JKN Global Media Public Company Limited (JKN) plans to strengthen its growth strategy as the content commerce company's recent acquisition of "New 18" digital TV channel from the Hetrakul family will provide them with 24-hour airtime and ready-to-use studios and equipment.
"During my study abroad, I had the opportunity to visit Warner, Sony and Disney Studios. Since then, I've dreamed of owning a business like them," said Jakkaphong Jakrajutatip, JKN chief executive officer.
The investment worth 1.055 billion baht means this is the first time JKN has owned a TV channel since it got started in the content business 11 years ago as a distributor of international copyright content in Southeast Asia. It also owns copyright content produced by local media that is broadcast overseas.
However, JKN recently transformed its business from content to commerce.
"Digital TV is seen as a sunset industry but this was the right time to make a purchase for a bargain price. The deal came with a digital TV licence, three well-equipped studios on 4 rai worth around 500 million baht. We now have 24-hour airtime for our own content and products. New 18 will be rebranded as JKN18 from May," she said.
Of the total investment in DN Broadcast Co, the operator of the channel, 855 million baht was derived from its cash flow and a long-term loan from financial institutions while the rest will be divided into a monthly instalment over a period of 36 months.
"The move will allow JKN to be a complete content commerce company while expanding its viewer base from satellite TV to digital TV," she said.
The new channel will drive the growth of its commerce business group as it aims to grow commerce revenue to 550 million baht this year, or 20% of the company's total revenue.
JKN is planning to achieve revenue in the region of at least 5 billion baht within three years, of which 50% will come from content and 50% from commerce.
"We have the capability and are ready to enter the commerce market. We are confident that the commerce side will be the driving force towards growth," said Ms Jakkaphong.
The company will also launch 20 new products, focusing on health and beauty. It also has 10 hemp-based products which will be available for sale this year.
Teeraphat Petporee, the company's chief financial officer, said the company's knowledge and expertise will enhance the production of new shows and help to create more interesting content and boost ratings.
This year, the company expects to earn 2.5 billion baht. Of the total, approximately 2 billion baht will come from the content business.