year and has set a significantly higher sales target of 4 million this year.
Thailand's largest set-top box provider has 17 million boxes — 10 million SD boxes without the conditional access (CA) system and 7 million HD boxes.
PSI has a marketing campaign to encourage SD box users without CA to upgrade to CA for 499 baht.
The National Broadcasting and Telecommunications Commission (NBTC) has ordered each satellite channel to use encryption for national security, so traditional SD box users cannot watch satellite channels except for six analogue channels.
PSI now identifies itself as a pay TV operator like other satellite TV operators.
Mr Somporn said the company needed to generate additional revenue to diversify from risks to both advertising revenue and subscription fees.
PSI will collaborate with Workpoint to find ad revenue, while its subscription fee business will be accomplished working with CTH.
Set-top box sales will represent 80% of company revenue, with 20% from subscription fees this year.
Last year, revenue came mostly from set-top box sales.
Mr Somporn said even though the NBTC would not allow Thais to use the government's digital TV coupons to buy satellite TV set-top boxes under its subsidy scheme, PSI still planned to push its satellite set-top box sales this year.
Its sales target is 3 billion baht, on a par with last year.