Summary and TOC of Time Consulting Report on OTT

Final Report
Study of Procedures for Competition Regulation for OTT TV
25 January 2017
Time Consulting Co., Ltd.
Informal translation provided for members of
P. 1
Table of Contents
1. Executive Summary
1.1 Summary of understanding of Project Procedure and Methodology
1.2 Summary of International Comparison
1.3 Summary of Analysis of the Thai market
1.4 Summary of Gap Analysis and Policy Recommendations
14
14
21
25
34
2.
Understanding the Project
40
2.1 Project Background
40
2.2 Project Objectives
41
3. Project Procedure and Methodology
42
3.1 Definition of OTT Words and their Value Chain
42
3.2 Key Points of the Study
45
3.3 Project Concept and Procedures
46
3.4 Plan 1: Project Planning
48
3.5 Plan 2: International Study
50
3.6 Plan 3: Thai Market Analysis
62
3.7 Plan 4: Gap Analysis and Policy Recommendation
65
3.8 Plan 5: Focus Group and Capacity Building
67
3.9 Plan 6: Conclusions and Final Recommendations
71
3.10 Work Plan and Timeline
73
4. OTT TV Systems, Types of Services and Devices Supported
74
5. International Study
82
5.1
United States of America
Informal translation provided for members of
82
P. 2
5.1.1 OTT TV Providers in the market and Types of OTT TV Services
85
5.1.2 The Market, Competition and Impact from offering OTT TV Services
95
5.1.3 Regulations, Promotional Policies and Support for OTT TV Services
102
5.2
109
United Kingdom, UK
5.2.1 OTT TV Providers in the market and Types of OTT TV Services
112
5.2.2 The Market, Competition and Impact from offering OTT TV Services
120
5.2.3 Regulations, Promotional Policies and Support for OTT TV Services
125
5.3
131
Singapore
5.3.1 OTT TV Providers in the market and Types of OTT TV Services
133
5.3.2 The Market, Competition and Impact from offering OTT TV Services
139
5.3.3 Regulations, Promotional Policies and Support for OTT TV Services
143
5.4
150
South Korea
5.4.1 OTT TV Providers in the market and Types of OTT TV Services
153
5.4.2 The Market, Competition and Impact from offering OTT TV Services
159
5.4.3 Regulations, Promotional Policies and Support for OTT TV Services
162
5.5
170
Malaysia
5.5.1 OTT TV Providers in the market and Types of OTT TV Services
172
5.5.2 The Market, Competition and Impact from offering OTT TV Services
178
5.5.3 Regulations, Promotional Policies and Support for OTT TV Services
183
5.6
188
Australia
5.6.1 OTT TV Providers in the market and Types of OTT TV Services
191
5.6.2 The Market, Competition and Impact from offering OTT TV Services
196
5.6.3 Regulations, Promotional Policies and Support for OTT TV Services
204
5.7
The Overall Regulatory Scene in the Asia Pacific Region
206
5.8
The Global Consumer Response
216
5.8.1 Consumer Behavior in Choosing Contents
217
Informal translation provided for members of
P. 3
Informal translation provided for members of
P. 4
5.8.2
Consumer Behavior in Choosing Devices
222
5.8.3
Current Customer Satisfaction in OTT TV
224
6
Thai Market Analysis
227
6.1
Market Analysis and types of services for Pay TV Service in Thailand
227
6.2
Market Analysis for OTT TV Service in Thailand
230
6.2.1
Market Trends for OTT TV Service in Thailand
253
6.2.2
Analysis of interesting OTT TV Service Providers
260
6.2.3
Analysis of Relevant Laws and Regulations
275
7
Result of Focus Group
284
7.1
The Focus Group Program
284
7.2
Planning for Focus Group
285
7.3
Summary of Contents of Focus Group
288
7.4
Summary of Ideas on Competition Regulations for OTT TV
289
7.5
Scenes from Focus Group
291
8
Capacity Building for NBTC staff
293
8.1
Program for Capacity Building
293
8.2
Planning for Capacity Building
294
8.3
Summary of Questions on Competition Regulations for OTT TV
296
8.4
Scenes from Capacity Building
298
9
Report of Competition Regulation on OTT TV
300
9.1
Program for Competition Regulation on OTT TV
300
9.2
Planning for Competition Regulation on OTT TV
301
Informal translation provided for members of
P. 5
9.3
Summary of Seminar on Competition Regulation on OTT TV
9.4
Customer satisfaction and ideas from seminar on
305
Competition Regulation on OTT TV
306
9.5
Scenes from Seminar on Competition Regulation on OTT TV
307
10
Final Recommendations and Regulatory Impact Analysis
309
10.1
Definition of OTT TV Service
309
10.2
Final Policy Recommendations on Competition Regulation on OTT TV
309
10.2.1 Policy Recommendations on Good and Creative Local Contents
310
10.2.2 Policy Recommendations on Regulatory Control of
OTT TV through Licensing
312
10.2.3 Policy Recommendations on Imposing Content Regulations
314
10.2.4 Policy Recommendations on Regulating ISP through Net Neutrality
317
11
Appendices
322
11.1
Attendee List at Focus Group
322
11.2
Attendee List for Capacity Building of NBTC Staff
328
11.3
Attendee List for Seminar on Competition Regulation on OTT TV
330
11.4
Customer Satisfaction Questionnaire at Seminar on
Competition Regulation on OTT TV
Informal translation provided for members of
334
P. 6
CHARTS CONTENTS
Chart 1-1
Project Design
15
Chart 1-2
Scope of OTT TV Project
16
Chart 1-3
Project Work Plan with Timeline
20
Chart 1-4
Market Development of OTT TV in other
countries compared with Thailand
22
Chart 1-5
Dominant Players in US, UK, and South Korea
23
Chart 1-6
Dominant Players in Australia, Singapore and Thailand
23
Chart 1-7
Partnership among OTT TV and Supply Chain Providers
24
Chart 1-8
Policy Recommendation on Regulating OTT TV
36
Chart 2-1
Project Background and Objectives
40
Chart 3-1
Value Chain and Scope of OTT TV
43
Chart 3-2
Project Design
47
Chart 3-3
Sample of Project Status Report
48
Chart 3-4
Topics and Countries to be studied
51
Chart 3-5
Sample Analysis of Development of OTT TV in the US
54
Chart 3-6
OTT TV Monetization Model Overview
54
Chart 3-7
Video Service Monetization Model in Other Countries
55
Chart 3-8
Video Service Monetization of incumbents in the US
55
Chart 3-9
OTT TV Partnership with Incumbents
56
Chart 3-10
Trends in using OTT TV Features
56
Chart 3-11
Sample Regulation of OTT TV
57
Chart 3-12
Scope of Global Consumer Behavior
58
Chart 3-13
Information on Mobile Data usage for Video
60
Informal translation provided for members of
P. 7
Chart 3-14
Sample of Viewing Behavior in foreign countries
60
Chart 3-15
Scope of Overview of Regulatory Framework in Asia Pacific
61
Chart 3-16
Video Service Provider Landscape in Thailand
63
Chart 3-17
Competition Analysis and Profiling of OTT TV Service Providers
In Thailand
64
Chart 3-18
Key Issues for OTT Regulations
67
Chart 3-19
Sample Focus Group
69
Chart 3-20
Sample Capacity Building
70
Chart 3-21
Sample presentation of ideas from different sectors
72
Chart 3-22
Project Plan and Timeline
73
Chart 4-1
OTT TV Infrastructure
74
Chart 4-2
Categories of OTT TV Provider and Content
76
Chart 4-3
OTT TV Monetization model
79
Chart 5-1
OTT TV in USA at year 2004 to 2009
86
Chart 5-2
OTT TV in USA at year 2010 to 2016
87
Chart 5-3
Amazon Video Purchase and Rental
92
Chart 5-4
Popularity of OTT TV in the US
97
Chart 5-5
Pay TV subscribers in the US 2006 to 2015
98
Chart 5-6
Impact of OTT TV on Pay TV in the US
99
Chart 5-7
Future of OTT TV and Pay TV
100
Chart 5-8
Comcast switch to usage based pricing for broadband
102
Chart 5-9
Relevant Regulation for OTT TV in USA
103
Chart 5-10
Net Neutrality Rules in the US
104
Chart 5-11
Net Neutrality Cases Comcast and Bit Torent
106
Informal translation provided for members of
P. 8
Chart 5-12
Net Neutrality cases at Zero Rating
108
Chart 5-13
Major OTT TV players in the UK 2006-2015
113
Chart 5-14
Popularity of OTT TV in the UK
121
Chart 5-15
Online TV Revenue in the UK
122
Chart 5-16
Impact of OTT TV on existing platforms
124
Chart 5-17
Impact of EU Directives on OTT TV regulation in UK
126
Chart 5-18
The Audio Visual Media Services Directive
127
Chart 5-19
OTT TV Regulations in the UK
130
Chart 5-20
OTT TV Services in Singapore
133
Chart 5-21
Singapore’s Landscape of Linear TV
140
Chart 5-22
Singapore’s OTT TV Market Environment
141
Chart 5-23
OTT TV effect on Singapore
142
Chart 5-24
Pay TV Subscribers and ARPU
143
Chart 5-25
Singapore’s OTT TV related Rules and Regulators
144
Chart 5-26
Singapore’s OTT TV related Regulations: Licensing
145
Chart 5-27
Singapore’s OTT TV related Regulations: Consumer Protection
146
Chart 5-28
Singapore’s OTT TV related Regulations: Consumer
Protection Cases
147
Chart 5-29
Singapore’s OTT TV related Regulations: Other Relevant Rules
148
Chart 5-30
OTT TV in South Korea
154
Chart 5-31
Readiness of South Korea for OTT TV
159
Chart 5-32
Market Leaders in OTT TV in South Korea
161
Chart 5-33
Effect of OTT TV
162
Chart 5-34
Relevant PTT TV Regulations in South Korea
163
Informal translation provided for members of
P. 9
Chart 5-35
Net Neutrality and Internet Traffic Management Rules (2014)
Chart 5-36
A study of Net Neutrality and
164
Internet Traffic Management Rules (2014)
166
Chart 5-37
Other Relevant laws for OTT TV in South Korea
168
Chart 5-38
OTT TV Service in Malaysia
173
Chart 5-39
Malaysia’s readiness for OTT TV
178
Chart 5-40
OTT TV and Advertising Spending
180
Chart 5-41
OTT TV and Partners
181
Chart 5-42
Relevant Regulations for OTT TV in Malaysia
183
Chart 5-43
Communications and Multimedia Act 1998 of Malaysia
184
Chart 5-44
Copyright Act 1987 of Malaysia
185
Chart 5-45
Sedition Act 1948 of Malaysia
186
Chart 5-46
OTT TV Service in Australia
192
Chart 5-47
OTT TV Viewing in Australia
197
Chart 5-48
SVoD OTT TV Service in Australia
199
Chart 5-49
Current TV Consumption Share in Australia
201
Chart 5-50
Future Outlook for TVM Market in Australia
201
Chart 5-51
Netflix Effect
203
Chart 5-52
Broadcasting Services Act 1992
205
Chart 5-53
Increase in watching On-Demand TV Series and Movies
217
Chart 5-54
Average Number of Self-reported Weekly Hours of
Active TV/Video Watching
Chart 5-55
Percentage of Consumers Watching YouTube
With Different Frequency
Chart 5-56
218
219
Percentage of People Watching Different Media Types
At least once a day
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220
P. 10
Chart 5-57
Global Consumer Behavior OTT TV
Chart 5-58
Percentage of Consumers who Watch Each
221
Content Type on their Smart Phone
222
Chart 5-59
Share of Total TV Time by age Group
224
Chart 5-60
Consumer Evaluation of Content Providers
229
Chart 6-1
Current Situation of Pay TV Market August 2016
249
Chart 6-2
OTT TV Players in Thailand
254
Chart 6-3
Growth in Broadband Adoption in Thailand
255
Chart 6-4
SVoD OTT TV in Thailand
256
Chart 6-5
AVoD OTT TV in Thailand
257
Chart 6-6
Price Trends and Technologies
258
Chart 6-7
Is Thai Telecom Act Relevant to OTT TV?
259
Chart 6-8
Profiling and SWOT Analysis: MonoMaxxx
261
Chart 6-9
Profiling and SWOT Analysis: Primetime
262
Chart 6-10
Profiling and SWOT Analysis: iFlix
264
Chart 6-11
Profiling and SWOT Analysis: HOOQ
265
Chart 6-12
Profiling and SWOT Analysis: LINE TV
267
Chart 6-13
Profiling and SWOT Analysis: YouTube
268
Chart 6-14
Profiling and SWOT Analysis: Bugaboo
269
Chart 6-15
Profiling and SWOT Analysis: TrueVisions Anywhere
271
Chart 6-16
Profiling and SWOT Analysis: AISPlay
272
Chart 6-17
Profiling and SWOT Analysis: ThaiTV3
273
Chart 6-18
OTT TV Scoring System in Thailand
274
Chart 6-19
OTT TV Competitive Scoring in Thailand
274
Chart 6-20
Relevant Laws and Regulations
276
Chart 6-21
Cyber Crime Act BE 2550
278
Informal translation provided for members of
P. 11
Chart 6-22
Intellectual Property Law
Informal translation provided for members of
280
P. 12
Chart 6-23
Consumer Protection Law as regards OTT TV
281
Chart 6-23
NBTC Law as regards OTT TV
282
Chart 7-1
Photo 1: Focus Group on Competition Regulation OTT TV
291
Chart 7-2
Photo 2: Focus Group on Competition Regulation OTT TV
291
Chart 7-3
Photo 3: Focus Group on Competition Regulation OTT TV
292
Chart 8-1
Photo 1: Capacity Building for Competition Regulation OTT TV
298
Chart 8-2
Photo 2: Capacity Building for Competition Regulation OTT TV
299
Chart 8-3
Photo 3: Capacity Building for Competition Regulation OTT TV
299
Chart 9-1
Photo 1: Seminar Competition Regulation OTT TV
307
Chart 9-2
Photo 2: Seminar Competition Regulation OTT TV
308
Chart 9-3
Photo 3: Seminar Competition Regulation OTT TV
308
Chart 10-1
Policy Recommendation
309
Chart 10-2
Good Local Contents Support
311
Chart 10-3
Policy Recommendation: Licensing
312
Chart 10-4
Policy Recommendation: Contents
315
Chart 10-5
Policy Recommendation: Regulate ISP via Net Neutrality
318
Informal translation provided for members of
P. 13
CONTENTS TABLES
Table 1-1
Study showing comparison between foreign countries
and Thailand
28
Table 3-1
Sample Regulation
66
Table 5-1
List of Service Providers in Telecom, National Television,
Commercial Television, Pay Television, as connected to OTT TV
service in the US
85
Table 5-2
Netflix monthly service charges in the US
90
Table 5-3
Package of Service offered by Hulu
95
Table 5-4
Viewers on YouTube by Content Providers
96
Table 5-5
List of Service Providers in Telecom, National Television,
Commercial Television, Pay Television, as connected to OTT TV
service in the UK
Table 5-6
112
List of Service Providers in Telecom, National Television,
Commercial Television, Pay Television, as connected to OTT TV
service in Singapore
Table 5-7
133
List of Service Providers in Telecom, National Television,
Commercial Television, Pay Television, as connected to Pay TV
service in South Korea
Table 5-8
153
List of Service Providers in Telecom, National Television,
Commercial Television, Pay Television, as connected to OTT TV
service in the Malaysia
Table 5-9
172
List of Service Providers in Telecom, National Television,
Commercial Television, Pay Television, as connected to OTT TV
service in Australia
Informal translation provided for members of
191
P. 14
Table 5-10
Subscribers and households that watch Video and TV
202
Table 5-11
Overall Regulatory of OTT TV in the Asia Pacific Region
215
Table 6-1
Prime Time Fees in August 2016
233
Table 6-2
Thai Viewing Statistics through YouTube at August 2016
239
Table 6-3
Overall Service Provider in Thailand for OTT TV,
and type of Revenue
253
Table 7-1
Opinions about Competition Regulation for OTT TV
290
Table 8-1
Summary of questions raised on
Competition Regulation for OTT TV
Informal translation provided for members of
298
P. 15
1.
Executive Summary
This is the Final Report on ‘Competition Regulation on OTT TV’ (Over the Top Television) which
covers understanding of the project, study guidelines, methodology, study of comparative OTT
TV markets, impact of OTT TV, regulatory environment in foreign countries (International Study),
analysis of the Thai market, summary of findings of focus group, response from capacity building
of NBTC personnel, resulting in the final recommendations and regulatory impact analysis.
The object of this study is to seek challenges in regulating OTT TV and providing
recommendations in keeping with the role of NBTC in promotion and supervision including
analysis of strengths and weakness of the regulatory issues where NBTC can intervene. The
details of the study are presented as follows:
1.1
Summary of Understanding of Project Procedure and Methodology
The project ‘Competition Regulation on OTT TV’ studies competition in Over the Top TV, with
the key objective of studying comparative benchmark market conditions and competition in OTT
TV services and impact on the relevant service market, together with regulatory environments.
The objective is to analyze and provide policy recommendations suitable for Thai conditions,
which will enable NBTC to adapt regulations in the period of convergence.
In implementing the project according to the project objectives as declared above, the
consulting company Time Consulting Co., Ltd. has designed this project in six sections over a
total of seven months with details of how they are linked as follows:
Informal translation provided for members of
P. 16
Chart 1-1: Project Design
Scope of the Study
The project ‘Competition Regulation on OTT TV’ needs to define OTT TV clearly to provide the frame
work for the study. In this project, OTT TV means the website or application which sends content to end
user through any internet network.
Chart 1-2 shows the value chain for OTT TV services which has five key parts – content owner, platform
service provider, provider of devices used in OTT TV, end user, and the internet service provider. This
study will show the types of service provided, market condition and competition in offering the OTT TV
service, impact of the OTT TV service, and trends towards competition regulations mainly covering the
service platform and will indicate use of devices in each work plan of the project.
Informal translation provided for members of
P. 17
Chart 1-2: Scope of OTT TV Project
Work Plan 1: Project Planning
Work Plan 1 involves detailed project planning where the consultant will provide clear definition of OTT
TV for this project, summarize the choice of countries and study issues to provide a framework for the
entire study including adapting the initial project plan to have the technical recommendations proceed
according to NBTC’s requirement.
Work Plan 2: International Study
Informal translation provided for members of
P. 18
Under this work plan the consultant will make a comparative study of 6 countries as follows:
Type
Country
Countries with
regulations
United
States of
America
United
Kingdom
Type
Reason
Provides widespread OTT service e.g.Net
Flix, Hulu, with success with larger market
share than original Pay TV and has
regulations over contents, and over network
through Net Neutrality
Provides widespread OTT service e.g. BBC
iPlayer, ITV Player, and has regulations over
network through Net Neutrality policy and
Audiovisual Media Service Directive of the
European Commission
Country
Reason
Has service providers who offer service in
Thailand i.e. HOOQ a regional service
provider who came from the cooperation
between Telco and International Content
Provider; and regulates through licensing,
regulating the contents through OTT TV
Singapore service and using Net Neutrality.
OTT TV service came from Telco Pay TV
Operator and partnership of major
broadcasters. Regulation exist under the
Countries with no South
Internet Multimedia Boradcasting Business
or little regulation Korea
Act
Offers OTT TV service as partnership with
Telco in increasing market access and has
service providers who are in Thailand like
iFlix, which is a tech-start up company. They
Malaysia regulate OTT TV content
Regulates OTT TV through on-line content
and has original Broadcaster/Pay TV
operator ie. Nine Seven Foxtel which has a
Australia role in offering OTT TV service
Key issues to be studied cover several areas of interest to NBTC to set policies to regulate as follows:


Market conditions and competition in linear and non-linear platform for Pay TV and OTT TV
The business model, technology offered for OTT TV service and future trends for OTT TV
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P. 19


Monetization model of OTT TV
Relationship between OTT TV, Telco, Pay TV Operator and Broadcaster
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P. 20




Analysis of impact in several areas including competition with other platforms such as DTT,
cable, and satellite TVs, service fees charged, and impact upon the consumer
Format and parameters of OTT TV related regulations such as network regulation, regulating
through licensing authorization, and online content regulation
Policy format, promotion and support to be offered e.g. support for Tech-start up OTT TV
provider
SWOT analysis of regulatory intervention through regulations and policies, with key implications
for Thailand
In addition, Consultant will add information to help NBTC understand behavior trends and regulatory
implications which will offer the macro view of the international scene as follows:
1. Global overview of consumer behavior on video consumption on the following key issues:
 Behavior in choosing content through OTT TV
 Behavior in using devices to access OTT TV
 Satisfaction in using OTT TV services today
2. Overview of regulatory issues in five countries of Asia Pacific Region i.e. Japan, Hong Kong,
China, Indonesia and the Philippines. The issues to be studied are:
Regulatory structure for OTT TV
 Law protecting copyright
 Law covering issuance of license for OTT TV service providers
 Law covering fee structure (covering wholesale and retail)
 Investment law (covering foreign investment)
 Law covering sales promotion (e.g. service add-on)
 Law covering advertising (e.g. setting ceiling for advertising rate by the hour)
 Law covering content, and law covering consumer protection
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P. 21
Work Plan 3: Thai Market Analysis
In this Work Plan the Consultant will analyze the market for Pay TV and OTT TV in Thailand, covering
market trends and services, types of service offered, technology used in offering OTT TV services, types
of revenue for OTT TV, types of relationship between OTT TV, Telco, Pay TV Operator and Broadcaster,
analyzing impact on areas such as competitions with other platforms (DTT, cable and satellite), fee for
the service, and the consumer impact. Consultant will also study various laws that may be related to
OTT TV in Thailand and to the Ministry of Digital Economy and Society and to compare with studies in
foreign countries. Consultant will also analyze at least 10 businesses of OTT TV service providers in
Thailand in detail.
For its information collection, Consultant will use desk research and collect information from market
intelligence that Consultant already possesses. If more details are required, Consultant may interview
executives of OTT TV service provider formally and informally.
Work Plan 4: Gap Analysis and Policy Recommendations
In this work plan, The Consultant will summarize information obtained in Work Plan 2 and 3 to identify
challenges in regulation and in preparing recommendations according to the NBTC’s role of promotion,
regulatory supervision and identifying the strengths and weaknesses of the regulatory issues where
NBTC may intervene.
Work Plan 5: Focus Group and Capacity Building
In this work plan, The Consultant will organize one Focus Group meeting at the NBTC office to hear
comments and opinions on the Consultant’s regulatory recommendations for OTT TV oversight. The
Consultant will also organize a one-time capacity building seminar to educate NBTC staff about OTT TV
services in foreign countries and competition regulation recommendations at the NBTC office.
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P. 22
Work Plan 6: Conclusions and Final Recommendations
In this work plan, the entire study will be summarized and final policy recommendations will be made in
regulatory oversight of OTT TV to the NBTC. The Consultant will prepare risk assessments in
implementing OTT TV regulations or not implementing it, the impact on market and competition in
Thailand. After summarizing, adjusting and improving the entire study, The Consultant will organize a
one-time seminar for the public (OTT TV and Pay TV service providers, Broadcasters, Content producers,
etc.) and relevant NBTC personnel.
For the Project Work Plan and Timeline Chart 1-3 will show that all the work within the TOR will be
completed within 7 (seven) months. The Consultant will finish Work Plan 1-6 in 180 days (6 months).
The last month will be devoted to promoting the study to the public and NBTC staff and in adjusting the
report according to NBTC’s recommendations.
Chart 1-3: Project Work Plan with Timeline
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P. 23
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P. 24
1.2

Summary of International Comparison
OTT market in Thailand is at the infancy stage
OTT TV arrived in Thailand in 2014, considered to be at the infancy stage when compared with
other countries studied here, especially the United States, South Korea, Australia and the United
Kingdom. These countries have been offering OTT TV for a long time and have a variety of OTT
TV services available. Some service providers have merged businesses some have already left
the field. While Singapore and Malaysia have offered OTT TV services for a while, their
development is still at the infancy stage like Thailand, and both countries have OTT TV services
which are developed by local people.

YouTube and Netflix were successful at global level, especially Netflix was most popular in
English speaking countries
Comparing all the countries in the study, with the exception of South Korea, all countries favor
YouTube in accessing OTT TV especially for contents which are UGC. On the other hand, in
countries where English was the main language like US, UK and Australia, Netflix is the most
popular channel for watching copyrighted movies and online TV. Thus the large service
providers in each country tend to grow out of original service provider in television,
broadcasters, and Pay TV providers.
Informal translation provided for members of
P. 25
Chart 1-4: Market Development of OTT TV in other countries, compared with Thailand
Note: BE 2547 is the year 1994
BE 2548 is the year 1995
BE 2549 is the year 1996
BE 2553 is the year 2010
BE 2557 is the year 2014

The type of income of OTT TV service provider favor is related to the type of OTT TV
service provided
The new types of service providers tend to offer OTT TV service of SVoD type, while those who
offer FTA tend to offer OTT TV of AVoD type because it is the type of revenue they have
experience in. Pay TV providers who offer OTT TV service will go for As-a-feature (TV
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P. 26
Everywhere) to keep their original customer base and tend to offer OTT TV of the SVoD type
also.
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P. 27
Chart 1-5: Dominant Players in US, UK and South Korea
Chart 1-6: Dominant Players in Australia, Singapore, Malaysia and Thailand
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P. 28

OTT TV Service Provider join with other service providers in the supply chain especially
internet service providers to spread services in each country
The relationship between OTT TV service providers are of several types and can be summarized as -OTT TV service providers will join with service providers in the supply chain in which they do not offer
service, and of where they have no expertise. The type of relationship is as follows: 1) joining with
content providers from foreign countries and within the country, to make a difference and provide
diversity in content in the platform while reducing the cost of finding content, 2) joining with device
manufacturer for viewing OTT TV as a channel to spread services to service users and 3) joining with
internet service providers to expand services to other countries.
Chart 1-7 Partnership among OTT TV and supply chain providers

Overall, OTT TV does not have negative impact with existing service provider in television,
except for the US
Because large service provider in different countries tend to be original service provider in television
such as broadcasters of TV channels and Pay TV operators, OTT TV thus becomes an additional income
earning solution or a way to ensure their customer base is secured. Studies in foreign countries showed
that FTA and Pay TV service providers still have income and increase of customer base. In the US it was
found that dominant OTT TV service providers were new entrants with no previous television customer
base – e.g. YouTube and Netflix. Because of this OTT TV in that country impacted previous service
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P. 29
providers in the market leading to reduction of cable TV service providers, and led to ‘cord cutting’
among consumers in the US.
Informal translation provided for members of
P. 30

Offering OTT TV service affects internet service provider who must be responsible for cost
of expanding network to accept higher traffic
Offering high quality OTT TV according to technology needs and according to consumer demands
especially in countries where OTT TV existed for a long time and is quite widespread means that the
existing internet capacity is insufficient to handle the higher traffic volume, and the internet service
provider must upgrade their network to handle higher traffic at their own cost, as OTT TV operators are
not responsible for such costs.

OTT TV service offers the consumer a large viewing choice in terms of content, price and
types of service
OTT TV offers a large variety of services which responds to changing consumer behavior. Consumers can
choose to view or pay for contents to view at specific times that they wish to view only. They can also
choose to view through stationary devices, or portable ones. In some countries it is seen that the
competition of OTT TV of SVoD type has led to reduced fees.

OTT TV regulatory measures works on many dimensions, basically it is about regulating
content, licensing, network and support measures
OTT TV is regulated basically on content. However the regulatory measures are less stringent than the
ones on existing television. Some countries choose to regulate through licensing, and/or service support
measures. Then there is the net neutrality that regulates internet service providers so that consumers
will have equal opportunity to access contents that are legal.

Countries in the Asia Pacific region largely do not have measures specifically to regulate
OTT TV
Overall countries in the Asia Pacific region regulate OTT TV through existing laws such law on Intellectual
Property, regulations controlling advertising, etc. Most of the regulatory framework on OTT TV do not
clearly regulate, but do show plans to regulate in future.
1.3
Summary of Analysis of the Thai Market
In Thailand, OTT TV’s market condition and services offered shows that its development is still in the
infancy stage. OTT TV showed up in Thailand in 2014 together with the required internet infrastructure,
especially internet stations and was offered to consumers in a limited area and with high fees when
compared with mobile telephones services. The consumer’s access to OTT TV is thus largely through
mobile telephones and other portable devices with access to internet.
Informal translation provided for members of
P. 31
OTT TV service providers in Thailand are of 4 types: 1) Independent OTT TV provider, these are largely in
the Tech-start-up group, in the country e.g. Hollywood HD Primetime, YouTube, Line TV, iflix, and
Netflix. There are two types of revenue earning methods AVoD and SVoD. 2) From free TV to OTT TV
offering expanded choice to original viewers thereby keeping them in-house. Type of revenue is AVoD.
3) From Pay TV to OTT TV e.g. PSI and True Vision Anywhere. Their revenue comes from AVoD and SVoD
types. 4) Telecom provider to OTT TV e.g. AIS Play who offers As-a-feature and viewers may have to
offer more money for specific content. Types of service and content are in different proportions e.g.
movies and TV series from abroad, Thai movie, Variety, sport, youth’s program, whereby viewer can
demand to view specific content (video on demand) or has additional features such as ability to check
the program in advance, favorite program can be recorded, can watch live program within 2 hours’ time
shift, or can view the live program with 2-days catch-up.
Competition in the OTT TV market for the service providers of SVoD types shows that Hollywood HD
leads among the new service providers in the market. When considered from revenue earned in 2015,
Hollywood HD earned 299 million baht followed by Primetime and MonoMaxxx at 143 million baht and
98 million baht respectively. The monthly service fees are in the range of 99-200 baht. This rate is
similar to Malaysia and is considered not much higher than other countries studied. The total revenue
of all three players in the SVoD market is about 10% lower than income of OTT TV service providers who
also offer Pay TV service. (Compared with TrueVisions revenue at 2nd quarter of 2016).
When the revenue from OTT TV of SVoD type is compared with revenue from dominant AVoD player in
Thailand i.e. YouTube (percentage of income from advertising is higher than 75%), and others (LINE TV,
One, Mono 29 etc.), the proportion of income at start-up of OTT TV service is approximately 25%. The
entry of new OTT TV players in the market in both SVoD and AVoD types do not have much impact on
the revenue of original service providers in the current market situation.
Informal translation provided for members of
P. 32
This is because the services offered are still quite recent at the beginning stage, and the contents
offered are not the same. The growth of advertising from video is on trend to double its growth in 1-5
years ahead. This could be a factor to impact the competition in future.
At the same time, what OTT TV service provider may face and could be an obstacle is the rise in royalties
and problems of piracy, price competition, and good viewing quality for customers. For these services
OTT TV service providers need heavy investments which could be a limitation for smaller or new OTT TV
players who begin with smaller investments. Again, because OTT TV is a new type of service which grew
from media fusion and sending pictures through the internet network, it is thus inescapably connected
to internet service provider and telecom operator. With this comes the issue of bandwidth
management, depriving viewers of viewing content by OTT TV service provider, thus law and regulations
changes becomes another issue that is important to OTT TV service provider.
In summary, it can be said that overall in Thailand OTT TV is still in its infancy, having entered the market
only 1-2 years ago. There are different types of service providers offering a variety of contents. The top
three major players are YouTube, Line TV and TrueVision Anywhere. These three have advantages of
viewers’ volume, interesting and variety of content, financial status, and stability of platform which
offers good experience for viewers. All three service providers do not collect fee from end-user, offering
services of AVoD OTT TV as a feature which is popular in Thailand.
Informal translation provided for members of
P. 33
Table 1.1 Study showing comparison between foreign countries and Thailand
United States of United Kingdom
South Korea
America
OTT TV service providers in the market and types of services offered
Market
* Offers
* OTT TV in the
* OTT TV
condition
widespread OTT UK began from
services grew
and
TV services, and existing players in from 4 existing
dominant
was the start of
the market from
types players
worldwide
FTA and Pay TV
Convergence,
players like
Channel
YouTube, Netflix * Global players
broadcasters,
and Amazon
from the US have Pay TV and Web
Prime
a large role in
Portal
the market
* Today Pay TV
especially in
* Foreign
service
SVoD
players do not
providers and
have important
Content
* Dominant OTT
role in this
providers are in
TV players are
market
the OTT TV
BBC iPlayer
system
(AVoD), Sky (mix), * Dominant OTT
Netflix (SVoD)
TV players are
* Dominant OTT and Amazon
Pooq from FTA
TV players
Prime (SVoD) etc. and Oksusu,
are YouTube
Olleh Mobile,
(AVoD) Netflix
U+SDTV, Tving,
(SVoD), Amazon
Everyone TV
Prime (SVoD)
from Pay TV
and Hulu Plus
(SVoD) etc.
Singapore
Malaysia
Australia
Thailand
* Prior to 2016
OTT TV were
only local
service
providers
* Prior to 2016
OTT TV were
only local
service
providers
* Today many
service
providers are
regional players
i.e. HOOQ,
Viki and Spuul
* OTT TV service
developed from
existing FTA
players followed
by Pay TV
* Existing
players
including FTA
and Pay TV
began
developing
own OTT TV
* OTT TV
appeared in
the market in
2014 from
new players
in the techstart-up
group
* From
beginning of
2016 foreign
players began
offering services
* Dominant
players are
YouTube
(AVoD), Toggle
(Free Premium),
Starhub Go
(SVoD), Singtel
TV
* From 2016
foreign players
entered the
market offering
niche content
* Dominant
players are
YouTube
(AVoD), Tonton
(Free Premium)
and Astro on the
Go
* From
beginning of
2015 domestic
traffic grew
more than 50%
* Netflix
received the
highest
popularity in
SVoD type
impacting
competition
with original
players and
internet
service
providers.
* Popular
players are
YouTube,
Netflix, Stan,
Foxtel Play and
Presto
Informal translation provided for members of
P. 34
* Foreign
players
entered in
2015 i.e.
iflix, Netflix,
HOOQ
* OTT TV who
were FTA
players like
Bugaboo (Ch.
7) are not
very popular
* Dominant
players are
YouTube
(AVoD), Line
TV (AVoD)
and
MonoMaxxx
(SVoD)
Popular
methods of
earning
income
United States
of America
* New OTT TV
Players earn
income from
SV0D type
* OTT TV
Players who
come from Pay
TV and
Content
Producers
offer service of
TB Everywhere
(As a Feature)
to retain
existing
customer base
Types of
partnership
with other
players
* Partnering
with telecom
service
provider in
promotions
such as Zero
Rating where
viewers can
view without
losing data
* Partnering
with device
manufacturers
for viewing
purpose like
Netflix with
Apple TV, and
LG in
imbedding
application in
devices
United Kingdom
South Korea
Singapore
Malaysia
Australia
Thailand
*OTT TV players
who come from
FTA such as BBC
and ITV do not
charge end-users
* SVoD is the
most popular
type of income
generation both
from FTA service
providers such
as PooQ and Pay
TV (both IPTV
and Cable TV)
such as Oksusu
of B TV
* OTT TV players
who come from
FTA such as
Toggle of the
Free Premium
type
* Two most
popular OTT TV
are YouTube,
Tonton, they
generate AVoD
type income
* All OTT TV
who are FTA
offer AVoD
type revenue
generation
* OTT TV of
YouTube and
LINE TV get
income from
AVoD
* OTT TV players
who come from
Pay TV offers
the service to
retain existing
customer base
in general Star
Hub Go
offers SVoD
type
* Number 3 is
Astro on the Go
which does not
charge Pay TV
subscribers
* Other types
of OTT TV tend
to be SVoD
type
* New OTT
TV in the
market offers
SVoD type of
income
* Partner with
telecom service
in the country in
sales promotion
activities
* Foreign OTT
TV players
partner with
Telco in the
country
which led to
reducing sales
to MYR
10/month
*OTT TV players
who come from
Pay TV e.g. Sky
and Virgin Media
do it to maintain
existing customer
base
* OTT TV service
provider from
abroad partner
with contents
provider to offer
service in the UK
e.g. Netflix
partner with BBC
to produce the
Watership Down
Series
* Partner with
device
manufacturers in
viewing such as
Youview box
where OTT TV
application of
FTA, Netflix, and
NOW TV are
imbedded
* Dominant
South Korean
OTT TV player
offers telecom
service/Pay TV/
and channel
broadcasting in
the country and
benefits from
the vertical
extension
service of OTT
TV
Informal translation provided for members of
* Partner with
telecom
service in sales
promotion
Activities
* Partner with
Contents
provider e.g.
TV programs
to offer on OTT
TV
P. 35
* OTT TV
from Pay TV
and telecom
operator
generally do it
to retain
existing
customer
base
(As a Feature)
* New OTT
TV service
provider and
foreign
players
partner with
telecom
service
provider in
the country
* New OTT
TV for alliance
with local
content
providers
United States of United Kingdom
South Korea
America
Market condition, competition and impact from OTT TV services
Impact on * Number of
* OTT TV has not * TV viewing
existing
Cable TV users
Impacted
through FTA
Broadcast reduced and led advertising
reduced
er FTA
to 'cord cutting'
revenue through
affecting
and Pay
among
linear TV whose
Advertising
TV
American
advertising
revenue overall
consumers due
revenue has
to rather high
steadily increased * OTT TV
prices of cable
over the past 5
N-Screen is a
TV and diversity
years
Pay TV strategy
of content
to which both
which is offered
* OTT TV has not IPTV and Cable
through the
impacted Pay TV
TV give
rapidly
as can be seen
importance.
expanding
from steadily
OTT TV's
internet
rising number
service enabled
of subscriber
both
* Original
(CAGR 4.4 %)
subscription
television
which could be
and advertising
service
due to the fact
revenue to grow
providers which
that Pay TV also
steadily
include contents offers OTT TV
owners
service to their
channels, and
subscribers
Pay TV who
expanded to
OTT TV like Hulu
Plus of the Sling
TV of Pay TV
etc.
Informal translation provided for members of
Singapore
Malaysia
Australia
Thailand
* OTT TV shows
no impact on
Pay TV in
Singapore. The
Pay TV
subscribers have
not reduced
while ARPU
overall has
risen
* OTT TV is still
new to Malaysia
and no impact
on existing
market players
can be seen at
this point. What
can be seen is
that Astro which
offers AOTG
(OTT TV of
Astro) has
partnered with
its own Pay TV
to attract more
customers
* OTT TV did
not take over
or replace
original
television
service as can
be seen from
number of
subscribers of
Pay TV and
IPTV and FTA
viewers still
growing at the
time OTT TV
is growing fast.
ACMA's
research show
that 59% of
time that
Australians
watched
media, it was
still through
FTA, after
which 25%
watched
through Pay
TV.
* Problems
of
competition
from other
new
technologies,
high cost of
content
production,
low number
of new
initiatives in
revenue
creation, the
bottleneck in
service, rules
and
regulations
leading to
stoppage of
Pay
TV services
P. 36
Impact on
Telecom
Service
Providers
Impact on
Consumers
United States
of America
* The
increased data
traffic had
made US Telco
suppliers
invest more to
expand their
network
capacity to
carry higher
traffic volume
which meant
higher fees
that became
usage based
according to
monthly
quotas instead
of unlimited
usage
* Consumers
have greater
choices both in
terms of
content and
price
United Kingdom
South Korea
Singapore
Malaysia
Australia
Thailand
* Higher traffic
of internet usage
but there is no
confrontation
between ISP and
OTT TV service
providers in the
UK
* Dominant
OTT TV in South
Korea is from
convergence
of suppliers
OTT TV is
converged with
their own
packaged
internet and Pay
TV
* Because OTT
TV is in its early
days, no impact
on Telecom
companies were
found in
Singapore
* Today
cooperation
exist between
OTT TV and
Telecom
supplier for
joint marketing
* Because OTT
TV is in its early
days, no impact
on Telecom
companies were
found in
Malaysia
* Today only
see cooperation
for joint sales
promotion with
telecom
suppliers
* OTT TV in
the latter stage
caused traffic
to rise where
traffic from
December
2014 rose by
54% to
December
2015. ISPs
have to invest
more to
expand
network to
receive
growing data
traffic
* The
number of
viewing hours
on mobile
devices
increased
* Consumers
have greater
choices in terms
of content and
price which
has greater
variety
* Consumers
can watch at
any place any
time
* Consumers
can watch at
any place any
time
* Consumers
can watch at
any place any
time
* Consumers
have greater
choices in terms
of content and
price which
has greater
variety
* Consumers
have greater
choices in terms
of content and
price which has
greater variety
* Consumers
have greater
choices in
terms of
content and
price which
has greater
variety
* TVs are
showing
greater
diversity of
style and
content
and offering
more
ways of
viewing
* Consumers can
watch at any
place any time
* Consumers
have greater
choices both
in terms of
content and price
which are more
diverse and
better reflect
consumer
behavior
* From the
N-screen
strategy,
existing service
suppliers can
offer consumers
ability to watch
video in various
modes and at
any time any
place
Informal translation provided for members of
* Competition
between OTT TV
and telecom
service
providers led to
reduced OTT TV
fees of around
MYR 10/month
* Competition
between OTT
TV and
telecom
service
providers led
to reduced
OTT TV fees of
around AUD
10/month
P. 37
* Viewing is
by streaming
* There is a
need to
watch video
which is
higher quality
and high
resolution
* Ability to
watch on
internet in
real time
United States of
United Kingdom
South Korea
America
Regulatory guidelines, policies to support and promote OTT TV Services
Form and
* Federal
* Office of
* Korean
scope of
Communications
Communication
Communications
regulating Commission
(Ofcom) has the
Commission
OTT TV
(FCC) is the main
authority to
(KCC) and the
body which has
regulate OTT TV
Ministry of
oversight of
under the
Science, ICT and
TV and Telecom
Broadcasting Act
Future Planning
with guidelines
(MSIP) are the
* Regulating OTT from EU
chief authorities
TV is not strict,
directives to
who regulate OTT
emphasizing
regulate content, TV
Ex-post policy
licensing,
and auditing
consumer
* Today OTT TV
specific cases
protection
requires license
and together
from MSIP, while
* In the case of
with Advertising
content and
content OTT TV
Standard
mergers must be
use the same
Authority to
approved by KCC
regulation as
regulate
followed by FTA
advertising
* ISP must
and Pay TV
content
comply with net
neutrality
* Net Neutrality
* Today OTT TV
policy is applied
must request
* KCC also
Ex-post only after permission and
regulates
complaint is
content must not consumer
made
have prohibited
protection
material
* OTT TV
advertising
producer must
follow ASA
directives
Singapore
Malaysia
Australia
Thailand
* Infocom
Media
Development
Authority
(IMDA) has
oversight of
OTT TV
* The following
authorities are
responsible
1) Malaysian
Communications
and Multi Media
Commission
(MCMC)
2) Royal Malaysia
Police
3) Ministry of
Domestic Trade,
Co-operatives
and
Consumerism
(KPDNKK) which
today controls
OTT TV Content
* Australian
Communications and
Media
Authority
(ACMA) has
oversight
of OTT TV
* No direct
control of
OTT TV,
instead it falls
under several
government
departments.
* OTT TV
must receive
licence from
IMDA
* Contents
must follow
Internet Code
of Practise for
services and
Subscription
TV Code for
content
organization
like other TV
content
* ISP must
follow Net
Neutrality
guidelines
* Today there is
no Net Neutrality
policy for ISP
* Control is
quite loose.
ACMA is in
charge of
determining
prohibitive
content and
copyright of
content. The
content must
first receive
approval for
grouping
from ACMA
first
* Today no
Net Neutrality
policy has
been
announced
for ISP
* Today no
Net Neutrality
policy has
been
announced
for ISP
* ISP must follow
Net Neutrality
Informal translation provided for members of
* The
platform of
OTT TV is
regulated
through its
content
especailly
what is
prohibited
from
broadcasting
.
* As OTT TV
operates
under
television
in Thailand, a
TV
broadcasting
license is
required from
NBTC
P. 38
Relevant
Policy
Promotion
and
Support
involved
United States of
America
* The US
government has
no policy to
directly support
OTT TV, but has
no policy to
directly support
OTT TV, but can
support the
service providers
in general
through financial
support for
quality content
for the general
public, education
for accessing
financial sources,
and support
linkages through
start-up using the
Start-up-America
Program
* Policy to
develop internet
network through
the Connecting
America Program
to develop
internet in the
country and to
push towards 5G
network
United
Kingdom
* The EU single
digital market
supports
contents
production in
EU countries.
In 2016
argument was
made that
higher than
20% of OTT TV
platform
should be
contents made
in EU or as EU
co-production.
* EU also
supports
content
copyright for
distribution all
Through
Europe and
Gives
importance to
basic internet
infrastructure
for the roll out
of 5G in
Europe
South Korea
Singapore
Malaysia
Australia
Thailand
* South Korea
built Digital
Broadcasting
Contents
Support Center
as a One-stopService
supporting small
scale contents
producer in the
country
* IMDA has no
budget to
directly support
OTT TV, but
offer general
support
which can
benefit OTT TV
in terms of
technology and
tax reduction
for start-up
and for SMEs
* Malaysian
government has
no budget for
OTT TV, but
offers general
support which
also benefits
OTT TV
* Malaysian
government
supports
content
production with
tax reduction
for Malaysian
companies
and foreign
companies
who produce in
Malaysia. The
Content
Malaysia
Pitching Center
promotes and
Supports
creative content
made in
Malaysia
* Australian
government
supports basic
internet
network
through
National
Broadband
Network (NBN)
* Thai
government
does not have
direct support
for OTT TV
but offers
general
support
* Established a
commission for
Promoting
Digital
Broadcasting to
help the public
in remote areas
of the country
understand
digital media.
* Support
Internet
network at
Gigabit level
* Australian
Government
has no budget
for OTT TV but
offers general
support
through tax
reduction for
start-ups
* A creative
content fund
called
Technology
Innovation for
Globalization
Fund (TIG) can
also help
* Media
content
producer can
access
'Broadcasting
and
Telecommuni
-cations
Research and
Development
Funds
for the Public
Interest'
(BTFP) for
development
of creative
contents and
from the
Fund for
Development
of Safe and
Creative
Contents' for
contents
suitable for
children and
Youth
* OTT TV
service
producer can
obtain tax
reduction for
start-up and
SME
* Help exist for
business startup
* MDE
Ministry is
pushing for
nationwide
broadband
network
Informal translation provided for members of
P. 39
1.4 Summary of Gap Analysis and Policy Recommendations
 Policy on Contents Regulation in OTT TV
The comparative study on regulating OTT TV content can be summarized in 5 key points as follows: 1) to
set types of prohibition and rating for content appropriateness – both in foreign countries and in
Thailand types of prohibition are set out, and /or with levels of rating of content which can be
broadcasted on-line. 2) In case of protection of minor - in foreign countries minors under 18 years
cannot watch R 18 rating, in Thailand rating exist for certain types of media but did not extend to OTT
TV. 3) In setting the proportion of local content quota in the platform - in foreign countries the minimum
proportion is set, but in Thailand there is no minimum for local content in FTA, Pay TV and OTT TV. 4) In
regulating the advertising content on OTT TV platform both in foreign countries and in Thailand there is
the same type of regulation covering advertising on OTT TV as for other television and broadcasting
media. 5) In case of enabling disabled persons to access content on the platform – in some countries it is
regulated that disabled must be able to access the content through use of subtitles instead of sound and
use of sound to tell the story. Thai regulation requires that FTA offer service for the disabled in their
content, but this does not extend to Pay TV or OTT TV.

Policy to regulate OTT TV through licensing
From foreign studies, Singapore, South Korea and the UK regulate OTT TV through licensing, and
requests for license are of different formats. In Thailand OTT TV operators do not require license to
operate.

Regulating OTT TV through the network using Net Neutrality
Studies show that countries like USA, UK, South Korea, and Singapore use Net Neutrality to oversee
internet service providers management of data between OTT TV and data users in a fair and appropriate
manner. This allows end-user to access content and the services freely and in legal way on the internet.
Thailand does not have net neutrality law but has other laws governing ISP.
Informal translation provided for members of
P. 40

Policy to promote OTT TV
Studies show that in countries that offer OTT TV service – whether it is still at a fairly new stage, or of
long standing, no country directly promotes OTT TV. They do have general promotional policies which
also benefits OTT TV such as: 1) Policy to promote good content production in the country which is also
creative. This is done in two ways – offering investment capital to produce the content, or funds to
produce good quality content; setting a center to promote and develop content. In Thailand investment
capital is offered for production of quality content, or funding with emphasis on developing creative and
safe content. 2) Policy to promote expansion of broadband internet infrastructure – every country
including Thailand, is studying or has active policy to support quality internet broadband for the whole
country which is the basic infrastructure for OTT TV service. 3) Policy to promote business startup and
SMEs – all countries in the study including Thailand have support and investment for business startups
and SMEs to support growth of service businesses leading to a wide range of innovative products and
services.
The government support policies have their pros and cons. The plus side is that the support is at the
upstream point sending benefits downstream which is not only for OTT TV and will lead to higher
employment, while content diversity benefits FTA, Pay TV and OTT TV. The public will receive basic
internet in every part of the country. Small companies will be encouraged to grow. The minus side is
that such promotional policies will lay a heavy burden upon the government which has to manage and
find funding sources for such activities.
From the gap analysis mentioned earlier, the Consultant has compiled the format for regulating OTT TV
and prepared recommendations for Thailand to establish rules and regulations for supervision or
promotion of OTT TV. The Consultant has considered about appropriate timing for enforcing such
regulations to match the growth of the OTT TV business as follows:
Informal translation provided for members of
P. 41
Chart 1-8 Policy Recommendations for OTT TV

Policy for support of good and creative local content on OTT TV
This should be enforced at the beginning stage of the OTT TV market to support good, creative and
diversified Thai content which has lower cost because it has government support. OTT TV service
providers will benefit for ease of getting content which will reduce obstacles in market entry at the
beginning stage.

Policy for supervision of OTT TV through licensing
This should be implemented at two levels. 1) At the stage when there is fast growth of OTT TV services,
it is recommended that the service provider register with NBTC for ease of collecting data, and follow up
including learning about market impacts. All these can be done without hindering the activities of OTT
TV at the infancy stage. 2) At the stage when OTT TV becomes competitive and impacts upon other
television service providers, it is suggested that NBTC regulates the industry through licensing to create
a level playing ground for other broadcasters.

Policy for supervision of OTT TV through content
This should be implemented in the period when OTT TV has more players in the market and begin to
compete with contents to attract viewers. At this point it becomes important to supervise contents
through rating which offers viewers a way to choose appropriate content. It is also suggested that NBTC
establish local content quota to promote locally produced content. Addition regulation may be required
to protect minors and youth from inappropriate content and service the disabled people with sound and
subtitles.
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
Policy for supervision of OTT TV through Net Neutrality
This should be regulated through ex-post when there is dispute between ISP, OTT TV, and end-users to
supervise internet service when there is interference by unfairly blocking the signal or reducing the
quality of OTT TV in some cases.

Additional recommendation
To improve efficiency in regulatory supervision of television and broadcasting, it is recommended that
fair competition is encouraged. The Consultant has additional recommendation to NBTC to coordinate
actions with relevant government agencies on the following issues:


The problem of copyright: Copyright is the problem faced by original players in the
market and OTT TV players and they fear its impact on their services. At this point
NBTC has no right to interfere where there are copyright problems.
Supervision of competition to bring revenue from foreign service providers back into
the country. For example, today Thailand is unable to impose tax on companies
who register and operate in Thailand but does not pay tax in Thailand.
With these reasons The Consultant has made recommendations to NBTC to consult with or search for
new ways of cooperating with relevant government agencies like Intellectual Property Department,
Revenue Department, Ministry of Digital Economy and Society etc.
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