Tv Operators Can No Longer Charge Content Providers: Thailand

[webfact]

NBTC

TV operators can no longer charge content providers

Watchiranont Thongtep

The Nation

NBTC panel okays drafts for three classes of licences

BANGKOK: -- Satellite and cable TV operators offering channel-grouping services will no longer be allowed to charge content providers whose channels they air, the National Broadcasting and Telecommunication Commission has decreed in its new draft of regulations for broadcasting licences.

Yesterday, the NBTC’s broadcasting committee approved three drafts of three classes of broadcasting licences - for infrastructure, network and service providers - and another set of draft rules to import, produce and distribute set-top boxes to pay-television operators. This was done after the public-hearing process was completed last week.

After these drafts are submitted to the NBTC board tomorrow, they will be published in the Royal Gazette by end of this month. All three licences can be used to provide services ranging from digital TV to cable and satellite TV.

Natee Sukonrat, chairman of the NBTC broadcasting committee, said that under the new 160-page rulebook, digital terrestrial, satellite and cable TV operators need a licence from the NBTC before going into operation and must stringently follow all procedures. For instance, they need to pay 2 per cent of the gross revenue to the NBTC Universal Service Obligation fund and another 2 per cent as annual licence fee.

Additionally, satellite and cable TV operators offering channel-grouping services by charging content producers will no longer be allowed to do so under the new regulations because the NBTC will be determining a standard for channel grouping soon, Natee said.

EASY ACCESS FOR VIEWERS

"This approach will give viewers easy access to key TV programmes that are produced by quality TV content providers," he added.

The NBTC committee expects to be able to grant cable, satellite and pay-TV licences as well as digital terrestrial television for public use by next month and commercial digital TV licences early next year.

Additionally, Natee revealed that 726 of the 6,600 registered community radio stations had lost their right temporarily to operate broadcasting services after the NBTC found that their qualifications did not meet requirements. Previously, these community radio stations had registered with the NBTC for trial operation under preliminary regulations.

-- The Nation 2012-09-11

[asiawatcher]

<deleted>' excellent. About time! Charging between 160,000 and 300,000 baht an hour to someone to show a programme is utter BS. The station should acquire a programme and pay for it, then if the programme is high enough quality, they will be able to earn from ad revenue. This business about charging content providers simply allows poor quality 'crap' with all the 'sproings' and 'boings' to be in our faces, when the broadcasters simply are working purely on revenue and not quality. Don't forget the broadcasters also sell ad time and gain more from that! Just another scam in the LOS.

[Thai at Heart]

Interesting move, I guess advertising time just got waaaaaaaaaay, more expensive. Never knew that they charged content providers to show their shows, which just shows it to be one of those curiosities of the Thai market meaning that someone earns on both sides of the deals. Nice business if you can get it.

Could lead to quite a shake up in programming.

[whybother]

If they were charging the providers for the content, does that mean that the providers were earning money from the advertising?

Otherwise, the providers are paying to produce and paying to have it shown. Where do they make money?

[Thai at Heart]

If they were charging the providers for the content, does that mean that the providers were earning money from the advertising?

Otherwise, the providers are paying to produce and paying to have it shown. Where do they make money?

Presumably you are right, a share of advertising. Would explain why you have some of the better shows on a 11pm, simply because, the providers wouldn't necessarily be willing to pay for the absolutely prime time slots? Is this the first time I can remember that a government agency intervened in a market in Thailand and passed a law that may actually improve something. If so, times are a changing.

[AleG]

If they were charging the providers for the content, does that mean that the providers were earning money from the advertising?

Otherwise, the providers are paying to produce and paying to have it shown. Where do they make money?

Product placement, I suppose. I don't watch TV at all, but sometimes I'm "collateral damage" and some of the shows are little more than long running advertisements for various brands and products.

[JoeLing]

"This approach will give viewers easy access to key TV programmes that are produced by QUALITY TV content providers," he added. .......

Quality TV content??? In Thailand?

Suppose TV screens will go blank soon

And even if there should be "Quality Providers"

What will Thai people watch?

They want quantity, not quality.

Edited September 11, 2012 by JoeLing

[madmitch]

I had no idea it worked in this topsy-turvy way. You spend money producing a programme and then pay a TV company to show it? At least that's the way I read it.

Could it be that the content provider gets the income from product-placement? Or, as suggested above, a share of the advertising/sponsorship revenue? Or is it just top get their name and corporate image out into the public domain?

[belg]

i guess it means in the future : crappy publicity every 5 min, just like in the states

and then complain noboby, specially youth, cannot focus more than 5 min

[Thai at Heart]

i guess it means in the future : crappy publicity every 5 min, just like in the states

and then complain noboby, specially youth, cannot focus more than 5 min

5 minutes of adverts is probably better quality than some of the one hour shows.

[asiawatcher]

Just to clarify for you guys - they system is production companies raise money for their 'content'. The world buys content but Thailand charges the content provider to put it on air. This is now being stopped. The deal here is Broadcasters can charge for ads to be on air during the programmes, at anywhere between THB10,000 to THB300,000 per showing depending on the content i.e. if a football final they will charge 300,000 baht every time the 30 second slot goes on air. They usually do three ad breaks of 3 minutes per half hour so 6 ads x 3 breaks is 18 time slots - easy to figure out they clean up.

If the content provider buys the airtime - they can keep 100% of adversing revenue but most content providers cannot get advertisers. So the Broadcasters also then bring in ad revenue and split that so the content providers gets off second best in most instances.

TV Stations outside Thailand buy content - Thailand charges the content owner - go figure... but seemingly now - it's over. That "should" up the ante as far as quality goes.