GMM Grammy Plc, the country's biggest entertainment firm, is forming a digital TV business unit as it aims to accelerate opportunities for a promising new revenue stream.
The company has named Kanchit Kawachart, former finance chief of Work Point Entertainment, to head the digital TV business, said chief investment officer Jiraporn Rungsrithong.
Effective March 25, Mr Kanchit will sit as chief executive of Grammy's new digital TV unit.
As part of the group's restructuring, Ms Jiraporn said Grammy has divided its business into two sections: traditional business, including music, media and movies; and new business, comprising satellite and digital TV, home shopping and animation.
Krij Thomas remains as overseer of the music business and acting CEO of GMM Z Co, the satellite TV unit. The media business includes A-time Media Co, which runs three radio stations.
"Digital TV will be an emerging media platform and create a new, promising revenue stream for us in the near future," said Ms Jiraporn.
The restructuring is a milestone for Grammy as the company prepares to earn more revenue from advertising in the broadcast market. Digital TV will provide an opening for Grammy to extend its customer reach nationwide.
Ms Jiraporn said Grammy's broadcast business now contributes 20% of total revenue, with the figure set to rise to 50% within five years.
Grammy's revenue was 11 billion baht last year, up 25% from 2011. Of the total, 9 billion baht stemmed from traditional business, with music remaining the core.
Revenue from new business registered 2 billion baht last year, contributing 20% of the total, compared with 10% in 2011.
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Writer: Saengwit Kewaleewongsatorn