Petition filed at Bankruptcy court in GMM B rehab case

ศาสตร์เกษตรดินปุ๋ย : ขอบคุณแหล่งข้อมูล : หนังสือพิมพ์ The Nation–30290059.html


GMM Grammy yesterday filed a petition at the Central Bankruptcy Court under the rehabilitation case of GMM B and to revoke an agreement under which GMM B grants the Channel 3 operator the right to broadcast 31 live matches of the Uefa Euro 2016 soccer tournament.

The music and entertainment giant yesterday notified the Stock Exchange of Thailand in writing about this move.

In a statement signed by chief financial officer Karnsuda Sansuthi, the company agreed to file a petition to revoke the court order in the business rehabilitation case of GMM B.

On March 18, GMM B filed a petition for business rehabilitation at the Central Bankruptcy Court and the court scheduled a preliminary examination of the petition for September 6.

On April 7, GMM B and Wichai Thongtang, who holds shares in CTH, also filed a petition to request permission from the Central Bankruptcy Court for GMM B to borrow US$5.63 million from Wichai.

GMM B would use the loan to pay Uefa in accordance with the media-rights agreement for Euro 2016 and would use the payment received from Bangkok Entertainment Company and BEC Multimedia, the grantees of the right to broadcast live transmissions, reruns, and programme feeds of sporting events via BEC’s channels, for debt repayment to Wichai first.

The Central Bankruptcy Court granted permission on April 25.

CTH is a major shareholder of GMM B. In addition, according to the agreement on the Euro 2016 Qualifiers, GMM B is required to pay Uefa a licence instalment of $6 million by September 1, and GMM B planned to apply the payment received from BEC to make this payment.

In view of the above, with the permission of the court, GMM B will obtain a loan of $5.63 million from Wichai. When GMM B receives the payment of $7 million from BEC, GMM B will repay the $5.63 million to Wichai. GMM B will have only $1.36 million on hand. As a result, GMM B will then become insolvent and will not have sufficient revolving funds to pay Uefa the $6-million licence fee for the Euro Qualifiers on September 1.

Based on the reasons stated above, if GMM B fails to pay the licence fee for the Euro Qualifiers, Uefa will be entitled to request that the commercial bank that issued a letter of guarantee immediately make the payment to Uefa. If the bank does so, GMM Grammy as the guarantor of GMM B will get the damages.

Master Ad gears for rural expansion

ศาสตร์เกษตรดินปุ๋ย : ขอบคุณแหล่งข้อมูล : หนังสือพิมพ์ The Nation


MASTER Ad has earmarked about Bt500 million to expand its out-of-home advertising-media coverage, largely upcountry, both organically and through mergers or acquisitions of local companies, aiming to grow by 15 per cent to revenue of Bt1 billion this year.

“We are negotiating with many local out-of-home-media operators in the provinces. The company aims to seal about three or four deals this year,” Suparanan Tanviruch, chief executive officer of Master Ad, said yesterday.

She said there was room to grow the nationwide out-of-home-media business because 70 per cent of the population resides outside Greater Bangkok, yet the capital and vicinity have absorbed about 70 per cent of out-of-home advertising expenditure.

Currently, Master Ad manages 1,347 out-of-home media units, comprising 660 billboards, 556 street-bench displays and 131 transit ad displays.

“Through the investment of Bt500 million in the second half of this year, we expect to double the number of units to more than 2,000, mainly in the provinces,” Suparanan said.

Master Ad believes it needs a larger out-of-home network to drive demand from its existing and future clients. The company targets a 40-per-cent share of the out-of-home advertising market within three years.

Apart from investing in new properties and M&As, the company is putting more focus on strengthening its sales teams, business and product development and technology to increase its competitiveness.

It targets revenue this year of at least Bt1 billion, up from last year’s Bt700 million.

Suparanan said VGI Global Media’s acquisition of a 37.42-per-cent stake in her company would result in benefits from media integration between the two parties.

Two firms collaborate on programmatic ad-media buying

ศาสตร์เกษตรดินปุ๋ย : ขอบคุณแหล่งข้อมูล : หนังสือพิมพ์ The Nation


IPG MEDIABRANDS has joined forces with VGI Global Media, one of the country’s largest out-of-home media agencies, to launch a programmatic buying service to improve utilisation of digital advertising screens.

Programmatic buying is the use of technology to automate the purchase of advertising or ad media in real time.

Wannee Rattanaphon, chairwoman of IPG Mediabrands, said yesterday that the new service aimed to attract new advertisers as well as to stimulate demand from existing clients to use available inventory amid the sluggish economy.

The service will work effectively if her agency gets enough advertising inventory from local providers of out-of-home media service such as VGI Global Media, she said.

Currently, VGI Global Media manages about 500 outdoor digital screens, 135 digital screens in office buildings in Bangkok, and a number of clock towers in the provinces.

“IPG will initially implement the system with VGI Global Media next month before extending it to other major vendors,” Wannee said.

Manee Eabe, managing director of IPG Mediabrands’ Magna Global service, explained that programmatic buying would integrate all relevant data and details of all outdoor media in the existing inventory. For example, the types of media available in the market, target groups, the number of target groups available during a specific time period, and the positioning of each medium outside the home would be categorised automatically.

Manee said that with this new technology, advertisers would be able to conduct real-time bidding.

“We believe that real-time bidding will play a key role in the near future in media buying. By 2019, advertising investment via this new method will surge by 70 per cent compared with this year,” she predicted.

Marut Atthakaivalvate, chief executive officer of VGI Global Media, said this new method could have an impact on clients and brands, which would be able to target customers according to location and period of time.

Idea for media profession bill proposed

ศาสตร์เกษตรดินปุ๋ย : ขอบคุณแหล่งข้อมูล : หนังสือพิมพ์ The Nation


An idea to develop a media profession bill – including media licensing and registration – was proposed to key members of the National Reform Steering Assembly and the National Legislative Assembly on Monday.

“The bill could be essential to drive media reform in the era of fear from this [politically] abnormal situation,” said Alongkorn Ponlaboot, NRSA vice chairman, after receiving the proposal with NLA mass media subcommittee chairman ACM Chalee Chanruang.

The development of the bill, seen as a rare move by media practitioners, was led by the Petchaburi Mass Media Association with the support of a number of media practitioners upcountry.

Petchaburi Mass Media Association chairman Surapol Naknakorn told the Nation that the bill could pave the way for a legitimate media licensing system, which could help protect the benefits of individual media practitioners and the industry as a whole.

Surapol said at present there was no standard for media practices and as such the quality of media work was not guaranteed, while media practitioners’ work benefits were also not guaranteed.

He said the licences required under the bill would establish a work standard and assure the public of a certain quality while media members, especially those working upcountry, would have their work benefits guaranteed in exchange for having improved qualifications and work quality.

Holders of the licences, he said, must prove that they have a qualification that meets the standard. For instance, their reports must be well-rounded and not biased.

“Through this screening and certification, the licence-holders’ work quality and accountability would be kept on par, rather than depending on subjective requirements from their offices,” he said.

In return, he said having the licence would give the holder bargaining power for reasonable wages and social security benefits. That would particularly be the case for stringers and journalists working upcountry.

Surapol said new media organisations should be established in accordance with the bill to help regulate members via licensing.

An ethics committee should also be set up to help regulate the industry and maintain codes of conducts within media fields.

Codes of conduct should also be addressed in the bill, he added.

Surapol said the idea for the bill was inspired by a engineering profession law, in which a council was set up to regulate the industry and a moral committee established to penalise wrongdoers.

He said although the engineering profession bill was open to state officials to take part in, he downplayed state officials’ potential role in the media profession. It would depend on how media members designed the licensing system, he said.

It would not result in the state infringing on the media, he said.

The NRSA has been working on media reform following the work of the now-defunct National Reform Council. It is also focusing on self regulation but has different details.

Chalee, the NLA mass media subcommittee chairman, said the NRSA should discuss the media bill idea first before the NLA could take further action.

Meanwhile, Confederation of Thai Journalists president Thepchai Yong called on the media to pay special attention to corruption cases, with investigative coverage for all alleged corruption cases, no matter the size.

Thepchai, group editor in chief at the Nation Multimedia Group, called on the public and the media not to admire people who were wealthy as a result of corruption, such as some politicians.

“It is often that the media admire them but do not present another side of their stories,” he said. “The media should take up the leading role in creating public awareness against corrupt individuals.”

He was speaking at a seminar at the National Anti-Corruption Commission titled “The media, a significant mechanism and the country’s survival to transparent society”.

He praised the media for fiercely investigating Rai Som Co’s Bt139 million embezzlement of MCOT advertising revenue.

“It is a good case in point. The media wants society to act and inaction is not acceptable,” he said.

VGI eyes big revenue boost from Master Ad takeover

ศาสตร์เกษตรดินปุ๋ย : ขอบคุณแหล่งข้อมูล : หนังสือพิมพ์ The Nation


THE BT5-BILLION out-of-home advertising business could be shaken up by the takeover by the country’s biggest player, VGI Global Media, of Master Ad, the third-largest provider of outdoor media, with expected investment of more than Bt2 billion to help it penetrate the upcountry market.

VGI Global Media’s revenue is targeted to be pushed up by 50 per cent to Bt3.1 billion in the fiscal year beginning in April with the consolidation of revenue from Master Ad.

“Nowadays, consumers spend more time outside their homes for commuting, shopping and dining. This trend can be seen both in Bangkok and the provinces. But more than 70 per cent of total out-of-home advertising spending is still pouring into Greater Bangkok, while the remaining 30 per cent goes upcountry,” Kavin Kanjanapas, executive chairman, said yesterday.

There is plenty of room to grow upcountry, where 84 per cent of the population resides, because of urbanisation and the full effect from the Asean Economic Community.

The country’s regions have also enjoyed faster economic growth per capita than Bangkok, he said.

Suparanan Tanviruch, chief financial officer, said the board of directors approved the acquisition of Master Ad’s shares and a tender offer for all of Master Ad’s securities for an expected Bt2.04 billion.

VGI holds 24.96 per cent of Master Ad. It wants to increase its holding to 37.42 per cent in May for Bt412.4 million.

“After having 37.42 per cent of Master Ad, which surpasses the 25-per-cent threshold, the company is required to launch a tender offer for the rest of the shares with an estimated Bt1.63 billion investment by the end of this year.

“The source of funds will be operating cash flow or credit facilities supported by financial institutions,” she said.

“Master Ad will be our spearhead for the company to expand its network upcountry,” chief executive officer Marut Arthakaivalvatee said.

Under Master Ad’s management are 178 mega-billboards, 215 networking billboards and 556 pieces of street furniture both in Bangkok and the provinces.

Kavin said that besides the outdoor-media business, VGI was also focusing on other out-of-home formats such as airports, digital media and on-ground activities.

“We are in talks with potential partners to expand further into those new areas. We expect to strike two or three deals this year,” he said.

VGI Global Media holds 20 per cent of Aero Media, which manages advertising and media services at 13 airports across the country that welcome more than 115 million travellers annually.

This media arm also manages advertisement via 342 LCD (liquid-crystal display) screens, 6,200 trolleys and 57 aerobridges.

To cash in on the digital transformation of the media business, the company will offer media and marketing services via its 5 million Rabbit card members in line with co-promotions with its 90 merchant partners.

For on-ground activities, the company will engage its customer base of 2 million active Rabbit card members and 16 million monthly e-mail-based customers.

Also in the out-of-home industry, Bangkok Metro Network, a subsidiary of Bangkok Expressway and Metro, aims to see growth of 12-15 per cent from Bt460 billion last year, fuelled by its advertising business in subway stations and expressways, retail rental space service and telecommunications service in subway stations.

The company hopes to list on the Stock Exchange of Thailand in two years.

Advertisers considering withdraw spending from Sorrayuth’s programme

ศาสตร์เกษตรดินปุ๋ย : ขอบคุณแหล่งข้อมูล : หนังสือพิมพ์ The Nation


TV3 ‘will lose viewers’, Defiant station continues to put Sorrayuth on screen.

Some advertisers are considering pulling out their spending from television proy grammes of controversial TV host; Sorrayuth Suthassanajinda, sentenced to 13 years in jail for bribery.

Wannee Rattanaphon, chairwoman of the Media Agency Association of Thailand said she heard the information during the association’s meeting yesterday.

The association is expected to issue a statement today, she said.

Some advertisers, particularly in financial and banking sector, worried that their good goverance could be affected if they continued supporting and spending their budgets with Sorayuth’s TV programme as he is convicted to jail term on charge of cheating Bt318 million out of MCOT advertisement revenue.

Meanwhile the Channel 3 television station has continued to support well-known TV host Sorrayuth Suthassanachinda despite growing public pressure over his guilty verdict in a bribery scandal earlier this week.

The secretary general of the Anti-Corruption Organisation of Thailand, Mana Nimitmongkol, yesterday warned that if Channel 3 didn’t change its stance it might lose public support. “If you keep him, people may abandon you,” he said.

Surin Krittiyaphongphun, executive vice president of Channel 3 operator Bangkok Entertainment Co (BEC), said management agreed to continue supporting Sorrayuth in Monday’s executive meeting.

“Channel 3 has been working with Sorrayuth for more than 12 years and we acknowledge him as a member of Channel 3’s family and a pioneer in creating news content for the 46-year-old TV station,” Surin added.

While Channel 3 respects the Criminal Court’s decision, the process to reach a final ruling has long way to go, he said, adding that BEC planned to give Sorrayuth opportunities unless the final ruling finds him guilty.

On Monday, the Criminal Court found Sorrayuth guilty and sentenced him to 13 years and four months in jail. The wrongdoing committed by him, his staff and his firm Rai-Som caused damages of more than Bt138 million to MCOT, which operates Channel 9.

Sorrayuth, however, is now free on bail and yesterday he hosted his morning news programme on Channel 3 as usual.

In the evening, he also appeared onscreen interviewing the director general of the Revenue Department during another news programme that was broadcast on Channel 3.

On-usa Lamliengpol, president of the Advertising Association of Thailand, said yesterday that advertising budgets for any TV show were based on either clients or advertisers’ demand given audience ratings. Currently, Sorayuth hosts three news shows with advertising rates |ranging between Bt220,000 and Bt290,000 per minute. According to a source in the media industry, those programmes are now fully booked by advertisers. However, Mana warned brands that ran commercials in conjunction with Sorrayuth’s news programmes might be harmed by the association.

“People have the right to choose what to watch and what products to buy,” he said, suggesting that society at large would want to see advertisers stop running commercials on Sorrayuth’s shows.

Mana also asked how Channel 3 would show responsibility to society in regards to the case.

“Please provide answers to the public,” he said.

The National Broadcasting and Telecommunications Commission (NBTC)’s subpanel regulating TV programming and scheduling is now seeking further clarification from Channel 3’s management.

Although Rai-Som was not directly governed by the NBTC, BEC needs to show responsibility because Channel 3 is under its licence, authorities said.

“We will summon the management from Channel 3,” said Paisal Kuwalairat, acting chairman of the NBTC subpanel, after a meeting failed to reach a conclusion yesterday.

He said the issue was directly related to media ethics besides being involved with broadcasting regulations.

The News Broadcasting Council and the Thai Broadcast Journalists Association, meanwhile, released a joint statement demanding that Channel 3 reconsider its stance on Sorrayuth’s case.

“We demand that Channel 3 executives review the role of Sorrayuth to set ethical standards for Thai media,” the statement said.

The two media bodies said Channel 3’s decision to let Sorrayuth continue in his role as a news host had increased doubts about media organisations’ ability to regulate themselves.

According to the joint statement, both organisations expect Channel 3 to suspend Sorrayuth at least until |the final court ruling as a show of responsibility and to set an ethical example.

Supinya Klangnarong, a member of the NBTC’s Broadcasting Committee, called for Channel 3 to suspend Sorrayuth to express its willingness to show social responsibility as a member of the media.