RS Plc, leading music and entertainment company, is moving ahead aggressively to boost sport business and is rousing the blood of Thai football fans by broadcasting live football the Spanish Laliga with the new satellite TV platform so called pay TV., which audiences can able to subscribe for their favorite program with the reasonable price.
RS Plc is the first player that launch Pay TV platform in Thailand, believing the new platform will also strengthen the satellite TV, which that is the fastest growing business, and RS is confidence its satellite TV can able to be the No 1 to acquire advertising budget, and sending total revenue in 2012 to grow up by 20% to 3.2 billion baht.
Lat Prao -Surachai Chetchotisak, chief executive officer of RS Plc, unveils the outlook of entertainment industry in 2011 was not liveliness much due to the severe floods. So, the public keep an eye on when the entertainment industry will be resumed. However, after evaluating, the prospect of entertainment industry for 2012 shows a good sign since the beginning of the year because advertisers and product owners have to aggressively plan marketing campaigns and advertising after slashing marketing budgets in the fourth quarter of 2011. The move of media planners is benefiting RS as well.
RS's businss direction in 2012 under the concept of A Year of Social Entertainment, it will concentrate on operational efficiency along with focus on healthy growth businesses to strengthen all business units under RS Plc.
Surachai says the company would give importance to Entertainment Content Provider and Media Service with the strategy of Social Entertainment that was developed from social network such as facebook, twitter and etc, which social network proved that information can be forwarded from individual to group and expand to social until become social network. It is become key sharing between entertainment content providers to customers by using new platform such as Internet TV, VDO link to share via Youtube, and that should be a trend of 2012.
RS CEO points out business units under RS umbrella would use the social entertainment to drive business in 2012, which RS has divided two models, first is Entertainment Content Provider consist of music/digital, showbiz and sport and second is Media Service consist of TV, radio, in-store media. However, RS would restructure business models to be more balance, flexible and in line with the actual situation in order to support the growth of all business units.
Surachai says that the company targets total revenue of 3.2 billion baht in 2012, the expected revenue mainly features music & digital of 950 million baht, showbiz of 850 million baht, sport business of 230 million baht and media business of 1.17 billion baht.
RS still focuses on the combination of entertainment content with all media channel and add value to the existing medias. Meanwhile, it gives importance to satellite TV after showing a skyrocketing growth last year including sport business that RS recently won the broadcast rights for the three-year seasons of the Spanish Laliga league.
"We believe our content development and co-marketing strategies with customers through our corporate customer management, RS will push all business units to show sustainable growth," says RS CEO.
Surachai attributes music & digital remains key driver of business contents in 2012, music & digital has become fully digital music both mobile and online. Now RS is market leader in teenage music segment under the brand of Kamikaze, meanwhile, Thai country music under brand of R Siam is also the market leader in digital country music segment. Music & digital is targeted to generate revenue of 950 million baht. The company foresees music & digital business remain grow up despite the music download piracy.
However, RS plans to exposure new marketing for music downloading so called Music Streaming, which is more popular in foreign countries. It will partner with mobile operators to jointly market "Music Streaming" that would allow customers to experience new digital music downloading from online without storing data download.
The arrival of 3G broadband, which is expected to implement connectivity soon, RS expects to expand customer base and capture smart-phone users, which the group was founded that it represent for 30% of total mobile-phone users and those are high purchasing power, as a result, the smart-phone udders is interesting customers for developing marketing activities.
Showbiz business, in 2011 RS received greater achievement from the "RAPTOR 2011 THE CONCERT", and the company plans to continually organize more concerts from reunion artists include artists from KAMIKAZE and R Siam throughout the year. Big concerts will be kicked off in the second quarter, which RS planned to organize no less than 10 concerts this year, targeting showbiz business will contribute revenue of 850 million baht.
Sport business, RS won the broadcast the Spanish Laliga league rights for the three-year seasons (2012-2015), which RS will broadcast the Spanish Laliga football matches live via satellite TV under the new definition of pay-TV with the concept more fair price, more convenience. Subscription price is expected to offer only about 100 baht, which the pay-TV will help the Spanish Laliga to more access Thai football fans.
Thai football fans can watch 380 matches of the Spanish Laliga in this August, while, RS will also organize marketing activities and big events to build colorful marketing for Thai football fans nationwide. Revenue of sport business this year could be seen a skyrocketing growth of over 1,050% to 230 million baht from last year. RS is negotiating sponsors to support the program.
Media business, which RS plans to expand more networks of its radio station Cool 93 Fahrenheit including Chiang Mai province under the concept of Cool 93 Fahrenheit Check-in @ Chiang Mai.
Cool 93 has high brand value, which to expand into Chiang Mai due the province is one economic important city and help expand listener base include add media value to customers and sponsors.
Media business is expected to grow by 6% to 340 million baht this year.
Surachai says satellite TV market trend is sunrise business and is revenue driver to the group. In 2011, Sabaidee TV and YOU Channel showed remarkable revenues and ratings. Both stations can become leader in each target audiences and expected to be reliable stations of audiences.
For Channel 8 Infinity, which introduced last year, is expected to lift to top players in Entertainment Variety station this year from ranking second leader last year.
While, YAAK TV, which is only channel in Thailand that broadcast by the social network platform so called "Social Screen" for updating real time from social network - facebook and twitter, making the channel can capture new generation, which the company predicts the satellite TV has room to grow and rapidly expand within 2-3 years, therefore, it is good timing for RS to penetrate the satellite TV business.
The four stations - Sabaidee TV, You Channel, Channel 8 Infinity and YAAK TV are targeted to record revenue of 750 million baht, of which is free TV's revenue of 200 million baht and satellite TV of 550 million baht or grow up 74%.
The company has no further plan to increase new satellite channels buy would concentrate on quality content in order to respond audiences in each segment. Satellite TV is growing business, which the company expects the advertising spending in 2012 could be risen to 3 billion and increase to 5 billion in 2013, players who want to be survivors in this industry must compete by offering quality contents.
"We forecast the entertainment industry in 2012 will get back liveliness from the new platform of media especially satellite TV including the changing of industry structure. Our music business will go ahead under the Music Streaming strategy despite the piracy; the upcoming 3G broadband should accelerate new services that benefit content providers. The flexible from organizing company's structure and our competitiveness to cope with the rapidly changing in digital, I believe RS can cash in on the move, further, the social entertainment strategy would generate revenue in 2012 of no less than 3.2 billion baht or grow up more than 20%," Surachai concludes.