Advertiser Upset About Shinawatra Move

[george]

Advertiser upset about Shinawatra move

BANGKOK: -- Triads Networks Co Ltd, a joint venture between Bangkok Metro Co Ltd (BMCL) and the Yimwilai family, established to develop advertising in Bangkok’s new subway system, said yesterday it would lose 50 per cent of its business following an unexpected revision of the concession contract by BMCL this month.

Under the revision, Triads will no longer be able to sell prime advertising areas in the train tunnels – known as trackside sites – as well as telecommunications and networking systems, including fibre optic, print media and the organisation of marketing activities and exhibitions at stations.

The length of the contract has also been reduced from 25 years to 10 years, with an option to extend the contract by another five years.

How Come Co Ltd, an agency set up by Panthongtae Shinawatra, son of the prime minister, is reportedly bidding for the rights to market the 20 kilometres of trackside advertising between Bang Sue and Hua Lampong, which is expected to generate more than 20 per cent of total revenue of the entire project.

BMCL is a private company that won the concession from the Mass Rapid Transit Authority of Thailand (MRTA).

Triads Networks retains the right to market all advertising materials and lightboxes in station entrances, walkways, as well as intrain media.

Triads Networks CEO Tipsuda Yimwilai, wife of well known academic and television host Dr Chaiya Yimwilai, said the revision would result in a 50 per cent reduction of the company’s business. BMCL has a 56 per cent stake in Triads Networks.

Tipsuda and her eldest son Akalak hold a 44 per cent stake in the joint venture. Tipsuda is also managing director of Triple A Infomedia, which has carried out advertising work for government agencies and state enterprises for almost 10 years.

“Most of the available advertising sites within the tunnels have been already booked by our agency clients. The contract revision by BMCL has confused my clients as to who really owns the rights in this commercial area,” she said.

“We [Triads] have had to ask our clients to switch their budgets to other advertising areas, where we still have the right to manage them,” she added.

She said the trackside areas are considered prime advertising areas, expected to generate over 20 per cent of total advertising billings in the underground train project.

BMCL director for marketing and commercial development Suthee Panaworn said BMCL had not yet reached a final agreement with How Come Co Ltd, which hopes to get the advertising rights for the trackside areas. He noted, however, that How Come was the only agency that expressed interest in this prime area so far.

“BMCL decided to separate the trackside advertising as we believe we can earn more revenue from this prime area,” he said.

He said that beside Triads Networks, BMCL had set up other subsidiaries to look after business opportunities such as Metro Mall Co Ltd, which would look after the right for retail space in the underground train project. And Radianz Communications Network, which owns the right for telecommunication network including mobile telephone.

Suthee said advertising and retail businesses would generate combined revenues of 5 to 8 per cent of total income from ticket sales, which are expected to reach about Bt5 million a day.

--The Nation 2004-04-22

[george]

THAILAND: Subway cake carved up

BANGKOK: -- Under pressure from Bangkok Metro Company Ltd (BMCL), Triads Networks Co has agreed to amend its sole advertising concession for the Bangkok subway to allow How Come Entertainment Co, a new firm led by Panthongtae Shinawatra, to offer lucrative advertising services for the new transport system

Under pressure from Bangkok Metro Company Ltd (BMCL), Triads Networks Co has agreed to amend its sole advertising concession for the Bangkok subway to allow How Come Entertainment Co, a new firm led by Panthongtae Shinawatra, to offer lucrative advertising services for the new transport system.

Triads and BMCL sealed the amendments just before the long Songkran holidays in a deal questioned by many as rife with political overtones.

Triads, an ad placement agency partly owned by the Yimwilai family, agreed to reduce its original 25-year concession to 10 years with a five-year renewal option. Space allocated for media placements within the subway system was also cut in half under the new contract.

How Come, formed just last November, recently announced that it was building up its business contacts including a deal to import Japanese cartoon series to be aired on Channel 3, controlled by BEC World Plc.

Mr Panthongtae, the 23-year-old only son of Prime Minister Thaksin Shinawatra, is chief executive and president of How Come, a company whose other young executives include Aiyakup Kritboonyaleai, Hana Tassanavalai and Nantasit Jamsomboon.

Aiming to become an integrated entertainment group, How Come expects revenue of up to 100 million baht this year.

But the subway deal alone is expected to generate up to 100 million baht for How Come, through media placements in station platforms and other services.

Triads had originally held sole rights to ad placements within the subway system. But under the ``agreed'' changes to the contract with BMCL, Triads will lose rights to place ads in station platforms, offer multimedia telecommunications services and event marketing.

Triads will continue to hold sole rights to ad space within subway train compartments.

Suthee Panaworn, BMCL's marketing and commercial development director, yesterday confirmed that BMCL was in discussions with How Come to operate advertising space on the platforms along the 20-kilometre subway system, set to begin commercial operations in August.

He said no final conclusion had been reached, although How Come was the only company expected to be offered a concession to share business with Triads.

Mr Suthee insisted that How Come's entry would not hurt BMCL's revenues, saying that the reverse was actually true.

"How Come may probably give two to three times more benefits than Triads," he said.

Under the agreement with Triads, BMCL will receive revenues based on a revenue-sharing agreement. But considering that Triads is 56% held by BMCL, it would seem clear that opening up the contract would have a financial impact on the subway operator.

Mr Suthee declined to comment on negotiations with How Come, and added that BMCL expected ad and retail operations in the subway to account for only 5% to 8% of the system's total annual revenues. The subway is projecting daily ticket revenues of five million baht in the initial stage of operations.

BMCL earlier announced that retail space in the subway would be managed by Metro Mall Co, with communication signal systems installed and operated by Radiance Communication Network Co (RCN). Both Metro Mall and Radiance are also BMCL subsidiaries.

Tipsuda Yimwilai, chief executive of Triads Networks, said her company would have to amend its business plans in light of the new contract terms.

She said Triads was expected to lose half of its expected sales revenues of 500 million baht annually due to the loss of media space and other operations to How Come.

The biggest impact would be the loss of space along the tunnel walls at station platforms, estimated to be worth 80 to 90 million baht annually alone.

Mrs Tipsuda said bookings by Triads were 80% full for the first year, but that reports that the company's concession terms would be amended had led to confusion among media clients.

Industry executives expressed resignation about the changes, seemingly the result of clear political connections.

"We're now completely confused about who to deal with regarding commercial ad space. No one has ever told us what the situation is about," said one media buyer.

Others said the entry of How Come was not surprising, given the lack of transparency and nepotism that have characterised state contracts in the past.

--Bangkok Post 2004-04-22

[dr_Pat_Pong]

Nepotism begins at home, Cheerless Leader has no shame or moral fibre.

[tuky]

Nepotism begins at home, Cheerless Leader has no shame or moral fibre.

Disgrace

Triads...what an unfortunate name for a business.

[ASIC]

Is it legal?

ASIC

[Guest chingy]

while we are in this topic, just wanna ask if i wanted to rent a place down in the subway to open some samll shop, like singapore, where do i go to.

[englishoak]

Our cheerless leader is becoming rather blasé lately

[sabaijai]

Just as Chula lowered its admission requirements to admit his daughter ...

[Axel]

Been a few days ago to Asia Bookstore in Landmark BKK.

What did I find? A shelf with books. Fine with me.

But worse: A sign: "These books are recommended by PM Shinawatra Thaksin"

[thaimee]

In any event, i'm proud to see that the Thaksin economy is making sound progress with the infrastructure of the kingdom and i'm looking forward to see if the Metro System will make central Bangkok a more organised system to travel in?

I'm probably counting my chickens there. Being realistic there will be a cut off point where our beloved Prime Minister has outstayed his welcome. Any guesse's when this should occur, i'm punting all money on the Egat dispute?

See you there, up in arms....

Thaimee.

[ChiangMaiThai]

Its good to see that a 5 month old company run by a 23 year old can still expect to generate 100 million baht in revenue in its first year. What a fuc#ing joke. Nepotism is alive and well.

[englishoak]

Its good to see that a 5 month old company run by a 23 year old can still expect to generate 100 million baht in revenue in its first year. What a fuc#ing joke. Nepotism is alive and well.

exactly

[lamphun]

Advertiser upset about Shinawatra move

BANGKOK: -- Triads Networks Co Ltd,

How Come Co Ltd,

This is a joke right...

Have Cosa Nostra Pizza got the food concession ?

George you've gota sense ogf humour after all. You're a prper Gentleman... Whoops sorry didn't mean to be rude.

[ThaiPauly]

Its good to see that a 5 month old company run by a 23 year old can still expect to generate 100 million baht in revenue in its first year. What a fuc#ing joke. Nepotism is alive and well.

Wish someone would tell me how to earn 100 million baht a year, i'm twice his age with 20 years experience in advertising, tried to launch something here, and lost all a mil trying to something that made a fortune in the UK, as someone said in another forum. How do you make a small fortune in thailand- Come with a big one

Sad but true