CTH, the country's second largest pay TV operator, has revived its performance in both revenue and subscriber base thanks to its strategic acquisition and partnership with satellite TV network providers.
After the successful share swap between Grammy's GMM Z and CTH and the revision of marketing strategy, CTH's subscribers have increased to 3.5 million, up from 800,000 in July, and well past its year-end projection of 2.5 million.
GMM Z holds a 10% stake in CTH through Z Trading Co. In exchange, CTH through its subsidiary CTH LCO owns 100% in GMM B, the satellite pay-TV unit of Z Trading Co.
Cherdsak Kukiattinun, CTH's executive committee chairman, said the company would generate around 4 billion baht this year.
Its subscribers mostly come from PSI Holdings, the largest satellite TV network provider, RS's Sunbox and GMM Z. About 80% of existing subscribers are pre-paid customers and the rest post-paid.
CTH's average revenue per user is around 300 baht per subscription, which cannot make it reach the revenue target of 10 billion baht to cover fixed cost, particularly the broadcast rights of English Premier League (EPL) during 2013-16.
Mr Cherdsak said the company saw brighter prospects next year with GMM B expected to break even in the second quarter and CTH later in the year.
"We're still at a crossroads, so we can't say we have already survived because our revenue still misses the target," he said.
But CTH still has four months left to drive revenue before the EPL 2014 season ends next April, so the company will know how much it earns after paying 10 billion baht for the EPL fee for the three seasons.
Mr Cherdsak said the company would cut its subscription fee next year to try to attract more customers.
CTH yesterday launched a set-top box for internet protocol television (IPTV) called ZIPtv at 2,990 baht. IPTV has the advantage of mobility as it uses internet connection only and has no installation cost, unlike satellite or cable TV systems.
IPTV also has extra functions such as video-on-demand, catch-up service and time shift programmes enabling subscribers to watch TV programmes aired up to 72 hours previously.
ZIPtv requires 3 megabytes per second of internet speed to run the programme, so CTH's content can be watched anywhere.
Thailand has 27 million households with fixed line internet. The number of internet users are set to surge after the fourth-generation mobile service auctions next year.