The Group divides its business into three main categories, consisting of 1) Core Business 2) Related Business and 3) Joint Venture Business, which are summarized as follows:
1. Core Business
The music business operates under the “Total Music Business” model, including artist selection, music production, marketing, music content management, music distribution in terms of physical and digital products, show business and artist management business.
1.1 Music Business
Digital Music BusinessFast-developing technology together with changes in consumer behavior compels the music industry t0 find the best way to reach consumers and generate more revenue for the Company. The digital music business involves converting music content into a digital format for distribution through online music streaming platforms such as YouTube, Facebook, Spotify, JOOX, iTunes, Tencent Music and Line TV, where users can listen to music online, on-demand, or from playlists. Users may also download music for listening offline.
Rights Management BusinessManagement and collection of copyrights fees from business operators who use the Company’s music for commercial purposes such as radio operators, restaurants, and karaoke operators.
Physical ProductsPhysical distribution of products includes DVD, MP3, USB, and MP3 formats as well as box-set albums. Sales and distribution are carried out through traditional trade channels, modern trade channels, and kiosks as well as e-commerce and the call center.
1.2 Artist Management Business
The Company has a policy to improve artist singing skills and acting skills with an emphasis on artist development to elevate to the real professional level. In this regard, the Company places importance on increasing income for artists in the form of live performances in pubs and bars, as well as other opportunities such as serving as product presenters, which leads to artists’ growing popularity over time.
1.3 Showbiz (Concerts and Festivals)
Our GMM SHOW unit organizes concerts and music festivals, where revenue generates in the form of tickets sales, sponsorships, and event organizing. After the government eased up the pandemic lockdown measures in the second half of the year, GMM SHOW could start operations again with the strict social-distancing measures. Accordingly, GMM SHOW have employed the “Field Wave” technology to track the movement, density, and interaction of the audiences. Despite the pandemic situation, the Company have successfully and safely organized many concerts in the year 2020 such as ATOM House of Hearts Concert, The Gentlemen Live, FANTOPIA 2020, Peck Palitchoke: The Final Odyssey Concert, as well as music festivals including Genie Fest 2020: Rock Mountain, Chiang Yai Fest 2 and Big Mountain Music Festival.
1.4 Artist Product
Our unit GMM GOODS develop the “artist products”, collaborate with our popular artists in development, designs and strategic development. The merchandises are distributed through SLM (Single-Level Marketing) channel. In 2020, the Company have launched the first one with “AURA-THAI”, the facial care products by Thailand’s top singer “Tai-Orathai” targeting her loyal fan clubs.
1.5 Other Business
In addition, the Company also operates the artist’s online content business, music academy “GR Vocal” and venue rental “GMM Live House” at the Central World to support our Showbiz and artist management operations (venue rental business ceased operation in December 2020).
From the digital music revolution in 2020, the Company remains a leader in the music industry in Thailand and also expand to the larger audiences throughout the region and the rest of the world. Our business strategies are transformed into the social and streaming platforms with the cooperation with the leading players in the market, YouTube, Facebook, Spotify, Line TV, JOOX and iTunes. We also work with China-based Tencent Music to expand our audiences to China. During the pandemic, the government implemented measures to temporarily halt concerts performance and large gathering. In the third quarter, the government has eased the measures, live music performances could be resumed with the special measures including social distancing, the audience limitations, and the registration towards contact tracing. Moreover, we are expanding into ‘Media Commerce’, the collaboration with our famous artists to develop their own merchandises. In 2021, the Company still focus on the production of quality content to serve the various targets through all possible channels. With the uncertainty of the world-wide economic and pandemic situation the digital music industry can still grow. The Company have developed strategies to maintain the industry leadership by using the innovations in the concert organization complying with the government measures for the highest safety of our audiences and staff.
2. Related Business
2.1 Home Shopping Business
The home shopping business operates under ‘O SHOPPING’ to promote quality domestic and international products aiming for the best customer benefits and satisfactions. O SHOPPING programs are on Digital TV, Satellite TV and online to conveniently reach all customer targets with 24/7 services via phone and online.
In 2020, the home shopping industry is still growing in positive number comparing to the previous years with the market value of THB 14,000 million. Most people choose to spend time at home during the COVID-19 situation and shop more through the online channels. Since more people start to concern on their health, the popular products include nutrition supplements, kitchenware, and fitness equipment. In 2021, O SHOPPING will also focus to the young generations to serve their online purchasing behavior. We have forecasted that the home shopping business will grow from the current customer bases and expanding to the new group of customers. The Company have developed strategies toward the business growth and sustainability as follows:
- Creating exciting and reliable television content presented in formats that are easy to understand, which will induce consumers to purchase goods.
- Building confidence in the purchase of goods and services, including providing services as advertised, guaranteeing product quality, efficient delivery systems, and secure payment systems.
- An increasing variety of goods and emphasizing on popular products such as fashion goods, lifestyle goods and E-commerce goods offered to meet demand from consumers of all groups.
- Developing online, internet sales channels and applications on smartphones and social media.
2.2 Movie Business
The movie business operates under GDH 559 Company Limited, a subsidiary of the Company. GDH aims to produces fine movies and series to domestic and international markets. GDH’s films and series are in various of genres with its own unique signature. With the talented team members, GDH have innovated new storylines to entertain Thai and International audiences. In 2020, GDH have one movie showing in the theatre, a romantic-comedy “The Con-Heartist”. Our series “Bad Genius the Series” (spinoff from the film Bad Genius) was recreated and simulcasted at the same time in Thailand and China.
With changes of consumer behaviors and the exponential growth of the digital platforms, there have been more content creators in the industry. The consumers now have more choices and preferences. In 2020, the COVID-19 pandemic contributed directly to the decline of the film industry in Thailand. Even after the ease of the lockdown in the second half of the year, the movie industry has to adapt and earn income from the other channels. In 2021, the whole picture of the industry is still unclear, the movie companies have to adjust their strategies to the situation. If the big-budget movies can be released this year as planned, the whole film business will bounce back. Accordingly, GDH strongly focus to produce high-quality and outstanding contents to expand our domestic and international audiences to various distribution channels. Several internal and external factors contribute to the success of Thai movies, including:
- Stories and scripts must be fresh and remarkable. Thorough research is needed to produce each story. The screenwriter must use effective writing skills and possess knowledge of movie language as well as conversational language so that the message is conveyed to the target audience in a relatable way.
- Branding: Film producers and studios must ensure moviegoers of the quality in all the movies they produce and that their films always receive grand receptions and are successful.
- Analyses are needed to truly understand target customers, determine the movie genre, and prepare proper scripts, actors and actresses, as well as the right public relations plans. These will help meet the demands of target customers.
2.3 Satellite TV Business
The satellite TV business can be divided into two main categories as follows:
- Satellite TV Platform
Provides platform services and sales of Set-top boxes (STB) for Satellite TV and Digital TV, Internet Protocol Television, Music Box, MP3 Player, and Karaoke Microphone to support the Company’s main business include the products below:
- GMM Z X-tream (HyBrid) is the integrated box with Satellite TV, Internet and other applications using Android operating system.
- GMM Z HDi is the portable Satellite TV set-top box with WIFI integration and applications such as YouTube.
- GMM Z STREAM is an internet protocol TV box with Android 7.1 operating system providing Ultra HD4K.
- GMM Z HD WISE PLUS is a newer model enabling high-definition Full HD with PVR system, time shift system, and multiplicative media playing function.
- GMM Z HD SMILE, the new look in white color comes with OTA system that adds a channel automatically, smart remote for simple use, and a newly-designed LED screen as well as simple button design.
- GMM Z Music Box Chill Out is a new music box with more than 10,000 easy listening hits.
- MP3 KARAOKE GMM Z STAR, free hit music from WE, Easy to connect with karaoke application. Applicable to both Android and iOS with 2-way speaker power and portable MP3 player.
- Satellite TV Media
Content production of “Fan Music” aired on satellite TV channels. However, the Company have decided to discontinue broadcasting “Fan Music” in December 2020.
The satellite TV platform remains the television medium that has the highest number of viewers in the country coupled with the NBTC’s must-carry regulations imposed on digital TV, companies, and media agencies, which continue to use satellite TV platform as a medium to reach their target market more effectively. However, the satellite TV industry has slowed down since 2020 due to technological advancements in communications. Media consumption behavior has also shifted from traditional media to digital and online media, which results in more intense competition. While the economic recession and advertising spending has slowed, the operating results for the satellite TV business continues to decline. Especially in the past year, business operators have adapted and expanded to online channels as well as cooperating with strategic partners to sell content on other platforms. The direction is likely to remain stable. For the Group, the satellite television business has an essential role in supporting the public relations of the Group such as the music business, offering greater exposure across the country.
3. Joint Venture
Produce contents for broadcasting through digital TV and FM radio stations. The Company collaborate with and invest in The One Enterprises Company Limited in content production. The One Enterprise Company Limited will be the Company’s flagship company for the operation of its content production business, including dramas, series, and other programs, with a focus on broadcasting via digital TV channels, as well as on FM radio frequency channels. Its objective is to create quality, informational, and entertainment content to meet the needs of all target audiences. Throughout 2020, The One Enterprise Company Limited and the group of companies under GMM Channel Holding Company Limited have created a wide array of content proving highly popular both in terms of feedback and ratings, such ‘Crown of grass’, ‘Dancing Angel’, ‘I want to be born again near you’, ‘Love revenge’, ‘Rerng Rita’ ‘2 Gether the Series’ and variety programs such as ‘Roo Mai Krai Sode 2020’, ‘Duan Pleng Ching Toon’, ‘The Golden Songs Season 2’, ‘Look Toong Soo Fud’, and ‘Chae’.
In addition, The One Enterprise Company Limited also operates the management of the digital television channel, Channel One 31, with One 31 Company Limited (a 100 percent wholly owned subsidiary of The One Enterprise Company Limited) as licensee for use of frequencies and as a digital television broadcasting business operator, high definition (HD) category. The One Enterprise Company Limited is also hired by the Company to market and co-produce content for the GMM 25 digital television channel, with GMM Channel Company Limited (100 percent of shares wholly owned by the Company) as licensee for use of frequencies and as a digital television broadcasting business operator, standard definition (SD) category.
The One Enterprise Company Limited also operates a production business for content or programming to be broadcasted through FM radio, websites, and mobile applications, with three radio stations, each having unique characteristics and strengths to reach and respond to the needs of its target audiences.
The overall advertising expenditure for all media decreased 14% YoY from THB 123,663 million 2019 to THB 106,255 million in 2020. The majority of the overall advertising budget is still the television media at about 59 percent, on the other hand, the cinema media advertising has severely decreased 51 percent.
The One Enterprise Company Limited
Digital Terrestrial TV Business
The One Enterprise Company Limited operates a general category high-definition channel under "One 31". One31 aims to create high-quality content providing entertainment for mass audiences to become one of the top national television networks. One31 has a variety of program types including drama, variety program, competition, news, and entertainment news. In 2018, One31 had many popular dramas and programs in terms of response and ratings, for example "Sea of Greed” “ Man of Vengeance” “Rising Girl” “Melodies of Love” “ The Leaves” and programs such as "The Battle Project" "Top Chef Thailand" and "Roo Mai Krai Sode”.
In the past years, the advertising budget was still allocated mostly into Digital TV since it effectively reaches households national-wide. In 2021, the total advertising value most likely will stay at the same level, the advertisers may hold some of their advertising budget due to the pandemic situation. In the intense competition of the digital TV industry, all channels release their magnet contents to draw viewers to watch their broadcasts rather than from the online media to gain their rating and standing among the competitors.