MESSSAGE FROM CHAIRMAN AND CO-CHIEF EXCUTIVE OFFICERS
Dear Shareholders,
In 2010, the Company adjusted and developed its music business so that revenue streams primarily came from three business lines: digital music, artist management, and show business. This was accomplished by reducing the production capacity of physical products, and ramping up sales of digital music to better match the lifestyles of consumer behavior that has shifted in tandem with modern technological innovations. The Company believes that making these changes will support and strengthen Grammy’s content so that it can be more readily deployed in a wider range of revenue generating channels.
Besides changes in the music business, the Company continues to focus on key business lines under its new strategic model which emphasizes being an “Entertainment and Multimedia Business”. The three areas expected to be outstanding in the future are digital music, satellite television, and artist management. Over the past year, digital music business revenues rose to a satisfactory level, with the greatest growth due to monthly subscription services and income from every mobile telephone operator. The satellite business line operated a total of six channels in 2010: Fan TV, Bang Channel, Green Channel, Acts Channel, Money Channel, and Saranair Channel. The last is a new channel that aired its pilot program in October 2010. The variety shows are produced by a company jointly-owned with Lucks 666 Company Limited.
The “Neo Artist Management” business line focuses on locating and developing artists. The emphasis rests solely on grooming every artist so they can work in any field in the entertainment business. Thus, these artists are trained to sing, dance, act, and develop their emotional quotient to endure the pressures of the industry. The Company is confident that this new business model and investment in individual artists will yield better returns than the old business model.
The Company’s fundamentals in other areas showed satisfactory growth even though Thailand continued to face political and economic problems.
Producing programs for free television channels continued to expand, particularly in primetime dramas, sit-coms, and reality shows such as The Star 6. These popular programs are not only widely acclaimed, but they are also means of developing new artists, especially through variety shows and dramas targeting teenaged viewers, which are genres that Grammy excels in, and remains a leader. The radio business line’s revenues rose from expanding through organizing show business performances activities through radio programs, and providing various tourism related services. The response from the audience continues to be positive. The publishing business line has increasingly shifted over to new media. For instance, Maxim is published in an e-gazine. Content from this business line will also be increasingly applied to satellite business, as well as selling content through new electronic gadgets such as the iPad.
The movie business line produced a total of three films, of which “Kuen Muen Ho” (‘Hello Stranger’) brought in Baht 126.3 million, making it the highest box office revenue making Thai film screened in 2010.
In short, the Company is revolutionizing its business structure to be able to more comprehensively capture new business opportunities, making this period a critical juncture in terms of planning its long-term growth strategy. Besides strengthening its framework, the Company is a leader in producing a complete array of content. Because Grammy believes that quality content can be employed in many ways over a longer period of time, the material can be managed to adapt to different media and equipment to conveniently match consumers’ lifestyles as much as possible. Moreover, the Company will continue to create media platforms that matches every period, from new media or segmented media, supported by mass media which a field that Grammy is a comprehensive leader.
Nonetheless, Grammy’s duties cannot be accomplished without the support of shareholders, members of the management team, business allies, financial institutions, relevant public sector agencies, public relations and advertising agencies, and every customer, as well as the Group’s employees who have wholeheartedly cooperated in surmounting many obstacles.
Above all, the GMM Grammy Group continues to uphold its intention to conduct its business on the basis of ethical and good corporate governance principles, and demonstrating corporate social responsibility (CSR) until it is embedded in the corporate culture. This will be achieved by integrating the organization’s vision, duties, strategies, and goals, to inspire confidence in shareholders, investors, and every stakeholder, and lead the Company to greater business success. At the same time, the Company will continue its unceasing support and development of education, sports, communities, society, and the environment.
On behalf of the Board of Directors, I would like to thank everyone, in hopes that the Company will continue to grow and advance sustainably to yield good long-term returns to every shareholder in terms of the shares’ long-term price increase and satisfactory annual dividends to reciprocate your trust in us over the years.
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| Mr. Paiboon Damrongchaitham Chairman |
Ms. Boosaba Daorueng Co-Chief Executive Officer |
Mrs.Saithip Montrikul na Audhaya Co-Chief Executive Officer |