Digital TV operators sink or swim with licence deadline drama

Digital TV operators are in hot water as they face a raft of industry troubles and the looming expiry of their licences in 2029. The sector is grappling with rapidly changing viewer habits, a surge in streaming services, and nagging worries about dwindling viewership figures.

Back in 2013, the National Broadcasting and Telecommunications Commission (NBTC) auctioned off 24 digital TV licences. Now, the Association of Digital Television Broadcasting (ADTEB) is pushing hard for these licences to be extended beyond their 2029 deadline.

ADTEB President Suphap Kleekajai blasted the current five-year extension period as inadequate. He’s calling for a shift away from costly auctions and is championing a “beauty contest” approach for future licence allocation.

“We want the term of digital TV licences to be extended beyond 2029, or have alternative methods for the allocation of new operating licences. The licences must no longer be auctioned at high prices.”

The digital TV sector has seen a decline in ad spending and doubts about the accuracy of viewership metrics. The NBTC’s 2013 auction imposed a combined financial burden of 50 billion baht on operators, leading some to cease operations. A study from Chulalongkorn University suggests that the appropriate total for the combined winning bids should be 13 billion baht for the 24 digital TV licences.

Suphap also highlighted the impact of the planned frequency reallocation, as the 3500 to 3800-megahertz range is currently used by many satellite TV stations.

“Around 60% of the Thai audience views digital TV channels via a satellite platform.”

Regulated content

NBTC Chairman Dr Sarana Boonbaichaiyapruck acknowledged the need to reconsider the auction of the 3500MHz range.

The digital TV sector is crucial as it offers regulated content, unlike other platforms. Takonkiet Viravan, group chairman of The One Enterprise Plc, emphasised the importance of digital TV channels in the audiovisual sector.

“The issue is how can content be efficiently aired via both terrestrial TV and streaming platforms.”

NBTC commissioner Pirongrong Ramasoota, responsible for the TV business, admitted it is too early to predict the future of digital TV operators post-2029. She noted that digital TV in Thailand has unique challenges, requiring cross-platform ratings that more accurately reflect viewership.

According to a Nielsen Co., survey, TV remains a popular medium in 2024, with 57% of respondents watching TV. However, the percentage of respondents watching TV offline has decreased from 63% in 2023 to 53% in 2024, while the use of streaming services has risen to 47%.

Pirongrong mentioned that only five digital TV channels might survive post-2029, potentially operating via high-definition and 4K broadcasting platforms. The NBTC is working on establishing a “national streaming platform” to consolidate all digital TV content currently provided via streaming. This platform aims to ease uncertainty in the sector and provide accurate viewership ratings.

The NBTC has engaged SCF Associates to study the changing nature of the country’s audiovisual market and propose regulatory recommendations. SCF’s study emphasises the need for content regulation balance between over-the-top (OTT) and linear broadcasters, and the importance of public service channels for the poorest in society. The NBTC plans to consider these recommendations as it develops the industry’s regulatory framework.

As digital TV operators navigate these challenges, the sector’s future will depend on regulatory clarity, innovative solutions for licence allocation, and the ability to adapt to evolving consumer preferences.