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27 May 2016

Services

4G to Boost Online Entertainment – 13.9% Growth Expected in 2016 (Current Issue No. 2742)

As the number of 4G users rises, KResearch is of the view that online entertainment services will likely flourish, offering inviting opportunities for companies engaging in such services of which ranges from music, movies, TV shows and games. Apart from the content providers, opportunities will be equally exciting for wireless broadband network providers, whose earnings should fare better with the availability of online entertainment services.
During 2016, KResearch forecasts that more people will likely use online entertainment services given the intense competition present now and marketing tactics by providers, coupled with the transition to newer telecom technology whereby 4G-capable devices like smartphones and tablets will spur greater data use. The online entertainment market[1] will probably gross THB12.92 billion in 2016, rising 13.9 percent YoY over the THB11.34 billion in 2015.

Business-wise, operators should employ strategies that support content they offer, attracting more people towards these entertainment activities to the point where they are willing to pay for the service. They could offer content that is more varied but similar in genres, and use simpler payment systems. Service packages and pricing should be tailored to suit individual preferences. However, with ever-more data and media content available from Thai and foreign sources that are freely accessible via the internet, it might be rather challenging for local content providers to make their products stand out. That said, we still believe in Thai content providers' competitive advantage, given their insights into local tastes and behaviors.



[1] Online entertainment services include music, movies/series, TV shows and games, etc., offered via wired and wireless broadband internet service providers. The market value comprises the earnings of such providers, derived from subscriber fees, download charges, advertising, etc. Broadband data access fees are not included.

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