Channel 3 operator BEC World Plc is seeking to rebrand for the first time since its founding in 1970, as the company strives to pivot towards online advertising and seize competitive advantage in the rapidly changing digital TV market.
Channel 3 is undergoing a major organisational and management restructuring that will help it transition from a family-run business to a professionally managed company, said group chief executive Prachum Maleenont.
Outsiders will now help run the business, which was previously directed exclusively by descendants of the Maleenont family, he said.
This development comes ahead of its 2020 broadcast concession expiration.
"Managerial and operational transformation is crucial to enhance our competitiveness in an increasingly complex broadcast industry," said Mr Prachum, who is also vice-chairman of the board. "In particular, we are seeking to tap the lucrative online ad market to offset linear TV's shrinking ad revenues."
Mr Prachum reiterated that in spite of the corporate governance changes, Channel 3 (47% of which is owned by the Maleenont family) does not plan to sell its stake in the company as was rumoured last week.
"We have a long-standing reputation in Thailand as a family-owned business with a healthy financial status," he said.
Mr Prachum said Channel 3 is on the verge of rebranding the company's three digital TV channels (Channel 33, 28 and 13).
The company initially planned to operate its three TV channels through three different companies.
The channels are currently managed under a single company.
The rebranding process will be completed by September this year. "We will be ready to reveal our completely revamped channels by the end of 2017," Mr Prachum said.
Channel 3 needs a new programming model to keep up with rapidly-changing audience preferences and stiff competition from over-the-top (OTT) companies, he said. The company is in the process of setting up multiple new business units to boost revenue.
A commercial business unit is intended to improve content and bring in revenue through online platforms and international TV channels. The unit will also have a role in copyright management.
BECI Co, a second business unit, will use online businesses to attract viewers to the company's Mello digital platform.
Mr Prachum said Channel 3 will overhaul its existing TV programmes to avoid internal competition.
Channel 13 will target family audiences, Channel SD 28 will target the mass market and Channel HD 33 will appeal to the luxury segment.
"Channel 3 is entering its implementation period, after experimenting business options for the past three years," Mr Prachum said. "We have now targeted and locked down audience segments for each of our channels."
People are increasingly shifting from traditional TV to online media platforms. This behavioural change has been the biggest blow to the broadcasting industry, he said.
Currently, TV businesses account for 80% of Channel 3's revenue. The remaining revenue comes from content and copyright, marketing events and online businesses.
"We are currently seeking innovative revenue streams to cope with modern media and broadcasting platforms," Mr Prachum said.
There are currently over 200 million monthly viewers on Channel 3's YouTube platform.
Mr Prachum said that in order for a company to survive in the broadcasting industry, it must have vision, competence, financial stability and Big Data capabilities.
"Only 5-8 digital TV channels will survive the tough competition in the coming three years," he said.
Mr Prachum said BEC's restructuring will attract advertisement spenders specific to each channel, which will lift its lagging revenue.
He acknowledged the digital TV industry must evolve or die if it keeps an ad-supported business model. Big events transmitted in real time over social media are crucial components of that strategy.
Somprasong Boonyachai, chairman of BEC World's executive board, said TV remains a form of entertainment, even if consumers can access top notch content through their tablets and mobile phones.
"People continue watching traditional TV, even if young people watch it much less than older people," he said. Young viewers watch from 30 seconds to 3 minutes on their smart devices.
Channel 3 is pushing to expand its viewer base by catering to various audience segments.
"We are overhauling our content and programming though our original content, purchases from overseas, and licences," Mr Somprasong said.