Company's Business

MCOT Plc. has defined the strategic objective aiming at increasing its competitiveness to enable the Company to be the mass media organization that operates its business with efficiency, creativity, and successfully performs its media roles under the vision of “sensibly Enable an Equal Access to Creative, Impartial and Timely Content to Audience”. The business structure to attain such vision is described below.

MCOT Plc. operated its television business under the analog broadcast system, which was the primary broadcasting technology since the first launch of television business in Thailand. The broadcast of the analog system was terminated in the mid of 2018. In 2014, MCOT Plc. has begun the digital terrestrial television broadcasting network services according to 2 licenses to operate commercial digital terrestrial TV channels at the national level comprising a High Definition (HD) variety and Standard Definition (SD) Family channels, for the period of 15 years from April 25, 2014 to April 24, 2029.

Modernine TV

Modernine TV, a channel broadcast on the analog system, undertakes core operations in respect with program production, broadcasting, and broadcasting control for 24 hours daily. Its signal is transmitted from the host station in Bangkok to 35 relay stations nationwide, covering 87.0 percent of areas across the country. The approximate population in those service areas is 88.5 percent, and its analog broadcast service was terminated in the mid of 2018 within the frequency return period set by the NBTC.

9 MCOT HD (Channel 30)

9 MCOT HD (channel 30) is an HD variety channel. Currently, it simulcasts same programs with Modernine TV. It is broadcast 24 hours daily. Through MCOT’s digital terrestrial TV network, signal of 9 MCOT HD is transmitted to 39 relay stations and more than 129 supplementary stations, covering more than 22 million households or 70.40% of the population nationwide.

The Channel changed its logo identity and station name to be “9 MCOT HD”. Also, the slogan was changed in 2015 to be “See the World, Enjoy Happiness” in accordance with the increased competition in the digital terrestrial television industry where many channel operators try to capture working-class audience. These changes also responded to advertising buyers who tended to buy the advertising time on any television channels focusing on teenage and working-age and young viewers. Those logos and slogans have been applied up to now.

MCOT revised 9 MCOT HD strategy by setting programming relevant to demographics of the audience in each time block, to increase competiveness and align with regulations of the NBTC. The program scheduling was also revised in relations to the audience’s changing behaviors as a result of digital media advancements that brought new options of viewing contents for consumers.

MCOT Plc. placed importance on arranging the program schedule and program formats in line with the Company’s business policy, channel contents, and corporate objectives. The program schedule has been arranged for specific audience in each broadcast period and for key audience of particular programs. The edutainment programs both produced by MCOT Plc. and external producers were added to be able to control the production and obtain rights in selling advertising air time for SPOT or Tie-in. MCOT Plc. also obtained the ownership right in both content and formats to be able to broadcast on other digital platforms such as streaming and Line TV. In addition, finished programs were sold in foreign markets. Theses were carried out under an efficient cost management.

In addition, MCOT Plc. has increased the production of entertainment programs from 30.22 percent in 2017 to 37.02 percent in 2018, which was the second largest proportion of the channel. Meanwhile, MCOT Plc. continued to focus on the online media and added more ASIAN series from China, Korea, and India. Proportion of sport programs increased from 3.22 percent in 2017 to 3.69 percent in 2018. MCOT Plc. was also granted the right for live broadcasting of HONDA LPGA THAILAND 2018, in cooperation with IMG Co., Ltd. who was an organizer of the professional female golf tournament attended by world-class female golfers. This sport program was broadcast during 11.00 – 15.00 hrs. on February 22-25, 2018.

The proportion of programs of 9 MCOT HD is as follows:

For news program, The Thai News Agency has shaped its news presentation style with a focus on promptness, comprehensiveness, and accuracy in forms of general news, news documentaries, interviews with persons related to hot news, live news reports and special scoops covering both headline news and current issues. The production of news program and situation report has been refreshed. News scoops and news footage in different views have been created by using the new shooting equipment, e.g. objective camera, action camera, and drone in order to produce bird-eye-view footages in different perspectives. Social media has been more utilized to present the special news reports. The international news produced by leading and internationally-accepted news agencies has been presented so that the viewers would be able to keep updated with situations around the world. The Thai News Agency has also assigned the news reporting team to various countries to report any interesting news to Thai people. Besides, Sure and Share Center was established to verify news on the online media.

Moreover, several in-house programs produced by Nine Entertain Business Department have been so popular, and have generated more revenues consistently such as Nine Entertain program broadcast on Monday-Friday at 11.30 – 12.00 hrs, Tok Mun Bun Teung broadcast on Monday-Friday at 16.15 – 17.00 hrs, etc. The programs’ strengths lie in its presentation styles focusing on informative, creative and impartial entertainment and edutainment reports. The program production is based on MCOT Plc.’s full capacity and technologies to ensure the most up-to-date contents delivered to viewers promptly. Moreover, MCOT Plc. is the leader of entertainment news coverage and constantly provokes hot issues to the public’s eye. MCOT Plc. also used mobile satellite broadcast equipment for live reporting of entertainment news for prompt and convenient viewing. In addition, MCOT Plc. has expanded the viewer base to new generation of viewers via www.nineentertain.tv and www.facebook.com/9entertain. The clips have been published broadcast via www.youtube.com and www.facebook.com/9entertain that receives more than 4.1 million likes higher than last year. This deemed the entertainment news is most viewed on the social media. Nine Entertain is also the first entertainment news program broadcast on LINE TV to under the name of “Nine Entertain Official”. On November, 2018, www.facebook.com/9entertain and www.youtube.com/nineentertain9 were most visited in the world during November 7-13, 2018. The popularity of entertainment news enabled a continuous growth in online media since 2018.

MCOT Family Channel (Channel 14)

MCOT Family is a standard definition (SD) in DTT system on Channel 14 in the category of children, youth and family. This channel is positioned to be a channel that produces and presents creative, programs with joy, useful contents, and inspiration for children, youth, and family. The programs presented on MCOT FAMILY are suitable for general families. In 2018, this channel expanded the audience base to target housewives and all family members.

In 2018, MCOT Plc. has revamped the program scheduling on MCOT Family Channel 14 to be suitable for every family member all the day. The viewers could participate in programs such as Econ Live, and Duo Talks (Ku Kai Lao Tuk Rang) program. The channel also presented the program advertising various products and the viewers could promptly purchase any products on the screen.

The program scheduling was arranged more suitably and precisely for viewers as follows:

Morning session on 06.00 – 08.00 hrs. and evening session on 17.00 – 19.30 hrs. – Programs for children

Late in the morning – afternoon session on 08.00 – 17.00 hrs. – Programs for female viewers, housewives, and health programs

Night session on 20.00 – 20.15 hr. – Thai royal news, and on 20-15 – 21.00 hrs. – Programs suitable for every family member such as foreign series

In 2018, the program proportion of MCOT Family Channel was as follows:

The programs carefully selected to broadcast on MCOT Family channel included “Wonder Women”, program, “Young Kao” , Sook ti Jai Wai Kasien” program, “Tid Buan Chuan Kui” program, and “MCOT KID CLUB” program, etc. MCOT Family channel also utilized its expertise to select some foreign cartoon programs and business alliances to present several popular and classic cartoon programs.

MCOT Plc. fully operates the entire structure of radio business, including production, marketing and management. Under the slogan “Modern Voice for Knowledge-Based Society,” MCOT Radio Network broadcasts a wide variety of informative and entertaining radio programs carefully designed to educate and improve the quality of life of the listeners, and to offer public services to local communities and society at large under an image of modern radio station network. The network consists of 62 central and regional radio stations broadcasting in FM and AM frequencies. Bangkok is the base station of the central area broadcasting through 9 radio stations-7 FM and 2 AM stations-covering service areas in Bangkok and vicinity. The other 53 FM radio stations are located in provinces across the country covering 92.4 percent of the national area. The population in the target service areas is 93.8 percent.

Apart from traditional radio broadcast, the network airs its live and rerun on other platforms such as www.mcot.net and smartphone applications, YouTube and Facebook.

The Order No. 76/2559 by Head of the National Council for Peace and Order regarding Measures for Promoting Business Operation of Radio Broadcast, Television and Telecommunication for Public Interest defines that the government entities, state enterprises or government agencies, which have operated the broadcast business in accordance with the Broadcasting and Television Business Operations Act of 2008 that have possessed the spectrum in accordance with the Act on Organization for Allocation of Frequencies and Supervision of Broadcasting and Telecommunications Business B.E. 2553 retain the rights in the operation of radio broadcast, and the spectrum possession shall be under the same scope and rights; this enabled the Company to continue its radio broadcast service using the same frequencies.

The MCOT central FM and AM radio stations Each MCOT radio station formulates its position and specific target audiences explicitly. The production and presentation formats or format station of each are as follows:

• FM 95 MHz-“Maha Nakhon Family Look Thung Maha Nakhon”: (Country Music in the City): The station presents Thai country music in a new light, feeding a variety of knowledge and contents. The station is ranked No. 1 most popular radio station across the whole range of target groups for all ages and genders. The programs are hosted by new generations who are young, modern, well-recognized, informative, and warm. The service areas extend from Bangkok and suburban areas to other provinces around the country via satellite broadcast to MCOT regional radio networks. From constant operational improvements in terms of program and presentation formats and marketing activity designs to raise the station’s popularity and maintain target audience base, Look Thong Maha Nakhon has been ranked No. 1 on the Top 40 chart of Bangkok’s most popular radio stations.
• FM 96.5 MHz-“Kluen Kwam Kid”: In-Depth Contents, Profound Thought: The leading thinking media station that has been acceptable and reliable among leaders in every field on every platform. The station is a center that gathersover 100 leading thinkers with different expertise to analyze all important circumstances in politics, economy, society, foreign affairs, technology, and even health under the concept of “Power of Thinkers, Power of Creativity to Unlimited Communications”.
• FM 97.5 MHz-“Mellow 97.5 FM”: Easy listening radio station for working-age listeners under the concept of “Good Mood Music & Work-Life Balance”. This station was officially launched on June 23, 2017. It has created all types of contents for working-age listeners to create a balance between life and work while the listeners could relax with music and pleasant atmosphere to reach the life success and more efficient working.
• FM 99.0 MHz-“Active Radio”: This strong Thailand radio station presents useful programs on sports, tourism, health and recreation under a concept of promoting physical and mental well-being of Thais, and happiness in recreation activities. Featuring sports and health FM 99.0 MHz has been very popular among those who love sports and live a healthy life.
• FM 100.5 MHz - “News Network”: A top news radio station well-known for its prompt, comprehensive and in-depth news reports and analyses, produced by professional teams from the Thai News Agency. This station is also the host station that broadcasts breaking news broadcast at the top of the hour on all MCOT radio stations nationwide. From constant improvements on operation, the station has been ranked no. 1 or 2 in the same category.
• FM 107 MHz-“MET 107”: An international music station broadcasting newly released and hot hit music in conjunction with hip and trendy lifestyles under the slogan, “For Life and Music”. The contents are presented in both Thai and English languages. It also broadcasts headline news contents from several global news agencies such as BBC, VOA, Radio Australia, and OANA. In 2017, FM 107 MHz “MET 107” has been ranked the top station among other 5 stations in the same category.
• AM 1143-“Kluen Puen Ruam Tang” (Travel Companion): The station’s daily broadcast focuses on knowledge, useful information, news updates and food for thoughts for general audiences. Some of the highlights are knowledge and inspiring ideas from the Philosophy of Sufficient Economy as well as moral and ethical guidelines for daily life.
• AM 1494-“Kluen Pleng Dee Mee Sara Koo Kam Kid Like Station”: The first radio station for aging society broadcast on both main and online media. It presents songs, art and culture, knowledge, and health and living to support the aging society in Thailand.

MCOT Local Radio Stations The regional radio networks produces programs for local radio stations. The production and presentation format is based on public and local interest. Each program contains both knowledge and entertainment (edutainment), and allows public participation. The programs may be categorized into 3 as follows:

1. Local Programs: Designed with local interest, such as “MCOT for Communities” “Voice of Thais”, which allow listeners to raise complaints or share views on their local problems.
2. National Programs: Daily news reports from the National Broadcasting Services of Thailand during 07.00-07.30 hrs. and 19.00-19.30 hrs. and news programs produced by the Thai News Agency to be broadcast from the host station FM 100.5 MHz to every MCOT regional station across the country at the top of the hour and half-hour breaks.
3. Super Stations: A radio production project for simultaneous broadcasting nationwide to connect listeners around the country with various sources of news and information promptly and seamlessly. All of the 53 regional stations broadcast programs from 4 central host stations at different schedules, accordingly:

• FM 95 MHz “Look Thung Maha Nakhon” (Look Thung Maha Nakhon Super Station) from 00.00-07.00 hrs.
• FM 96.5 MHz “Kluen Kwam Kid” from 12.30 – 13.00 hrs., Business Network
• FM 97.5 MHz “Mellow” from 20.00-24.00 hrs.
• FM 99 MHz “Active Radio” from 19.30-20.00 hrs. (Football highlight)
• FM 100.5 MHz “News Network”, consisting of “Good Morning ASEAN” from 07.00-07.30 hrs., “Gaw Tan Kao” (Keeping Pace with News) from 07.30 – 08.00 hrs., “Thieng Wan Tan Kao” (High Noon News Updates) from 12.00-12.30 hrs., “Krob Krueng Rueng Kao” (All about News) from 18.05-18.45 hrs., “Royal News Reports” from 19.00 – 19.03 hrs., 2 Mood Kao from 19.03 – 19.30 hrs., and 5 minute newsbreaks at the top of the hour, 13 breaks a day.

Moreover, MCOT Plc. has initiated a cluster production format to create region-specific programs for local listeners. Cluster stations present local programs that are fresh and unique. The program popularity is added by producing a program by a local radio station, which would be broadcast in other local radio stations in the same region. Major station clusters are as follows:

• Upper North Cluster “Pued Ban Paeng Muang Chuame Witee ASEAN” (Welcome to the ASEAN Ways)
• Lower North Cluster “Nua Lang Sang Krasae” (Trendsetting by Lower Northerners)
• Upper North East Cluster “Kao Chuam Jai Thai Esan” (The Northeastern Connection)
• Lower North East Cluster “Chaay Tawan” (Sunrise in the Lower Northeast)
• Upper and Lower North East Cluster “Suk Tuk Kao” (Happy News)
• Central and East Cluster “Modern Green”
• Upper South Cluster “Tiew Tai Plodpai Uunjai Pai Kab MCOT” (Safe Travel to the South with MCOT)
• Lower South Cluster “La Pae Lae Tai” (Looking South)

The Thai News Agency is the Company’s center for production, collection, storage and dissemination of neutral, accurate, reliable and timely news and information based on professional standards. The contents are delivered through different media platforms operated by MCOT Plc., including television and radio, online digital media, social media and SMS via mobile phones, and news exchange with foreign alliances. The Agency is one of centers for sharing and distributing Thailand’s news to countries around the world.

Currently, The Thai News Agency offers an appropriate proportion of Thai and international news in forms of general report, news documentaries, interviews with persons related to spotlighted issues, live reports, and special scoops. The Thai News Agency has provincial offices located in four regions: Central and Eastern News Center, Northern News Center at Chiang Mai province, Northeastern News Center at Khon Khen province, and Southern News Center at Hat Yai District in Songkhla province.

The sources of international news presented were mainly from the world’s recognized and reliable news agencies such as Agence France Press (AFP), Associated Press(AP), APTN (Associated Press Television News), SNTV (Sport News Television), China Central Television (CCTV), Deutsche Welle (Germany),Korean Broadcasting System (KBS), Japan Broadcasting Corporation (NHK), Reuters and Reuters TV.

In addition, the Thai News Agency is a member of ASIAVISION, a news agency of ABU (Asia-Pacific Broadcasting Union) and a network for exchanging TV news with 34 TV stations from 30 countries. The network directly feeds news from country members for broadcasting in Thailand and vice versa. The Thai News Agency is also the partner of EBU (European Broadcasting Union) and ASBU (Arab States Broadcasting Union). The Thai News Agency is also a member of OANA (Organization of Asia-Pacific News Agencies), which provides direct news exchange among 44 members from 35 countries.

The International News Department of the Thai News Agency plays a major role in ASIAVISION, in terms of management and information sharing. The executive of the Thai News Agency has been selected the Chairman of ASIAVISION for 2 terms from Year 2005-2014. In 2018, the Thai News Agency was given the Best News Story of the Month or AVN Monthly Award in July.

Apart from international news alliances, the Thai News Agency has participated in the ASEAN Exchange and Cooperation project with news agencies in 9 ASEAN member countries, i.e. Lao PDR, Indonesia, Malaysia, the Philippines, Singapore, Myanmar, Vietnam, Cambodia and Negara Brunei Darussalam.

The Thai News Agency provides news services through various platforms as described below.

Television

Live news reporting programs produced by the Thai News Agency are:

• MCOT HD on Channel 30. News products were divided into main news programs, e.g. Lunch News, Evening News, with news bar provided for all of these main news programs. Other news programs included Chao Chuan Kui (Morning Talk), Ruang Plob Kum (News at Twilight), Kruk Kao Lao Praden (News Issue Talk), Ku Kao Sao Athit (News Duo on Weekend), Kub Kao Krob Pardon (All about News), Natee Long Toon (Investment Minute), Kao Dung Kam Wela (News Across Time), and Lok Lao Rang (News Talked by the World).
• MCOT Family SD on Channel 14 e.g. Koo Kao Lao Tunk Rueng (Duo News Talks).

Radio

1. Production of breaking news broadcast at the top of the hour on MCOT radio stations nationwide from 08.00-23.00 hrs.
2. Production of news programs for FM 100.5 MHz host station to be broadcast simultaneously nationwide. The programs included:
   • Kao Tan Kai broadcast daily from 07.30-8.00 hrs.
   • Sarup Kao Pak Tieng broadcast daily from 12.00-12.30 hrs.
   • Krob Kreung Rueng Kao broadcast daily from 18.25-19.00 hrs.
3. Production of Suen Aksorn program (Garden of Literary Works) for FM 100.5 MHz broadcast daily from 03.00-04.00 hrs. (The programs were recorded on CDs to be donated to the Foundation for the Blind) as part of the corporate social responsibility initiative of the local news unit.

Digital media, e.g. online media (website), social media, Facebook, YouTube, Line, Instagram, and Twitter. Except the regular news presentation, Facebook Live program was also produced pursuant to each customer’s specific demand to increase revenue, e.g. Tam Ma Ha Ngern program.

The provision of Digital Terrestrial Television Network and Facility Services at National Level allows linkage system for transmitters or radio or television broadcast used for distributing public news and information or station programs, regardless of types of transmission media conducted media, frequency, spectrum, electromagnetic or others.

MCOT Plc. has installed equipment for providing DTT broadcasting services in the Second Generation Digital Terrestrial Television Broadcasting System (DVB-T2) in compliance with the NBTC’s notification. The DVB-T2 technology is widely selected by leading network providers overseas. The equipment for television signal transmission consists of devices for compressing and compiling audio, visual and data signals into one batch before transmitting it to the destination networks under DVB-T2 standard. These services necessarily require:

• Host stations consisting of SD/HD Encoder, Multiplexer, DVB-T2 Gateway, etc.
• Transmission equipment consisting of digital television signal transmitters and receivers from base stations.
• Signal connectors via satellite and fiber optic.

Such license creates business opportunities for MCOT Plc. as the sole mass communication business operator to provide fully integrated digital television services. This advantage becomes another revenue generating channel for MCOT Plc. The provision of digital television network services began in April 2014 with the service capacity for 6 Standard Definition channels and 2 High Definition channels. The number of channels and service rates must be revised when any channel operators select High Definition services. The target clients of MCOT Plc. are:

• Commercial DTT operators
• Public services DTT operators
• Community services DTT operators

Currently, MCOT Plc. provides its services for commercial DTT channels via the national digital terrestrial spectrum to the following operators:

1. High Definition television
   • MCOT Variety HD on Channel 30 operated by MCOT Plc.
   • Thai Rath TV on Channel 32 operated by Triple V Broadcast Co., Ltd.
2. Standard Definition television
   • MCOT Family on Channel 14 operated by MCOT Plc.
   • Spring News on Channel 19 operated by Spring News Television Co., Ltd.
   • Voice TV on Channel 21 operated by Voice TV Co., Ltd.
   • Parliament TV on Channel 10 operated by The Secretariat of the House of Representatives (first broadcast on July 2014)

MCOT Plc. has expanded its DTT network by installing the infrastructure on all 4 main stations, and the network in 39 main stations and 129 supplementary stations to cover 95.1 percent of total households from June 15, 2017 onward. This is in accordance with the requirements of the NBTC enable audience to view the programs via TV terrestrial television receiver with DVB-T2 installed inside (built-in Tuner) and via Set top Box.

Apart from the provision of infrastructure in such 4 main stations, MCOT Plc. has made additional investment in other equipment to provide its service in the digital network. MCOT Plc. has also planned to lease such infrastructure to other network service providers.

Satellite TV business in C band

• Thai Com 5 Satellite TV signal service in C-ban system: MCOT Plc. has used the remaining capacity (from Modernine TV broadcast) on Thaicom 5 C-band Global Beam, to provide the satellite TV rental services to other satellite TV operators who operate Free-to-Air services. The satellite signal covered more than 120 countries across the world in 4 continents, e.g. Asia, Europe, Australia, and Africa (excluding America).

Digital media business

Digital Media is the tool for viewing a variety of MCOT programs, either live or recorded programs, and on-demand programs broadcast through Modernine, 9 MCOT HD on channel 30, MCOT Family on channel 14, and radio stations under MCOT RADIO Network via internet. The website is also a channel publicizing the businesses operated by MCOT Plc. and joint business organizations. MCOT Plc. has also initiated more marketing activities on online media by expanding the viewer base from the traditional media to the digital media and social media.

Under the corporate strategy, MCOT Plc. has planned to conduct the research study on digital information to help develop its products and services, development and supply of “super smart” technology used for the analysis of in-depth and big data, real-time monitoring of corporate information, analysis of various information and trends, and utilization of consumers’ insight, prevention and management of crisis possibly occurring in the organization, increase of efficiency to attract target groups via mobile devices, increase of production capacity, digital broadcasting of various works by expanding IT infrastructure to support the production and services to online clients under more available broadcast channels. Meanwhile, MCOT Plc. has sought to boost revenue from delivering its products and services on popular digital platforms such as YouTube TV. Exclusive contents and on-demand contents were improved as well.

MCOT Academy

MCOT Academy is the mass media training institute of MCOT Plc. for generating revenues from non-broadcast businesses under the name of “MCOT Academy”. It has been equipped by a large group of qualified and experienced professionals as well as knowledge base in mass media, which are internal resources of MCOT Plc. MCOT Academy provides a wide range of mass media training courses designed for mass media professionals and other persons interested in mass media for their preparedness, knowledge acquisition, and professional skill development in mass media and other related fields. Apart from some specific curriculums of MCOT Academy, in 2018, MCOT Academy initiated 5 new programs; namely, “English MC” program, “Corporate Public Relations and Communications” program, “Management of Community Radio” program, Television Reporter” program, and “MCOT 4.0: Making the CEOs of Thailand” program.

Besides, the National Broadcasting Telecommunications Commission (NBTC) and MCOT Plc. signed a Memorandum of Understanding on the provision of the training course on radio and television presenters with an aim at promoting and improving personnel’s competency in the radio and television broadcasting business. MCOT Academy has provided such program for 4 consecutive years in 3 levels, e.g. Radio and Television Anchors in elementary, intermediate, and advanced levels. This project under the Memorandum of Understanding between both agencies would continue up to 2018.

MCOT Talent Business of managing artists’ image and potential development

MCOT Talent Management is a core division responsible for managing its artists and developing their skills to create added values. This division also joins hands and gives support to other related internal agencies to generate revenues for MCOT Plc.

The artists under MCOT Plc. are required to be under management of MCOT Talent Management of Television Office. The artists are categorized as follows:

• News presenters of Thai News Agency – In 2018, there were 10 artists who generated revenues from working as news presenters of Thai News Agency, and MC for either internal or external agencies under the management of MCOT Talent Management, Television Office; and
• Program hosts – A group of artists who generated revenues from working as program hosts for any internal departments of MCOT Plc., and other external organizations. These artists were selected from various contests or sought from MCOT internal departments, e.g. program host, reporter, singer, and actor under an employment agreement. MCOT Talent Management helps manage revenues, promote artists’ image, develop artists’ potential, and provides an them an opportunity to work for government and private agencies as representative of MCOT Plc.

Intellectual Property Business

Business Development Office has operated a non-broadcast business in support of the Company’s program production and broadcast for the best business interest, e.g. intellectual property business. The tangible actions started in 2017 as described below:

• To gather all intellectual properties of MCOT Plc. together with its existing copyrights and industrial properties in forms of patent and trademark to add revenues for the Company’s business.
• To manage intellectual properties of MCOT Plc. through procuring, selling, leasing, exchanging, gathering, caring, and managing any privileges for the Company’s interest. In 2017, MCOT Plc. generated revenues from granting broadcast licenses of a documentary in honor of H.M. the King entitled “Terd Klao” to True4U Station Co., Ltd., and a documentary in honor of H.M. the King entitled “Nai Duang Jai Ni Run” to Phunyaphat Enterprise Co., Ltd. (Boomerang), the Government Housing Bank, Government Lottery Office, and Ministry of Social Development and Human Security. It was apparent that the establishment of the intellectual property strategy was essential in the current business competition allowing MCOT to generate more revenue.

In 2018, MCOT Plc. set up a working group in charge of assessing the value of the Company’s intellectual properties, managing those intellectual properties as protected by law, formulating the Company’s copyright and intellectual property policy to be a practice guideline mutually implemented by the Company’s employees, business partners, and alliances, shaping the policy and guideline of intellectual property assessment in the same direction, handling the data bank management system to be used as the Company’s central database, and utilizing such intellectual properties to generate higher revenues and business value for the Company. This working group also has duties of compiling, categorizing, selecting, and preparing the management process for contents, copyrights, and intellectual properties of MCOT Plc. for its systematic revenue development. MCOT Plc. prepared to distribute these intellectual properties in local and foreign markets.

Apart from actions undertaken under the guidelines of intellectual property management formulated by the working group for intellectual property assessment, the Business Development Office, in collaboration with the Television Office and Thai News Agency initiated the intellectual property development project by developing various footages, still image and animation under the copyright of MCOT Plc. in different styles to be distributed via online and offline platforms. This approach could generate revenues for MCOT Plc. in the future together with license granting to business partners, alliances, and agencies for the use of intellectual properties of MCOT Plc. subject to general and business objectives.

Solar Rooftop Business

MCOT Plc. was Thailand’s leading media organization capable of joining hands with Energy Dynamics (Thailand) Co., Ltd. to develop the solar rooftop business in Solar Rooftop Distribution and Installation Project under M SOLAR Brand in the form of revenue sharing. In this project, investment fund from MCOT Plc. was not required, but its marketing potential via public relations media. Finally, MCOT Plc. and Energy Dynamics (Thailand) Co., Ltd. would share revenue from this joint business operation.

Non-broadcast Business under Development for Revenue Earning

1. Business on 2600 MHz in MMDS system

   The 2600 MHz frequencies were allocated to MCOT Plc. by Post and Telegraph Department to provide the subscription television service in accordance with the resolution of the Council of Ministers in 1990. In this regard, MCOT Plc. and a private company have provided the said service. After the private company had terminated its subscription business, MCOT Plc. decided to manage and utilize this frequency by itself. The Company requested a permission to switch from the analog broadcast technology to the digital broadcast technology in the form of Broadband Wireless Access: BWA in line with technological changes.

   In 2010, MCOT Plc. executed a business contract on the subscription television service on MMDS with Playwork Co., Ltd. that had duties of managing and supplying the service system equipment such as membership management system, content management system, and system platform, etc. Playwork Co., Ltd. was also responsible for accounting, marketing, advertising, public relations, and sales promotion activities, as well as any other related or subsequent actions in providing the subscription television service on 2600 MHz in MMDS system. Upon the expiration of the contract, ownership in all facilities and equipment in the service system under this project would be transferred to MCOT Plc.

   At present, MCOT Plc. has been granted Radio Communication Station License and License for Operations of Radio Communication to be used in the subscription television service project on 2600 MHz. In addition, both network service providers; namely, True Move H Universal Communication Co., Ltd., and Advanced Wireless Network Co., Ltd. have completely installed the radio communication equipment in 30 base stations. It was expected that the subscription television service would be first tested in February 2019.

2. Property business

   Plots of land in Bangkok and other provinces under ownership of MCOT Plc. deem important investment assets for its long-term revenue generation. A 50-Rai plot of land at Wattanatham Road, Huay Kwang, Bangkok is considered to have a high potential. It is located in a new business zone, close to Thailand’s Cultural Center and the MRT orange line. Therefore, the unique selling point of this land is presented. MCOT Plc. has assigned Thammasat University Research and Consultancy Institute to be the Company’s consultant in conducting a feasibility study on the development of this land for more revenues under Private Investments in State Undertakings Act B.E. 2556. Such land development might be jointly operated with business alliances who have with experience and expertise in property management. MCOT Plc. must also seek to raise investment fund in this project.

Subsidiaries

Panorama Worldwide Company Limited

Panorama Worldwide Company Limited was established on November 21, 2003 as a subsidiary of MCOT Plc. who holds 49 percent of the company’s total shares. The subsidiary is a producer and distributor of television programs and documentaries for local and international television stations, cable TV stations, satellite TV stations and digital TV stations. It also produces video and public relations materials for public and private sectors, and sells footages to documentaries producers in Thailand and abroad.

Panorama Worldwide is a well-known quality documentaries production house run by highly skilled and knowledgeable teams with almost 20 years of experience in the field. It has produced a wide range of documentaries and public relations materials since 2003 up to now. Although the documentary programs contain informative content, they are attractive to a limited target audience group. Therefore, presentation of documentary programs is improved to make them more interesting and attractive. This improvement aimed at stimulating interest of audience in modern documentary programs. Meanwhile, the number of producers of documentary programs is a few. Since the competition is not quite high, it deemed beneficial for Panorama Worldwide to compete in the documentary market to supply contents to be broadcast on both free and cable TV.

At present, Panorama Worldwide undertakes the consultancy/creative/production/media services. It sets the objective of developing contents that are social issues for listed companies on the SET and the MAI, as well as other private and government organizations, and state enterprises, who wish to present social contents. Panorama Worldwide also provides the production service for public relations purposes in video and other types of media formats, e.g. corporate VDO, VDO presentation, corporate spot or commercial spot, viral clips, and shot doc to be broadcast on social media to government agencies, state enterprises, and private companies. Panorama Worldwide is also capable of producing short education documentaries for educational institutes and hospitals, and of selling the stock footage pictures to domestic and foreign documentary producers.

SeedMCOT Company Limited

SeedMCOT has operated all types of entertainment businesses, and advisory service, for example, the organization of concerts, stageplay, and fashion shows, the trading of cinema camera, Video recorder, cassette player and television materials transmitter (video), movie projector, slide projector, all types of films, and film editing equipment. The nature of business involves the production of radio programs in FM system (SEED 97.5 FM), the organization of concerts, the production of television programs, the production of music and other digital products, and other business operations. However, SEED MCOT Co., Ltd. has suffered a loss since 2014 and its situation worsened. Therefore, at the meeting of the Board of Directors, No. 16/2016 on November 22, 2016 passed the resolution to dissolve SEED MCOT Co., Ltd. (FM 97.5 MHz), a subsidiary of MCOT Plc., due to liquidity in business operation from sharp decline in revenues as a result of the change in radio listening behavior of the listeners. Then, MCOT Plc. decided to manage and revise this radio frequency to fit to the changing consumer behavior. At present, it was under the process of selling the assets and claiming refund for corporate income tax from the Revenue Department.

Joint Operation Business

MCOT Plc. has entered into joint operation agreements with private operators, earning revenues in the form of reward from 2 main joint businesses, as follows:

• Joint operation with Bangkok Entertainment Company Limited (BEC) in running Television Channel 3 and air time leasing to radio programs and advertisements on FM 105.5 MHz.
• Joint operation with True Visions Cable Plc. in running subscription television service through cable, which will be expired in December 31, 2019.