In December 2015, we have given a presentation to the broadcasting industry on the topic "New Paradigm Shift in TV Market Competition in Thailand. The presentation covers identification of key driving forces in TV consumption, global trend in TV industry, TV Media Ecosystem in Thailand, the important of digital advertising, current Pay TV and OTT TV landscape in Thailand and some speculations on how the TV market will evolve. The event is complemented by a "panel discussion" on how regulators should act in response with the development and evolution of TV industry.

1. The New Paradigm Shift in TV Market Competition in Thailand
22 December 2015

2. Digital disruption and mobile data communication have totally changed the behavior
in TV consumption worldwide. Younger Thais consume video more on online platform.
– 2 –
Key Driving Forces in TV Consumption
Source: TNS, 2015
2.0 2.1
1.0
2.9
1.8 1.8
4.2
1.6
2.0
-
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
4.5
Baby Boomer
(46-65 years old)
Gen X
(31-45 years old)
Millennials
(16-30 years old)
Mobile usage Online TV and
VoD consumption
Traditional TV
consumption
hr/day
Thai Media Consumption Behavior across 3 Generations
• Cheaper smart phones makes them more
affordable and leads to the increasing
smartphone adoption rate
• Smartphone penetration is currently at 31% of
the population (Approximately 20,908,917
Smartphone users)
Smartphone Adoption
• Digital content eg. Videos, clips in HD quality
can be produced in a lower production cost
• Online platforms are ready for digital content.
• User generated content makes number of
content online greatly increased.
Digital Disruption
• 3G/4G technology leads to possibility of
smooth online TV and VoD streamimg
• Which would make traditional TV and online
TV indifference in an aspect of smoothness
Mobile 3G/4G
• Thai media consumption behavior across 3 generation reflects trends in the consumption behavior
• In the future, where millenials represent the future trend, online TV and VoD will gain more share in media consumption stake,
while traditional TV consumption will shrink.
• need digital transformation in TV business to compete better

3. There are 6 major global trends in the TV industry. Many of them are already and
widely adopted but they will be much more prominent in the next 5 years.
– 3 –
Global Trend in TV Industry
• Personalization will go beyond content (on demand) to discovery
process, user experience and advertising
Personalization1
• Experience across all TV platforms i.e. linear and non-linear TV will
be very much improved.
TV Anywhere2
• There will be more and more channels with HD and UHD (4K and
8K) available in the future . Pay TV will lead this change due to
ease of implementation.
4K Quality3
• Non-linear TV e.g. OTT TV and Social TV will grow rapidly. Higher
adoption will be explicit in the developing countries.
The Rise of Non-linear TV4
• Content is still King but data is gaining more and more important
Data is the Game Changer5
• TV Measurement will be extended to multi platform
Evolution of Measurement6

4. There are two paradigm shifts in Thai TV market competition that are highly effected
from digital transformation i.e. advertising and distribution platform markets.
– 4 –
TV Media Ecosystem: Paradigm Shift in Market Competition
Product Owner
Media
Agency
Content
Production
Service
Delivery
Platform and
Distribution
End User
Advertising market (Free TV)1
Platform market (Pay TV)2
• Advertising in traditional media has
been challenged.
• Advertising market has to adapt to the
digital era in many aspects e.g. media
agency moves its focus to online
platform where viewers seems to spend
more time on it, emphasize more on
data analytics etc.
• OTT requires only internet access in
order to provide a pay TV platform
service unlike cable and satellite pay TV.
• Cheaper investment and readiness of
the infrastructure welcomes more OTT
players in platform and distribution
services market

5. TV is still the most important mean of product advertising. However, digital
advertising via different forms is growing its significance rapidly.
– 5 –
Thai Advertising Market goes Digital
2.783
4.248
6.115
9.869
0
2
4
6
8
10
12
2012 2013 2014 2015F
BillionTHB
Year
CAGR = 53%
Digital Advertising Spending from 2012-2015Total Advertising Spending between Jan-Sep 2015
Digital Advertising Discipline in 2015Total Advertising Spending by Brand in 2015
Source: Nielsen (2015), DAAT (2015)
Display
28.7%
Search
13%
YouTube Ad
16.5%
Facebook Ad
21.4%
Other platforms (20.4%): creative production, social media,
instant messaging, mobile, programmatic ad and others.
Total: THB 92 b
Analog TV:
48%
THB 44 b
Digital TV:
17%
THB 16 b
Newspaper:
10%
THB 44 b
Others (25%):
cable/satellite TV,
radio, cinema,
moving target,
magazine, outdoor,
internet and mall
The top ad spending brand
1st: THB 965 m
3rd: THB 679 m for pick up
truck ads
2nd
THB 736 m
4th
THB 663 m
5th
THB 627 m
6th
THB 519 m
1

6. With its advantages over traditional TV media, digital advertising on highly populated
video platform like YouTube is increasingly gaining popularity.
– 6 –
Example of Digital Advertising in Video Content
• 2 years ago there would be not that much advertising on You Tube video in
Thailand
• Advertising is in different forms e.g. video appears before other videos on
YouTube, beside playing videos and as a search results
• 12 spots of advertisement
• 30 second each
• Users can skip some of the ads
Advantages of digital
advertising
• Measurable with build-in
analytics e.g. see where the ads
are viewed, how many views you
paid for, how many clicks you
have got.
• Can be very targeted e.g. age,
gender, interest, location
• Less cost than mass media and
complete control over budget
1

7. Media Agency and Channel have to adapt to new media planning and business model.
Currently Thailand still lacks of skill digital workers and tools but it’ll be getting better.
– 7 –
Implications to Media Agency and Channel
• Evidence from International shows that there
will be many new but small Media Agency who
are “digital specialist” emerged in the market
• Existing Media Agency needs transformations
• New landscape of media planning
• need people who have data analytic skill
• One stop service
The Rise of Ad Agency Employment Current problems in Thai Ecosystem
• Lack of skill workers e.g. digital marketers, programmers
• Only few reliable marketing research company in the
broadcasting market
• Nielsen was a sole TV ratings in Thailand
• Media Research Development Association or MRDA
(Thailand) with Kantar media will do a Multi-platform
TV ratings in Thailand for 2016
• DAAT and TNS publish Thailand digital advertising
spend 2014-2015
• Advertising revenues will be increasingly move to Digital.
Hence TV Channel Operators need transformation in
service offering and business model.
TV Ratings Ad spends
1

8. Pay TV platform business is highly competitive in Thailand. True Vision has captured
and lock-in most of the high value customers in the market.
– 8 –
Thai Pay TV Market Landscape
Source: CASBAA, Informa, Company Data, TIME Analysis 2015, TRUE at a Glance (Sep 2015), TRUE Annual Report 2014
Premium (Platinum,
Gold, Super Family):
0.3 m (11%)
Standard
(Smart Family,
Sport Family,
Happy Family):
0.8 m (30%)
Free-view:
0.5 m (20%)
Free-to-air:
1.06 m (39%)
Key contents
• Satellite/cable
operator
• Local cable operator:
LCOs (300+)
• IPTV
providers
Subscription TVSatellite Free TV
“Set-Top-Box based
business model”
Free/Pay
“Subscription based business model”
• Thailand’s No.1 nationwide pay TV
provider and the first HDTV provider
• There are 195 channels with high-quality
local and international content
• Offering 6 packages to capture each target
segment and strengthen its mass-market
strategy:
• Platinum HD (195 channels)
• Gold HD (170 channels)
• Super Family HD (166 channels)
• Smart Family HD (155 channels)
• Sport Family HD (133 channels)
• Happy Family HD (125 channels)
1H 2015 Subscriber Breakdown
• Satellite operator • Satellite
operator
King of Movies and
Series
King of Sport
King of
Entertainment
King of Knowledge
Total
2.7 m
2

9. The market will be even more competitive with the invasion of OTT TV service
provision. Utilizing their strengths, Channel & Telcos can become significant players.
– 9 –
OTT TV Landscape in Thailand
- Low investment in the service
- Large addressable demand and market
- As a result, new players will continue entering the OTT market and expand
consumer choices
sVoD On-line Video Platform Telco (incl. IPTV)
Key Advantage of OTT TV
2
Friend or Foe?

10. HOOQ, a JV between Singtel, Sony Picture TV and Warner Bros, is a regional OTT
service provider, offering sVoD on Hollywood and regional movies and TV series.
– 10 –
Case Study on HOOQ
 A subscription video on demand (sVoD),
using website and online streaming
video application to provide unlimited
access to variety of movies and TV
series on any device, anytime and
anywhere.
Key Solution Vendors:
Source: HOOQ (2015)
Supply the CLEAR Operations Cloud: a
hybrid Cloud-enabled media ERP suite
which manages workflows of content
processing and packaging, together with
tackling the content delivery speed issue
Partnering with HOOQ to supply a
managed multiscreen video
platform which powers premium
video to any device.
 An OTT service created by a joint venture
between Singtel, Sony Pictures Television and
Warner Bros. Entertainment
Partnership with Telecom Operator for Distribution
Regional Footprint:
 Launched in
February, 2015
 Launched in
June, 2015
 Launched in
May, 2015
Partnership with Local Content Creation Houses
Product and Service:
 A monthly subscription
with up to 5 registered
devices per account e.g.
 PC
 iOS devices
 Android devices
 Unlimited access to 10,000+ movies
and TV series in HOOQ’s library
 Hollywood movies
 Popular American TV series
 Regional content specific to
Filipino/ Thai/ Indian customers
 Able to download up to 5 movies and
TV shows across all registered devices
2

11. OTT TV is expected to grow the Pay TV industry as evidenced in UK and USA where
OTT providers like Netflix extents the market size and hits critical mass.
– 11 –
Source: Ofcom (August, 2014), Television and audio-visual, Ofcom The Communication Market Report., Ooyala & Vindicia (2015)
2009 2010 2011 2012 2013
Revenue(millions£)
UK Online TV Revenue
2009 2010 2011 2012 2013
Revenue(Millions£)
Total UK TV Industry Revenue
Pay-TV Subscription
Other revenue (e.g. TV license, advertising, and etc.)
£11,000
£11,800 £12,300 £12,400 £12,900
FTV Ad Revenue Subscription
Other (PPV, Pay-Per-View & DTO Download-To-Own)
Growing in
online TV
£5,879
£4,384
£4,655
£5,027
£5,428
The Future of Pay TV Platform goes OTT
NBC, ABC FOX,
Telemundo, and
Univision will all be
launching distinct
subscription OTT
services by 2016.
The SVOD market has been primarily dominated
until recently by Netflix, Hulu and Amazon – but
2015/16 will see the launch of a wide range of
new services, including Dish Network’s Sling TV,
Sony PlayStation Vue, HBO Now, CBS All
Access and more.
Prospects for Premium OTT in the US OTT Content is geared to dominate the market.
2

12. Movistar and HBO have signed an agreement that will allow Movistar to
broadcast HBO’s flagship TV series such as Game of Thrones, Boardwalk
Empire and Girls distributed via Telefonica’s online VoD service. (Jan, 2015)
Telecom operators, pay TV operators, cable and IPTV providers are increasingly
looking to open up their platforms to OTT providers via partnerships.
– 12 –
OTT Partnership Model Worldwide
SFR's 4G LTE customers will be able to access online music from Napster
after the operator signed an exclusive partnership with the US-based company.
As a result of the deal, subscribers to the French company’s next gen network
with Apple and Android devices will have access to over 20 million songs,
both on and offline. (Sep, 2013)
Bouygues Telecom has reached an agreement with Spotify to include the
latter's music streaming service in its higher-end mobile plans. Bouygues
customers will benefit from the popular music service and Spotify will be
able to potentially access the 10 million subscribers on the Bouygues
network. (Dec, 2014)
Netflix has partnered with SoftBank to launch its video-streaming service in
Japan. SoftBank customers will be able to sign up for Netflix through
SoftBank's channels without having to fill out any payment information.
The Netflix fee will be added to users' monthly bill that they receive from
SoftBank. (Aug, 2015)
Source: CNBC (2015), Advanced Television (2015), Telecompaper (2014), European Communication (2013)
2

13. As the internet video streaming service like Netflix becomes popular, which increases
the data usage. Comcast reacts by putting the limit on home internet data usage.
– 13 –
Some React from Telco
Source: Cinemablend (2015), Comcast (2015), Netflix (3Q 2015)
 American mass media company,
operating in such area as:
 Cable provider
 TV and radio broadcasting
 Cable TV/ Pay TV service
 Home internet service
 Home Telephone service
 American internet video streaming
provider with 69 m subscribers
worldwide
 Offering sVoD to users in The
Americas and 25 countries around the
world, with 8 countries scheduled to
launch the service in 2016
 Due to the change in the consumers’ behavior in
watching TV and other media contents, there is an
increase use of internet video streaming like
Netflix. On the other hand, cable TV provider see the
declining trend in the number of subscriber.
 Accessing Netflix’s service requires data usage to
download content. Once the number of the internet
video streaming users increases, it causes the
data traffic congestion problem to the internet
service providers and the needs to expand the
data usage capacity in their system.
 Therefore, Comcast is bound to lose revenue from its
cable TV/ pay TV business and to invest in the
expansion of data capacity in the near future.
300 GB 50 GB
300 GB
 Comcast reacts to this consumer behavior shift by
announcing a 300GB metaphorical limit on data usage
through the home internet service, starting from
October, 2015
300 GB
 Each home internet
user has 300 GB limit
on their monthly plan
 For every 50 GB used
after the cap, the user
will be charged $10
 User can also choose
to pay $30 to get the
unlimited home data
usage
$10
Unlimited
$30
2

14. The issue on competition regulation in the light of new OTT TV has been debating
worldwide. It’s recommended clear regulatory objectives have to be set for Thailand.
– 14 –
Un-level Competition Playing Field
Regulation Licensed Network
Operators
OTT Players
Licensing Subject to license and
license fee
No license required
Quality of Service SLAs included in the license No quality requirements
Interconnection Interconnection mandated No interconnect requirements
Consumer
Protection
Subject to (enforceable)
consumer protection policy
No or little enforcement
power
Universal Service Usually subject to universal
service obligation
Not subject to universal
service regime
Legal Interception Usually license condition Country dependent
Taxation Subject to national tax
regime
Service dependent
Comparison of market
conditions
• Network operator’s
business model is
determined by regulatory
requirements
• OTT Players are usually
free of such limitations
• Current market setups
have not yet adapted to
the new competitive
situation
• Competition is
dysfunctional
• Regulators punish
network operators that
invest in local
infrastructure, are an
important source for local
employment and are local
tax payers
It’s recommended clear regulatory objectives have to be set for Thailand.
Source: Detecon (2015)
2

15. For more information on our services, please visit our website at
www.timeconsulting.co.th or feel free to contact us!
– 15 –
Contact Us
Where We Are
TIME Consulting Co., Ltd.
89 AIA Capital Center 10th Fl. Room 1006
Ratchadapisek Rd., Dindaeng, Bangkok 10400
Tel: +66840701000, Fax: +662 9480450
Business Contact
Jackkit Sangkittiwan
Partner
Email: Jackkit.s@timeconsulting.co.th
Tel: +6681 9871750