FAQ

FAQ

Q : What’s the company business?

A 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

1.1 Music Business

Aspect of Products or Services

Managed under the model “Servicing Entire Music Business” (Total Music Business) from selecting Artist, Music production, marketing, music copyrights management, to distribution of music products through Physical and Digital channels, organizing concerts and Artists management.

  • Physical Music Business

    The group of companies create music works starting with the selection of artists, composing lyrics and melody, remixing chorus, as well as the process of filming the music video and photo editing until a quality work is completed and ready to be produced into a perfect Master. Throughout the past period, the Group of Companies has produced music in a variety of music genres encompassing all customer groups. In 2021, the music business group continued to focus on producing both pop (string) songs and country music (luk thung) with all famous artists successively, which covers all types of targeted consumer groups. Along with making popular songs compilation albums at different times of the year. The Company distributes music products such as MP3 albums in the form of USB or various Boxset, etc., and through traditional trade stores, modern trade stores, retail booths or Kiosk, as well as selling products through online channels and call center.
  • Digital Music Business

    From the rapid development of technological changes coupled with changing consumer behavior, the music business has therefore expanded distribution channels that can reach consumers and generate more revenue for the group of companies. By adapting music content to digital format which enabled business to expand into online platforms such as YouTube, Facebook, Spotify, JOOX, Apple Music and Tencent Music, giving users choices to listen to online music on demand, from playlist or download songs for listening offline which is consistently being modified and developed in new types of services in tandem with the advancement of technology and changing consumer behavior. Notably, for the groups’ expansion of content access through GMM Grammy Official Account Channel on YouTube has seen growth by leaps and bounds consistently, in terms of subscribers, number of channels and revenues. At present, revenues of music business from digital channels are growing steadily. And it is believed that in the future, revenues from digital channels will become an important source of income, as with the trend of global music industry.
  • Music Publishing Business

    Manage and collect copyright fees from businesses wishing to use the company’s music for commercial purposes such as radio media, restaurants, karaoke’s, etc.

1.2 Collecting Copyright Fees Business

The company manages the signing on of engagements for artists for various performance in concerts, pubs, bars and as product presenters. So as to make artists be appreciated and popular continuously, the company’s policies are to mold and develop skills of artists in order to raise their level to become genuinely professional artists.

1.3 SHOWBIZ (Concerts and Festivals)

To maximize benefits, business of Showbiz builds on existing assets of music products such as songs, singers, performers and artists, through the expertize of the company in the business of organizing events and exhibitions in a range of formats. From Variety shows, concerts, mixed media creative events and other shows. The operation covers innovative exhibition, production and creative marketing plans so as to fully meet the needs of customers. The company operates the business of organizing concerts and music festivals under the department GMM SHOW. The main revenue is derived from ticket sales, Sponsor’s Support and various activities.

1.4 Artists’ Products Business

Manage the selling and distribution of products owned by the artists themselves, with limited production of each products whereby artists are co-creating quality products for fans and general public.

1.5 Other Businesses

Operates “GR Vocal Studio”, an academy for teaching singing, music, acting and dance school. It is open to teach the general public and as a center for artists development and recruitment.

Marketing and Competition

The company focuses on producing quality music that covers different target groups by setting up creative departments based on the adeptness of genre in Thai music industry’s’ professional team. Together with the quality of the team and artists, making the works of the group of companies being much desired by consumers and are able to capture a robust share of the music market in Thailand reaching a wide range of target groups. The company is determined to drive the industry in the transition to the digital media era, broadening the artists reach and enabling their works to speedily be available to worldwide audiences. The success of a song can also be clearly assessed with a popularity indicator. The company has fully modified its music business model to keep pace with the competition in the digital era to generate sustainable income in the future from the growing trend of music streaming or listening to music via mobile applications. In past year 2021, the company continued to lead the domestic music business and advancing into the international market. We have changed the business model to enter into social media and streaming in collaborations with major platforms in the market such as YouTube, Facebook, Spotify, Line TV, JOOX, Apple Music and Tencent Music, The Company still focuses on creating quality content to expand into every market and through all kinds of channels. Nonetheless, amid the uncertainty of the economic situation and the ongoing pandemic situation, the music industry in digital media is still able to grow well. The company itself has developed a strategy to maintain leadership and innovations in organizing concerts conforming to government-stipulated measures for the safety of visitors and staff. And the success of songs can be clearly assessed through popularity index.

As for the physical products, even though there is a tendency of decline, but because there are still some groups of music listeners wishing to listen to music with fine sound quality and because of their true fondness for the artist, some audience prefer to accumulate physical products therefore the company has marketing plans focusing on such customer groups by emphasizing on the design of music products to be more relevant forms of collectibles. Meanwhile, also placing importance on effective distribution systems and channels.

Presently, the Company has copyrights for songs and artists in affiliation which can create added value to market in the future. Having productions of more than 40,000 songs in the music library (Music Library) and over 300 affiliated artists, which are considered as an important asset of the company. All the songs are stored as Master tape and in Digital formats which can be used to create new works in various forms such as merging albums, in karaoke form, compiling songs (Compilation) or creating new music using the original lyrics (Cover), etc. As for the artists affiliated under the company, apart from releasing usual music works and albums, also perform at concerts, various engagements, including being presenters for products advertisement and various shows continually. All of which has always been significant ways to generate revenues for the company. Additionally, the role of “Music copyright” currently is becoming more and more important to the media industry, such as the use of singing contest programs. It is a magnetic content of many digital TV channels. Also, the songs are like the source of origin for entertainment to build on through many more ways.

As for the showbiz business, the competition is quite high as there are many small, medium and large entrepreneurs entering this business market as well as having to compete with foreign artists performing in Thailand but, due to being a large company with extensive experience and having a huge number artists and singers receiving high popularity, therefore ensuring that the showbiz of the company will meet the needs and make consumers pleased. Which is considered as an advantage compared to other companies. In 2021, amidst the Covid-19 pandemic situation, the government issued control measures for concerts, and refraining from organizing activities that involve large groups of people resulting in the company unable to operate showbiz and artist management business as usual.

Procurement of Products or Services

Procurement of Products for Sale

The key elements of music creation and distribution are as follows:

  1. Lyrics and Melodies
    The company employs more than 200 personnel with expertise in various genres of music who are capable of producing quality works, involved in the music production department. And there are also approximately 40,000 songs that are copyrighted by the Company stored in the music library, all of which are quality pieces of music that can be produced creatively into new works in various formats.
  2. Artists
    Currently, the company has artists and singers of contemporary modern Thai songs and Thai country music (Luk Thung) comprising of solo male and female artists, and group artists which can present a variety of music in different genres. By the end of 2021, the company has more than 300 artists under affiliation.
  3. Studio
    The company has recording studio and editing room with modern equipment of international standards to create higher quality works of Master music and various television programs.
  4. Warehouse and Distribution Center
    The group of companies possess their own warehouse and Distribution Center enabling it to control product distribution with effective inventory management.
  5. Digital Storage System (Digital Library)
    The Group of Companies are equipped to provide systems services supporting different digital storage sizes for contents in a variety of formats for providing services to customers using mobile phones of different brands and models with a team of digital content producers specializing in this service and management. The group accepts music management of other partner affiliates as well, since they have confidence in the company to be the content manager to provide content to the customer network of other companies.

Number of Raw Material Suppliers

The raw materials used in the production of CDs, VCDs and DVDs include plastic resins, paints and lacquers, etc. Most of which are domestically sourced, having similar annual utilization. The Group Company maintains good relationship with raw material suppliers therefore have no problems in procuring raw materials. However, the management of raw materials to be consistent with production orders is essential. In the event that a large quantity of products are required, or the production machinery is damaged or in the process of being modified, the Group can hire another manufacturer to supplant it under strict confidentiality agreement to prevent counterfeit duplication.

2. Related Business Groups

2.1 Home Shopping Business

Aspect of Products or Services

Operates business through a TV Home Shopping program called ‘O Shopping’, a program that focuses on providing reliable and interesting information. Introducing both domestic and international products with quality. Realizing the importance of consumer benefits, ‘O Shopping’ offers products through digital TV channels. Satellite TV channels and online channels making it possible to reach target customers comprehensively and create a comfortable shopping experience. Customers can shop 24 hours a day via phone and online.

Marketing and Competition

The company has prioritized and is prepared to handle the competition for this business to grow continuously and sustainably. In 2021, the home shopping market continued to grow compared to the previous year. The Covid-19 situation resulted in consumers spending more time at home and have increasingly chose to shop online especially for food supplements, kitchenware and exercise equipment are the best sellers which is a result of consumer behavior becoming health conscious. This year, O Shopping aims to expand its target customers, increasingly to new generations. Responding to consumer behavior in the popularity of buying products online and focusing on e-commerce business, the company believes that the overview of the home shopping business will continue to grow from existing customer base. However, the company is striving to increase the target customers evermore and boosting new customer base thoroughly. The company has prioritized and is prepared to cope with competition for this business to grow continuously and sustainably and to build confidence in the company which is considered the cornerstone of the home shopping business.

Apart from this, O Shopping has developed distribution channels transitioning to online and Internet sales systems. Originally having the main channel, is to watch Channel O Shopping via C-band and KU-band satellite television, cable and digital TV. Due to the increasing popularity of online shopping currently, the company has developed a sales channel through the website. http://www.oshoppingtv.com as an alternative for consumers, together with developing mobile applications and promotional channels via social media such as YouTube, Instagram and many fun activities throughout the day at www.facebook.com/oshoppingtv

Procurement of Products or Services

The company focuses on products that are quality guaranteed, both domestically and internationally. As well as increasing the variety of products sold such as home convenience products, kitchenware, electrical appliances, food supplements, skin care products, exercise equipment, clothing and products in the electronic category as well as focusing on products that have growth tendency, such as fashion products, lifestyle products and e-commerce products, to meet the needs of consumers in all groups. With objective to continuously increase the number of products as well as foreseeing that creating credible and interesting TV content uniquely through a new, easy-to-understand presentation format to attract the attention of consumers to purchase products will help promote the home shopping business and make it more appealing. With expertise in entertainment business, the company uses adept moderators skilled in selling products enhanced by a new and interesting form of product demonstration that has never been done by competitors before. This new form of product demonstration allows customers to see the selling point of the product which ultimately affects the purchasing decision.

Work that has not been handed over

- None -

2.2 Movie Business

Aspect of Products or Services

The Company’s movie business is operated through a subsidiary, GDH 559 Company Limited (The Company holds 51% shares) with goal to continuously produce quality movies and series to the market in a variety of different content, but still maintaining their own unique style. GDH clearly has a strong potential in its skilled crew team to present innovative films and create happiness for Thai movie viewers. In 2021, 2 movies were released, namely “GHOST LAB break the rules of ghost experiments” which was shown worldwide through Netflix. And “The Medium”, a horror movie chosen by “The National Federation of Motion Pictures and Contents Association” to represent Thai films nominated for the 94th Academy Awards (OSCARS) for Best Foreign Film (94th Academy Awards - International Feature Film). With 2 series, namely “Translated Love Me with Your Heart Part2” and “BLACKOUT, Secret bar not in the world”

Revenue Sources of the Movies include

  1. Income from movie screenings in cinemas with the movie ticket share system in Bangkok. with a share between the company and movie theaters at 50%.
  2. Revenue from selling rights to film agencies in other provinces.
  3. Income from selling rights to home Entertainment business operators for producing VCDs and DVDs.
  4. Income from the sale of broadcasting rights for cable TV, free TV and overseas companies.
  5. Income from sale of sponsorships from various products.

Marketing and Competition

Industry trends and competition Amid the digital disruption that has changed consumer behavior and the rapid growth of digital platforms resulting in an increase of content creators entering the market while consumers have more choices and access to a diverse range of content as well. In the past year, 2021, the Covid-19 situation continued to affect the Thai cinema and film industry despite various easing measures, it cannot be denied that overall, the movie industry in Thailand this year has been impacted. As a result, movie business operators had to adjust and look elsewhere to increase their income from other ways. However, the company is confident in creating good and distinct content to expand the audience base both domestically and internationally through a variety of viewing channels.

The substantial or slim success of the movie depends on the popularity trend of the audience, which cannot be predicted Coupled with the relatively high popularity of foreign films due to the belief that the scripts and production technology of foreign films are better than Thai films. However, the success of Thai movies depends on a number of internal and external factors. The Company will consider appropriate operating strategies in order to make the Company’s works impressive to the audience and successively gain more popularity such as

  • Content and Screenplay must be unique and outstanding. The screenwriter must use skills in writing both the language of the movie and the spoken language in order to clearly communicate to the target audience.
  • Build awareness (Branding) of the Movie Company or studio to build confidence in movie audience that they will always view quality movies.
  • Analyze and understand target customers to define the movie’s direction. Prepare the screenplay, Stars, Actors and with a suitable Public Relations plan that meet the needs of target customers.

Procurement of Products or Services

Essential elements of the movie business

  1. Personnel
    Personnel including screenplay writers, movie directors are considered to have a very important role in the creative production of films. The company group has proficient personnel who are responsible for the overall production, who have been with the company for a long time.
  2. Casting of Actors
    Since considerable emphasis is placed on the casting of actors to match the scripted personality of characters in each film, there is a policy for recruiting actors, both, from those actors who have signed contracts with GDH itself, as well as independent actors able to play the roles appropriately
  3. Movie Screenplay
    Movie screenplays are determined through market research gathering statistical data to select movie genres that are popular among public groups. After defining the stroryline plot and receiving production approval, it goes into the development of the script, which is a delicate process that the company attaches great importance to.
  4. Movie Production Process
    Filming combines preparatory measures, meetings for working plans, conclusion of production budget and the preparedness of each team such as Directing Part, Design department, Arts team, Welfare department, Set Manager, Preparation of various equipments, Provision of filming locations, Clothing, Scene and Provide Stars and Actors. After film shooting completes, After shooting completes, next step is the process of film editing in film lab and sound works, including adding sounds compositions and effects.
  5. Marketing and Public Relations
    Marketing and public relations planning prior to releasing the movie, by choosing the apt media such as posters, short trailers for advertising and drawing people’s attention to want to follow and watch.

Work that has not been handed over

- None -

2.3 Satellite TV Business

Aspects of Products or Services

This business is operated by the Company’s subsidiaries. The Company’s satellite television business at present can be divided into 2 main parts:

  1. Satellite television network business “GMM Z” which has been changed to G Broadcast, providing services in OTA (Over the Air) Arranging various satellite television channels both within the network and other satellite television operators, to be able to watch on the set-top box.
  2. Trading business of Z Trading Company, which is responsible for trading in satellite TV set-top boxes, Terrestrial digital TV set-top box, Internet TV set-top box and developing sales of products in device machine category.

Currently, marketed products are as follows:

  • GMM Z HD Smile Plus Set-Top Box : Satellite TV receiver box with increased capabilities through a connected USB Wi-Fi antenna for viewing Internet TV channels (Streaming) which will become the main product of every household in the future.
  • GMMZ TV STICK : A new Android TV viewing device in a Stick form. Small and easy to carry. Suitable for use on the go. Connect to the TV in the car during travel. In hotel rooms, simply attach to the HDMI and connect to the internet, to watch many TV programs through various applications available in google play store.
  • GMM Z STREAM 4.0 Set-Top Box : New Internet TV Set Top Box With the Android 9.0 operating system, the clearest in Ultra HD 4K, supports connectivity via Bluetooth and WIFI – Hot Spot Mobile
  • GMM Z HD Smile Set-Top Box : The best-selling color satellite TV receiver set-top box in the market in white color body. With OTA sorting system, automatically adds and groups channels to easily find channels. Front panel LED screen with newly designed easy to use push buttons making it more convenient.
  • GMM Z HD Lite Pro Set-Top Box : New look satellite TV receiver set-top box designed with function keys on the top. Focused on sales through home appliances stores, it is convenient to purchase and install by the customers themselves.
  • GMM Z HD Wise Pro Set-Top Box : New look satellite TV receiver set-top box designed with function keys on the top. Aimed for sales to customers in department stores, and online clients making it convenient to buy install by themselves as well.

Industry Trends and Competition

Network business and satellite TV receiver set-top boxes are television media with the largest audience base nationwide. In addition, it is supported by the policy to broadcast digital TV channels in accordance with the rules of the NBTC (Must Carry). Both product owners and advertising agencies are therefore still interested in using advertising media through the satellite television platform for effectively reaching the target audience.

The overall satellite TV receiver set-top box business in 2021 was better than the previous year. Owing to the change in broadcasting technology from SD to HD (Mpeg2 - Mpeg4), customers have to buy new boxes due to black screen events. Along with the COVID-19 situation, more people have had to stay at home. Watching television is therefore important and basic entertainment. Consequently, related businesses such as Home Shopping have increasingly turned to advertising media on satellite TV receiver boxes as well. In negotiating for cheaper production costs from factories while still maintaining product quality has made this business more profitable. Also, store data shows that consumers are increasingly still choosing satellite TV boxes over digital terrestrial boxes, with the advantage that there are more channels than digital TV boxes which have fewer channels because operators have returned broadcasting licenses of many channels. Coupled with the increased technology in the set-top boxes, having more functions to fulfill the needs of consumers. Whether adding Internet TV or Android OS functions to satisfy video on demand viewing.

The company also has plans to communicate with consumers. There will be advertising strategies together with organizing promotional activities for retailers and satellite TV receiver box dealers as well as customers who directly buy products to build Brand Awareness.

Procurement of Products or Services

As for the satellite receiver box, the Company hires an external manufacturer to produce according to the specifications that the Company has set for further distribution to customers.

Work that has not been handed over

- None -

2.4 Digital Television Business

3. Joint Venture Business Group

In 2021, the Company’s joint ventures consist of The One Enterprise Public Company Limited, YGMM Company Limited and O2 Kiss Company Limited.

  1. The One Enterprise Public Company Limited
    The One Enterprise Public Company Limited or “ONEE” operates a content production business that focuses on broadcasting via digital TV channels and radio frequency channels broadcasting in the FM system. In which the company currently is operating content production with business partners through investment in The One Enterprise Public Company Limited. The One Enterprise Public Company Limited will be the Company’s Flagship Company for producing drama series content and programs that primarily focus on broadcasting via digital TV channels and radio frequency channels broadcasting in the FM system with the objective of creating quality content, information and entertainment to meet the needs of all target audiences. In 2021, ONEE submitted an application to offer newly issued ordinary shares for sale, with the securities offering registration statement, and draft prospectus to the Office of the Securities and Exchange Commission. And submitted an application to the Stock Exchange of Thailand to accept ordinary shares as listed securities on the Stock Exchange. The first trading day was in November 2021.
  2. YGMM Company Limited
    YGMM Co., Ltd. is a co-operation between the Company and YG Entertainment Inc., a company listed on the Korea Exchange (KRX), to jointly establish the company as Joint venture to fully develop and integrate artists under the name YG”MM (YGMM) and to engage in all kinds of entertainment business, provide consulting services, organizing concerts, time dramas and various performances. The objective of this co-operation is to create Boy Band and Girl Group artists to debut in the next 5 years pursuant to courses of YG Entertainment and GMM Grammy.
    This year, the integrated artist development company YG”MM (YGMM), a joint venture between the company and YG Entertainment Inc., announced an ‘audition’ for the official selection as a trainee. Which received a lot of attention, with over 60,000 applicants from 93 countries around the world. Those who pass the audition will receive training to develop their potential in Thailand and continue to be an artist of YG”MM.
  3. O2 KISS Company Limited
    A joint venture company between O Shopping Company Limited, a subsidiary of the Company, and Rojukis International Public Company Limited to operate business in procuring supplies for sale as wholesale and/or retail, Marketing and sales promotion activities for cosmetic products, cosmeceuticals, dietary supplements. In 2021, O2 Kiss Co., Ltd. launched products in the category of cosmeceuticals and dietary supplements that includes the dietary supplement brand ‘Chi Qi’. With the launch of 3 superstars 3 generations in the campaign “3 Qi Family”. Team led by P’Bird Thongchai McIntyre, together with Kong Saharat Sangkapreecha and Tor Thanapob Leeratanakajorn. The dietary supplement product ‘Qi’ (Chi) is a combination of the 3 most precious herbs of Asia, being pure Tibetan Cordyceps, Korean Red Ginseng, and Red Lingzhi (Red Reishi Mushroom) packaged in a new form, 3 tablets, 3 herbs in 1 sachet, presented with a superb slogan ‘Good Chi, Good Life’ meeting the needs of consumers’ holistic health care in the New Normal era.

Q : What’s the Company Revenue Structure?

A : The Company’s Revenue Structure

Q: What’s the Company Shareholding Structure?

A : The Company Shareholding Structure

Free Float As of 18/03/2022
Minor Shareholders (Free float) 2,914
% Shares in Minor Shareholders (% Free float) 15.07

Overview As of 18/03/2022 Rights Type : XM
Total Shareholders 3,361
% Shares in Scripless Holding 96.46

 

Major Shareholders # Shares Shares (%)
FAHDAMRONGCHAITHAM CO.,LTD 426,774,344 52.05
Mr. Thaveechat Jurangkool 134,635,723 16.42
Mr. Nuttapol Jurangkool 81,122,700 9.89
Mrs. Hathairatn Jurangkool 51,573,500 6.29
Mr. Komol Juangroongruangkit 22,720,000 2.77
UOB KAY HIAN (HONG KONG) LIMITED - Client Account 17,932,520 2.19
Bangkok Bank Public Co., Lt 12,278,693 1.50
บริษัท ศูนย์รับฝากหลักทรัพย์ (ประเทศไทย) จำกัด เพื่อผู้ฝาก 5,216,651 0.64
นาย ถกลเกียรติ วีรวรรณ 5,059,236 0.62
กองทุนเปิด บัวหลวงตราสารทุนเพื่อการเลี้ยงชีพ 4,830,400 0.59

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Q : When does the company hold Annual General Meeting of Shareholders (AGM)?

A : According to Chapter 5 of the Articles of Association, The Board shall arrange for an Annual General Meeting of Shareholders to be held within 4 months after the end of the fiscal year of the Company. GMM Grammy’s Annual General Meeting of the Shareholders is usually held in April.

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Q : When will the shareholders receive the notice of Annual General Meeting of Shareholders (AGM)?

A : The Company will announce the Annual General Meeting of Shareholders and deliver the notice to the shareholders 30 days prior the meeting. In addition, the company will publish the notice of the meeting and proxy form on company website for shareholders can be downloaded easily.

Q : What should shareholders do if they can’t attend Annual General Meeting of Shareholders (AGM)?

A : In case that a shareholder can’t attend in person. Shareholders may appoint a representative to attend the meeting as proxy form attached to the Notice of AGM and Proxy Form can be printed from the website "www.gmmgrammy.com". The proxy does not need to be GMM Grammy’s shareholder. Shareholder must appoint only one person to attend the meeting and vote.

Q : What’s the company dividend policy?

A : GMM Grammy had a policy to pay consistent dividend to shareholders, linked to the underlying earnings performance of the business. In the absence of unforeseen circumstances, GMM Grammy has a policy paying the dividends to shareholders at a rate of not less than 40% of the net profit after corporate income tax each year, based upon the Company’s separated financial statements. This dividend policy may change in the light of investment opportunities that may become available to GMM Grammy or as a result of other economic or financial factors or when a dividend payment may have a significant impact on GMM Grammy’s normal operation. The dividend payment shall not exceed the retained earnings of the separated financial statements. As GMM Grammy is on the investment period in new businesses, we did the omission of dividend payment since the second half of 2011 in order to reserve cash for the ongoing projects under the Company's business plan.