Workpoint Entertainment faces Challenges Amid Advertising Slowdown
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Workpoint Entertainment, a prominent digital TV company in Thailand, is navigating a turbulent financial landscape as it adapts to a challenging market habitat. In the third quarter of 2024, the company reported total revenue of 509.7 million baht, marking a 17% decline compared to the same period last year. this drop resulted in a net loss of 17.3 million baht, a significant increase from the previous year’s figures. Over the first nine months of the year, total revenue stood at 1,612.4 million baht, a 13% decrease, while net profit fell by 55% to 41.2 million baht.
Surakarn Sirimote, Chief Financial Officer, and Chalakorn Panyachom, Chief Digital Officer of Workpoint Entertainment, shared insights into the company’s current challenges. “During the fourth quarter, TV advertising spending has adjusted substantially compared to the same period last year,” Sirimote noted.”We anticipate this trend will continue to impact our operations through 2025.”
The decline in TV advertising revenue, a key driver of Workpoint’s income, is attributed to several factors. “The Thai economic situation is slowing down,” Panyachom explained, highlighting the broader economic challenges affecting advertising budgets. “Q4 is traditionally the low season for advertising spending. Compared to Q3, customer spending figures were much lower,” he added.
These factors have led Workpoint to forecast a 5-10% decline in advertising revenue for 2025, projecting sales to reach between 1,100 and 1,150 million baht, down from an expected 1,200 million baht this year. To mitigate the impact, the company is implementing strategic adjustments to sustain growth and compensate for the expected revenue shortfall.
One of the critical steps involves restructuring its drama production division. “We have decided to stop drama production, which will result in the closure of the drama business department,” Sirimote explained. “this move will allow us to lay off employees and save approximately 100-150 million baht annually in expenses.” However, the transition will incur additional costs of around 30-40 million baht in the fourth quarter of 2024, as the company completes the broadcast of its remaining 2.5 dramas in stock.
Despite these changes, Workpoint remains committed to producing content for various clients and continues to operate as a content producer for its Workpoint channel. “Our focus is on adapting to the market while maintaining our core strengths in content creation,” Panyachom emphasized.
As Workpoint Entertainment navigates these challenges, the company’s leadership remains optimistic about its ability to adapt and thrive in a changing media landscape.”We are confident that our strategic adjustments will position us for long-term success,” Sirimote concluded.
For U.S.readers,this story underscores the global nature of economic challenges and the importance of strategic adaptation in the face of market volatility. Companies like Workpoint Entertainment serve as a reminder that innovation and versatility are key to overcoming obstacles and achieving lasting growth.
Workpoint Entertainment Shifts Focus: Drama Production Halted, T-Pop and Events Take Center Stage
In a strategic move to adapt to changing market dynamics, workpoint Entertainment has announced a significant shift in its content production strategy. The company, known for its popular dramas, will cease producing drama content in the coming year, focusing rather on variety programs and live events to maintain and expand its audience base.
By Surakarn Sirimote
“Future plans Next year there will be no drama content on the Workpoint channel. We changed our strategy to focus on producing variety programs. tailor made items Connect with on-ground activities Organizing various events.This allows maintaining the existing customer base and adding new customers.Because customers of various brands want to be close Meet the target consumers”
T-Pop and Artist Development: A New Growth Engine
workpoint Entertainment is also doubling down on its T-Pop (Thai Pop) initiatives, strengthening its artist management business under the XOXO ENTERTAINMENT label. Currently, the agency has 24 trainees in its roster, with plans to develop them into solo artists and groups, including boy bands and girl groups. The company is also collaborating with other labels, such as Ble Pathumrat, to establish Double Point 98 Company Limited, aimed at nurturing independent artists and expanding their market reach.
In addition to artist development, Workpoint is adjusting its concert strategy. Recognizing the competitive nature of the market, the company will reduce the number of international concerts it organizes, focusing instead on T-Pop concerts featuring its own artists. This shift aims to capitalize on the growing popularity of Thai pop music while minimizing risks associated with a saturated market.
By Chalakorn Panyachom
Despite these changes, Workpoint remains committed to its event organizing capabilities, both for its own productions and for hire. the company has reported a significant increase in profitability, with event-related profits now ranging from 20% to 25%, up from the previous 10% to 20%. This improvement is attributed to a more focused and efficient approach to event planning and execution.
Looking ahead, Workpoint Entertainment plans to organize approximately 50 events in 2025, further solidifying its position as a key player in Thailand’s entertainment industry. By diversifying its offerings and adapting to market trends, the company aims to continue its growth trajectory and maintain its relevance in an ever-evolving entertainment landscape.
Conclusion: A Strategic Shift for Sustainable Growth
Workpoint Entertainment’s decision to pivot away from drama production and toward variety programs, T-Pop initiatives, and event organizing reflects a strategic move to stay competitive in a rapidly changing industry. By focusing on areas with higher profitability and growth potential, the company is positioning itself for long-term success and continued engagement with its audience.
Thai Media Company Unveils Ambitious growth Strategy for 2025
A leading Thai media company has outlined an ambitious plan to expand its operations and diversify its revenue streams over the next few years. The strategy, which includes producing multiple films annually, partnering with global streaming platforms, and creating tailored content for clients, aims to drive significant growth by 2025.
Expanding Film Production and content Creation
The company plans to release two to three films per year,with the first project,”Jungka,” set to have an initial budget of 100-120 million baht. This move reflects the company’s commitment to high-quality storytelling and its ambition to establish a strong presence in the film industry.
In addition to film production, the company is focusing on creating customized content for clients. Currently, two programs are in development: “Genwit,” a talent-focused initiative for Bangchak Corporation, and “The MIX Master,” a collaboration with Nescafe. These projects highlight the company’s ability to tailor content to meet specific client needs.
Collaborating with Global Streaming Platforms
To reach a broader audience, the company is partnering with online video platforms, including Netflix. Two new programs, “Oh La Noh, I Love Muang Thai” and “The MARK Soulmate,” are set to premiere on the streaming giant. These collaborations underscore the company’s efforts to leverage global platforms to distribute its content.
Expanding Online Content and Product Development
The company is also investing in online content creation, collaborating with brands like “Very cool” and “Ble Pathumrat.” Additionally, it is indeed exploring partnerships to utilize TV broadcast time for product development. Currently, two products are in the pipeline: HELLO BOY nectar and Astasia dietary supplements, both targeting the dietary supplement and food markets.
“These are strategies for moving the business over the next 2-3 years, but from the above plan, it will result in revenue in 2025 of 2,500 million baht and a profit of 2-3% as there is still investment in training. 24 artists next year, etc.”
The company’s CEO emphasized that while the focus is on growth,investments in talent development,such as training 24 new artists in 2024,will remain a priority. This approach ensures that the company not only scales its operations but also nurtures the creative talent needed to sustain long-term success.
A Vision for the Future
With a clear roadmap in place, the company is poised to achieve its goal of generating 2,500 million baht in revenue by 2025. By diversifying its offerings and leveraging strategic partnerships, the company is setting the stage for a new era of growth and innovation in the Thai media landscape.
Proofreading by Suree Silawong
The Film Production Portfolio
The company plans to increase its film production output, aiming to produce at least three to four films annually.This expansion is designed to capitalize on the growing demand for high-quality Thai films both domestically and internationally. By diversifying its film genres and collaborating with renowned directors and actors, the company seeks to attract a broader audience and enhance its market presence.
Strategic Partnerships with Global Streaming Platforms
To further extend its reach,the company is actively pursuing partnerships with global streaming platforms. These collaborations will enable the distribution of its content to a worldwide audience, thereby increasing revenue and brand visibility.The company is also exploring co-production opportunities with international studios,which will not only enhance its content quality but also provide access to new markets and audiences.
Tailored Content for Clients
Recognizing the importance of customized content in today’s media landscape, the company is focusing on creating tailored content for various clients. This includes branded content, corporate videos, and promotional materials that align with the specific needs and preferences of its clients. By offering a thorough suite of content creation services, the company aims to strengthen its client relationships and drive recurring revenue.
Event Organizing and Live Experiences
In addition to its content production efforts, the company is enhancing its event organizing capabilities. With a focus on live experiences, the company plans to host a variety of events, including concerts, festivals, and corporate gatherings. These events will not only generate direct revenue but also provide opportunities for brand activation and audience engagement.
Conclusion: A Comprehensive Growth Strategy
The company’s ambitious growth strategy for 2025 underscores its commitment to innovation and diversification. By expanding its film production portfolio, forming strategic partnerships, creating tailored content, and enhancing its event organizing capabilities, the company is positioning itself for sustained growth and success in the competitive media industry. This comprehensive approach ensures that the company remains adaptable and responsive to changing market dynamics, ultimately driving long-term value for its stakeholders.
