Media merger: good or bad?

skyfoo SG

http://sg.news.yahoo.com/040918/5/singapore107099.html

SINGAPORE : Singapore's media industry is undergoing a major shake up.
The island's largest broadcaster MediaCorp and main-board listed Singapore Press Holdings will merge their mass-market television and free newspaper operations in what the two media giants called a 'rationalisation move' to stem losses and improve shareholder value.

On Friday afternoon, top management from the two media giants signed agreements for SPH to buy a 20 percent stake in a new television company to be called MediaCorp TV Holdings.

MediaCorp will manage this new company and own the remaining 80 percent.

MediaCorp TV Holdings will have a net asset value of S$50m.

SPH will also buy a 40 percent stake in MediaCorp Press, which publishes TODAY.

TODAY will continue to be managed by MediaCorp - and will operate independently of the stable of newspapers under SPH.

The deals were struck on a "willing buyer, willing seller" basis and should receive formal regulatory approval by year's end.

Since Singapore's media liberalisation in May 2000, both SPH and MediaCorp have incurred losses - after their respective forays into each other's businesses proved unprofitable.

SPH will pay S$10 million for their 20 percent stake in the new TV company MediaCorp TV Holdings.

The new company will comprise MediaCorp's Channels 5 and 8 and TV Mobile - as well as SPH MediaWorks' Channel U and I.

The new television company will also include MediaCorp Studios - which produces the bulk of MediaCorp's local programming.

Channel U will continue to operate but Channel I's commercial viability has to be reviewed.

On the newspaper side, MediaCorp will sell a 40 percent stake in MediaCorp Press, which publishes TODAY, to rival SPH for more than S$19 million.

Once the deal is completed, SPH will merge its own free newspaper Streats with TODAY.

TODAY will continue to be managed by MediaCorp, and will operate independently of the stable of newspapers under SPH.

The rest of MediaCorp's businesses, which are largely profitable are unaffected by this merger.

Besides Channel NewsAsia, these include radio and the other television businesses of Suria and Central as well as its film production arm MediaCorp Raintree Pictures.

The mergers will affect staff on both sides.

A staff rationalisation exercise will be overseen by a Manpower Synergy Task Force.

It will comprise an independent director from MediaCorp's board and senior HR managers from the two media companies.

Alan Chan, the chief executive of SPH, said the merger will bring rationality back into the TV and free newspaper markets and should ultimately lead both businesses to flourish.

He said the merger is also a win-win solution for both parties - with SPH maintaining its presence in the TV platform and having a stake in the only free newspaper in Singapore (TODAY).

He added that when SPH ventured into the TV business in 2000, the outlook and potential seemed positive then.

However, a slackening economy, intense competition and a shrinking advertising market, led to losses for both groups.

The merger has put a spotlight on what's to come for advertisers.

Concerns have been raised as to how much advertising rates will go up.

On this, Mr Chan said: "We can only charge what the market can bear. But having said that, because of the steep discounting that has been going on during these four years of competition, actually the rates have gone below the pre-competition era. And so I think there is great impetus for the new companies to survive, and we have to adjust the rates to a level where the losses are gone."

On its part, MediaCorp assures advertisers that the rates won't be increased drastically. - CNA

Media release by MediaCorp .

sbst275 SG

Good that taxpayers money is not wasted

But then there may just be teething prob after the merger

robertteh SG

Based on experiences in US, one radio station served 60,000 people in the beginning but over time it served smaller and smaller grouping of 30,000 per station.

The same thing is happening to newspaper. So I don't see how Singapore's TV and newspapers are proceeding against such historic trend. Competitiveness is a different story altogether as in US, newspapers or radios have to close if they are not competitive.

Our governing authority appears to support competitivenss, but did not quite understand specifics like objective and relevance needs of people served by media. Laughing

paperchicken SG

Will Zhou Huiming be retrenched ? Confused

Qitai SG

Don't like it. The more the merrier. They losing $$ not my problem. More channel, more choice. But actually hor, both also so sian one. Don't have any interesting channel one. Best solution is to open up the restriction on satellite ownership lah, then really see a lot of things liao Mr. Green

sbst275 SG

TV News crew fate is still unkown... 50:50 to SPH/ MCS

runningismylife SG

eh robertteh..

u whole day USA this, USA that.

like it so much den take plane there larh.

reyes SG

i think they are throwing in the towel too early too soon.
doesnt concern us viewers anyway, channel U local program are boring. but i love their HK drama series.
channel 8 HK drama series are boring but their documentary prgrams are good.
let hope after they merge they can produce better quality program and eliminate those not performing artiste.

to me? merge or no merge, its just between mediacorps and mediaworks.

Qitai SG

Some script writer also must go I think. Always feel the script damn stupid one. And also can always see government agenda in the script also. See already also sian. Got something more interesting or not. Don't even bother watch TV mostly now. I see first episode and last episode can guess what happen in between liao.

robertteh SG

Don't worry about my opinions. What is important is relevance and facts. There many statistics or facts from US sources posted by forumites, newspapers and media so It can't be helped if I am influenced.

But I am not biased by US sources and am equally at home in posting in mandarin being chinese educated. I am not a US worshipper despite my posting on democracy as it happened that I love democracy.

In posting opinions here, you are welcome to join in the argument at the relevant point. Do not harbour a certain dislikes about what others have posted after the topic is over, Hahaha Rolling Eyes

robertteh SG

In Ohio, Columbus, TV station generally provides many channels (as many as 30) without complaints about running up costs.

There is specialized shows and programs for everyone from pre-schoolers to doctors and lawyers.

How do these stations achieve diversities and vibrancy without making prematurely quick judgment like "Station is serving lesser people or getting smaller base to sustain more media players"

Something is wrong somewhere? Cost problems should be tackled in multi-pronged manner instead of just blaming on size of market. May be problems with media is not understood as media tends to de-massify over time getting smaller viewers or readers while serving more and more sophisticated and educated populations.

If solutions to promote diversities, are not well planned and executed, the present merger would be a laughing stock about our ability to set policies and promote competition, diversities or getting media to serve people's needs and aspirations. Rolling Eyes

Qitai SG

Korea TV most special. There is one channel dedicated to just PC games like warcraft and starcraft. You switch on TV like watching a friend playing the game in front of you, with comments, just like football or any other sport.

There is another channel on Budak which is really just wei qi or GO is Japanese. Same thing, rounds after rounds of Wei Qi match with comments as they play.

Very very special over there.

kuekj SG

crossed over from another forum, but i think i like to put a few words to this topic:

since the channel u and (if unscrapped, channel i) are going to be under this new umbrella of tv stations comprising of 5,8, u,why not like practice some form of tolerance between the stations?

as in, going back to the ancient eras of tv like 1996.. well back then channel 5 artistes rarely crossed over to channel 8, and vice versa. but this has not been the way it is nowadays.

given channel u (strengths in variety shows and local productions) nowadays, hopefully channel 5 and 8 artistes won't interfere with channel u stuff. if want to work in channel u, devote more time there. same for other two channels. my idea is that for game shows like for example charity russian roulette on channel 8, kym and bryan for example can participate, but they can still spend more time with channel u.

as a channel u supporter and tv viewer, i do not wish channel u to end up in the shoes of sportscity/city tv. sportscity used to be a channel PURELY devoted for sports, then mediacorp took it and changed it into city tv which is half a chinese station mixed with sports. this didn't work out, and city tv closed after a few months of their toying.

perhaps, mr man shu sum can be overall producer for channel u. best still, he goes back to his old turf and controls channel 8 and channel u. he's one of the best bosses around.

also, I wonder why media companies in singapore only bother about their artistes. I notice at taiwan, where the population is just a few ten times of us, there's a real bundle of tv stations, yet artistes from a particular tv station can participate in a gameshow/tv series/drama at another tv station. why must tv stations in singapore be so small-eyed? the media merger is no doubt a consequence of the small-eye, in my opinion..

kuekj SG

Addition to my comments:

Even though Mediacorp holds on to 80% of the shares in the new holdings, this new company shouldn't be named as MediaCorp TV Productions Pte Ltd. It should be a name independent of MediaCorp and SPH. To have the "U~U~U" trailer followed by the "MediaCorp" black screen can be quite awkward especially when a lot of us are familiarised by the "3 drum roll+1 blue splat" MediaWorks trailer.

chunyong SG

hmmmm…..isn’t its time to jump onto the cable wagon ? i have lost hope in local shows…pawnshop #8 is all i watch now….channel 55 is much much better than channel 8.