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Risk Factors
Operating business based on risk management policy, the Company manages, monitors and controls risks at the acceptable level under supervision of Risk Management Committee regularly reporting to the Board. Risk factors for the Company include:
1. Risk from competition in digital TV business
During the past 1-3 years, digital TV business has become part of TV industry. This has led to severe competition in advertisement rate, advertisement agency, and product and service providers to make their decisions to purchase advertising media by concerning about the popularity of the channel, the attractiveness of the contents, or the timing for broadcasting. Existing players strive to maintain the popularity of their channels whereas new players have to try every strategy to capture viewers’ attention. To achieve this purpose, the Company has to invest quite a large amount of capital to be able to compete in providing and producing contents as well as to extend its marketing channel to other sectors.
MONO29 has set a clear concept and strategy from the beginning to present entertainment contents including movies, series, and quality programs to the public constantly. Consequently, the channel has been able to elevate its rating popularity. In 2016, MONO29 channel proudly moved to the fourth for the rating of the most popular TV channel among viewers nationwide. Today the channel has become a major content provider in TV business and, therefore, has a potential to negotiate on purchasing of contents and increasing advertisement rate. In addition, with concern over the internal operation, the Company analyzes the program schedule and manages the utility of contents effectively in order to reduce cost as well as business risk.
2. Risk from changes of technology which effect customer behaviors
Nowadays, technology has constantly developed. The increase in number of mobile phone users, hi-speed internet, and the entering of social media contribute to the change of customer behaviors as they can access contents easily. Therefore, all businesses under Mono Group need to improve to conform with customer demands today, especially the system development that enable to respond with modern platforms. Mobile business has changed from SMS service to video premium contents which satisfy customers and also developed more game applications. TV business has increased more viewing channels through website and application to respond to customers of all genders and ages regardless of time. Radio business enables listeners to listen online while seeing and talking with DJs. Publishing business presents contents in electronic forms both E-Book and E-Magazine as well as searches for potential writers through various social media. The fact that Mono Group has developed its business from mobile internet business enables the Company to adjust its business to digital platform easily by connecting different platforms and integrating each business unit. In addition, the Company continuously determines to develop its content to satisfy customers of all targets.
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