Professional Documents
Culture Documents
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.
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.
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)
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
Hollywood HD
- 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
- 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
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
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
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/
According to the data we have collected, Netflix’s OTT TV’s service can be
concluded as follows;
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
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/
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
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
‐ 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:
277
Ibid. 13
278
Source: http//workpointtv.com/download-workpointtv-app/
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
279
Source: http://www.mana§er.co.th/DramaA/iewNews.aspx?NewslD=9570000047252
280
Source: http://§rammy.listedcompany.com/misc/AR/20150331-grammy-ar2014-th-02.pdf Page 81
‐ 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
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
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
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
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/
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
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/
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)
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
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 -
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
Opportunities
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%.
305
Source: http://vvvvw.gsma.com/spectrum/wp-content/uploads/2015/05/Building-Thailands-
Digital-1 conomy. Full-Report. I NG.-April2015.pdf
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.
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
Challenges
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
309
Source: http://media2.telecoms.com/e-books/DTVE/magazine/msott16pt5_lo.pdf
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.
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
Primetime
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
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
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
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
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
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
LINE TV
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
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/
Bugaboo TV
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
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.
338
ทีมา: http://muenue.com/2013/04/truevisionsanywhere/
339
ที่มา: http://www.siamsim.com/index.php?lay=show&ac=artide&ld=539657181
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.
340
Source: http://investor-th.ais.co.th/what_we_do.html
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.
- Variety of content
- Technology
- Platform development
- Financial situation
- Openness to partnership
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.
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.
2. Copyright Act B.E. 2537 (1994) as Amended by Patent Act (No. 2) B.E. 2558
(2015) – Patent Act
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
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
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.
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
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:
In this case, the OTT TV provider shall be punishable by law for broadcasting
copyrighted content without the owner’s permission.
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.
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).
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.
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