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6 Thai Market Analysis

This section examines the market situation of Pay TV and OTT TV, service
formats, technologies, revenue-generating formats, and market and service trends. After
that, it discusses the cooperation between OTT TV providers, Telcos, Pay TV providers
and Broadcasters, as well as analysis of their impact in many aspects such as competition
with other platforms (DTT, Cable and Satellite), service fee and its impact on consumers.
The last section touches on governing laws that may be relevant to OTT TV in Thailand,
such as Computer Crime Act B.E. 2007 and Patent Act B.E. 2015, to name a few. The
section analyses and studies topics related to international studies from the previous
section and compares the study results of these two sections.

6.1 Thailand’s Pay TV Market and Service Analysis


Pay TV Providers in Thailand must obtain a licence of non-spectrum usage for radio
or television broadcasting. In Thailand, these providers are divided into three types
according to their service formats 225 , as follows:

1) Pay TV Provider via Satellite Television

2) Pay TV Provider via Cable Television

3) Pay TV Provider via both Satellite and Cable Television

The above providers must obtain non-spectrum usage radio or television


broadcasting. There are three main components namely Pay TV Service Provider,
Network Provider, and User (Residential and Business or Service Operator) in all of the
three service formats above. In most cases, Service Provider gathers broadcasting
contents, broadcasting schedule and channels, prior to sending to Network Provider for
broadcasting.

225
This study does not include Pay TV via Internet network (IP Television), since there are limited
users, not well received, and decreasing in number.

Informal translation provided for members of P. 1


The Network Provider will broadcast the content from Pay TV Service Provider to
users. However, the User must have a signal receptor for cable network or satellite
network or IPTV installed at their end and use the service in accordance with the
conditions stated with the Pay TV Service Provider. Depending on the service format,
there may be a monthly fee as well.
As of May 2016, there are 369 licensed Pay TV Service Providers 226 in
Thailand’s retail market, 354 (95.93%) of which provide service via cable network, 13
(3.52%) of which provide service via satellite, and 2 (0.55%) of which provide service via
both channels.
It was found that during 2015–2016, 27 Cable Pay TV Service Providers
terminated or were in the process of terminating their service.227 This is a 7.08% decrease
compared to the same period in the previous year (August 2015).228 Similarly, satellite Pay
TV service providers also decreased by 23.53% from 17 Providers to 13 Providers.229 As
for Pay TV service providers who provide service via both cable and satellite network,
there were two of them, namely True Visions and CTH, but as of June 2016, True Visions
is the only service provider in this category, since CTH officially terminated their service
in August 2016,230 as shown in Figure 6-1.

226
Source: Operator Database, May 2016
227
Source: NBTC Database, May 2016, random sample from 100 operators from 217 licensed
operators that did not pay an annual fee or paid zero THB annual fees, and data from operator
interviews as of May 2016
228
Source: NBTC Self-Regulation in Broadcasting, Television Broadcasting Competition Status
Report (January–July 2015), Page 39, 2015
229
Source: NBTC Database as of May 2016
230
Source: http://isranews.org/investigative/investigate-news-person/item/47764-
report05_47764.html (2 August 2559)

Informal translation provided for members of P. 2


Figure 6-1: Pay TV Service Providers in Thailand as of August 2016

The termination of service by Pay TV providers in those three categories was


caused by similar reasons such as technological changes, high cost of content production,
slimmer revenue margin, to name a few.

Additionally, it is also possible to categorise the 369 Pay TV Providers by how they
charge their customers. In this regard, 358 (97.01%) of them231 charge their customers
monthly in accordance with the packages they provide with different numbers of channels
their users chose to register. They may or may not charge an installation fee, and there are
only 1–2 players whose total market share makes up more than 80% of the total market.
Secondly, there are 11 (2.99%) licensed Pay TV Providers who do not charge a monthly
fee.232 These providers are likely to charge a receiver installation fee that already includes
their profit margin. They emphasise a variety of channels, which are mostly Free-to-Air
type of channels. Lastly, as of now, there is no Pay TV Provider that charges based on
Pay-Per-View or pay to view certain channels during certain periods of time (such as live
broadcast), which could be another way to generate additional revenue for Pay TV
Providers in both categories.

231
Source: 2014 Revenue Report disclosed by Licensed Providers under Section 2 in NS.02
232
Source: Information from interviewing providers in May 2016

Informal translation provided for members of P. 3


Competition among Pay TV Providers is very tight due to the effect of Must-Carry
regulation and the sequencing of channel numbers. The Providers have to assign their
channels in the most efficient way while also facing a bottleneck problem in providing
service. This is because users who live in vertical residences such as condominiums,
townhouses, or apartments are sometimes limited to only one provider, since that provider
might have an agreement with the condominium or apartment manager to provide cable
wire to the whole complex, and therefore, the residents in such buildings are left with no
choice but to subscribe to that provider. Mostly, providers such as True Visions of True
Corp Group also provide additional services apart from Pay TV, such as Internet and
mobile phone service. 233
Apart from this, there is also competition between Pay TV Providers and providers
on other platforms such as digital TV and OTT. The rise of digital TV in 2014 gave users
an additional means to watch 28 channels on free TV, and also many OTT TV Providers
entered the market in 2013, both with or without monthly fees. This report will discuss in
detail OTT TV Providers in the next section.

6.2 Thailand’s OTT TV Market and Service Analysis


The market situation of OTT TV in Thailand is still in its initial stage. This is
because basic infrastructure such as Internet, especially home Internet, is still somewhat
limited, with low connection speed, and still high service fee compared with mobile
Internet. Additionally, mobile Internet has recently started playing a more important role
in consumer behaviour after the official launch of 3G service in 2013 and a decrease in
smartphones and their peripherals. The most notable change in user behaviour are the
viewing hours via mobile application234, be it streaming 235 which is a technology that
provides access to music, video, and animated information via Internet on a real-time
basis. There is no need for a user to download all data before watching, but they can watch
the content along with the data-processing procedure.
Due to consumer habits and technological advances, OTT TV Providers in Thailand
are very varied. Some of which are television providers, some are in related industries, and
233
Source: http://positioningmag.com/?p=26042
234
Source: Electronic Transaction Development Agency (ETDA) 2015
235
Source: Movie Streaming Market Survey in Thailand http://goo.gl/qCrP4v

Informal translation provided for members of P. 4


some are just newcomers. We have gathered and analysed the market and service situation
of OTT TV Providers by categorising them according to type of provider like in the
previous section. However, each segment also has different competition, service format,
and revenue generation. Some notable providers are as follows:

Independent OTT TV Providers

New OTT Providers in Thailand have different organisational structures, types of


service, and revenue-generating methods. Some are local Tech Start-Ups, some are Tech
Start-Ups from overseas, and some are well-known OTT TV Providers. Notable Providers
are as follows:

 Hollywood HD

Hollywood HD is one of the top OTT TV Providers in Thailand.236 It was developed


by Fly Digital Media. This team is the same team of Plenchit Media Co., Ltd., who created
the AIS Mobile English Premier League system. Hollywood HD started providing service
in the first quarter of 2014.237 The company collects monthly fees from users, and they are
known for good movie categorisation. Hollywood HD provides Thai movies more than
foreign movies, and they are focused on providing unlimited content. Viewers can watch
new movies by using points which come from continuing their unlimited package, or they
can also purchase by cash in case of insufficient points.
According to the information we have collected, Hollywood HD OTT TV’s service
can be concluded as follows:

- Emphasis on popular movies or awarded movies in Hollywood. They are the only
provider in Thailand that provides movies from five major film studios – Warner Bros.,
20th Century Fox, Sony Pictures, Paramount and NBC Universal. The company is also the
only provider in Asia that provides Disney On Demand service, and therefore, their
viewers can watch rare movies or IMDb movies. Hollywood HD also provides Chinese,

236
Source ะ http://goo.gl/qCrP4v
237
Source: https://www.blognone.com/node/54620

Informal translation provided for members of P. 5


Korean and Thai movies on demand.

- Uses Adaptive Bitrate technology 238 to transfer data so viewers can adjust the
movie resolution according to their Internet connection speed. It is also possible to watch
HD movies with 2MB Internet speed. This technology also allows viewers to continue
watching from where they left off last time, as well as watch from a portable device,
computer or television. Up to three devices can be connected.
- Monthly fee of 199 Baht is charged, payable by E-Banking, ATM, or various
payment services. Hollywood HD also sells prepaid cards at well-known retailers such as
B2S, Boomerang Mangpong, Tops Supermarket, and video-rental stores with the
Hollywood HD logo all over the country.

 Primetime

Primetime is a new OTT TV Provider. They are focused on new Hollywood movies
shown within the past 2–3 months and television series from overseas. They officially
launched their service in Thailand on 26 February 2015239. Primetime actually is a spin-off
of Hollywood HD, and they are licensed with six major film studios namely Walt Disney,
Warner Bros., 20th Century Fox, Paramount, MBC Universal, and Sony Pictures. The
company also provides unlimited viewing of classic movies as well as popular American
television series for their members. Some series can be viewed at the same time as the US,
and thus it really covers what viewers want the most.

According to the information we have collected, Primetime OTT TV’s service can
be concluded as follows:
- The first provider to use DTS Surround 5.1 in their movie streaming. Users can
listen to surround sound system even via normal headphones. Their SmartTV application
allows maximum 4K streaming either via computer browser or portable devices on iOS
and Android platforms. It also supports Apple TV and Chromecast which enable Smart
Device to Airplay the content to television in real time. Primetime will also support ZipTV
in the future.

238
Adaptive Bitrate means a technique that matches video quality with Internet speed used to
download the data as well as screen size.
239
Source: https://www.beartai.com/news/it-thai-news/42685

Informal translation provided for members of P. 6


Informal translation provided for members of P. 7
‐ Primetime provides the following packages for their users:
Packages Service Fees Details
1) Movie Buffet 199 THB/month Unlimited movie viewing
2) TV Series Buffet 299 THB/month Unlimited series viewing
3) New Rental Movies + Unlimited movie viewing,
299 THB/month
Movie Buffet rental of 2 new movies
Includes everything and
4) Combo Buffet 549 THB/month
rental of 2 new movies
4,788THB/year
Includes everything and
5) Combo Buffet (Approximately 399
rental of 2 new movies
THB/month)
Table 6-1: Primetime Packages as of August 2016

Primetime also provides Primetime box service which is an Android-based receiver.


They collect a one-time payment of 3,900 THB. No monthly fee is required, but viewers
can pay for additional patented movies or cartoons.
Viewers can pay via payment services at DNA, iStudio by ComSeven, and Banana
IT, to name a few. Additionally, in 2015, the company also partnered with other players
such as DTAC, Samsung smartphone dealers, and K Bank240, to create more service
channels.
 DOONEE
DOONEE is another new OTT TV Provider who offers packages for viewing HD
Hollywood movies via Internet on a Subscription Video on Demand (SVoD) basis.
Viewers can watch popular TV series unlimitedly anytime and anywhere through various
devices such as computer, smartphone, tablet, iPod, iPad, iPhone (iOS/Android) as well as
smart TV. In Thailand, DOONEE provides licensed Hollywood series, and they have the
highest number of series for viewers to enjoy compared to other providers. The company
officially launched their service on 27 January 2015241 , and they operate in Thailand only.
According to the data we have collected, DOONEE OTT TV’s service can be
concluded as follows:

240
Source: https://www.beartai.com/news/promotion news/72195,
https://mobil.edista.com/archives/86762u, and
http://www.kasikornbank.com/spedal/KMobil.eBankingRewardPLUS/Pages/Privil.ege-
Primetime.html.
241
Source: https://www.facebook.com/DOONEEFANPAGE/photos/?
tab=album&al.bumJd=574836342652355

Informal translation provided for members of P. 8


- DOONEE distinguishes itself by providing the highest number of Hollywood
series in Thailand.242 There are up to 1,500 episodes of HD-quality series, and they
provide the newest series within 12 hours after they are aired overseas.
- Viewers can watch unlimitedly according to their preferences anytime. The
company also provides Smart Player system, which allows users to pause-and-play to
continue watching where they left off the last time, so they do not have to start watching
from the beginning.
- DOONEE provides Multi-Bitrate function, which allows viewers to adjust the
Internet connection and Wi-Fi speed for uninterrupted viewing experience.
- DOONEE offers two packages: 1) Monthly Package at 150 THB/month and 2)
Annual Package at 1,500 THB/year. They also use various payment channels such as
credit card, payment services, ATM, Bank, iBanking, TermOne card, money transfer and
PayPal.

 MONOMaxxx
MONOMaxxx243 is an online movie application (originally launched in 2011 as
Doonung)244 under Mono Flim Co., Ltd. in Mono Group. The company has various
revenue schemes245 such as daily, monthly, timely and TermOne card. MONOMaxxx is
interested in live-streaming events in the future, and they have also been purchasing more
licences of overseas movies, Thai movies, series and sports. 246
- MONOMaxxx provides various contents, especially Asia series (Action-
Supernatural) and cartoons. The company also offers awarded movies and out-of-trend
movies247 248 with Thai soundtrack and subtitles. MONOMaxxx also uses an auto bitrates
system, so viewers can view the content uninterruptedly and from up to three devices at
the same time.

242
Source: https://www.marketingoops.com/digitaH.ife/doonee-tv/
243
Source: http://www.mono.co.th/lnvestor-Relations/pdf/AR_MONO_2015_EN.aspx
244
Source: http://www.56-l.com/reports/MONO/MONO_13F561_th.pdf
245
Source: http://www.monomaxxx.com/review/detail/AndroidNews แล!;
https//www.monomaxxx.com/card/joinnow/
246
Source: http://www.dcs-digital.com/setweb/downloads/2558q4/20160304_mono.pdf
247
However, content procurement cost is considered total cost of MONO
248
Source: http://tech.mthai.com/mobile-tablet/56353.html

Informal translation provided for members of P. 9


- Service charge starts from 129 THB/month with unlimited viewing. Service
charge varies according to length of application starting from 1 month, 3 months, 6
months, and 12 months.

Informal translation provided for members of P. 10


 iflix
iflix is a new OTT TV Provider in Thailand. It is one of the subsidiaries of Catcha
Group that provides various services such as Ensogo, One2Car, and Think of Living in
Thailand. iflix has been successfully providing online movie and series services in the
Philippines and Malaysia with as many as 10,000 users within only two months of
launch.249 Thailand is the third country where iflix officially launched their service, in
August 2015250, with a vision of growing in the ASEAN region via affordable pricing,
reliable system and varied content for viewers to choose from.
According to the data we have collected, iflix OTT TV’s service can be concluded
as follows:
- iflix signed contracts with 35 world-class studios such as Fox, Disney, Warner
Bros., MGM, BBC, Starz, Redbull TV and KBS, to name a few. They offer variety shows
and series that easily meet the demand of Thai viewers. iflix successfully attracts various
users by providing popular movies and series from America, Korea, China, as well as
cartoons for kids, which take up to 20% of their total contents.251 iflix also tailor their
contents in each country in accordance with the viewing habits of their subscribers.
- iflix’s unique feature is that they are more regional than other competitors in the
market. This enables them to provide more offers to the customers at a cheaper price. In
the near future, iflix plans to do original production as well.
- iflix charges 100 THB/month with unlimited viewing and unlimited content access
without additional charge. Subscribers can view from five different devices and up to two
devices at the same time. The company also provides 30-day free trial and after that, they
charge via credit card, money transfer, or payment via counter.

 Netflix
Netflix is the number 1 OTT TV Provider in the US and also the largest OTT TV
252
Provider in the world. Netflix provides service in 190 countries worldwide and
officially

249
Source: http://www.whatphone.net/news/iflix-will-official-launches-in-thailand-this-august/
250
Source: http://thumbsup.in.th/2015/07/iflix-will-be-launched-in-thailand-au§ust/
251
Source:http://thumbsup.in.th//07/2015iflix-will-be-launched-in-thailand-au§ust/
252
Source: http//thumbsup.in.th//07/2015iflix-will-be-launched-in-thailand-au§ust/

Informal translation provided for members of P. 11


launched in Thailand on 6 January 2016. 253 The company is the pioneer in licensed video
streaming on the Internet where viewers pay a monthly service fee in exchange for on-
demand movie viewing anywhere and anytime.

According to the data we have collected, Netflix’s OTT TV’s service can be
concluded as follows;

- Netflix puts emphasis on picture quality and continuity in viewing experience.


Viewers need to install the Netflix application that comes with 4K or Blu-ray player to
watch 4K or UHD movies. Netflix also uses Dolby Digital Plus 5.1 surround in their
service for superb audio quality.
- Netflix provides three packages: 1) 280 THB/month for movies and series with
SD quality on one device 2) 350 THB/month for movies and series with HD quality on two
devices and 3) 420 THB/month254 for movies and series with UHD quality on four devices.
All of which can be subscribed to via credit/debit card or PayPal.
Initially, Netflix did not provide Thai content, and the variety of movies and series
was still limited in Thailand compared to other countries. They introduced Thai subtitles
and soundtracks for certain movies255 later on, in the second quarter of 2016.

 HOOQ
HOOD is the largest OTT TV Provider in Asia. The company was created by three
world-class companies namely SingTel, Warner Bros. and Sony Pictures, unlike other
online movie service providers. HOOQ was first launched in the Philippines, and Thailand
was the second country where they officially launched their service, on 27 April 2015.256
The company has the highest number of movies and series in Asia, totalling up to 10,000
options to choose from.257
According to the information we have collected, HOOQ’s OTT TV’s service can be
concluded as follows:

253
Source: http://www.siampod.com//07/01/2016netflix-available-in-thailand/
254
Source: http://www.siampod.com/2016/01/07/netflix-available-in-thailand/
255
Source: http://www.macthai.com/2016/07/21/netflix-support-thai-subtitle-and-audio/
256
Source: https://www.beartai.com/lifestyle/46595
257
Source: https://www.blognone.com/node/67978

Informal translation provided for members of P. 12


- The HOOQ website interface design is totally different from other providers.
They use a blog design which puts emphasis on large images as a main component.
HOOQ cooperates with large alliance such as Advance Info Service (AIS) to bring both
Thai and foreign movies and series on demand to AIS PLAYBOX (as well as AIS Play),
which is a Set-Top Box based on the Android operating system through AIS Fibre
network. Customers of AIS Fibre network also get one month HOOQ free trial.
- HOOQ charges 119 THB/month. One account can run on five devices and
simultaneously on two devices, and it is possible to download content to watch offline as
well.258 Subscribers can pay via credit/debit card.
 LINE TV
LINE TV is another new OTT TV Provider that offers soap operas, variety shows,
and special shows from content producers. At present, there are over 33 million LINE
users in Thailand, which makes the country a large and important market.259 LINE
Thailand has been continuously developing new services and content presentations in
response to the lifestyle of LINE users. LINE TV officially launched on 6 February 2014,
and Thailand is the first country in the world that provides LINE TV service.260
LINE TV is an application that provides a variety of entertainment contents under
the “Free Fresh Fast” concept. They cooperate with several content producers in Thailand
such as GMM Grammy Plc. Co., Ltd., The One Enterprise Co., Ltd., MCOT Plc. Co.,
Ltd., and Woody World Co., Ltd., to name a few. LINE TV users can view content online
before others and can also share content with their friends via LINE application. Since
launching their service one year ago, they have been enjoying continuously increasing
views. In the third quarter this year, their views grew as much as 118% from the previous
quarter. More than 60% of LINE TV viewers are around 18–22 years old, and they watch
LINE TV 1.5 hours/day on average.261
According to the information we have collected, LINE TV’s OTT TV’s service can
be concluded as follows;
- LINE TV offers a different service from YouTube, in which they do not allow
users to upload content by themselves. The contents in LINE TV come from cooperation
with content producers. The company distinguishes itself by providing exclusive contents
258
Source : http://goo.gl/sYljOR
259
Source : http://thumbsup.in.th/2014/12/line-tv-launches-in-thailand/12w มา :
https://www.beartai.com/lifestyle/46595
260
Source : http://www.iphone-droid.net/line-tv/
261
Source : https://linecorp.com/th/pr/news/th/1216/2015

Informal translation provided for members of P. 13


that can only be viewed via LINE TV. They collaborate with famous content producers in
Thailand such as GMM, Workpoint, Vithita, Thai Rath TV, True Vision and True Music,
as well as freelance producers such as SuaRongHai and Parry Pie, to create exclusive
LINE TV content. The company also provides special content from Korea such as behind-
the-scenes of popular Korean stars, variety shows featuring these stars, as well as many
music videos.
- LINE TV provides appealing contents categorised into: 1) Recommended Videos –
trending videos with the highest number of views 2) Drama – a variety of dramas that can
be sorted by number of viewers, latest, or most liked 3) Entertainment – variety shows and
cartoons 4) Music – music shows and music videos. LINE TV runs advertisement videos
before playing content since this is one of the ways the company generates revenue.
- Content providers can advertise in video format via LINE TV. They can create
more viewers to watch their advertisement to promote their products and services, creating
more awareness quickly. There are two kinds of advertisements, namely: 1) Skip View –
viewers can choose to watch the entire advertisement or skip it entirely. Length of
advertisement is no longer than 60 seconds, and they charge an advertising fee based on
cost per thousand (CPM) 2) Non-Skip View – viewers have to watch the entire
advertisement before watching the video, since unlike the Skip View, there is no Skip Ad
for viewers to click on. LINE TV also charges based on CPM, and maximum length of
advertisement must be within 30 seconds only. 262
Apart from the above, LINE TV users can use this service without any fees. They
can use the same LINE account to log on to LINE TV on multiple devices, and the same
device can also be used with another LINE account.
 YouTube
YouTube Thailand was officially launched in May 2014.263 While YouTube users in
Thailand have been accessing, viewing, and uploading videos like they used to before
YouTube Thailand was launched, this gives content owners, producers, or television
broadcasters more business opportunities since they are now able to commercially
generate advertising revenue via the Google advertising system.
In 2015, YouTube announced that Thailand was ranked among 10 countries with the
highest number of YouTube views and in the same year, YouTube added offline service,
in which viewers can download video clips or their favourite shows and store on their
262
Source: http://smejump.com/advertising-line-tv/
263
Source: http//www.it24hrs.com/2014/youtube-thailand-launch/

Informal translation provided for members of P. 14


device for 48 hours. 264 Apart from this, the company also created a Content Creators
community that emphasises collaboration between television programme producers, music
programme producers, show producers, and marketers to create their own YouTube.
Data from Socialbaker 265 shows information of YouTube viewing based on
subscribers and viewers in Table 6-2 below.

Channel Subscriber Viewer


(Million) (Million views)
GMM GRAMMY OFFICIAL 7.6 7,768
Ginierock 5.5 4,504
RsiamMusic 5.0 3,892
rsfriends 4.0 2,838
TV3official 1.9 2,607
welovekamikaze 3.0 2,017
Channel One 3.2 1,688
WorkpointOfficial 3.6 1,650
GMM GRAMMY GOLD OFFICIAL 1.6 1,382
VRZOchannel 3.6 1,271
Table 6-2: YouTube viewing statistics in Thailand as of August 2016

Telecommunication service providers also place importance on their partnership


with YouTube as can be seen in their mobile phone promotion of AIS 266 DTAC267 and
TRUE268 during 2015 to 2016.

From the above information, we can conclude that during 2015 to 2016, the new
OTT TV Providers in Thailand were domestic, regional and international. There are two
revenue-generating methods, namely advertisement fee and monthly subscription fee.

264
Source: http://www.whatphone.net/news/youtube-offline-now-available-in-thailand/
265
Source: https://www.socialbakers.com/statistics/youtube/channels/thailand/
266
Source: http://www.mxphone.net/160616-ais-launch-zeed-sim-4g-youtube/
267
Source: http://www.mxphone.net/100815-dtac-happy-youtube-and-line-tv-package/
268
Source: http://xn-o3chnhib8mb8e.com/category/tv-youtube/

Informal translation provided for members of P. 15


OTT TV from Content Producers
From studying services of OTT TV from Content Providers, we found that there are
still no movie or TV show producers that provide OTT TV service. This is because most
television producers have clear contracts in producing contents and programmes for free
TV broadcasters, or they are companies within the broadcasting company themselves. For
this reason, OTT TV service channel is the same as the free TV service channel, for
example Exact Co., Ltd., Sinerio Co., Ltd. and Poly Plus Entertainment Co., Ltd.

OTT TV from Free TV Providers

According to AGB Nielsen’s digital TV ratings from May–July 2016, the top five
most popular channels are Channel 7, Channel 3, WORKPOINT, MONO, ONE and
Channel 8, respectively.269 These channels provide OTT TV for viewers as well, which
gives viewers more choice while also maintaining viewers and creating followers for their
channels. After the digital TV auction in 2013, free TV channels increased from 6 to 24
channels and they were sequenced according to National Broadcasting and
Telecommunication Commission (NBTC)’s announcement. Details of those channels are
as follows:
 Channel 7
The Royal Thai Army Television Channel 7 was launched in 1967.270 It has 37
substations all over the country 271 and with popular programs such as drama, sports and
live sports broadcasts. Channel 7 has long been the most popular television channel, and
with additional free TV channels, they provide content via OTT TV with the following
formats:
‐ Viewing live programmes and aired programmes via the CH.7 website live.
Viewers can watch on smartphones or portable devices. Viewing quality is
dependent on the Internet connection speed. They started providing this service
in 2008.272
‐ Viewing every aired television programme via website and Internet TV
269
Source: http://bit.ly/ldOZ49e
270
Source: http://www.bloomberg.com/Research/stocks/private/snapshot.asp?privcapld=5825138
271
Source: http://www.ch7.com/about_us
272
Source: http//www.bangkokbiznews.com/news/detail/703198

Informal translation provided for members of P. 16


programme called Bugaboo. TV, which was developed by Channel 7
themselves. Viewers can download the application and watch on smartphone or
portable devices. The channels are categorised as Drama, Series, News, Sports,
Variety Show, Music and Entertainment. This service was launched in 2012273 ,
and since July 2013, viewers can view Bugaboo TV on Smart TV as well.274

‐ Viewing drama and other programmes via Do 7HD application. This


application applies Gamification strategy which uses prices and awards as
incentives to Chick-in via Channel 7, including answering questions and
collecting points to exchange for awards. This service was launched in August
2014.275
Apart from the above, Channel 7 is also present on other online channels such as
Facebook and YouTube.

 Channel 3

Thailand Color Television Channel 3 is run by BEC World Plc. Co., Ltd. As of 31
December 2015, BEC World group consists of BEC World Plc. Co., Ltd. which operates
24 subsidiary companies and two joint companies. As for terrestrial Digital TV
Broadcasting Service Provider business, BEC Multimedia Co., Ltd. (BECM) which is a
subsidiary of BEC World, is in charge.
BECM obtained three licences from NBTC, namely 1) General HD Content “CH
3HD Channel33” 2) General SD Content “CH 3SD Channel 28”, and 3) Children, Youth
and Family “CH 3Family Channel 13”. All three licences are effective for 15 years
starting from 25 April 2015 to 24 April 2029.276 Since Channel 3 was one of the analogue
TV broadcasters, they are ranked second in popularity next to Channel 7.
According to the data we have collected, Channel 3’s OTT TV’s services can be
concluded as follows:

‐ Viewing live and aired television programmes via website and Ch. 3 live
application viewable on smartphones or portable devices. Picture quality is

273
Ibid. 14
274
Source:7J Source: http://www.samsmg.com/th/artide/kpop-concert
275
Source: http://www.manager.co.th/Drama/ViewNews.aspx?NewslD=9570000098853
276
Source: http://bit.ly/2bJ7CU

Informal translation provided for members of P. 17


dependent on the Internet connection speed.

Informal translation provided for members of P. 18


‐ Viewing certain types of aired programmes online via Internet TV programme
called Thai TV3 downloadable on smartphones or portable devices.

‐ Viewing dramas and other programmes via Channel 3’s application. These
dramas and television programmes are also presented via other online platforms
such as Facebook and YouTube.
Despite the increase in competition among television service providers, the BEC
World Group is, nevertheless, interested in providing subscription service and also looking
for other broadcasting channels to domestic and international viewers. So far, the group
has tried broadcasting to Japan and the US already, and now they are in the process of
finding additional co-hosts in other countries. Apart from this, the BEC World Group is
also interested in new media business, which is now being run by its subsidiary to explore
satellite TV business as well.277

 WORKPOINT
WORKPOINT is one of the Digital Television Broadcasting Network Providers in
the general category at SD quality under Thai Broadcasting Co., Ltd. The company
started broadcasting officially in the second quarter of 2014, producing television
content as well as purchasing television content licence for broadcasting on their own
channel. WORKPOINT generates revenue by selling advertising airtime and product
promotions during their broadcast. Prior to obtaining digital TV licence, WORKPOINT
Channel used to hold a satellite TV licence since 2012, so they have been continuously
broadcasting ever since.
According to the information we have collected, WORKPOINT’s OTT TV’s service
can be concluded as follows:

‐ In the second quarter of 2015,278WORKPOINT launched an application called


WorkpointTV, which enables users to view live broadcasts as well as aired
programmes via smartphones or portable devices (both iOS and Android). No
fee is charged, and picture quality depends on Internet speed.

277
Ibid. 13
278
Source: http//workpointtv.com/download-workpointtv-app/

Informal translation provided for members of P. 19


‐ Live broadcasts and aired programmes can be viewed on WORKPOINT LIVE
TV ONLINE website.
Apart from this, WORKPOINT is also present on other online channels such as
Facebook and YouTube.

 Mono
MONO is one of the Digital Television Broadcasting Network Providers. The
company is part of Mono Technology Plc. Co., Ltd. group, and they launched their digital
television service in April 2014279, featuring news and entertainment such as movies and
series from overseas.
According to the data we have collected, MONO’s OTT TV service can be
concluded as follows:

‐ 24-hour live broadcasts and aired programmes via MONO29 application, dual
soundtrack for selected items, able to manually adjust picture quality. The
company features interactions with viewers via Facebook and Twitter
applications for them to express their opinions or participate in certain contents.
MONO29 also provides notification service when the viewer’s favourite
programme is about to be broadcasted as well as sends news and updates.

‐ Mono provides live broadcasts and all kinds of aired programmes via their
website called Mthai, which was developed from their existing website.
 ONE

ONE is one of the HD Digital Television Broadcasting Network Providers. The


company is part of GMM Grammy Plc. Co., Ltd. group, and they launched their digital
television service in April 2014, featuring their previously existing programmes and also
started developing new content since around the end of 2014.
According to the data we have collected, ONE’s OTT TV service can be
concluded as follows:
‐ Live TV broadcasting and 24 hours of playback via ONE application and
updates on changes in broadcasting schedule. This service was launched in

279
Source: http://www.mana§er.co.th/DramaA/iewNews.aspx?NewslD=9570000047252

Informal translation provided for members of P. 20


2014.280

280
Source: http://§rammy.listedcompany.com/misc/AR/20150331-grammy-ar2014-th-02.pdf Page 81

Informal translation provided for members of P. 21


‐ ONE provides live broadcasts and playback of every programme via their
website as well as social networks such as Facebook, YouTube and
Instagram.281
 CH.8
Channel 8 is a Digital Television Broadcasting Network Provider in the variety
category. The company is under RS Plc. Co., Ltd., and it features new dramas and a
variety of programmes. CH8 first went on air in 2014.
According to the data we have collected, CH8’s OTT TV service can be concluded
as follows:

‐ 24-hour live broadcasts and aired programmes via CH.8 application and updates
on changes in broadcasting schedule. This service was launched in 2011. 282

‐ CH.8 channel provides live broadcasts and all kinds of aired programmes via
283
www.thaich8.com and social networks such as Facebook, YouTube and
Instagram. They started their service in May 2010.284

OTT TV from Pay TV Providers

 TrueVisions

TrueVisions is the leader of Pay TV in Thailand. Its main source of income are the
monthly subscription fees, and it provides both local and overseas contents via satellite,
optical cable and coaxial cable. TrueVisions was created by the merging of IBC and
YouTV back in 1998.
In 2015, TrueVisions enjoyed high growth in income from both “True4U” digital
TV and True Digital HD receiver. There were approximately 600,000 net new subscribers,
and the average revenue per subscriber was 523 THB. Music entertainment,
advertisement,

281
Source: http://www.onehd.net/howtowatch
282
Source: http//grammy.listedcompany.com/misc/AR/20150331 grammyar2014th02.pdf
283
Source: http://www.rsfriends.com/%E0%B8%8A%E0%B9%88%E0%B8%AD%E0%B8%87-8-
appUcation/
284
Source: https://www.facebook.com/thaich8

Informal translation provided for members of P. 22


and subscription – especially from higher number of subscribers since the second quarter
of 2015 due to higher demand in convergent packages285.
TrueVisions provides various packages with different pricing based on number of
channels and contents. As of 2016, there are five packages as follows:286

- Happy Family HD 299 THB/month


- Smart Family HD 343 THB/month
- Sport Family HD 413 THB/month
- Super Family HD 629 THB/month
- Gold HD 1,568 THB/month
- Platinum HD 2,155 THB/month

In 2013, TrueVisions started to provide online viewing via portable devices and
smartphones for TrueVisions and TruemoveH subscribers. This application is called
TrueAnywhere, and it runs on both iOS and Android operating systems. It offers various
channels, and viewers can check the TV Guide seven days ahead as well as mark their
favourite channels. The application also provides two-hour time-shift and two-day catch-
up as well as Video on Demand.287

 PSI

PSI is a large satellite Pay TV provider in Thailand based on the number of receiver
boxes as of 2015. PSI has been producing and selling satellite TV equipment for more
than 20 years. Thanks to the increase in television broadcasters via digital television
auction, other means of content consumption such as YouTube, and the widespread use of
smartphones and smart devices, PSI launched their free live broadcast in 2013 on their
application using IP streaming technology (Internet Protocol Streaming), which is a
technology used to transfer visual and audio data to web browsers via Internet. Viewers
can watch on a real-time basis, and viewing continuity depends on Internet connection
speed.288

285
Source: http://true.listedcompany.com/mis ๙ AR/20160318-true-ar2015-th-02.pdf
286
Source: http://truevisionsgroup.truecorp.co.th/packages
287
Source: https://anywhere.truevisions.tv/
288
Source: http://vwvw.symphon.net.th/src/misc/news/enjoy/2013/Nol6.pdf

Informal translation provided for members of P. 23


Service fee depends on type of subscription, size of satellite receiver and receiver
box as well as number of receivers. Based on the data we have collected,289 we found that
the one-time charge inclusive of installation charge is in the range of 1,000–15,000 THB.
PSI also started selling their new PSI O5 hybrid net Android box in the second quarter of
2016. This box allows TV viewing via Internet, provides programme categories, supports
air-playing from smartphone to TV screen, and can also boost Wi-Fi signal.290

OTT TV from Telco Providers

Telecommunication usage habits have been shifting from voice to non-voice


usage between 2014 and 2016. 291 Non-voice usage became twice as popular as voice
usage and therefore, telecommunication service providers in each market also have been
adjusting their services in accordance with changing habits. Large telecommunication
service providers started to add IPTV as their additional or tie service, for example;

 TOT IPTV
TOT had the highest market share in both retail and wholesale markets of landline
phones in 2015.292 TOT started providing Internet TV (TOT IPTV) in 2013 in cooperation
with Me Television Co., Ltd. to provide tie-in package with Internet TV receiver box
through TOT’s high-speed Internet or any other Internet service provider.293 TOT IPTV
has two ways of generating revenue, namely 1) No monthly fee and 2) Charging monthly
fee, depending on the preferred number of channels of the viewers294.

289
290 Source: http://bit.ly/2bzylCI และ http://bit.ly/2bweRNn
290
Source: http://bit.ly/2bdvQYE
291
Source: Market Value of Telecommunication Market 2015 and Forecast of 2016
(http://bit.Ly/2baRkX0
292
Source: Telecommunication Market Situation Report, 15F4Q Page 6 and 31
(https://www.nbtcgo.th/wps/wcm/connect/NBTC/4252bf63-26fe-43d3-9a6/
ec3e22c2277c/4_2558.pdf?MOD=AJPERES&CACHEID=4252bf63-26fe-43d3-9a6f-
ec3e22c2277c)
293
Source: http://vwvw.mxphone.net/180113-tot-iptv-internet tv/
294
Source: http://vwvw.totiptv.com/Product/Channel/ByPackage.aspx

Informal translation provided for members of P. 24


 AIS IPTV
AIS is the first mobile phone service provider in Thailand and has the biggest
market share as of 2015.295 The company started providing high-speed fixed-line Internet,
called AIS Fibre, in September 2015.296 The highest speed AIS Fibre can provide is up to 1
gbps and, therefore, AIS offers AIS Playbox as a tie-in service for AIS Fibre users to
enjoy Ultra-HD 4K quality. As of August 2016, AIE Fibre service covers 24 provinces
including Bangkok and Greater Bangkok.297 298 Monthly fee for household use depends on
Internet speed and type of customers, but it is in the range of 530–888 THB/month. 298
Viewers can enjoy more than 100 channels of free TV, digital TV, and premium channels
as well as buy additional movies and series packages for 119–159 THB/month.299

 3BB
3BB is a high-speed landline Internet provider with the second-largest market share
after TRUE in 2015. The company has been enjoying constant increase in market share
since 2012.300 3BB launched 3BB IPTV for 3BB Internet users with 3BB Cloud IPTV in
2015. This service is free of charge for their existing customers, and it also supports
smartphones and smart devices for viewing online TV, cable/Internet TV and movies.
General users can view only three channels with lower picture quality than 3BB
customers.301

It can be seen that all three IPTV providers provide up to 72 hours of time-shifted
service as well as video on demand service. All of them support TVs, smartphones,
tablets, and computers. However, due to somewhat low revenue growth, these services are
mostly tie-in service to maintain customer base and are limited to the same Internet
295
Source: Telecommunication Market Situation Report 15F4Q Page 10
(https://www.nbtc.go.th/wps/wcm/connect/NBTC/4252bf63-26fe-43d3-9a()f-
ec3e22c2277c/4_2558.pdf?MOD=AJPERES&CACHEID=4252bf63-26fe-43d3-9a6f-
ec3e22c2277c)
296
Source: 2015 Annual Report of Advance Info Service Plc. Co., Ltd.
(http://advanc.listedcompany.com/misc/ar/20160226-advanc-ar-2015-th-03.pdf)
297
Source: http://www.ais.co.th/fibre/
298
Source: http://www.ais.co.th/fibre/package_home.html
299
Source: http://www.ais.co.th/playbox/movie.html และ http://www.ais.co.th/pl.aybox/movie.html.
300
Source: Telecommunication Market Situation Report 15F4Q Page 17
(https://www.nbtc.go.th/wps/wcm/connect/NBTC/4252bf63-26fe-43d3-9a6f-
ec3e22c2277c/4_2558.pdf?MOD=AJPERES&CACHEID=4252bf63-26fe-43d3-9a6f-
ec3e22c2277c)
301
Source: http://www.iphoneapptube.com/ios-app/3bb-doud iptv-free tv-online-youtube/

Informal translation provided for members of P. 25


provider. For this reason, it can be said that these services are not fully OTT TV.

Informal translation provided for members of P. 26


 AIS Play

In the first quarter of 2016, AIS launched AIS Play application, which was
developed from the merging of AIS Movie Store and AIS Live TV application 302 (AIE
Live TV was launched in 2012). Viewers can watch digital TV, satellite TV, every aired
programme within the last seven days, as well as online movies on demand.303 There are
four categories, namely News, Entertainment, International, Education and Sports. In the
movie category, there are three sub-categories, namely Series, Movie and Cartoons. Most
free movies are from GTH studio.

AIS Play supports both iOS and Android, and their customers can automatically log
in using AIS’s 3G/4G network. Users can also log in using other providers’ Wi-Fi, but
they need to log in using the One-Time Password (OTP) system.304

OTT TV from Collaborated Providers

In our studies, we found out that OTT TV in Thailand is still in the initial stages
and, therefore, OTT TV from the collaboration of existing providers is still not clearly
established. Overall view of OTT TV Providers in Thailand can be concluded in Figure
6-2.

302
Source: http://bit.ly/2c58ghB
303
Source: http//www.it24hrs.com/2016/ais-4g-advanced-launch/
304
Source: http//vwvw.9tana.com/node/ais-play/

Informal translation provided for members of P. 27


Figure 6-2: Overall OTT TV Providers in Thailand

From the information above, we can see that there are two main revenue-generating
schemes, which are monthly (SVoD) or timely (TVoD) and advertisement (AVod) as
shown in Table 6-3.

Starting
Type of Service Revenue Monthly Fee
Features
Service Provider Generation (if any)

New OTT TV Hollywood - Good content Monthly Fee 199 THB


Service HD categorisation (SVoD) and
Providers - More Thai movies Pay-per-View
than international (TVoD)
- Pause-and-Play
Technology
Primetime - Emphasis on new Monthly Fee 199 THB
Hollywood movies (SVoD) and
released in theatres Pay-per-View
in the last 2–3 (TVoD)
months and
international series
- Audio & Visual
quality
- Partnership creates

Informal translation provided for members of P. 28


Starting
Type of Service Revenue Monthly Fee
Features
Service Provider Generation (if any)

various service
channels.
DOONEE - Most series and Monthly or 150 THB
Hollywood movies Annual Fee
in HD quality
- Audio & Visual
quality
- Watch unlimited
series 24 hours a
day anywhere via
various devices
- Smart Player
technology that
enables Pause-and-
Play
MonoMaxxx - Launched in 2011 Monthly or 129 THB
- Various contents, Annual Fee
especially Asian (SVoD)
series (Action-
Supernatural) and
cartoons as well as
awarded movies
and out-of-trend
movies
- Technology in
visual quality
iflix - Belongs to Catcha Monthly or 100 THB
Group Annual Fee
- Affordable price for (SVoD) and
anyone, system Pay-per-View
stability, and (TVoD)
content variety
- Varied content,
20% of which are
for children
Netflix - No. 1 OTT TV Monthly or 280 THB
Provider in the US Annual Fee
and the largest OTT (SVoD) and
TV Provider in the Pay-per-View

Informal translation provided for members of P. 29


Starting
Type of Service Revenue Monthly Fee
Features
Service Provider Generation (if any)

world (TVoD)
- Audio & Visual
technology
HOOQ - Largest OTT TV Monthly or 119 THB
Provider in Asia, Annual Fee
founded by three (SVoD) and
world-class Pay-per-View
companies, namely (TVoD)
SingTel, Warner
Bros., and Sony
Pictures
- Partnership with
Advance Info
Service (AIS)
LINE TV - Huge user base Revenue from -
- Partnerships with advertisement
famous content s (AVoD)
producers
YouTube TV - Varied content Revenue from -
- Offline viewing advertisement
within 48 hours s (AVoD)
after download
OTT TV from CH.7 - Appealing contents Revenue from -
Free TV such as television advertisement
Providers dramas, sports, and s (AVoD)
live sport
broadcasts
- The most popular
Free TV for a long
time
CH.3 - Varied content Revenue from -
- Planning to provide advertisement
Pay TV service in s (AVoD)
the future
WORKPOIN - Game Shows and Revenue from -
T Variety Shows advertisement
(AVoD)
MONO - International Revenue from -

Informal translation provided for members of P. 30


Starting
Type of Service Revenue Monthly Fee
Features
Service Provider Generation (if any)

movies and series advertisement


(AVoD)
ONE - Live TV Revenue from -
broadcasts, 24-hour advertisement
playback, and s (AVoD)
updates on
broadcast schedule
immediately
- Varied content
CH.8 - Variety shows Revenue from -
- Live TV advertisement
broadcasting, 24- s (AVoD)
hour playback, and
immediate updates
on changes in
broadcast schedule
OTT TV from TrueVisions - The leader of Pay Monthly or Additional
Pay TV TV in Thailand Annual Fee 299 THB on
Providers - Various channels; (AVoD) top of
users can check TV monthly fee
Guide up to seven
days in advance
and mark favourite
channels, two-hour
time-shift on live
broadcasts
- Two-day Catch-Up
and Video on
Demand
PSI - Large Pay TV via Non-Revenue -
satellite network in Generating
Thailand (OTT as a
- Free live TV Feature)
broadcasting via IP
streaming
- Users can watch
real-time; viewing
quality depends on
Internet connection

Informal translation provided for members of P. 31


Starting
Type of Service Revenue Monthly Fee
Features
Service Provider Generation (if any)

speed.
OTT TV from AIS Play - Further developed Monthly Fee 119 THB
Telco from the (SVoD)
combination of AIS
Movie Store and
AIS Live TV
application
- Seven-day
playback and online
Video on Demand
Table 6-3: Overall OTT TV Providers in Thailand and their revenue generation

6.2.1 OTT TV Service Trend in Thailand

OTT TV service trend in Thailand depends on many opportunities and challenges


that will likely happen and can be concluded as follows:

Opportunities

 Access to High-Speed Internet

According to National Broadcasting and Telecommunication’s data centre, there has


been a notable increase in number of high-speed Internet subscribers from 2003–2016. It
is estimated that there are 6.5 million high-speed Internet subscribers in 2016 as shown in
Figure 6-3. Main Internet access devices are 3G mobile phones and portable devices,
resulting in increase in Internet and data usage via mobile phones and content
consumption in video format to 50% of total usage in 2016 in comparison with only 10%
in 2008.

Informal translation provided for members of P. 32


Figure 6-3: Increase in High-Speed Internet Users and Data Usage

Analysys Mason’s estimated data in 2015 indicates that within 2019,305 mobile
broadband penetration rate and fixed broadband penetration rate will be 120% and 35%,
respectively, and smartphone usage will increase to as high as 70–90%.

 Competition Among SVoD Providers

Competition among OTT TV Providers generating revenue from SvoD is led by


Hollywood HD. If we look at their revenue in 2015, Hollywood HD recorded 299 million
THB of revenue; Primetime, MonoMaxxx, Doonee, iflix and HOOQ recorded 143 million
THB, 98 million THB, 73 million THB, 18 million THB and 17 million THB,
respectively. Service fee is in the range of 99–200 THB as shown in Figure 6-4. This is
similar to the service fee in Malaysia and considerably not high when compared to other
case studies.

305
Source: http://vvvvw.gsma.com/spectrum/wp-content/uploads/2015/05/Building-Thailands-
Digital-1 conomy. Full-Report. I NG.-April2015.pdf

Informal translation provided for members of P. 33


Figure 6-4: Competition Among SVoD Providers

Nevertheless, total revenue of six new OTT TV Providers, namely Hollywood HD,
Primetime, MonoMaxxx, Doonee, iflix and HOOQ in SVoD is only 10% of the total
revenue of established OTT TV from Pay TV (calculated against TrueVisions at the end
of the second quarter of 2016). In this regard, it can be said that the entry of new OTT TV
Providers did not affect the revenue of established OTT TV Providers much in the current
market. This is because new OTT TV Providers have been in the market for only 1–2
years, but the contents they provide are not all identical. For example, Hollywood HD is
known for Thai movies, Primetime emphasises new and international movies, and iflix
allocates up to 20% of their content for children, and these differences might contribute to
their competitive advantage and future growth.

 Competition and Services in AVoD Market

Notable OTT TV Providers in AVoD market in Thailand are YouTube, Line TV


and OTT TV applications from Free TV Providers. The big player in this market has been
YouTube, and in 2015, Line TV started their OTT TV service in this market as well. As
can be seen in Figure 6-5, Line TV’s entry into this market did not affect YouTube’s
advertising revenue much in the initial stage. YouTube’s advertising revenue makes up
75% , while the total revenue from all other providers combined is only at 25%. However,

Informal translation provided for members of P. 34


Line TV makes contents more varied and reaches specific groups of viewers more.
Additionally, video advertising trend is likely to grow twice within only 1–5 years, and
therefore it can be concluded that OTT TV service in AVoD is still promising for existing
providers and newcomers alike.

Figure 6-5: Revenue Structure of Video Advertising of OTT TV Providers in AVoD


Market

 Opportunity of Support for OTT TV Providers from draft of Digital


Economy Law

There are six main structures in Digital Economy, namely Hard Infrastructure, Soft
Infrastructure, Service Infrastructure, Digital Economy Promotion, Digital Society and
Digital Knowledge and Information. Draft of Digital Economy Law, therefore, supports
the growth of OTT TV service, especially new OTT TV Providers who are small, in the
form of Tech Start-Up, or various other players in the OTT TV industry. There can be
many formats of support such as supporting basic infrastructure to be ready for new digital
services, allocating investment or fund to concretely develop content-related projects, as
well as supporting and encouraging human resource development to related knowledge to
ensure readiness and improve the level of competition among service providers or content
providers and make OTT TV service one of the tools of economic and social development

Informal translation provided for members of P. 35


in Thailand.

Challenges

 Cost of Licenced Contents and the Problem of Piracy


One of the challenges for OTT TV providers is their reliance on content producers
or agencies to purchase content licences, especially from international content. The
increase in the number of providers forces the providers to develop strategies for securing
important and interesting content, such as the way that TrueVisions or MonoMaxxx
provide football and basketball programmes, as well as more foreign and Thai movies.
According to TrueVisions' financial report in 2015, 26% of the company’s budget—a 7%
increase from the portion of the previous year’s budget—had been allocated to
international content. This indicates that OTT TV providers carry high costs when
securing interesting content and programmes. Providers with limited financial resources
may find it difficult to maintain or increase their market share. In addition, according to
the Motion Picture Association of America (MPAA), 79% of the consumption of US
content is through illegal videos, DVDs, or online downloads.306,307,308 Local and
international content producers, distributors, theatre operators, DVD stores and OTT TV
providers have all been negatively affected. It is estimated that the amount of damages is
more than $400 million. In 2015, Thailand was still ranked high on the piracy watch
list.307,308
Apart from this, OTT TV providers who used to be Pay TV providers are facing the
problems of piracy and the hijacking of their broadcast signals. These providers must
change their broadcasting, especially for premium users who watch special content, to be
more secure via a new kind of signal decoding and the use of the MPEG-4 format. It is
obvious that the costs of licencing and piracy strongly affect the competitiveness of OTT
TV providers, as well as of local and international content producers.

306
Source: http://austg.com/include/downloads/PirateProfRe.pdf
307
Source:https://ustr.gov/sites/defaul1/files/2015Special-301-Report-FINAL.pdf
308
Source: http://vwwv.iipawebsite.com/rbc/2016/2016SPEC301THAILAND.PDF

Informal translation provided for members of P. 36


 Service Fees and Technology
The increase in content variety and the number of OTT TV providers forces the
existing providers to reduce their service fees in order to maintain and increase their user
bases. This can be seen from the Average Revenue per User (ARPU) of TrueVisions,
which decreased by 30% in the second quarter of 2016 Y-o-Y, as well as Hollywood HD
and PrimeTime, whose revenues also decreased to 33% and 50%, respectively, as shown
in Figure 6-6.
At the same time, to create user satisfaction, OTT TV providers must invest in
technologies, such as better audio and visual quality, better viewing experience (multiple
screen view, recommendations, and resumption of viewing from the last time), Digital
Rights Management (DRM), which controls access to digital information, such as music
and movies, and hardware, such as 360-degree viewing and virtual reality for live sports
broadcasting.309 Such investments may be too high for small and new OTT TV providers,
who usually start with limited funds and develop their own service platforms.

Figure 6-6: Service fees of OTT TV providers and their technologies.

309
Source: http://media2.telecoms.com/e-books/DTVE/magazine/msott16pt5_lo.pdf

Informal translation provided for members of P. 37


 Relevance of OTT TV Services and Telecommunications Business Act

Since OTT TV is a new service that combines media and broadcasting on the
internet, it is highly possible that the emergence of OTT TV is relevant to internet and
telecommunication services as considered in the current Telecommunications Business
Act. It is our opinion that the said Act would not impede OTT TV services, because so far,
there has been no hindrance or obstruction of OTT TV on either an individual or a
collective basis. On the contrary, telecommunication business providers offer products and
services that complement OTT TV. However, if online video viewing time continues to
increase, telecommunication business providers fail to manage their bandwidth well
enough, and the net neutrality rule is enacted by a government office in charge,
telecommunication business providers may be obliged to invest in expanding their
networks, as shown in Figure 6-7.

Figure 6-7: Relevance of OTT TV Service and Telecommunications Business Act

 Competition and Control between OTT TV and other TV providers

Since OTT TV is a new service in Thailand, where most service providers started
offering their services to consumers in 2012, the ambiguous rules and regulations may
affect competitive advantage in business, as well as affect the consumer’s right to access
the content. This is because the operations of OTT TV providers are different in many

Informal translation provided for members of P. 38


aspects, such as business ownership, business type and registration address, to name a few.
Service boundaries, content control between OTT TV providers and other TV providers
are still not in place, and therefore, the issuing of rules and regulations to manage and
control the networks, applications and content in order to ensure fair competition and the
ability of consumers to access quality and variety content will be very challenging.

6.2.2 Analysis of Notable OTT TV providers

In this section, we conduct a SWOT analysis on 10 notable OTT TV providers in


each category. We used information gathered from two sources, which are direct
interviews with the providers and research from various media, to conduct the analysis.

Providers with Revenues from Subscription Fees


 MonoMaxxx
MonoMaxx is an OTT TV provider under Mono Group Plc. Co., Ltd., whose major
shareholder is Mr. Pete Bodharamilk (71.35%).310 In 2015, MonoMaxxx earned 298
million THB from OTT TV subscribers,311 of whom 50% are in the Greater Bangkok area.
MonoMaxx's subscription fee starts from 129 THB/month. The company estimated that
there would be more than 2 million subscribers in 2016. To create sources of long-term
revenue, the company is employing a long tail marketing strategy that focuses on contents
such as Asian TV series and dramas that are not in trend, but are well known to most of
the subscribers. In 2016, the company put emphasis on providing more interesting content
to increase subscriptions, as well as on developing their own software and hardware
viewing systems. MonoMaxx uses data analytics to analyse viewer behaviour in order to
provide content that meets demand. The company also has the advantage of having a
content-sharing policy with other companies in the same group, a move that results in
lower costs. MonoMaxx has also expanded their service channels to other
telecommunication providers, such as 3BB, TOT, and AIS, as well as Smart TV
manufacturers, such as LG312 and Panasonic,313 who install MonoMaxxx to allow
subscribers to watch OTT TV. However, the investments in OTT TV services are still
310
Source: http://www.mono.co.th/lnvestorRelations/Shareholder-lnfomation/Major-
Shareholders.aspx
311
Source: Business Data Warehouse Ministry of Commerce, Department of Business Development
312
Source: http://ncws.damphonc.com/ncw'> 28417.html.
313
Source: http://bit.ly/2cPy1NN

Informal translation provided for members of P. 39


financially limited, since the company must wait for budget allocations from Mono Group
Plc. Co., Ltd. The company is still undergoing rebranding from their previous OTT TV
name, Doonung. Figure 6-8 shows a business model and SWOT analysis of MonoMaxxx.

Figure 6-8: Business model and SWOT analysis of MonoMaxx

 Primetime

Primetime is an OTT TV provider that generates revenue from subscriptions. It is a


start-up company under Mr. Kasidit Kolasastraseni, who had spun off from Hollywood
HD.314 The company was funded by DNA 2002 Plc., Co., Ltd., which is a company selling
home entertainment media products. DNA 2002 holds 75% of shares in Primetime
Entertainment Co., Ltd. and 25% in Primetime Solution Co., Ltd.315

Primetime focuses on new movies just released into theatres, as well as on popular
movies, Thai and international series, and concerts. The subscription fee starts from 99
THB/month and is higher for unlimited viewing or annual subscriptions. There were about
0.5–1 million subscribers in 2015, and in the third quarter of the same year, there were 1.5
million. Most of the new subscribers had simply joined to watch Pongsit Kampee’s

314
Source: https://www.blo§none.com/node/63505
315
Source: http://dna-th.listedcompany.com/business_overview.html

Informal translation provided for members of P. 40


concert video.316 Apart from this, Primetime also provides TV on Demand (TVoD). 316
Viewers can watch a video within 21 days after purchase, and once a viewer starts
watching a purchased video, they must finish watching it within 48 hours. In OTT TV,
Primetime also features technologies such as DTS Surround and Headphone X. The
company is also the first and only provider in Thailand to offer Full HD visual quality.317
Primetime has also entered a joint venture with DTAC to distribute products. The
company's long-term business goal is to expand and become an OTT TV provider on both
regional and international levels. However, due to the competition amongst television
services in Thailand, Primetime is facing many limitations, such as financial limitations,
service stability for the increasing number of subscribers, content management and
competition with other free TV providers. Free TV is still the most preferred means of
viewing television.

Figure 6-9: Business model and SWOT analysis of Primetime

 iflix

iflix was created by regional-level investors, Catcha Group and Evolution Media
Capital, who want to offer online movie and series services in Southeast Asian countries.
316
Source: http://www.newplus.co.th/76990
317
Source: http://th.postupnews.com/2015/02/Primetime-Entertainment-TV-Online-On-Demand.html

Informal translation provided for members of P. 41


iflix aims to grow in this region by providing OTT TV at affordable prices, together with a
reliable system and a variety of content.318 iflix was managed by Ms. Artima
Suraphongchai, Managing Director, when the service was launched in September 2015.
Later in October 2016, Mr. Thinakorn Thianprathum, former General Manager of Me
Television Co., Ltd., became appointed as iflix Thailand’s Managing Director whilst Ms.
Artima Suraphongchai focused more on marketing strategy319 to achieve the company’s
goal of having more than 1 million subscribers in 2016, an increase from less than 500,000
subscribers in 2015.320
iflix offers movies, variety shows and series by contracting with 35 world-class
content producers, such as Fox, Disney, Warner Bros., BBC and KBS, to name a few. The
company also allocates as much as 20% of their content to children, as well as parental
control parameters for parents to control the content access of their children.321 iflix
charges 100 THB/month, which is roughly the same price they charge in Malaysia, for
unlimited viewing without any conditions or additional fees. Videos can be downloaded
for offline viewing 322 and there are various payment methods, such as credit card, money
transfer and counter service. Initially, iflix did not provide Thai soundtracks, since it
emphasised Thai and English subtitles. However, the company understands that content
viewing differs from country to country, so iflix is planning to offer funds to freelance
content producers to create local content in order to compete with other OTT TV and with
free TV providers.

318
Source: http://thumbsup.in.th/2015/07/iflix-will-be-launched-in-thailand-august/
319
Source: http://www.mumbrella.asia/2016/09/iflix-hires-thinakorn-thianprathum-lead-thailand-
operation/
320
Source: http://www.mediabusinessasia.com/article.php?id=1405
321
Source: https://www.beartai.com/review/software-review/70614
322
Source: http://www.tech radar.com/news/video/asian-streaming-service-iflix-now-supports-
offline-viewing-1309075

Informal translation provided for members of P. 42


Figure 6-10: Business model and SWOT analysis of iflix
 HOOQ

HOOQ is the largest OTT TV provider in Asia. The company was funded by three
world-class companies, namely SingTel, Warner Bros., and Sony Pictures, who own 65%,
17.5% and 17.5% of shares, respectively. This funding makes HOOQ the OTT TV
provider with the most movies and series to offer in Asia (10,000 items in total). HOOQ’s

Informal translation provided for members of P. 43


service strategy is to ally with big telecommunication service providers in each market. 323

HOOQ started their service by entering a joint venture with AIS, the mobile
telephone service provider with the largest customer base. HOOQ offers promotional
packages for AIS Fibre customers, who can receive AIS Play signals on their AIS
Playboxes, as well as applications on their AIS mobile devices. For 119 THB/month,
viewers can watch Hollywood movies in Ultra HD 4K quality within six months after
theatrical release, as well as watch blockbuster, international and Thai movies with Thai
soundtracks and subtitles.324 The HOOQ mobile application also supports offline viewing
and subscribers can choose to pay via many payment methods. HOOQ still plans to
generate revenue from subscriptions and has no plan to generate additional revenue from
advertising. The company understands that piracy is a very difficult problem to solve, but
chooses to provide Exclusive Content to their subscribers for viewing convenience, ease
of use, and lower fees in order to sustain their competitive advantage in the OTT TV
market. 325

Figure 6-11: Business model and SWOT analysis of HOOQ

It can be concluded that the features of OTT TV providers who generate revenue
from subscription fees are content variety, investment funds and online video viewing
technology. The low service fees and the external factors that boost the consumer’s access

323
Source: http://www.mediabusinessasia.com/article.php?id=1697
324
Source: http://positiongmag.com/61628
325
Source: https://www.digitalnewsasia.com/startups/chromecast-support-now-original-content-
coming-hooq-eco

Informal translation provided for members of P. 44


to the internet, the competition to provide more interesting content will likely increase in
severity. There is also competition from OTT TV providers that do not charge viewing
fees at all, as well as from free TV providers and piracy.

Providers with Revenue from Advertising

 LINE TV

LINE TV is a Thai OTT TV provider managed by the LINE Corporation in Japan


with Mr. Ariya Banomyong as the Managing Director in Thailand. 326 LINE TV started out
as a messenger application for both individual and group chats, as well as for free
domestic and international audio and video calls. LINE TV was launched in 2014, and as
of 2015, it had more than 33 million users. LINE TV aims to be a portable private TV that
values the culture of its users in each country.327

LINE TV is free of charge, but viewers have to watch commercial videos before
or after watching actual content. These commercials are LINE TV's main source of
income, which has been increasing so far.328 LINE TV provides various exclusive
content329 from collaborations with famous local content makers in the form of co-
productions,330 and in accordance with the behaviour of the viewers, who are 18–22 years
old on average. LINE TV’s advantages are its huge customer base, the familiarity of its
customers with LINE's other products, and exclusive content that is only provided by the
company, whose collaboration with other content producers and emphasis on quality have
contributed to LINE TV’s popularity.331 However, LINE TV’s revenue is only a part of
LINE Thailand’s revenue and is still not its main source of revenue.332 The biggest
competitor in the same field is YouTube, who is a larger provider in term of advertising
revenue.

326
Source: http://bit.ly/2efunly
327
Source: https://Unecorp.com/en/company/mission
328
Source: https://Unecorp.com/en/pr/news/en/2016/1348
329
Source: https://brandinside.asia/line-tv-7-days-7-lives/
330
Source: http://bit.ly/2dFIOxn
331
Source: http://www.telecomasia.net/content/naver-uses-visualon platform-power line Iv-
application
332
Source: http://www.nationmultimedia.com/technology/Line-Corp-lays-out-five-year mission
30282763.html

Informal translation provided for members of P. 45


Informal translation provided for members of P. 46
Figure 6-12: Business model and SWOT analysis of LINE TV

 YouTube

YouTube is the OTT TV provider with the largest income from advertising. At
present, YouTube is managed by Mr. Ben King, the head of business at Google Thailand
Co., Ltd.333,333 In 2015, YouTube’s viewing and uploading rates in Thailand increased by
70% from the rates of the previous year. 334,334 This dramatic increase was due to increases
in the access to high-speed internet on mobile devices, ease of access, and content variety,
as well as due to the fact that YouTube is an additional access channel for free TV
providers to distribute their content to viewers.
YouTube provides User Generated Content (UGC),335,335 which is different from
LINE TV in that all content comes from professional content producers. Looking at the
number of viewers and subscribers of YouTube Thailand, the three most popular Thai
channels are in entertainment and music, namely content produced by GMM GRAMMY,
Ginierock, and RsiamMusic, respectively. Even though YouTube is a large OTT TV
provider and has been in this market for a long time, the emergence of more providers in
2015 forced YouTube to come up with strategies, such as better viewing experience,
production of local content, and an office viewing function that allows viewers to
download video clips or their favourite shows for up to 48 hours, to maintain market
share.336,336

333
ที่มา: https://www.marketingoops.com/news/biz-news/ben-king-new-head-of business-google-
thailand/
334
ที่มา: http://www.nationmultimedia.com/breakingnews/Google-Thailand-appoints-Ben King-
country-head-30275435.html
335
ที่มา: http://positioningmag.com/62750
336
Source: http://www.whatphone.net/news/youtube-offline now-available-in-thailand/

Informal translation provided for members of P. 47


Figure 6-13: Business model and SWOT analysis of YouTube

 Bugaboo TV

Bugaboo TV was developed by a free TV provider, the Bangkok Broadcasting &


TV Co., Ltd. (Channel 7), with the business purpose of providing access to viewers on the
internet. Viewers can download a Bugaboo TV application and watch entertainment
shows, news, as well as aired programmes, on smartphones and other portable devices.
The channels of Bugaboo are categorised into drama, news, sports, variety shows, music
and entertainment.

Since its launch in 2012, Bugaboo developed without collecting fees from viewers.
However, even though it has long been a popular free TV channel, Bugaboo was not well
received. It has only 31,341 viewers per day and an advertising revenue of 11,220 THB
per day337337in comparison with their official YouTube channel, CH7, which has up to 1.1
million subscribers. This is because the viewers live upcountry from Bangkok, and have
limited access to high-speed internet or other means of accessing information. Moreover,
CH7 already provides viewing access via other social networks.

337
Source: http://www.netvaluator.com/www/bugaboo.tv

Informal translation provided for members of P. 48


Figure 6-14: SWOT analysis of Bugaboo TV

Looking at OTT TV providers who generate revenue from advertising, it can be


concluded that these players have somewhat limited funds to provide content. This is
because they tend to form alliances with content owners or their contents come from the
viewers themselves but the contents are still rich in variety. Investment funds and online
video viewing technology vary amongst the providers, and depends on their business
models. The largest and most popular provider in 2015 was YouTube. There are new
providers, such as LINE TV, that take advantage of their existing communication channels
to provide OTT TV providers with advertising fees. Such players need to be careful
because their commercial videos may negatively affect the viewing experience and result
in lower popularity.

Non-revenue-generating OTT TV providers

This section discusses OTT TV providers who do not generate revenue from OTT
TV, but offer services as add-on features for telecommunication service providers, such as
Pay TV providers and mobile telephone service providers, in order to differentiate
themselves from competitors and to maintain their market share. These providers are
TrueVisions Anywhere of TrueVision and AIS Play of AIS.

Informal translation provided for members of P. 49


 TrueVisions Anywhere

TrueVision Anywhere is an OTT TV provider developed and marketed by


TrueVisions, a large Pay TV provider who aims to be the best provider in Thailand by
providing the greatest variety of content.338 This service was developed in response to the
change in viewing behaviour from single screen to multi-screen. The company has
invested 460 million THB to develop TrueVisions Anywhere and to support cloud
services in the future. TrueVision expects approximately 350,000 users in the initial
stage.339
TrueVisions Anyway offers up to 50 channels of free TV in various categories, and
up to 120 channels of variety shows, sports, cartoons and series. Thai soundtracks and
subtitles, as well as HD visual quality, are available. A two-hour time-shift is provided for
live broadcasts and a two-day time-shift for other aired videos. The number of available
channels depends on subscription packages and the viewer can choose to add more
channels by paying additional fees. TrueVision Anywhere's subscription fee is somewhat
higher than those of other OTT TV providers due to the higher costs of the contents,
which may negatively affect existing customers, as well as potentially new customers who
are considering signing up. In addition, piracy and the emergence of new OTT TV
providers are still challenging TrueVisions' revenue and customer base.

338
ทีมา: http://muenue.com/2013/04/truevisionsanywhere/
339
ที่มา: http://www.siamsim.com/index.php?lay=show&ac=artide&ld=539657181

Informal translation provided for members of P. 50


Figure 6-15: Business model and SWOT analysis of TrueVisions Anywhere

 AIS Play

AIS Play is an OTT TV application further developed from AIS’s live and movie
broadcasts. The application was officially launched in early 2016 for AIS mobile
telephone users. The company takes advantage of their huge mobile customer base and
their alliance with HOOQ to create more content and better viewing experiences in line
with the business goal of being the leader in digital life services. 340 AIS Play offers more
Thai and international series and movies, as well as sports, concerts, karaoke and
educational programmes than do other providers. Viewers can watch live TV programmes
for up to seven days. The picture quality depends on the internet connection speed. AIS
Play provides both free and paid TV (depending on the content producer). Since AIS is the
largest mobile telephone service provider in the increasingly competitive OTT TV market,
customers expect a good viewing experience from AIS Play.

Figure 6-16: Business model and SWOT analysis of AIS Play

340
Source: http://investor-th.ais.co.th/what_we_do.html

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Television Station OTT TV providers

 Thai TV3

Thai TV3 is an application from the free TV provider, Thai Colour Television
Channel 3 under the BEC World Group, whose business vision is to be a market leader
and the best provider of TV productions and presentations of the highest quality news,
information and entertainment programmes. 341

Thai TV3 provides free TV channels, which are available on Channel 3, and has
many content producers in various categories. Viewers can download and watch for free,
but on average, there are only 17,426 viewers per day, which is very small in comparison
to their Ch.3 Official YouTube channel, which has more than 16.9 million subscribers.
This is because most viewers are in the Greater Bangkok area, and therefore, have many
choices, such as YouTube and Facebook, for accessing content.

Figure 6-17: Business model and SWOT analysis of ThaiTV3

To clearly present an overall view of business models, as well as the advantages of


and challenges faced by Thai OTT TV providers, we have scored these providers
according to the following seven criteria:
341
Source: http://www.becworld.com/download/en_aboutus_policy_2014.pdf

Informal translation provided for members of P. 52


- Number of Subscribers/Viewers

- Variety of content

- Technology

- Platform development

- Financial situation

- Openness to partnership

- Future investment plans within the next two years

Each aspect is scored between 1 and 5. A score of 1 means that there is a chance
that the OTT TV provider would lose its competitive advantage or not survive in the long
run, whilst a score of 5 means that there is a chance that the OTT TV provider would gain
a competitive advantage or survive in the long run, as shown in Figure 6-18.

Figure 6-18: Criteria in competitive analysis of OTT TV providers

From the data and criteria above, our study found that in term of competitive
advantage, the top three OTT TV providers are YouTube, LINE TV, and TrueVisions
Anywhere. The main components of their competitive advantage are the number of
viewers, interesting content and variety, financial situation, and efficiency of the platform
for a good viewing experience, as shown in Figure 6-19.

Informal translation provided for members of P. 53


Figure 6-19: Competitive scoring results of OTT TV providers.

6.2.2 Analysis of Relevant Laws and Regulations

At present, there are five Acts relevant to OTT TV providers in Thailand:

1. Cyber Crime Act B.E. 2550 (2007) – Computer Act

2. Copyright Act B.E. 2537 (1994) as Amended by Patent Act (No. 2) B.E. 2558
(2015) – Patent Act

3. Consumer Protection Act B.E. 2522 (1979) as Amended by Consumer


Protection Act (No. 2) B.E. 2541 (1998) – Consumer Protection Act

4. Organisation to Assign Radio Frequencies and to Regulate Broadcasting and


Telecommunications Services Act B.E. 2553 (2010) – Spectrum Allocation
Act

5. Broadcasting Business Act B.E. 2551 (2008) – Business Act

The laws and regulations relevant to OTT TV services in Thailand can be


categorised into two groups. The first group is related to OTT TV service platforms
(Computer Act, Spectrum Allocation Act, and Business Act). The second group is related

Informal translation provided for members of P. 54


to contents provided on the service platform (Computer Act, Patent Act, Consumer
Protection Act, and Business Act).

Figure 6-20: Laws and regulations relevant to OTT TV services

Cyber Crime Act B.E. 2550

Cyber Crime Act's policy is to prevent and suppress cyber crimes committed on
computer networks, including the internet. Since OTT TV is considered to be the viewing
of content on the internet via a website or application, it is relevant to the Cyber Act in the
following two ways:

 OTT TV platform

According to Section 3 of the Cyber Act, a computer system is any device, or a


group of interconnected or related devices, one or more of which is pursuant to a
programme, an instruction or anything else that performs the automatic processing of
data. Thus, according to Section 3, OTT TV is regarded as a kind of computer system,
and is, therefore, protected by the Cyber Act.

Section 5 of the Cyber Act states that whoever accesses a computer without
permission, for example, hacking or intruding, shall be liable to punishment by law. Such

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action usually comes with accessing computer data without permission, which shall be
liable to punishment by law. Hence, the same person who is punishable under Section 5 is
also usually punishable under Section 7. For this reason, hacking into an OTT TV system
to view content without permission is punishable by law. Likewise, if an OTT TV
subscriber discloses their password to a non-subscribing person, who consequently access
OTT TV content without paying any fees, that OTT TV subscriber shall be punishable by
law under Section 6 of the Cyber Act.

As for computer data interception, Section 8 of Cyber Act states that whoever
illegally intercepts by any electronic means the computer data of another person that is
being transmitted in a computer system, and if such computer data is not for the benefit of
the public or is not available for other persons to utilise shall be punishable by law. In the
case of OTT TV, the interception of data transmitted to an OTT TV platform is, therefore,
punishable under Section 8 of the Cyber Act. For example: (1) an outside person who
intercepts an OTT TV data transmission from an OTT TV provider to an OTT TV user to
view content is regarded as illegally intercepting data, and is, therefore, punishable under
Section 8 of the Cyber Act; and (2) an outside person who intercepts an OTT TV data
transmission from an OTT TV content owner to an OTT TV user for their own use or
monetarization is also regarded as illegally intercepting computer data, and is, therefore,
punishable under Section 8 of the Cyber Act.

Apart from protection against illegal data access and interception, the Cyber Act
also protects computer data in Section 9 in that whoever acts in a manner that causes the
damage, impairment, deletion, alteration or addition either in whole or in part of the
computer data of another person without permission is punishable by law. Hence,
whoever damages or alters OTT TV content without permission shall be punishable under
Section 9 of the Cyber Act. In addition, Section 10 of Cyber Act protects computer
systems from causing the suspension, deceleration, obstruction or interference of the
computer system of another person such that the system cannot function normally shall be
punishable by law. In the case of OTT TV, whoever causes the suspension of an OTT TV
system so that the system cannot function normally shall be punishable under Section 10.

Informal translation provided for members of P. 56


Figure 6-21: Cyber Crime Act relevant to OTT TV services.

 OTT TV Content

According to Section 3 of the Cyber Act, the contents of an OTT TV are regarded as
computer data, because such contents are in a computer system and can be processed—
users can view OTT TV either on a website or with an application. Such contents are also
regarded as data communications in computer systems.

Section 14 of the Cyber Act prohibits the following data to be input into a computer:
(1) Wholly or partially fake or false computer data that is likely to cause damage to
another person; (2) False computer data that is likely to undermine national security or
cause public panic; (3) Offensive data against national security; (4) Pornographic
computer data that is accessible to the public; and (5) Publishing or forwarding computer
data with the full knowledge that such computer data is prohibited under items (1)–(4)
above. Whoever commits these acts shall be liable to imprisonment for a term not
exceeding five years or to a fine not exceeding 100,000 THB or both. Hence, whoever
uploads such prohibited data on an OTT TV platform, for example, a User Generated
Content (UGC) platform, shall be punishable by law.

If a user uploads content prohibited under Section 14 of the Cyber Act, not only
shall the user be punishable by law, but the OTT TV provider also shall bear the risk of

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being punishable by law. This is because under Section 15 of the Cyber Act, any service
provider who intentionally supports or gives consent to the commission of an offence
under Section 14 in a computer system under their control shall be liable to the same
penalty stipulated in Section 14.

Copyright Act B.E. 2537 (1994) as Amended by Patent Act (No. 2) B.E. 2558 (2015)

Contents offered on OTT TV are movies, dramas and television shows with
copyrights that are protected by copyright law in accordance with Section 6 of the
Copyright Act. Section 28 of the Copyright Act states that whoever reproduces or adapts
and publishes for the public an audio-visual or a cinematographic work that is
copyrightable by virtue of this Act shall be punishable by law. In this regard, there can be
two cases of infringement of copyright as follows:

 An OTT TV provider broadcasts copyrighted content without permission


from the copyright holder.

In this case, the OTT TV provider shall be punishable by law for broadcasting
copyrighted content without the owner’s permission.

Figure 6-22: Intellectual property law relevant to OTT TV services

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Informal translation provided for members of P. 59
 An OTT TV provider reproduces or adapts and broadcasts copyrighted
content without permission from the copyright holder.

Without the owner’s permission, whoever reproduces or adapts such content shall be
punishable by law. In this case, however, the OTT TV provider shall also be punishable
by law since Section 31 of the Copyright Act states that whoever sells the infringed
copyright work of another person shall be deemed as having infringed the copyright as
well. Therefore, if an OTT TV provider knows that broadcasted content has infringed a
copyright, the provider shall be deemed to have infringed the copyright as well.
Nevertheless, in the case that the OTT TV provider is not the person who controls,
initiates or orders such broadcasting to be made, the provider shall not be deemed to have
infringed copyright under Section 32/3 of the Copyright Act.

Consumer Protection Act B.E. 2522 (1979) as Amended by Consumer Protection Act
(No. 2) B.E. 2541 (1998)

Since OTT TV providers can generate revenue from advertising products or services
to OTT TV users, users who have been persuaded to purchase a product or service have
the same status as the consumers mentioned in Section 3 of the Consumer Protection Act.
Therefore, any advertising on OTT TV must be in accordance with this Act.

Informal translation provided for members of P. 60


Figure 6-23: Consumer Protection Law relevant to OTT TV services
Section 22 of the Consumer Protection Act states that an advertisement may not
contain a statement that is unfair to consumers or may cause an adverse effect to society as
a whole. Such statements are those that (1) are false or exaggerated, (2) cause
misunderstandings of the essential elements concerning goods or services, (3) directly or
indirectly encourages the commission of an unlawful or immoral act, or which adversely
affects the national culture, (4) cause disunity or adversely affect the unity of the public,
and (5) have been prescribed in the Ministerial Regulation. Moreover, Section 23 of the
Consumer Protection Act prohibits advertisements that are effected by a method that may
be harmful to health, or cause physical or mental harm, or annoyance to consumers.
Therefore, if it is found that an advertisement on OTT TV is deemed to be in violation of
Section 22 of the Consumer Protection Act, for example, an advertisement that contains
exaggerated statements or an advertisement that adversely effects society as a whole, the
Consumer Protection Committee may issue orders to the provider to rectify the statement
or method of advertisement under Section 27 of the Consumer Protection Act.

Organisation to Assign Radio Frequencies and to Regulate Broadcasting and


Telecommunications Services Act B.E. 2553 (2010)

An OTT TV service is a service that enables the viewing of television via a website
or an application, and may be deemed as a broadcasting business under Section 4 of the
Broadcasting and Telecommunication Services Act, which states that a television
broadcasting service is a service that provides public news services or programmes for
viewing and listening by means of a receiving apparatus via radio frequencies, wires,
optical, electromagnetic, or other systems, or a combination thereof, or other similar
services prescribed by NBTC as constituting television broadcasting services. Section
27(3) of this Act also empowers NBTC to prescribe the characteristics and categories of
sound broadcasting, television broadcasting, and telecommunication services. Therefore,
NBTC has the power to determine which business is involved in television broadcasting.

From Sections 4 and 27(3) of this Act, it can be seen that NBTC has the authority to
determine the character of television broadcasting services. Therefore, should NBTC
deem an OTT TV provider as a television broadcasting service in accordance with this
Act, that provider shall fall under the purview of the Broadcasting Business Act B.E.
2551 (2008).

Informal translation provided for members of P. 61


Figure 6-24: NBTC law relevant to OTT TV services

Broadcasting Business Act B.E. 2551 (2008)

Section 4 of the Broadcasting Business Act states that a television business means a
business that is subject to the law of the organisation that assigns frequencies and
regulates radio broadcasting, television and telecommunications businesses. If NBTC
deems OTT TV to be television broadcasting under the Organisation to Assign Radio
Frequencies and to Regulate Broadcasting and Telecommunications Services Act, then
OTT TV is regarded as a broadcasting business under the Act.

A broadcasting business operator must comply with Section 7 of the Broadcasting


Business Act, which states that any person who operates a sound or television
broadcasting business should obtain a license from NBTC. Since OTT TV is deemed to
be a broadcasting business, service providers must obtain an operating license in
accordance with Section 7, as well as comply with the relevant rules and regulations.

Apart from obtaining a license, as stated above, the Broadcasting Business Act also
controls the contents broadcast by a television business. As stated in Section 37, if the
broadcasting of programmes contains contents that have the purpose of encouraging the
overthrow of the current administration under the democratic form of government with
the King as the Head of State, have the purpose of adversely affecting the security of the

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State, public order or the morals of the people, or are of an obscene nature, or cause
serious deterioration of the mind or health of the people, such contents shall be prohibited
from being broadcasted. It is the responsibility of the licensee to examine and terminate
the broadcasting of any such content. The failure to do so may result in the immediate
termination of broadcasting by NBTC. Thus, it is also the responsibility of OTT TV
providers to examine and terminate the broadcasting of any such content, whilst NBTC
reserves the right to immediately terminate any such broadcasting.

Informal translation provided for members of P. 63

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