Although every winning digital TV firm was celebratory after the 2014 licensing auctions, RS Plc expressed misgivings about the glut of TV channels. Since that time it's been shifting towards multi-platform commerce (MPC) to reduce business risk.
In short, RS is transforming from a media company to a retail concern.
"The fierce competition in digital TV and the economic downturn have caused ad value to decline by 50% in the past five years," said chief financial officer Darm Nana.
"We would be a TV channel with 50% less revenue if not for the MPC business."
MPC takes up 30% of airtime at Channel 8, and RS hopes one day its airtime won't rely on others if the company expands the variety of products.
For now, RS will offer anything that customers want and will actively expand its MPC vertically and horizontally this year.
Mr Darm said the company will allocate 360 million baht to upgrade its broadcast facilities and system this year, and strengthen its warehouse in Rangsit to support the growth.
Vertically the company is planning to form a joint venture with a partner in manufacturing to increase consumer confidence and gain sustainable product capacity serving customers on time.
RS also wants to extend its skincare portfolio and join the food and supplement business this year. The number of its product items is expected to double to 200 in 2019.
RS is moving forward with a new business model called "horizontal integration", focusing on horizontal growth of new business.
The company will utilise diversification to add variety and introduce new businesses, and capitalise on the strength of its MPC through synergy with media and music businesses.
"RS will focus on converting our viewers to a premium customer database, which is a new management concept that will yield greater results," Mr Darm said.
Earlier this year, the company introduced a single-level direct sales business with some 1,000 sales representatives.
"Thailand's direct sales business is worth more than 70 billion baht, so there is huge room to grow," he said.
"RS is no longer a media company as we are gearing to become a retail company. We are the only one that owns a multi-platform of TV, radio and online with 14 million customers, so we can apply data analytics to better understand our customers."
The MPC business led the company's overall performance to break records for revenue and net profits in 2018 despite the decline in the skincare industry.
Last year RS's total revenue was 3.82 billion baht, a 9.3% increase, with MPC a major profit creator with annual revenue of 2.12 billion.
Net profit rose 55% to 516 million baht.
The company's MPC was able to grow significantly, thanks to new innovations and premium offerings.
More than 100 items are sold through RS properties such as Channel 8, Channel 2, Sabaidee TV 141, Ploen TV, Cool Fahrenheit, www.shop1781.com, Line@shop1781, Line@coolanything and LifestarBiz direct sales, as well as modern trade stores and retailers nationwide.
"These all have strengthened and enhanced RS's capability, staying one step ahead of competitors," Mr Darm said.
The company's media business generated 1.34 billion baht or 35.1% of RS's total revenue.
Channel 8 is the main earner as it was able to secure long-term advertising.
"2019 will be another golden year for RS," Mr Darm said.
"Our total revenue will continue to grow sustainably, reaching 5 billion baht, the highest in our 37-year history."
MPC will still be the main earner, generating 60% of the income, with the media business creating 35% and the remaining 5% from others including music and events.
