THAILAND: MCOT strikes deal with four giants

New FM 107 aims for younger crowd

MCOT Plc yesterday signed an agreement with four major music labels, aiming to increase the popularity of its relaunched Met FM 107 radio station. President Mingkwan Sangsuwan said the company had come to an agreement with EMI Records, Sony BMG Entertainment, Universal, and Warner Music Group to operate the music station around the clock.

"Today's event is phenomenal, since it's very hard to bring all the big music [players] together in one place," Mr Mingkwan said.

The agreement coincided with the demise at midnight on Tuesday of Metropolis 107, which had played pop and rock hits from the 1960s, 1970s and 1980s. It also carried news from the BBC, Radio Australia and Voice of America.

The format and its personable English-speaking disc jockeys were popular with expats and over-40 listeners but advertising revenue was poor. Still, its passing was lamented in local online chatrooms such as Thaivisa.com.

The new Met 107 format offers more contemporary pop, hip-hop and other music aimed at a younger audience. Mr Mingkwan said the agreement with the four major labels would spur growing demand for international music among Thai listeners. "These [music companies] hold a total market share of 81.7% of the world's music industry," he added.

Strengthening its radio channel is one of the state-owned broadcaster's plans to increase revenue this year to four billion baht. Its flagship property is television Channel 9 and it also operates the Thai News Agency.

MCOT posted a first-half net profit of 710 million baht, up 30% year-on-year. First-half revenue rose 22% to 2.08 billion baht, with TV revenue up 21% to 1.3 billion and radio revenue rising 53% to 385 million. Under the partnerships, Mr Mingkwan said the four music labels would also co-ordinate with MCOT to provide chart listings, music videos, concert tickets, and memorabilia for promotional purposes.

EMI Records is the third-largest record company in the world, having been home to artists such as The Beatles, Coldplay and Norah Jones. Sony BMG is famous for artists such as Oasis, Britney Spears, Ricky Martin and Tata Young. Warner Music is home to Madonna, Linkin Park, Missy Elliott and Green Day. Universal Music's big names include U2, 50 Cent, and Black Eyed Peas.

Shares of MCOT closed yesterday on the Stock Exchange of Thailand at 38.75 baht, down 25 satang, in trade worth 42.22 million baht.

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