Thriving TV programming online has induced many over-the-top (OTT)[1] content providers to enter this market. They include those providing as their main service, e.g., independent operators, YouTube and digital TV operators, whose main sources of revenue come from online broadcasting, membership fees, subscription fees and advertising. Those providing video/TV content online as a supplementary service, e.g., telecom network operators, can generate income from internet and/or new service package fees, whereas social network service providers, e.g., Facebook and LINE, largely earn income from advertising, though this depends on how much time their users spend online.
Currently, Thai consumers primarily view online TV programs via platforms provided by social network service providers and digital TV operators; those businesses have advertising as their major source of income. We at KResearch expect that the advertising income of OTT content operators in Thailand will reach perhaps THB6-6.2 billion in 2017, increasing 20-24 percent YoY.
A behavioral survey conducted by KResearch using a sampling group of Thai consumers shows that 64 percent of the respondents have viewed some online TV programs. Of that number, 49 percent said that they only occasionally switch to online TV, departing from traditional TV because they want to watch steaming live shows online when they are not free or convenient to watch traditional TV.
Meanwhile, 55 percent of the respondents said that they occasionally switch to online TV because some interesting programs are only available online. This implies that Thai consumers now have a new option to view their favorite programs.
[1]This term means the delivery of motion picture and audio content via channels other than traditional radio-TV networks.
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