SET-listed GMM Grammy Plc plans to push forward its artist management strategy in a bid to generate higher music revenue and expand music content to reach more teenage audiences next year.
The country's largest music and entertainment company expects its music revenue will grow by 10% next year from new singles and albums, mostly from teenage artists from MBO, its new record label due to officially launch at year-end.
Wichian Rerkpaisan, executive vice-president for music production and promotion, said the strategy would focus more on artists than production.
Today's audiences are influenced mainly by social media.
MBO is an entertainment community for talented teenage artists and tipped to become the country's leading youth entertainment platform.
"The Thai music industry is moving forward, and music will be less important than artist-related products," Mr Wichian said.
"All in all, we still believe in music quality, so we keep on creating outstanding artists while having potential music talent like never before."
Grammy believes increasing investment for producing content from popular artists will reach more audiences, while its effort to reduce costs of media production will help save unnecessary expenses.
Audiences are more likely to consume all media from social networks and Grammy is focusing more on promoting its new music via sites such as YouTube and online downloads via iTunes and KKBox, Mr Wichian said.
Grammy's YouTube channel is ranked No.1 in Thailand, with 5.7 million fans watching its content.
Grammy has overhauled its business strategy by building music communities, a change from having many record labels under its umbrella like in the past.
Its communities now primarily focus on three music categories -- rock, Thai country folk and pop. MBO is the first one focusing on music for teen listeners.
Mr Wichian said folk music was the most popular, as people upcountry enjoyed listening to it.
Grammy's main revenue driver in 2016 will remain music business including physical music products, rights management, concerts, artist sponsorship and souvenir merchandising.
"As long as music is part of people's life, I still have a strong belief that our music business will go through the economic slowdown," he said.
Last year, Grammy posted a net loss of 2.3 billion baht on revenue of 10.2 billion, of which 30% came from the music business.
GRAMMY shares closed yesterday on the SET at 11.30 baht, down 10 satang, in light trade worth 619,000 baht.
