RS Plc, the broadcast rights holder of the Fifa World Cup 2014, will refund buyers of its World Cup set-top box and World Cup Channel subscription in full.
Surachai: Big opportunity loss
RS sold 300,000 of the 1,590-baht box before it was asked by the National Broadcasting and Telecommunications Commission (NBTC) to broadcast all 64 matches on free TV. Box buyers can return them for a full refund at RS’s warehouse in Rangsit or at Thailand Post offices nationwide.
Those wanting to keep the boxes and unsubscribe from the World Cup Channel can contact RS’s call centre and receive 299 baht. People who use RS’s Sun Box devices and paid 299 baht to subscribe to the World Cup Channel can contact the call centre to receive a refund.
RS will post details of its return policy on its website Monday.
Chief executive Surachai Chetchotisak said the refund might cost RS 477 million baht, and the NBTC agreed to pay RS a maximum of 427 million baht to shoulder the broadcasting cost for all 64 football matches on free TV.
“The 427 million baht is not worth the candle compared with our opportunity loss,” he said.
Initially, RS planned to broadcast only 22 football games on two free TV channels — Channels 7 and 8.
The NBTC wanted to apply the must-have rule to World Cup coverage, requiring it to broadcast all the games on free TV. But RS won a decision in the Supreme Administrative Court.
Mr Surachai said RS would not report a loss from its coverage, but its profit would be much lower than expected. RS
projects it will generate 650 million baht from its coverage — 80% from advertising revenue and 20% from sublicensing fees. Sales of set-top boxes are excluded from this figure.
TrueVisions is reportedly paying only 30 million baht as a sublicensing fee to RS to air World Cup Channel on its pay TV platform.
Chief operating officer Pornpan Techrungchaikul said RS expected to earn 766 million baht from set-top box sales, generating up to 1.4 billion from World Cup 2014 rights management.
RS maintained its target of 5 billion baht in revenue this year — 31% from TV business, 13% from radio, 16% from La Liga Spain and 13% from the World Cup.
Mr Surachai said his personal view was the must-have rule reduced the value of the World Cup and thus its ad revenue.