According to the announcement from the National Broadcasting and Telecommunications Commission (NBTC) in late afternoon on May 10, 2019, BEC World Public Company Limited (BEC) had submitted a letter to return two of its the digital TV license, which were 3SD (Channel 28) and 13FAMILY (Channel 13).
While BEC will receive compensation from the returning license, there will be an inevitable damage to JKN as an allies and client because BEC has bought Indian series’s licenses from JKN for broadcasting on Channel 33HD and 13Family. Now, it will be more difficult for JKN and its Indian series.
In term of an indirect impact, which could be both short and long term, JKN will lose the opportunity to further its business. Especially, the content from JKN CNBC that has been set to produce economic content for digital TV from both domestic and international. As channels decrease, comes a rise in competition, and more competitors means higher cost.
There are many channels currently confronting with financial crisis continuously without the solution of turning around to gain profit. While Indian series are known for their supernatural power from the Indian gods and goddesses, and the blessing was once offered to various channels to boost their rating. The blessing which once gave digital TV operators higher rating is starting to wear off.
This might lead investors to shift to a reverse, restraining from going all in on JKN. Thus, results to the steady pace of JKN’s share price that keeps trampling between THB 7-8 for a while.
The only hope as of now might be the positive announcement of its 1Q19 financial statement that could buoy JKN’s share price for another rally. But if the announcement of 1Q19 financial statement came out in the opposite direction that investors had anticipated, it is every man for himself.