Line TV, Line Thailand's online video platform provider, is co-producing new music content and variety music programmes with leading entertainment platform provider GMM Grammy Plc, aiming to cash in on the consumer trend of mobile music consumption.
"The move is in line with the existing strategic partner model between the two sides that will directly generate additional revenue from advertising and sponsorships, helping expand the viewer bases of their digital platforms. It also creates added value for GMM's artists," said Ariya Banomyong, managing director of Line Thailand.
Mr Ariya said Thais spend an average of 216 minutes per day on their smartphones, 94% of whom listen to music. Some 70% of users stream music online, he said.
The new content under co-production is a strategic move by Line TV to expand the viewer base of music content on Line TV's platform, said Mr Ariya.
The three core services available free of charge for Line TV users are reruns, original content exclusively produced for the platform and music.
"Today, music content on Line TV is a new service that generates less revenue than the other two, but Line is aiming for all three services to generate an equal share of revenue down the road," he said.
Phawit Chitrakorn, chief executive of GMM's music business, said the company is aiming for revenue from its online music content to increase from 40% of GMM group's total revenue to 50% by 2021.
Under the co-production project, Mr Phawit said the content has been categorised into two types: artist content comprising 12 variety programmes and shows related to GMM music artists and premium music content, including exclusive music videos and live events from popular artists.
Mr Phawit said the premium music content was first broadcast via the Line TV platform in February, beating other platforms by a month.
"Digital disruption has created some threats to the entertainment industry, especially the music business, but not the entire ecosystem. On the other hand, players are looking for new ways to create added value for their existing assets," said Mr Phawit.
Sources of revenue for GMM's music business are physical and digital channels, copyrights and sponsorships. Sponsorships are the biggest revenue resource, followed by digital channels.
But GMM and Line TV declined to elaborate on the revenue-sharing model of their strategic partnership, including value of content, cost of production or fees for broadcasting on the Line TV platform.
Mr Phawit just said GMM, together with Line TV, are working on marketing activities to expand their user bases. For advertising revenue, Line TV and GMM separately handle revenue for their own platforms.
Mr Ariya said the partnership with GMM will focus on localising content for Thais. The collaboration began with music content and will be developed into new and innovative programmes, he said.
