"RS" reveals its business strategy, announcing business direction and plan in 2013 to step into multi-content media network. It continues keeping the No.1 in satellite TV market with an aim to achieving 4 Billion Baht in revenue after improving marketing strategy to drive the rising star--media business which outperforms.
Ladprao – Mr. Surachai Chetchotisak, Chief Executive Officer, RS Public Company Limited, says private sector in ASEAN nations is currently awakened and very active as they are preparing and adjusting to use an opportunity from removal of restrictions in business and investment to boost income from the upcoming ASEAN Economic Community (AEC) in 2015. RS, as the entertainment business leader with strength in music, showbiz and media business, can make Sabaidee TV which presents music content of R Siam rank No.1 consistently in neighboring countries. This can extend to showbiz with artists visiting to have concerts in those countries and getting very good feedback. RS, therefore, sets additional strategy to prepare for taking opportunity from market expansion in ASEAN countries which will be also in line with the government's policy to entering AEC.
This year media business will have an incredible growth due to a change in technology which will create new medium as alternative for consumer. This will result in higher importance of content as those having good and potential content will be able to reach target consumer absolutely.
For business direction in 2013 to step into multi-content media network, RS will actively create strong media network and also focus on a variety of content covering all target groups to deliver through RS's entertainment media. This will be RS's direction and strategy to drive the business with an aim to achieving 4 Billion Baht in total revenue in 2013 or an estimated growth of 40%. About 48% of the total will be from media business, 21% from music business, 20% from showbiz business and 11% from other business.
Media business--RS's media business includes satellite TV business with 5 channels at the present including Sabaidee TV, Channel 8, YOU Channel, Star Max and Sun Channel. Satellite TV was a rising star business last year with Sabaidee TV and Channel 8 ranking the No.1 rating, leaving competitors far behind. RS expects ad spending through RS's satellite TV will have a leap growth. Additionally, RS uses potential of world content including Spanish La Liga and FIFA World Cup 2014 which RS wins the right to live broadcast as a core source of income. These world tournaments can be extended to other business. In 2013, RS targets revenue from satellite TV business to grow 132% to 1.33 Billion Baht.
Radio business--After Cool 93 Fahrenheit has ranked the No.1 in easy listening throughout the past 10 years, according to Nielsen Media Research, its revenue was higher than the target last year. In 2013, a significant development in this business will be seen to extend and enhance strength of radio business that has a continuing growth. Moreover, there is Sabaidee Radio which extends from the success of Sabaidee TV. This year RS has planned to build it to be popular among audience of country 'Luk Thung' songs and songs for life. It aims to have 540 Million Baht in revenue from radio business or a growth of 25%.
From strength and growth of media business above, the company targets revenue of 1.9 Billion Baht from media business this year or accounting for 48% of the total revenue.
Music business--Revenue this year will come from digital channel increasingly due to an emerging of new channels of music listening with music streaming service coming with the world brand like Deezer. It has a number of ringtone and calling melody download from business partners of 3 mobile operators as well as download through new channel like iTunes. This year music business is aimed at 840 Million Baht in revenue or accounting for 21% of the total revenue.
Showbiz business--RS this year plans to hold more than 4 big concerts of favorite artists of all-time. There will be concerts and events that meet marketing demand of various products throughout the year. RS targets revenue of 780 Million Baht from showbiz business this year which will account for 20% of the total revenue.
For dividend, the company will hold a board meeting in February to ask for an approval on dividend payment and will have an annual general meeting of shareholders in April to get a conclusion.
“I view prosperous future and growth in media and entertainment industry in 2013. I am also confident that RS's business plan to entirely become multi-content media network will support music, showbiz and media business to achieve revenue as target. However, doing business needs a caution and a survey on consumer's demand regularly. It needs to keep up with technology and apply it to be in line with business so that business will improve, prepare for new things and keep up with any possible change in the future," Mr. Surachai concludes.