Creating a balanced regulatory scheme to supervise the Thai audio-visual (AV) market is the proper way to govern streaming platforms, including small geo-satellite broadcast and digital terrestrial TV (DTT) systems in this era of digital evolution, according to a study.
The study carried out by SCF Associates on the future of Thai TV broadcasting and the AV sector in the digital era also recommended a regulatory body should support low-income households and the public interest.
The Office of the National Broadcasting and Telecommunications Commission (NBTC) hired SCF Associates as an advisor to study and propose recommendations on the changing nature of the country's AV market. The advisor released the study to the public on Aug 16.
The NBTC said it will consider the study as it works to develop the industry's regulatory framework.
SCF suggested the NBTC examine precedents from other jurisdictions and consider ways in which it can cooperate with other regulatory bodies in Thailand to curb the high level of market power of social media platforms and other digital platforms in the AV sector.
The NBTC should talk with other AV industry bodies to support the establishment of a new entity responsible for supporting investment, production, distribution and promotion of Thai content, noted the study.
Damian Tambini, a researcher at SCF on media and communications regulation and policy, said the Thai AV market is at a turning point.
Despite its progress in terms of ad sales and updating technology to digital TV with DTT multiplexes and geo-satellite broadcasts over the last decade, the market now faces more difficult conditions, he said.
Reflecting a global trend, traditional TV broadcasters using a free-to-air TV system are facing challenges from content streaming services delivered over fibre-optic broadband infrastructure.
Local broadband infrastructure services are being offered by two major providers, which also have major shares of the cellular service market and provide a 5G mobile broadband service.
From the point of view of video distribution operators, the difference when comparing the supply of free-to-air digital TV content with content provided via streaming is related to the required regulations and supporting legislation, according to the study.
The business of highly regulated digital TV broadcasting depends on the spectra they secure from NBTC auctions. They also need a broadcasting licence and must operate according to "must have" rules, "must carry" rules, standards pertaining to content quality and consumer protection rules.
In contrast, over-the-top (OTT) players of all sizes, which attract higher revenues from advertising, have largely escaped regulations concerning consumer protection and content quality, noted the study.
OTT refers to the technology or platform that delivers streamed content over the internet.
Another major difference between free-to-air digital TV and streaming platforms is the devices and technology that receive the content.
Among users aged 59 or older, an SCF online survey found that they are still loyal viewers of linear broadcast TV sets.
Streamed content is popular among younger groups who utilise tablets, smart TVs and smartphones to receive content.
COST OF SERVICE
The cost of service must also be considered. Free-to-air broadcasts provide a cost-effective source of content that remains vitally important to low-income earners, which includes the rural poor, who tend to be older and less digitally savvy, according to the study.
Streaming video-on-demand services provided by the two main fibre broadband operators is by subscription for the broadband connection and includes additional costs for bundles of content, often combining a discounted mobile subscription.
The streaming costs could exclude some sections of society, especially those living in remote regions without broadband coverage.
Free-to-air TV serves a social need and should provide these consumers with high-quality content, according to SCF.
Major service providers have entered the Thai market from other countries, including from the US (the GAFAM group, referring to Google, Apple, Facebook/Meta, Amazon and Microsoft) and Chinese online platforms such as ByteDance (TikTok), Viu and WeTV.
The GAFAM group possesses formidable online service platforms that have a presence in the Southeast Asian and global AV markets, noted the study.
BALANCING ACT
The study indicated the Thai regulations are focused on existing TV broadcasters, which do not cover everyone within society.
A regulator should emphasise the public interest, particularly ensuring the poorest in society have the benefit of free or low-cost public service channels, noted the study.
SCF proposed the NBTC create content regulations for OTT providers and linear broadcasters, which should be balanced.
Smaller Thai OTT streaming platforms should be regulated for content quality, including the ability to ban material deemed harmful, noted the study.
The NBTC should monitor the number of operators and the market competition for fixed and mobile operators, as well as in the streaming market, according to SCF.
Moreover, measures are needed to ensure Thai social media users are protected from hate speech, incitement to terrorism and violence, noted the study.
