THAILAND Trends and Developments Contributed by: Nuchaya Timrat, Naris Asavathongkul and Piyachai Wijitvongtong, Baker McKenzie
historic investment might add USD4 billion to Thailand’s GDP by 2029. While the investment in the data centre sphere in Thailand, at this stage, may only be greenfield developments and investments by major opera- tors, we believe that, with the recent emerging demand, there will be an increase in interest from other institutional investors – eg, private equity, to acquire or invest in data centre projects in Thailand. We also expect to see certain smaller operators teaming up with some financial inves- tors, through joint ventures, to invest in data centre projects. Entertainment Industry Evolutionised by Digital Streaming Technology As digital streaming continues to alter and transform the entertainment industry, important industry leaders and other investors are pay- ing closer attention to merger and acquisition options. As a result, we anticipate an increase in M&A activity in this industry over the next few years. Prior to the digital age, entertainment organisa- tions, such as music labels and film corporations, relied heavily on physical distribution methods to sell their massive catalogue of movies and music, including tapes and CDs. Streaming services have changed the entertainment and media industries, and consumption is now pri- marily digital. Consumers can now enjoy handy entertainment options at a fair cost by paying set fees to access online content libraries or using free ad-supported versions. Digital distribution enables owners of content, such as music, mov- ies, and TV shows, to produce a steady stream of revenue by distributing them via multiple digi- tal streaming platforms, and this business model has proven to be extremely profitable.
As a result, the entertainment industry has reached a point where those who control the most entertainment content will have greater potential to make big revenue and profit. Key market players and investors, including digital streaming service providers; digital music and movie, distributors; large entertainment corpora- tions; and some investment funds, are compet- ing for more music, film, and content libraries because of their ability to generate recurring revenue through digital streaming, leading to an exciting moment for M&A transactions in the entertainment and digital streaming sectors, with players making strategic purchases to grow their libraries and stay ahead of the competition. This tendency is projected to continue, both globally and in Thailand. This trend is also reflected in the Thai mar- ket, with an increasing number of transactions occurring in the entertainment sector. During 2023–2024, one of Thailand’s top music labels, RS Group, divested its music catalogue to Uni- versal Music Group in a groundbreaking transac- tion in Thailand’s music industry. The RS music archive is Thailand’s second largest, with over 10,000 master recordings and 6,000 copyright ownerships, publication rights, and licences dat- ing back as early as 1981. It is anticipated that the M&A in the Thai media and entertainment market will continue to stay attractive to mul- tinational entertainment companies and private equity funds. Platforms Ecosystem Expansion Companies engage in strategic M&As as digital platforms and e-commerce grow stronger, rang- ing from same-sector acquisitions to diversifica- tion into new business lines. The recent acquisition of FoodStory, a point- of-sale (POS) start-up, by LINE MAN Wongnai,
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