Fitch Ratings expects competition for broadcast advertising expenditures in Thailand to heat up over the next three years as new digital television channels enter the market.
"Although we expect the greater number of channels to increase TV's share of media spending, competition is likely to be intense which will drive down advertising rates for free-to-air TV stations," said the global rating agency's report. "This will affect incumbent operators significantly as they currently benefit from high rates, which reflect the relative scarcity of air time."
Following the launch of digital TV, absolute advertising spend on free-to-air TV is likely to increase as greater air time is likely to more than offset the expected lower advertising rates.
Expected lower advertising rates should encourage new advertisers."We expect this increase in TV's media share will be at the expense of traditional media, particularly newspapers, magazines and radio," said the Fitch report.