STREAMING SHIFT
Board chairman Suphachai Chearavanont explains the firm’s plans to handle subscribers fleeing pay cable. By Komsan Tortermvasana
TrueVisions expands into the internet videoon-demand segment as its pay cable and satellite TV income fades.
TrueVisions is expanding into the internet video-on-demand segment as its pay cable and satellite TV businesses suffer subscriber losses from competition with popular streaming services like Netflix. TrueVisions’ strategy is to create new revenue streams to cope with the decline in profitability of traditional satellite pay TV.
After a gradual decline in revenue growth and subscriptions over the past few years, TrueVisions, the country’s leading pay TV operator, is pinning hopes on the launch of True ID TV, said Suphachai Chearavanont, chairman of the board of True Corporation and chief executive of True parent firm Charoen Pokphand (CP) Group.
True ID TV is an over-the-top (OTT) service that could reach a large number of consumers, offering convenience in access to TV programmes.
Mr Suphachai said satellite and pay TV cannot survive under TrueVisions’ old business model.
The company’s loss of viewers year-onyear was brought about by the arrival of a plethora of alternatives such as digital TV channels and OTT platforms, popular on mobile devices.
“It is not too late for TrueVisions’ business to adapt,” Mr Suphachai said.
Through the True ID TV box, True Corp plans to launch bundle packages for fixed broadband service operated by True Online Co.
Mr Suphachai said customers would benefit from a variety of content such as free programmes and video on demand and pay-perview movies.
Customers will be able to view programmes on their mobile devices or cast from mobile devices to a TV screen at home.
Mr Suphachai said that after the launch, True ID TV would offer hybrid packages for customers who are already subscribers of TrueVisions to access the online TV service.
“All plans under our convergence concept provide optimum benefits to customers,” he said.
Mr Suphachai said the arrival of OTT affects not only consumers’ lifestyles, but also industries that have huge budgets to spend on media advertising.
Businesses have lower costs and get greater impact with their advertising spending over OTT platforms.
Mr Suphachai said TrueVisions will need critical analysis of its viewership data to attract digital advertisers that can target niche segments of consumers.
New business models and relationships are changing the rules of advertising, subscriptions and engagement with consumers.
“There are many more mass platforms for consumers, while some programmes and platforms need selective advertising specifically,” Mr Suphachai said.
True Corp through its mobile operating unit True Move H Universal Communication (TUC) has yet to calculate a budget for 5G wireless broadband development, as it will have to wait for more clarity on the use cases for 5G in the country.
“The appropriate time for 5G tech adoption in the country is considered to be 2021, as spectrum allocation and industry collaboration are still pending to drive 5G development,” Mr Suphachai said.
More importantly, the company needs a spectrum allocation roadmap from the telecom regulator that includes low-band, middle-band and high-band ranges that will be used for 5G.
Mr Suphachai said the Internet of Things (IoT) will be the core driver to encourage operators to speed up 5G adoption and propel digital transformation in vertical industries, especially manufacturing, energy and utilities.
Telecom businesses will benefit from the sale of related IoT devices and solutions, he said.
Mr Suphachai said TUC expects to be the first mover in 5G adoption in the country, thanks to a strategic partnership with China Mobile.
China Mobile was a first mover for 5G’s commercial launch in China, beginning in some parts of Shanghai.
“We [TUC] and China Mobile are studying how to serve upcoming 5G technology,” Mr Suphachai said. “For clarity on the investment, we need to know our returns too.”
The National Broadcasting and Telecommunications Commission is preparing to auction two series of spectrum ranges through what it calls a multi-band auction method in late 2019 to pave the way for 5G infrastructure investment.
The first batch of spectra to be auctioned will combine 700MHz, 2600MHz and 26-28GHz in one auction and the 3400-3600MHz range together with the remaining 1800MHz range in another.
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All plans under our convergence concept provide optimum benefits to customers.
SUPHACHAI CHEARAVANONT Chairman of the board, True Corporation