FOCUS ON DIGITAL REVENUE STREAMS
Group has initiated strategic ‘business-toconsumers’ initiatives and is set to benefit from REV Asia Holdings acquisition
MEDIA Prima Bhd, Malaysia’s leading fully-integrated media group, seeks to grow its digital and non-traditional revenue streams through strategic business initiatives launched last year and early this year.
Group chairman Datuk Seri FD Iskandar said it had initiated key initiatives last year to enable new revenue streams while consolidating its market share in the core advertising revenue.
“The group had in 2016 launched a number of key ventures that are ‘business-to-consumers’ in nature, such as our home shopping platform, CJ Wow Shop, revamped online video streaming subscription service, tonton, mobile gaming and digital lifestyle applications for mobile users.
“Recently, the group also announced the acquisition of REV Asia Holdings Sdn Bhd which significantly strengthens Media Prima’s digital reach to derive revenue from the growth in digital advertising,” he said in a statement.
Group managing director Datuk Seri Amrin Awaluddin said while it recognised the tough operating environment’s impact on its performance, Media Prima will evolve from a traditional media group to one that is digital first with diversified revenue streams via a transformation initiative that is already underway.
Media Prima plans to derive additional revenue streams by expanding its market base into regional markets via the group’s television, content production and out-ofhome businesses, he added.
“Though we are continuously reviewing our businesses, the group will forge ahead with transformation efforts to remain relevant and defend its leadership position.
“We will continue to improve cost efficiencies and make prudent investments in areas that would provide us with a competitive advantage,” he said.
While Media Prima has ventured into new digital and consumer based initiatives to complement its traditional media segments, these initiatives remain in gestation period.
Amrin said the traditional media industry today was facing declining advertising expenditure (adex) following the tough macroeconomic conditions, increased competition, technology disruptions and changes in consumer behaviour.
“The expected outlook for 2017 was equally challenging. Nonetheless, we are cautiously optimistic on the potential of our new business initiatives even though they remain in gestation period,” he said.
The group had anticipated a prolonged period of market stagnation, with a flat or lower advertising revenue recorded by its media platforms with the exception of its out-of-home and digital platforms.
“Factors such as customer fragmentation, technological advancements, a shift in traditional advertising to digital media advertising and increased competition from new entrants and global media players continued to pose challenges to the group during the first quarter of this year.”
Media Prima recorded revenue of RM272.2 million and net loss of RM41.4 million for the first quarter ended March 31 2017.
The group saw a 10 per cent revenue reduction from the corresponding quarter a year ago due to the lower advertising and newspaper sales as traditional media platforms face ongoing challenges of subdued adex and shift to digital media.
Datuk Seri FD Iskandar