Channel 3 announces radical restructuring as Thailand’s media moves online, responding to financial pressures and changing viewer habits. The popular Maleenont-run TV station plans major layoffs to cut costs and reinvest in digital offerings amid declining traditional viewership.
The convulsions that the internet has caused within Thailand’s media landscape are finally impacting TV. Still supported by the loyalty of most advertising budgets, the drift of viewers to online channels has reached a tipping point in 2024. This month, the country’s most successful TV station, Channel 3, part of a conglomerate run by the Maleenont family, announced a restructuring program for the popular TV service. The TV channel is famous in Thailand for its dramas and soaps. However, these increasingly cater to an older demographic, as younger viewers are captivated by online media. Certainly, it will see layoffs as the firm seeks to reinvest in its media offerings in a radically changing digital world. The successful firm, run from Maleenont Tower in Bangkok, is reacting to falling profits, particularly in 2024.
Thailand’s leading TV broadcaster, Channel 3, has announced a major restructuring to take effect by year’s end. In short, the move aims to reduce costs and help the network remain competitive in a changing media landscape.
Channel 3, owned by BEC World Public Company Limited, will implement significant layoffs. Certainly, this is a rare step for the dynamic company.
In brief, the restructuring is a response to financial challenges, impacted by shifting viewer habits and a sluggish economy. BEC World’s profits fell in the first half of 2024. At the same time, profits have been steadily declining.
Channel 3 third-quarter profits reflect resilience amid a changing market but traditional viewership persists
Channel 3’s third-quarter net profit at ฿45.9 million, down 35.7% from the previous quarter. However, profits increased 21.2% from the same period in 2023, highlighting some resilience in a challenging market.
Channel 3, famous for its dramas and series, faces a rapidly changing Thai media market. According to Nielsen Thailand, only 53% of Thai adults now watch traditional TV, a drop from 63% last year.
Younger viewers increasingly choose streaming, often paying for premium content. This trend reflects a broader Asian shift toward online viewing, particularly for younger generations.
Thailand’s media market, particularly TV, had managed to avoid the shakeup seen in Western markets. Certainly, the first to experience a decline in the last two decades has been the print sector. However, now for TV also, the inevitable change is sinking in.
Thailand’s media ad spend shifts slowly from traditional TV to digital as Channel 3 expands revenue streams
Nevertheless, traditional TV advertising still plays a big role, with expected 2024 ad spending at $1.88 billion. However, growth rates are low, with just a 0.63% annual growth projected through 2029.
Traditional TV’s declining ad budgets have pressured networks like Channel 3, which depends heavily on ad sales.
Channel 3’s Q3 income reached ฿1,068.4 million, with ad sales contributing ฿815.7 million. Copyright and service revenues from international drama distribution and digital platforms rose by 35.8% over the previous quarter, showing efforts to diversify income streams.
The firm behind the popular TV station remains financially strong. At length, it had cash reserves and investments totalling ฿4.323 billion at the end of Q3 2024.
These assets give the network some stability in a rapidly changing market. However, executives now see the need to cut expenses as an urgent safeguard against future revenue risks.
Channel 3 restructuring includes significant workforce cuts to align with the evolving Thai media market
The restructuring plan includes a workforce reduction of up to 30%. In brief, this is aimed at lowering expenses while retaining core production functions.
At a recent town hall, BEC World executives informed employees of the changes. At length, they explained the layoffs were necessary to align costs with current market realities.
The cost-cutting program, they clarified, was a strategic choice to ensure the network’s long-term viability.
By early 2025, the layoffs will take effect. They will come following performance evaluations across departments. Managers must submit lists of employees to be released by the end of November.
While Channel 3 has not disclosed compensation details for affected staff, the company promises time for planning.
Channel 3’s legacy of Thai TV drama shaped by the Maleenont family faces challenges in an online world
Channel 3, Thailand’s first commercial TV station, was launched on March 26, 1970. It is owned by the Maleenont family. The network was inaugurated by Prime Minister Field Marshal Thanom Kittikachorn, ushering in a new broadcasting era in Thailand.
Initially limited to Bangkok and nearby areas, the channel has become a significant cultural fixture, famous for dramas that resonate both domestically and abroad.
The Maleenont family remains closely involved in Channel 3’s operations, with Khun Dew, a third-generation family member, currently at the helm. The family’s commitment has helped the network successfully manage industry shifts. At this time, digital TV must counter the rise of streaming platforms.
In the meantime, the family has done well and is now regarded as the kingdom’s 49th richest.
Economic slowdown further pressures ad budgets as Thai TV audiences move toward on-demand content
Certainly, Thailand’s economic troubles have added to Channel 3’s challenges. High household debt, inflation, and rising interest rates have reduced consumer purchasing power, leading to lower ad spending.
These issues have pressured the media industry, contributing to traditional TV’s revenue decline.
Compounding this, ad spending on digital platforms rose by 8% in early 2024, while TV ad spending fell by 2%. This shift shows how ad budgets are increasingly directed from traditional to digital media, reflecting wider trends across Asia.
Digital platforms now attract younger viewers, with over half of Thais opting for video-on-demand (VOD) services like TrueID and AIS Play. Nielsen data suggests that while TV dramas and sports remain popular, audiences increasingly watch them on streaming platforms rather than traditional broadcasts.
In response, Channel 3 has expanded its digital content and invested in online streaming to capture this shifting viewer base. In Q3 2024, digital and international distribution accounted for 23.3% of Channel 3’s revenue, indicating growing reliance on diverse income streams.
Channel 3 innovates with events and artist management as new revenue sources amid shifting viewer preferences
The network has also ventured into new areas, such as event organising and artist management, adapting to evolving consumer tastes and new revenue opportunities.
Despite recent setbacks, Channel 3 remains a particularly powerful force in Thai media. With a strong cash position, the network has some flexibility to adapt.
However, the restructuring highlights that even established media giants are not immune to global media shifts. As streaming grows and traditional TV declines, Channel 3’s strategies will be critical to preserving its position as Thailand’s leading TV broadcaster.
Ad spends predicted to dive by 2.7% in 2021 driven by extended virus-induced economic disruption
Nation media group outlines new digital strategy as Thailand’s traditional media slumps in new era
BEC World has emphasised its dedication to evolving alongside changing media consumption. “As media consumption changes rapidly, we must also adapt,” a company spokesperson said.
The restructuring, they added, is meant to help Channel 3 pursue sustained growth amid economic uncertainty.
In the coming months, Channel 3 faces a crunch moment as it transforms into a lower-cost model.
By streamlining its workforce and investing in digital initiatives, the network hopes to balance tradition with innovation. In effect, ensuring its role as a leader in Thai media for years to come.
Join the Thai News forum, follow Thai Examiner on Facebook here
Receive all our stories as they come out on Telegram here
Follow Thai Examiner here
Further reading:
Ad spends predicted to dive by 2.7% in 2021 driven by extended virus-induced economic disruption
Nation media group outlines new digital strategy as Thailand’s traditional media slumps in new era
Thailand’s advertisers power the shift to online media in 2019 as print loses out to the internet
State – owned media company in Thailand announces a shift towards digital media and online activity
Minister warns Facebook of possible legal action including Computer Crime Act criminal charges
Facebook under investigation over translation blunder as minister criticises the social network
TV actress apologises for her wrongful bribery accusation against a Thai traffic police officer
Thai Government warns about fake news online as political discourse picks up before elections
Thai man arrested for blackmail scheme targeting Thai women whom he paid to send him sex clips
