media prima final
TRANSCRIPT
MEDIA PRIMAStrategic Analysis
1 Kamini RAJENDRAN 0072082 Khaliza KHALID 0072143 LAI Tuck Keong 0087584 LIM Kheng Soon 0058365 Linda CHUA Ling Nah 0072376 Yoon Thean WONG 008416
Agenda
1 Company Profile2 Strategic position and analysis External
1) External Analysis 2) Porterrsquos 5 Forces
Internal 3) Value Chain4) Diversification Map5) Social Responsibility Analysis6) Financial Analysis
SWOT 3 Strategic recommendation4 References
Company Profile
1 Media Prima Berhad an integrated media investment group competes amongst the media conglomerate of Malaysia It is the only integrated media player in Malaysia
2 Its core business is in CONTENT distribution aggregation ndash generating revenue via selling advertising space although it is moving towards content creation
Source httpwwwmediaprimacommy HBS ndash Article
Media Primarsquos Commitment amp Direction moving forward
ldquoContent and integration of platforms are our drivers of growthhellip our content needs to be platform-agnostic engaging relevant
ldquohellipour ability to direct their (Advertiserrsquos) advertising to precise target groups across hellip fully-integrated range of media is the key to our successrdquo
Datorsquo Amrin Group Managing Director of Media Prima Berhad (2011)
Source httpwwwmediaprimacommypressreleasepressreleaseaspxid=150
Media Industry Business Model ndash Content Driven
Business Model Mediarsquos revenue is driven by
1 Source httpwwwmediaprimacommy2 HBS ndash Article
Hence our task is to help Media Prima continue to attract consumer (viewer) amp
to increase customerrsquos (advertiser) dependence on Media Primarsquos content
Consumers Attracting viewers to content
Customers a) Revenue from Advertisers ie Sponsorship and placing advertising in
channels of relevant content which their target audience watches
b) Revenue from Subscribers of Content ie Online TV (TontonTV) Newspapers Digital Content
Our Tasks ndash How - continue to attract consumer (viewer) amp - to increase customerrsquos (advertiser) dependence on Media
Primarsquos content
The solutions lie within the understanding of
bull the environment around the organization
bull its competitive landscape
bull the organizationrsquos internal capabilities and
bull strategies it has embarked upon
PEST Analysis
Politics Legal Issues amp Impact
Source 1 httpenwikipediaorgwikiDigital_television_in_Malaysiacite_note-102 bizthestarcommynewsstoryaspfile=20111126business99740173 httpwwwconsumerorgmyindexphpdevelopmentprivate-sector479-astros-monopoly-has-short-changed-malaysian-tv-viewers
Change from Analogue TV to Digital TV by 2015bull Analogue TV broadcasts would be shut down in stages and due
to complete by 2015 as per recommendation from ASEAN bull Digital will open is in evitable
Deregulation of content bull But the regulator of the industry has yet to come up with details
on how it will go about disbanding the monopoly on content
Would do away with monopoly in the pay-TV broadcasting sectorbull With the introduction of newer IPTV services bull And Astrorsquos exclusive Pay TV license will end by 2017
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 (F)
-5
0
5
10
15
20
25
16
23
2
910
17
3 4
1513
7
1614
68
1
45
75
6 65
-2
726
ADEX Growth GDP Growth
Slowing down of GDP
Economic Issues and Impact
Source httpwwwtheedgemalaysiacomin-the-financial-daily196495-slower-tv-adex-points-to-quiet-adspend-for-the-rest-of-2011html
bull Ad Ex (Advertising Expenditure) fluctuates with GDP And as Media Primarsquos main source of revenue is from Ad Ex it will be affected by the projected slow down of the 2012 economy as multinational advertisers become more cautious
bull Organization for Economic Cooperation and Development projected a 03 growth in 2012 instead of the 2 forecast
bull Malaysian perspective GDP growth of 51 (Nomura)
51 2012
Social Issues and ImpactOnline creeps in time spent increases and trust levels bull More time spent on Online gt TV and consumer are referring to
online to make purchase decision hence cross platform presence is needed to reach consumer (Malaysian Digital Consumer Report 2011)
Reading Magazine
Reading Newspapers
Video on Mobile Phone
Radio Stream via Internet
Internet via Mobile Phone
Online Games on PC
Listening to Radio
Watching TV
Internet
0 5 10 15 20 25
3434751535658
106198
Average Weekly Hours Spent on different media
Online activities beyond Watching TV
Source 1 QuickPlay Media 2 httpwwwgartnercomtechnologyhomejsp
httpwwwthemalaysianreservecommainindexphpoption=com_contentampview=articleampid=899move-over-tv-the-net-is-where-the-action-isampcatid=36corporate-malaysiaampItemid=120
Online activities beyond Newspapers and Magazines
76 of consumers indicate that they watch more TV on tablet than before a shift in media consumption behavior
Social Issues and Impact
Source Kinetic Insights on People on the Move Moving World Asia (2011)
Consumers are On The Move Disconnect from traditional Channels bull 107 Hr Weekday -gt Highest in ASIAbull Requires mobile channel to deliver and keep up with consumers bull Moving from radio -gt mobile phones -gt tablets
Outdoor
On Mobile
BUT
Broadband Penetration
Mobile Penetration
Technology Issues and Impact
Household broadband penetration at 615 and will grow to 75 by 2015
75 107
Source httpwwwthemalaysianreservecommainindexphpoption=com_contentampview=articleampid=899move-over-tv-the-net-is-where-the-action-isampcatid=36corporate-malaysiaampItemid=120
Malaysia a Digital Nation Netizens (constant access to internet) make up 40 of the
total population of 27 million Tablet PC usage and ownership netizen are expected to
increase from 18 to 75 in 2012
In short
1 Legislative deregulation spurs the attractiveness of the
market
2 Economic impose pressures for 2012
3 Social shifts leads the way to new media
4 Technology is the catalytic enable of Media organization
shift into New Media
Porterrsquos 5 Forces Analysis
Astro is the only direct challenger as it is the closest to an integrated media organisation
Power of Substitutes 1 Technology and Sharing of
screen ndash Moving away from TV to mobile content and social media decreases the share of attention
2 Self Generated content by Netizens ndash User Generated Content - youtube
Power of Suppliers 1 Content is king and that is what
drives viewership ndash and not the media organisation that aggregates it
2 Content lead experience is dependent on technological development
Threat of New Entrants 1 Introduction of new IPTV which
offers variety of channelsDETV and ABN
2 New entrants have infrastructure backing hence offering product bundling of triple play ie Unifi YTL Comms
Power of Consumers 1 Consumer Moving away from
Print TV and Radio - they are the ones that drive demand
2 Advertiser have a hard time reaching the fragmented audience (beyond traditional media)
Porterrsquos Five Forces ndash Competitive Analysis
Customers are dependant on content (Media Prima) to reach consumers
Competitive Rivalry
Source bizthestarcommynewsstoryaspfile=20111126business9974017
Nevertheless Media Prima is still in control as it complements their services by offering them content
But its audiences are fragmented across 150 channels versus ours which focus 4 stations
Content creators and aggregators need to mirror consumerrsquos media consumption trends
Can be mitigated by internalizing content development but Media Prima needs to keep its content up to date with technology development
Financials
Media Prima Financial Highlights
1327millionProfit After Tax and Minority Interest (ldquoPATAMIrdquo)September 2011 (9 Months)
in the corresponding period for 20101105 million
A healthy GROWTH
Source Media Prima Annual Report 2011
However in further analysisHowever the bulk of its revenue comes from advertising that is in turn dependent on the economic outlook the question arises as to whether Media Prima should diversify its income stream Especially when gt80 of Astrorsquos revenue is on subscription
Reduce Media Primarsquos dependence on advertising revenueas it highly fluctuates with the market conditions
Group
2010 2009
RMrsquo000 RMrsquo000
Advertising revenue 1237961 80 725857 98 Circulation revenue 290691 19 0 Sale of programmes videos cable and laser rights and media revenue 15408 1 11287 2 Fees from provision of production services and sponsorship 2583 0 6885 1 Fees from provision of procurement services Dividends from subsidiaries Dividends from an associate 1546643 100 744029 100
Source Media Prima Annual Report 2011
Value Chain Analysis
Resource Based View
The resource-based view is grounded in the perspective that a firm is a collection of unique resources and capabilities that provides the basis for its strategies and the primary source of its return
SupportActivities
Primary Activities
Strategy Development 4
Resource Identification 1Capabilities Determination 2Competitive advantage 3
Resource Gap Analysis 5
Source Porter Value Chain Robert M Grant
Process of CONTENT aggregation Process of CONTENT creation
In the context of the Content industry value chainMapped against Porterrsquos Value chain
Createbull Scriptwritersbull Actorsbull Animatorsbull Gamesbull developer
Publishbull Production housesbull TV Advert Film
Packagebull Media Primabull Astrobull RTMbull Maxisbull Digibull Celcom
DistributebullTelekombull MBNS (Measat)bull RTM
Content industry value chain
Porterrsquos Value Chain
Human Resource Management
Technological DevelopmentProcurement
Marketing amp Sales
Develop Talent Pool
Ensure Vibrant Content Industry
Technologycreates ubiquitous
Low Access Cost
To spur the industry forward
Strong talent develops Content development
demand for access
Strong content industry drives demand for Talent Drive demand for content
Services
Source SKMM Regulatory Compliance Course for Telcos amp Celcos
MARKETINGStrategies are focused on branding activities and marketing communications aggressive Aamp P and active participation in on-ground activities that promote brand awareness And Established Integrated marketing arm
TECHNOLOGY DEVELOPMENT Alt Media the digital arm successfully launched TonTon TV a cutting edge video portal that offers customization and interactivity of social networking Giving Media Prima an advantage of being able to direct advertisers to precise target groups
PROCUREMENT Stringent supplier selection in terms of 70 are local suppliers Sourcing of content which are relevant responsible engaging especially with the advent of new media
SERVICESMedia Prima fully owns Primeworks Studio helps maximize the economies of scale in content production whilst enhancing the quality of content of all television networks
HUMAN CAPITALPrioritize human capital development in news and editorial operation radio network artist and talent management etc Creating an in-house talent pool to develop content
Content Barriers to entry
ndash securing talents - Leadership position in development of local talent and content to leading the industry
Vertical bargaining power
DifferentiationAnd Competitive advantage
- Consumer insights - Integrated media organization
Activities Benefit
Competitiveness leading to Margins
Goal
Appraising capabilities which drives profitability
Source Media Prima Annual Report 2011
Mapping Media Prima revenue streams against the Diversification Map
HIGH
LOW
HIGHLOW
Shar
ing
Ope
ratio
nal R
elat
edne
ss B
etw
een
Busi
ness
Corporate Relatedness Transferring skills into business through corporate HQ
Related Constrained Diversification
Vertical Integration Market Power
Content Creation and Talent development Prima Works enables Media Prima to create localized content for the local market
Both operation and Corporate Relatedness (Rare Capability and can create Diseconomies of scale)
New Media is both an operation and corporate relatedness diversification as it require Media Prima to go beyond playing the role as aggregator but also content producer leveraging on its strength
Unrelated Diversification (Financial Economies)This area of diversification which is unrelated in operation and skills transfer Media Prima has not exploited
Related Linked Diversification (Economies of Scope)As newscontent are cross platforms and the business models are the same Media Prima was able to share similar content across platforms and acquire related companies
Opportunities - Create more segmented programmes and move into interactive content
OpportunitiesHowever more needs to be done in the new are with the advent of Interactive TV
Opportunities Although unrelated area often has high risk it is crucial at this point for Media Prima to extend into this area in smart partnerships with telecommunication companies ie Axiata TM
OpportunitiesMedia Prima has maximized its diversification strategy in this area BUT the market is yet to be ready amp there is a need to link both NSTP and Media Prima
CurrentPrimeworks Studios Sdn Bhd (owned by Media Prima) is Malaysias biggest production company producing TV content since 1984 and feature films since 1994 generating over 5000 hours of TV content and 10 movies annually
Related Constrained Diversification
ChallengesBut the reality is that it is not able to compete with the myriad of channels of its competitors which are dependent on overseas content
Opportunities However more needs to be doneas channels become more segmented-Procuring more content to compete on quantity - or it could change the content game and move into interactive content
Source Creation of An Integrated Media Group 2009 httpwwwmediaprimacommy
TV Newspaper
Radio
Outdoor
New Medi
a
4 3 3
1 2
gt150
17
2 1
gt14
3
22
22
YTL Comms
ABN 100
Ove
rvie
w o
f com
petit
ors
thei
r bus
ines
s po
rtfol
ios
Related Constrained Diversification
Media Company
Advertisers Corporations(Customers )
Viewers(Consumers)
Consumer Pay for Product
CONTENT
Advertiser payFor (Ad space) $$
1 httpwwwlongtailcomthe_long_tail200809the-three-kindshtml
$
Opportunities The potential here is also for Media Prima to drive content syndication ndash providing content to other media stations abroad
Media Prima is currently doing by syndicating content to ASTRO and Unifi
Competitors
Media Company
Viewers(Consumers)
CONTENT PRO
1 httpwwwlongtailcomthe_long_tail200809the-three-kindshtml
$
C
C
C FREE CONTENT FREE CONTENT
FREE CONTENT
Both operation and Corporate Relatedness
CurrentMedia Primarsquos intention to leverage on both its operations and Corporate relatedness to shift its revenue structure to be less dependent on advertising revenue and move toward subscriber revenue where a few subsidies everyone else via versioning ldquoprice discriminationrdquo
ChallengesIt has to some degree been successful to introduce this ndash via TonTon TV however the revenue from this segment has yet to be significant
To date there are 16 show packages and over 50 single episodes for viewers to purchase ndash which is limited
Opportunities However more needs or can be done in this new area with the advent of Interactive TV
Media Company
Advertisers Corporations(Customers )
Viewers(Consumers)
Consumer Pay for Product
FREE
CONTENT
Advertiser payFor (Ad space) $$
Source Website1 httpwwwlongtailcomthe_long_tail200809the-three-kindshtml2 Creation of An Integrated Media 2009 Grouphttpwwwmediaprimacommyinvestorcentercp2009NSTPGOpdf3 httpwwwtheedgemalaysiacomin-the-financial-daily164479-media-prima-best-proxy-to-sector-says-oskhtml 4 Media Prima net revenue grows to RM119b 2011 httpwwwbtimescommyCurrent_NewsBTIMESarticles20111118202427Articleindex_html
Related Linked Diversification
Current Media Prima has expanded across media with the idea in the hope of a) Leveraging on its expertise of
Advertisers subsiding viewers model b) Share back-office consolidation which
creates operations efficiencies in operation ie Editorial Talents
c) Cross marketing opportunities across platforms - Where Advertisers could purchase cross buy across platforms
Challenges Market ndash Not readyThe market is not ready for bundled and cross market offering According to Dato Amrin Awaluddin Group Managing Director of Media Prima no doubt there was head roads but more effort needs to be done to integrate the platforms better
Internally ndash Structure is not integrated In terms of unlocking NSTPs value he says it would be done in two phases `First is more short term like consolidating in terms of operations while the second stage will entail selling of products and cross-promoting our content which would be an ongoing revenue- generation exerciselsquo And he quoted Joran a property of Berita Harian (NST) ndash a nationwide fishing event being brought to TV3 as an example
Opportunities - The structure impeded cross platform and working in silo
does not help
- Hence there is a need to further shift paradigms via a structural change to free up resources to focus on content
- The market will not know what they want until we present them with the opportunity benefit
Social Responsibility Analysis
Social Responsibility
Media Primarsquos approach to Social Responsibility is based on the key triple bottom line ndash social environmental and economic It considers the socio-economic impact of its business activities in the aim to create value to its stakeholders via the 4 categories ie community workplace marketplace and environment
Community1EducationFocusing on education to raise awareness of the importance of education and increase the academic standards of underprivileged children and underperforming schools eg PINTAR Programme NST School Sponsorship Programme
2 HumanitarianRaise funds for humanitarian aid and provided updates on the local and world disaster crisis to the public and raised awareness of the funds eg Humanitarian Aid for Gaza Humanitarian Aid for Flood Victims in Pakistan
3 Other community programmesProduced outreach programmes to reflect and highlight local and community issues and to be the eyes and ears of the public and engage in public awareness through its businessesrsquo media resources and platforms in print interactive media and television eg Project Sunshine
Social Responsibility ndash cont
Environment - EfficiencyStrongly committed to being an environmentally friendly Company by using recycled paper especially in its newspapers business efficient usage of electricity in offices water management reducing amount of waste produced throughout its businesses and other environmental initiatives such as lsquosave our beachrsquo project and WWFrsquos Earth Hour
Marketplace ndash Responsible ContentFocusing on product responsibility in providing high quality products and is committed to establishing a horizontal specialisation system based on collaboration with stakeholders The production flow is illustrated in the diagram below
Workplace ndash Right CultureIt aims to create a workplace where its people have the opportunity to be the best they possibly can to have the right culture safe working environment and human capital development with fair processes
Media Prima Acknowledges it various stakeholder via Stakeholders Management
Media Prima is aware of the diversity of its stakeholders and the different goals and demand of its stakeholders
The Company conducts active engagement with its stakeholders to fully understand their needs and increase their trust in the Company through formal and informal mechanisms as follows
It has moved on to 2nd stage of CSR
1st Generation 2nd Generation 3rd Generation
Philanthropic short term risk management
Product Process innovation business and corporate governance model long term sustainability Strategic CSR
3rd Generation Multi- stakeholder standards and partnerships institutional building CR- Oriented advocacy and public policy
Opportunity
What is next for Media Prima to shape the industry
Creating content that generate advertising dollars amp donations of the poor social awareness
By leveraging on its content distribution capabilities
SWOT Analysis
SWOT Analysis ndash Summary
Strengths 1 Strong market share in TV segment2 Malaysiarsquos only integrated media
organization- have vertical and horizontal diversification advantage
3 Established value chains strength which complements the required core competencies
4 Have move across 3 revenue models
Weaknesses1 limited number of stations variety and choice
for consumer2 Despite diversification revenues still mainly
driven by advertisers and TV -gt cross platforms is needed
3 Financial segmentation may hinder potentials of the company
Opportunities 1 Broadband infrastructure ndash via HSBB2 Development of technology ndash creating
medias gadgets that increase digital interaction and content consumption
3 Consumers are willing to pay for content4 Possible deregulation of content ndash leveling
the playing field
Threats 1 2012 forecasting a financial slow down
affecting Ad Ex ndash hence revenue is reduced2 Increase competition New Entrants Pay TV
player amp continual competition from ASTRO3 Changing consumer habits towards media
consumption -gt moving away from traditional media ndash hence have to fight for consumerrsquos attention
Right Technology (Gadget and Infrastructure) at the Right time (deregulation) amp Right consumers (shift in media habits and willingness to pay for content ndash ASTRO as indicator)
Vertical Value Chain advantage to compete in content development
Media Primarsquos Current situation in summary
+VE
-VE Revenue dependent on advertising which is affected correlated to GDP
Resources organization structure holds back effectiveness of organization
Moving forward2012 and beyond
Recommended Destination and future growth of Media Prima
Revenue mainly from advertising
Revenue from advertising
Content SubscriptionBy viewers
Content driven Complementary Services for advertiser (Auxillary Services)
Media Prima
Media Prima
Content Syndicationto competitors
+
How Moving from aggregator to content creator
Content Focus Leveraging on content to Embark on Revenue shifts
Long term sustainable leadership
Restructuring to liberateresources for Content
Sustainable Talent development -
Partnership
Riding the Technology Wave
Short term (2012) Mid Term (by 2013-2015) Long term 2015 beyond
How Moving from aggregator to content creator
Content Focus Leveraging on content to Embark on Revenue shifts
Long term sustainable leadership
Restructuring to liberateresources for Content
Sustainable Talent development -
Partnership
Riding the Technology Wave
Short term (2012) Mid Term (by 2013-2015) Long term 2015 beyond
Creating a Content focus agency All these can be enable via the following means
Demand- The content creation race bull There is a need to free up empower human capital to create more content which are relevant
segmented engaging and entertaining
How does media prima refocus its resources into where it matters Instead of multiple teams doing the same thing ndash there is a challenge to create a lean and efficient organization
Challenges Freeing Resources
Instead of looking at a Media based financial segment reporting structurally force the teams to integrate by changing the dynamics of PampL
Next page
Solution Redefining Business Units Paradigms
Take a step up from producing beyond the current vernacular program to meet shifting consumer needs
Challenges ndash Lifestyle lead Variety
Creating Channel programs which are target segment focus based on lifestyles hellip
Acquisition of content as content regulations will be relaxed
Solution Target Segment focus
Using financial view to free resources for content developmentFinancial segment reporting may create a ldquosilordquo mentality ndash which encourages each head of business to protect their bottom line Hence a less effective in operations
Our recommendation is to expand content creation to cut across and shift paradigms to free up resources and focus on new revenue streams And create new content for different segment
Tele
visi
on N
etw
ork
Radi
o N
etw
ork
Out
door
Med
ia
Prin
t M
edia
Oth
er M
edia
Current Financial Segment Reporting
Tele
visi
on N
etw
ork
Radi
o N
etw
ork
Out
door
Med
ia
Prin
t M
edia
Oth
er M
edia
Production
Content
Subscription
Advertising
Recommended Segment Reporting
Lifestyle Segments
Lifestyle Segments
Lifestyle Segments
Lifestyle Segments
Lifestyle Segments
Lifestyle Segments
By changing the business segment reporting it also affects the company structure
The benefits - Flexibility and empowers knowledge
economy ndash talent content driven
- Builds at strong work culture which may be replicated in the region
- Expansion to embark on talent and content crowd sourcing - open innovation creation
Media Prima can take this opportunity to achieve SPECIALIZATION COORDINATION AND COOPERATION Currently team structure ndash of Integrated Marketing Division is created as a temporary solution hellip to enable integration It will move towards a network model to haste integration fast and response to technology and consumer needs
Subcription
Advertising
Production
TechnologyPartner
Content
How Moving from aggregator to content creator
Content Focus Leveraging on content to Embark on Revenue shifts
Long term sustainable leadership
Restructuring to liberateresources for Content
Sustainable Talent development -
Partnership
Riding the Technology Wave
Short term (2012) Mid Term (by 2013-2015) Long term 2015 beyond
Technology ndash Enable Media Prima to leap into Interactive Content
Interactive Content
UniFi Axiata
Media Prima
Electronics Manufacturer
Demand - A ready market bull There is a latent demand for content-gt consumers are
willing to Pay bull Technology has accustomed consumers to interacting
with contentbull Regulatory push to shift from analogue to digital by
2015
However unlike Media Primarsquos western counterparts ie Time Warner Communication Media Prima does not have the advantages of cable infrastructure
Challenges ndash Limitation
Media Prima could depend on existing suppliers of connectivity and technology- Telecommunications ie AXIATA and - Manufacturing companies ie Samsungto take the leap into interactive content Unifi TM
Solution ndash Smart Partnerships
Maximizing Unrelated Diversification
It is not a Fad but a trend
Smart TV is an inevitable trend says Baeguen Kang vice president of
research and development at South Koreas LG Electronics Co the worlds second-largest seller of TV sets by unit volume As people experienced smartphones and tablet PCs the larger screen on a TV is very attractive for apps and Web content
210 million TV sets sold world-wide had an Internet connection (2010)
21 50It will be the forecast in (2014)
Source Evan Ramstad (January 2011)A ldquoManufacturers Turn to Smart TV After 3-D Disappointsrdquo The Wall Street Journal online httponlinewsjcomarticleSB10001424052748704835504576059783074010902html
As technology develops Current cost is will drop exponentially reflecting the Moorersquos Law
Hence lowering the cost of access for interactive content
Example of Smart TV
Smart Hub It is a front facing interface just like a main menu
when consumers turn on their TV There are few utilities that consumers can choose to be entertained
Video ndash consumers can choose from array of video collections that required to be paid
Apps ndash an internet-enabled applications like You Tube Facebook Twitter Skype and others
Internet browsing ndash just like PC internet browsing
Music photo and TV watching
Smart ConnectivityWIFI enabled that allows consumers to connect to all mobile devices like smart phone tablet PC notebook and camera with Samsung Wireless Router called 1 foot This connectivity is being called ldquoAllSharerdquo by Samsung
httpotbresearchcomau200509report-1-industry-forum
MEDIA PRIMA IS CURRENTLY HERE
This will ultimately lead Media Prima to reduce it dependence on advertising revenue
Others ndash Utilising the SMART TV technology and Apps to create any existing Media Prima businesses
NEW Revenue Streams for Media Prima
To take advantage of SMART TV and collaborate with SMART TV manufacturers Media Prima can look into following utilities
Collaborate with manufacturers to allow consumers to browse and pay for Media Prima video collections
Selling local music for Malaysia market
Collaborate with local or international content developers to create Malaysia specific contents for paid subscription or free for common content to attract new consumers
How
Content Focus Leveraging on content to Embark on Revenue shifts
Long term sustainable leadership
Restructuring to liberateresources for Content
Sustainable Talent development -
Partnership
Riding the Technology Wave
Short term (2012) Mid Term (by 2013-2015) Long term 2015 beyond
Building Talents in the long run
Education Building on its strategic CSR ndash Media Prima could champion the
development of the content industry by partnering with local universities in the areas of technology media and communication
Crowd Sourcing To haste up the strategic CSR it too could embark on crowd
sourcing for content ndash via scripts and interactive content In which Media Prima could support a great idea and develop the ideas for monetization
This is a synergistic and natural development from the networks structure (open innovation)
Summary ndash Media Prima
Develop Talent Pool
Ensure Vibrant Content Industry
Technologycreates ubiquitous
Low Access Cost
To spur the industry forward
Strong talent develops Content development
demand for access
Strong content industry drives demand for Talent drives demand for content
Our recommendations are aligned to help spur the industry forwardhellip
Restructuring to liberateresources for Content
Sustainable Talent development -
Partnership
Riding the Technology Wave ndash Via Smart
Partnerships
References
References
1 Anon ldquoMedia Prima Berhad implements Accenture integrated broadcast systemrdquo Accenture Press Release httpnewsroomaccenturecomarticle_displaycfmarticle_id=5005 viewed 3 November 2011
2 Anon ldquoNew exciting and vibrant offerings from MPB television networks in 2010rdquo Media Prima Press Release httpwwwmediaprimacommypressreleasepressreleaseaspxid=150 viewed 3 November 2011
3 Anderson J ldquoResource-based competitiveness managerial implications of the resource-based viewrdquo Strategic Direction Vol26 No5 2010 pp1-2
4 Arman Arshad (2006) Size matters Retrieved December 2 2011 from asiaviewsorg httpwwwasiaviewsorgindexphpoption=com_contentampview=articleampid=2171headlinealias2171ampcatid=1headlinesampItemid=2
5 Asia Times (2007 November 29) Malaysian media giant grasps for Internet Retrieved November 3 2011 from httpwwwatimescomatimesSoutheast_AsiaIK29Ae02html
6 Barney JB amp Hesterly WS (2008) Strategic Management and Competitive Advantage The Five Forces Model of Environmental Threats pp39Prentice Hall
7 BBC (2011) BBC News product launches on connected TV Retrieved from bbccoukpressofficepressreleasesstories201106_june17newsshtml
8 Boston Consulting Group (2011) Lean Advantage in Media Boston Consulting Group
9 Boston Consulting Group (2011) Running Forward Walking Backward Boston Consulting Group
10 Business Times (2011) Media Prima net revenue grows to RM119b Kuala Lumpur New Straits Times
11 Business Times (2011) Media Prima on track to achie1048665ing 2011 target Retrieved from www1btimescomm1048668Current_NewsBTIMESarticlespimeArticle
References (1)
12 Business Times (2011) Media Prima Puncak Semangat in early talks Retrieved from httpwwwbtimescommyarticlespimmaArticle
13 Carl W Stern George Stalk Carl W Stern George Stalk Stern CW amp Stalk G (2011) Perspectives of Strategy from the Boston Consulting Group Retrieved December 3 2011 from Value Based Managementnet httpwwwvaluebasedmanagementnetmethods_bcgmatrixhtml
14 ecmlibra (2011) Adex momentum to taper off in 2012 ecmlibra
15 Gershon R A amp Ratnadeep S V (2004) Viacom Inc A Case Study in Transnational Media Management Journal of Media Business Studies 1 (1) 47-69
16 Grant RM ldquoThe resource-based theory of competitive advantage implications for strategy formulationrdquo California Management Review Vol 3 2011 httpwwwskynetie~karenArticlesGrant1_NBpdf viewed 15 November 2011
17 GreyReview (2011) TonTon Streaming Over 11 Million Video Hours A Month now with 16 millions registered users Retrieved from httpwwwgreyreviewcom20110731tonton-serving-over-1-1-million-video-hours-a-month-now-with-1-6-registered-users
18 Heavy Reading (2011) Telecom in TV Land A Roadmap to New Digital Media Ecosystem Retrieved from wwwheavyreadingcomdetailsaspsku_id=1773ampskuitem_itemid=1030
19 Hegedus N (2010) The Great Scare EBR 3 10-17
20 JohnsonGScholesK amp Whittington (2008) Exploring Corporate Strategy Competitive Forces ndash the Five Forces Framework pp 59-64 Prentice Hall
21 kinetic (2011) Moving World Asia Hong Kong
References (2)
22 Knowledgefaber (2009) Telcos Avatar - As Media Companies 20 Retrieved from httpknowledgefabercomindexphpoption=com_contentampview=articleampid=40telecom-and-media-convergenceampcatid=10telecomampItemid=42
23 Knowledgefaber (2011) Telcos Avatar - As Media Companies 20 Retrieved from httpknowledgefabercomindexphpoption=com_contentampview=articleampid=40
24 Malik O (2011) GIGAOM Retrieved from httpgigaomcom20110223old-media-is-being-unbundled-just-like-telecom-was
25 Maxis with TM Astro with TIME Best Strategy to IPTV Market Retrieved December 1 2011 httpbizthestarcommynewsstoryaspfile=201111business7704581ampsec=business
26 Media Prima (2010) Annual Report Media Prima Berhad27 Media Prima Berhad (2011) 11 Nov 2011 - New Exciting amp Vibrant Offerings From MPB Television Retrieved from
wwwmediaprimacommypressreleasepressreleaseaspxid=15028 Media Prima (2010) Sustainability Report Media Prima Berhad29 OSK (2011) Media Prima OSK30 Pocket-Lint (2011) Samsung Smart TV hits 2 million mark Retrieved from
httpwwwpocket-lintcomnews40593samsung-smart-tv-2-million31 PricewaterhouseCoopers (2011) Achieving corporate financial PwC32 PricewaterhouseCoopers (2007) Financial Reporting Standards (FRS) in Malaysia PricewaterhouseCoopers33 SKMM (MCMC) (2009) Advertising Development in Malaysia SKMM34 SKMM (MCMC) (2011) Content Development SKMM35 Techpinions (2011) Interactive TV Trends - How the TV experience is changing - Part II Retrieved from
httptechpinionscominteractive-tv-trends-E28093-how-the-tv-experience-is-changing-part-ii4066
References (3)
36 The Edge (2011) Media Prima best proxy to sector Retrieved from wwwtheedgemalaysiacom37 The Edge Malaysia (2011 September 26) Education the mother of all reforms Retrieved October 30 2011 from
httpwwwtheedgemalaysiacomin-the-financial-daily193478-education-the-mother-of-all-reformshtml38 The Star Online (2011) Main players in the competitive TV sector Retrieved from bizthestarcommynewsstoryasp
file=20111126business997401739 The Star Online (2011) Maxis ready to move up value Retrieved from
bizthestarcommynewsstoryaspfile=201111business7704581ampse40 The Star Online (2011) New players enter the TV Retrieved from
bizthestarcommynewsstoryaspfile=20111126business997300841 The Star Newspaper (December 1 2011) Capital TV to make its debut today42 The Star Online (January 1 2011) Maxis ready to move up value chain Retrieved December 3 2011
httpbizthestarcommynewsstoryaspfile=201111business7704581ampsec=business43 The Star Online (2011 April 21) Media Prima to invest more on local content Retrieved October 30 2011 from C
Usersa34ffzzDesktopMedia PrimaUsed articlesMedia Prima to invest more in local contentmht44 Time Warners (2010) Annual Report Time Warners45 WHAT HI FI (2011) Samsung aims for 50m TV sales worldwide in 2012 set to announce launch date for Google TV
product Retrieved from httpwwwwhathificomnewssamsung-aims-for-50m-tv-sales-worldwide-in-2012-set-to-announce-launch-date-for-google-tv-produ
46 Woroch G A (1996) Turning the Cables Elsevier47 Zanuddin H (2007) Political influence in Malaysia and Thailand media sector Jati Vol12
- MEdiA PRIMA
- Agenda
- Company Profile
- Media Primarsquos Commitment amp Direction moving forward
- Media Industry Business Model ndash Content Driven
- Our Tasks ndash How
- PEST Analysis
- Politics Legal Issues amp Impact
- Economic Issues and Impact
- Social Issues and Impact
- Social Issues and Impact
- Technology Issues and Impact
- In short
- Porterrsquos 5 Forces Analysis
- Porterrsquos Five Forces ndash Competitive Analysis
- Financials
- Media Prima Financial Highlights
- However in further analysis
- Value Chain Analysis
- Resource Based View
- In the context of the Content industry value chain Mapped again
- Appraising capabilities which drives profitability
- Mapping Media Prima revenue streams against the Diversification
- Slide 25
- Related Constrained Diversification
- Related Constrained Diversification (2)
- Slide 28
- Related Linked Diversification
- Slide 30
- Social Responsibility Analysis
- Social Responsibility
- Social Responsibility ndash cont
- Media Prima Acknowledges it various stakeholder via Stakeholder
- It has moved on to 2nd stage of CSR
- SWOT Analysis
- SWOT Analysis ndash Summary
- Media Primarsquos Current situation in summary
- Moving forward 2012 and beyond
- Recommended Destination and future growth of Media Prima
- How Moving from aggregator to content creator
- How Moving from aggregator to content creator (2)
- Creating a Content focus agency All these can be enable via
- Using financial view to free resources for content development
- By changing the business segment reporting it also affects the
- How Moving from aggregator to content creator (3)
- Technology ndash Enable Media Prima to leap into Interactive Conten
- It is not a Fad but a trend
- Slide 50
- Example of Smart TV
- This will ultimately lead Media Prima to reduce it dependence o
- NEW Revenue Streams for Media Prima
- How
- Building Talents in the long run
- Summary ndash Media Prima
- References
- References
- References (1)
- References (2)
- References (3)
-
Agenda
1 Company Profile2 Strategic position and analysis External
1) External Analysis 2) Porterrsquos 5 Forces
Internal 3) Value Chain4) Diversification Map5) Social Responsibility Analysis6) Financial Analysis
SWOT 3 Strategic recommendation4 References
Company Profile
1 Media Prima Berhad an integrated media investment group competes amongst the media conglomerate of Malaysia It is the only integrated media player in Malaysia
2 Its core business is in CONTENT distribution aggregation ndash generating revenue via selling advertising space although it is moving towards content creation
Source httpwwwmediaprimacommy HBS ndash Article
Media Primarsquos Commitment amp Direction moving forward
ldquoContent and integration of platforms are our drivers of growthhellip our content needs to be platform-agnostic engaging relevant
ldquohellipour ability to direct their (Advertiserrsquos) advertising to precise target groups across hellip fully-integrated range of media is the key to our successrdquo
Datorsquo Amrin Group Managing Director of Media Prima Berhad (2011)
Source httpwwwmediaprimacommypressreleasepressreleaseaspxid=150
Media Industry Business Model ndash Content Driven
Business Model Mediarsquos revenue is driven by
1 Source httpwwwmediaprimacommy2 HBS ndash Article
Hence our task is to help Media Prima continue to attract consumer (viewer) amp
to increase customerrsquos (advertiser) dependence on Media Primarsquos content
Consumers Attracting viewers to content
Customers a) Revenue from Advertisers ie Sponsorship and placing advertising in
channels of relevant content which their target audience watches
b) Revenue from Subscribers of Content ie Online TV (TontonTV) Newspapers Digital Content
Our Tasks ndash How - continue to attract consumer (viewer) amp - to increase customerrsquos (advertiser) dependence on Media
Primarsquos content
The solutions lie within the understanding of
bull the environment around the organization
bull its competitive landscape
bull the organizationrsquos internal capabilities and
bull strategies it has embarked upon
PEST Analysis
Politics Legal Issues amp Impact
Source 1 httpenwikipediaorgwikiDigital_television_in_Malaysiacite_note-102 bizthestarcommynewsstoryaspfile=20111126business99740173 httpwwwconsumerorgmyindexphpdevelopmentprivate-sector479-astros-monopoly-has-short-changed-malaysian-tv-viewers
Change from Analogue TV to Digital TV by 2015bull Analogue TV broadcasts would be shut down in stages and due
to complete by 2015 as per recommendation from ASEAN bull Digital will open is in evitable
Deregulation of content bull But the regulator of the industry has yet to come up with details
on how it will go about disbanding the monopoly on content
Would do away with monopoly in the pay-TV broadcasting sectorbull With the introduction of newer IPTV services bull And Astrorsquos exclusive Pay TV license will end by 2017
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 (F)
-5
0
5
10
15
20
25
16
23
2
910
17
3 4
1513
7
1614
68
1
45
75
6 65
-2
726
ADEX Growth GDP Growth
Slowing down of GDP
Economic Issues and Impact
Source httpwwwtheedgemalaysiacomin-the-financial-daily196495-slower-tv-adex-points-to-quiet-adspend-for-the-rest-of-2011html
bull Ad Ex (Advertising Expenditure) fluctuates with GDP And as Media Primarsquos main source of revenue is from Ad Ex it will be affected by the projected slow down of the 2012 economy as multinational advertisers become more cautious
bull Organization for Economic Cooperation and Development projected a 03 growth in 2012 instead of the 2 forecast
bull Malaysian perspective GDP growth of 51 (Nomura)
51 2012
Social Issues and ImpactOnline creeps in time spent increases and trust levels bull More time spent on Online gt TV and consumer are referring to
online to make purchase decision hence cross platform presence is needed to reach consumer (Malaysian Digital Consumer Report 2011)
Reading Magazine
Reading Newspapers
Video on Mobile Phone
Radio Stream via Internet
Internet via Mobile Phone
Online Games on PC
Listening to Radio
Watching TV
Internet
0 5 10 15 20 25
3434751535658
106198
Average Weekly Hours Spent on different media
Online activities beyond Watching TV
Source 1 QuickPlay Media 2 httpwwwgartnercomtechnologyhomejsp
httpwwwthemalaysianreservecommainindexphpoption=com_contentampview=articleampid=899move-over-tv-the-net-is-where-the-action-isampcatid=36corporate-malaysiaampItemid=120
Online activities beyond Newspapers and Magazines
76 of consumers indicate that they watch more TV on tablet than before a shift in media consumption behavior
Social Issues and Impact
Source Kinetic Insights on People on the Move Moving World Asia (2011)
Consumers are On The Move Disconnect from traditional Channels bull 107 Hr Weekday -gt Highest in ASIAbull Requires mobile channel to deliver and keep up with consumers bull Moving from radio -gt mobile phones -gt tablets
Outdoor
On Mobile
BUT
Broadband Penetration
Mobile Penetration
Technology Issues and Impact
Household broadband penetration at 615 and will grow to 75 by 2015
75 107
Source httpwwwthemalaysianreservecommainindexphpoption=com_contentampview=articleampid=899move-over-tv-the-net-is-where-the-action-isampcatid=36corporate-malaysiaampItemid=120
Malaysia a Digital Nation Netizens (constant access to internet) make up 40 of the
total population of 27 million Tablet PC usage and ownership netizen are expected to
increase from 18 to 75 in 2012
In short
1 Legislative deregulation spurs the attractiveness of the
market
2 Economic impose pressures for 2012
3 Social shifts leads the way to new media
4 Technology is the catalytic enable of Media organization
shift into New Media
Porterrsquos 5 Forces Analysis
Astro is the only direct challenger as it is the closest to an integrated media organisation
Power of Substitutes 1 Technology and Sharing of
screen ndash Moving away from TV to mobile content and social media decreases the share of attention
2 Self Generated content by Netizens ndash User Generated Content - youtube
Power of Suppliers 1 Content is king and that is what
drives viewership ndash and not the media organisation that aggregates it
2 Content lead experience is dependent on technological development
Threat of New Entrants 1 Introduction of new IPTV which
offers variety of channelsDETV and ABN
2 New entrants have infrastructure backing hence offering product bundling of triple play ie Unifi YTL Comms
Power of Consumers 1 Consumer Moving away from
Print TV and Radio - they are the ones that drive demand
2 Advertiser have a hard time reaching the fragmented audience (beyond traditional media)
Porterrsquos Five Forces ndash Competitive Analysis
Customers are dependant on content (Media Prima) to reach consumers
Competitive Rivalry
Source bizthestarcommynewsstoryaspfile=20111126business9974017
Nevertheless Media Prima is still in control as it complements their services by offering them content
But its audiences are fragmented across 150 channels versus ours which focus 4 stations
Content creators and aggregators need to mirror consumerrsquos media consumption trends
Can be mitigated by internalizing content development but Media Prima needs to keep its content up to date with technology development
Financials
Media Prima Financial Highlights
1327millionProfit After Tax and Minority Interest (ldquoPATAMIrdquo)September 2011 (9 Months)
in the corresponding period for 20101105 million
A healthy GROWTH
Source Media Prima Annual Report 2011
However in further analysisHowever the bulk of its revenue comes from advertising that is in turn dependent on the economic outlook the question arises as to whether Media Prima should diversify its income stream Especially when gt80 of Astrorsquos revenue is on subscription
Reduce Media Primarsquos dependence on advertising revenueas it highly fluctuates with the market conditions
Group
2010 2009
RMrsquo000 RMrsquo000
Advertising revenue 1237961 80 725857 98 Circulation revenue 290691 19 0 Sale of programmes videos cable and laser rights and media revenue 15408 1 11287 2 Fees from provision of production services and sponsorship 2583 0 6885 1 Fees from provision of procurement services Dividends from subsidiaries Dividends from an associate 1546643 100 744029 100
Source Media Prima Annual Report 2011
Value Chain Analysis
Resource Based View
The resource-based view is grounded in the perspective that a firm is a collection of unique resources and capabilities that provides the basis for its strategies and the primary source of its return
SupportActivities
Primary Activities
Strategy Development 4
Resource Identification 1Capabilities Determination 2Competitive advantage 3
Resource Gap Analysis 5
Source Porter Value Chain Robert M Grant
Process of CONTENT aggregation Process of CONTENT creation
In the context of the Content industry value chainMapped against Porterrsquos Value chain
Createbull Scriptwritersbull Actorsbull Animatorsbull Gamesbull developer
Publishbull Production housesbull TV Advert Film
Packagebull Media Primabull Astrobull RTMbull Maxisbull Digibull Celcom
DistributebullTelekombull MBNS (Measat)bull RTM
Content industry value chain
Porterrsquos Value Chain
Human Resource Management
Technological DevelopmentProcurement
Marketing amp Sales
Develop Talent Pool
Ensure Vibrant Content Industry
Technologycreates ubiquitous
Low Access Cost
To spur the industry forward
Strong talent develops Content development
demand for access
Strong content industry drives demand for Talent Drive demand for content
Services
Source SKMM Regulatory Compliance Course for Telcos amp Celcos
MARKETINGStrategies are focused on branding activities and marketing communications aggressive Aamp P and active participation in on-ground activities that promote brand awareness And Established Integrated marketing arm
TECHNOLOGY DEVELOPMENT Alt Media the digital arm successfully launched TonTon TV a cutting edge video portal that offers customization and interactivity of social networking Giving Media Prima an advantage of being able to direct advertisers to precise target groups
PROCUREMENT Stringent supplier selection in terms of 70 are local suppliers Sourcing of content which are relevant responsible engaging especially with the advent of new media
SERVICESMedia Prima fully owns Primeworks Studio helps maximize the economies of scale in content production whilst enhancing the quality of content of all television networks
HUMAN CAPITALPrioritize human capital development in news and editorial operation radio network artist and talent management etc Creating an in-house talent pool to develop content
Content Barriers to entry
ndash securing talents - Leadership position in development of local talent and content to leading the industry
Vertical bargaining power
DifferentiationAnd Competitive advantage
- Consumer insights - Integrated media organization
Activities Benefit
Competitiveness leading to Margins
Goal
Appraising capabilities which drives profitability
Source Media Prima Annual Report 2011
Mapping Media Prima revenue streams against the Diversification Map
HIGH
LOW
HIGHLOW
Shar
ing
Ope
ratio
nal R
elat
edne
ss B
etw
een
Busi
ness
Corporate Relatedness Transferring skills into business through corporate HQ
Related Constrained Diversification
Vertical Integration Market Power
Content Creation and Talent development Prima Works enables Media Prima to create localized content for the local market
Both operation and Corporate Relatedness (Rare Capability and can create Diseconomies of scale)
New Media is both an operation and corporate relatedness diversification as it require Media Prima to go beyond playing the role as aggregator but also content producer leveraging on its strength
Unrelated Diversification (Financial Economies)This area of diversification which is unrelated in operation and skills transfer Media Prima has not exploited
Related Linked Diversification (Economies of Scope)As newscontent are cross platforms and the business models are the same Media Prima was able to share similar content across platforms and acquire related companies
Opportunities - Create more segmented programmes and move into interactive content
OpportunitiesHowever more needs to be done in the new are with the advent of Interactive TV
Opportunities Although unrelated area often has high risk it is crucial at this point for Media Prima to extend into this area in smart partnerships with telecommunication companies ie Axiata TM
OpportunitiesMedia Prima has maximized its diversification strategy in this area BUT the market is yet to be ready amp there is a need to link both NSTP and Media Prima
CurrentPrimeworks Studios Sdn Bhd (owned by Media Prima) is Malaysias biggest production company producing TV content since 1984 and feature films since 1994 generating over 5000 hours of TV content and 10 movies annually
Related Constrained Diversification
ChallengesBut the reality is that it is not able to compete with the myriad of channels of its competitors which are dependent on overseas content
Opportunities However more needs to be doneas channels become more segmented-Procuring more content to compete on quantity - or it could change the content game and move into interactive content
Source Creation of An Integrated Media Group 2009 httpwwwmediaprimacommy
TV Newspaper
Radio
Outdoor
New Medi
a
4 3 3
1 2
gt150
17
2 1
gt14
3
22
22
YTL Comms
ABN 100
Ove
rvie
w o
f com
petit
ors
thei
r bus
ines
s po
rtfol
ios
Related Constrained Diversification
Media Company
Advertisers Corporations(Customers )
Viewers(Consumers)
Consumer Pay for Product
CONTENT
Advertiser payFor (Ad space) $$
1 httpwwwlongtailcomthe_long_tail200809the-three-kindshtml
$
Opportunities The potential here is also for Media Prima to drive content syndication ndash providing content to other media stations abroad
Media Prima is currently doing by syndicating content to ASTRO and Unifi
Competitors
Media Company
Viewers(Consumers)
CONTENT PRO
1 httpwwwlongtailcomthe_long_tail200809the-three-kindshtml
$
C
C
C FREE CONTENT FREE CONTENT
FREE CONTENT
Both operation and Corporate Relatedness
CurrentMedia Primarsquos intention to leverage on both its operations and Corporate relatedness to shift its revenue structure to be less dependent on advertising revenue and move toward subscriber revenue where a few subsidies everyone else via versioning ldquoprice discriminationrdquo
ChallengesIt has to some degree been successful to introduce this ndash via TonTon TV however the revenue from this segment has yet to be significant
To date there are 16 show packages and over 50 single episodes for viewers to purchase ndash which is limited
Opportunities However more needs or can be done in this new area with the advent of Interactive TV
Media Company
Advertisers Corporations(Customers )
Viewers(Consumers)
Consumer Pay for Product
FREE
CONTENT
Advertiser payFor (Ad space) $$
Source Website1 httpwwwlongtailcomthe_long_tail200809the-three-kindshtml2 Creation of An Integrated Media 2009 Grouphttpwwwmediaprimacommyinvestorcentercp2009NSTPGOpdf3 httpwwwtheedgemalaysiacomin-the-financial-daily164479-media-prima-best-proxy-to-sector-says-oskhtml 4 Media Prima net revenue grows to RM119b 2011 httpwwwbtimescommyCurrent_NewsBTIMESarticles20111118202427Articleindex_html
Related Linked Diversification
Current Media Prima has expanded across media with the idea in the hope of a) Leveraging on its expertise of
Advertisers subsiding viewers model b) Share back-office consolidation which
creates operations efficiencies in operation ie Editorial Talents
c) Cross marketing opportunities across platforms - Where Advertisers could purchase cross buy across platforms
Challenges Market ndash Not readyThe market is not ready for bundled and cross market offering According to Dato Amrin Awaluddin Group Managing Director of Media Prima no doubt there was head roads but more effort needs to be done to integrate the platforms better
Internally ndash Structure is not integrated In terms of unlocking NSTPs value he says it would be done in two phases `First is more short term like consolidating in terms of operations while the second stage will entail selling of products and cross-promoting our content which would be an ongoing revenue- generation exerciselsquo And he quoted Joran a property of Berita Harian (NST) ndash a nationwide fishing event being brought to TV3 as an example
Opportunities - The structure impeded cross platform and working in silo
does not help
- Hence there is a need to further shift paradigms via a structural change to free up resources to focus on content
- The market will not know what they want until we present them with the opportunity benefit
Social Responsibility Analysis
Social Responsibility
Media Primarsquos approach to Social Responsibility is based on the key triple bottom line ndash social environmental and economic It considers the socio-economic impact of its business activities in the aim to create value to its stakeholders via the 4 categories ie community workplace marketplace and environment
Community1EducationFocusing on education to raise awareness of the importance of education and increase the academic standards of underprivileged children and underperforming schools eg PINTAR Programme NST School Sponsorship Programme
2 HumanitarianRaise funds for humanitarian aid and provided updates on the local and world disaster crisis to the public and raised awareness of the funds eg Humanitarian Aid for Gaza Humanitarian Aid for Flood Victims in Pakistan
3 Other community programmesProduced outreach programmes to reflect and highlight local and community issues and to be the eyes and ears of the public and engage in public awareness through its businessesrsquo media resources and platforms in print interactive media and television eg Project Sunshine
Social Responsibility ndash cont
Environment - EfficiencyStrongly committed to being an environmentally friendly Company by using recycled paper especially in its newspapers business efficient usage of electricity in offices water management reducing amount of waste produced throughout its businesses and other environmental initiatives such as lsquosave our beachrsquo project and WWFrsquos Earth Hour
Marketplace ndash Responsible ContentFocusing on product responsibility in providing high quality products and is committed to establishing a horizontal specialisation system based on collaboration with stakeholders The production flow is illustrated in the diagram below
Workplace ndash Right CultureIt aims to create a workplace where its people have the opportunity to be the best they possibly can to have the right culture safe working environment and human capital development with fair processes
Media Prima Acknowledges it various stakeholder via Stakeholders Management
Media Prima is aware of the diversity of its stakeholders and the different goals and demand of its stakeholders
The Company conducts active engagement with its stakeholders to fully understand their needs and increase their trust in the Company through formal and informal mechanisms as follows
It has moved on to 2nd stage of CSR
1st Generation 2nd Generation 3rd Generation
Philanthropic short term risk management
Product Process innovation business and corporate governance model long term sustainability Strategic CSR
3rd Generation Multi- stakeholder standards and partnerships institutional building CR- Oriented advocacy and public policy
Opportunity
What is next for Media Prima to shape the industry
Creating content that generate advertising dollars amp donations of the poor social awareness
By leveraging on its content distribution capabilities
SWOT Analysis
SWOT Analysis ndash Summary
Strengths 1 Strong market share in TV segment2 Malaysiarsquos only integrated media
organization- have vertical and horizontal diversification advantage
3 Established value chains strength which complements the required core competencies
4 Have move across 3 revenue models
Weaknesses1 limited number of stations variety and choice
for consumer2 Despite diversification revenues still mainly
driven by advertisers and TV -gt cross platforms is needed
3 Financial segmentation may hinder potentials of the company
Opportunities 1 Broadband infrastructure ndash via HSBB2 Development of technology ndash creating
medias gadgets that increase digital interaction and content consumption
3 Consumers are willing to pay for content4 Possible deregulation of content ndash leveling
the playing field
Threats 1 2012 forecasting a financial slow down
affecting Ad Ex ndash hence revenue is reduced2 Increase competition New Entrants Pay TV
player amp continual competition from ASTRO3 Changing consumer habits towards media
consumption -gt moving away from traditional media ndash hence have to fight for consumerrsquos attention
Right Technology (Gadget and Infrastructure) at the Right time (deregulation) amp Right consumers (shift in media habits and willingness to pay for content ndash ASTRO as indicator)
Vertical Value Chain advantage to compete in content development
Media Primarsquos Current situation in summary
+VE
-VE Revenue dependent on advertising which is affected correlated to GDP
Resources organization structure holds back effectiveness of organization
Moving forward2012 and beyond
Recommended Destination and future growth of Media Prima
Revenue mainly from advertising
Revenue from advertising
Content SubscriptionBy viewers
Content driven Complementary Services for advertiser (Auxillary Services)
Media Prima
Media Prima
Content Syndicationto competitors
+
How Moving from aggregator to content creator
Content Focus Leveraging on content to Embark on Revenue shifts
Long term sustainable leadership
Restructuring to liberateresources for Content
Sustainable Talent development -
Partnership
Riding the Technology Wave
Short term (2012) Mid Term (by 2013-2015) Long term 2015 beyond
How Moving from aggregator to content creator
Content Focus Leveraging on content to Embark on Revenue shifts
Long term sustainable leadership
Restructuring to liberateresources for Content
Sustainable Talent development -
Partnership
Riding the Technology Wave
Short term (2012) Mid Term (by 2013-2015) Long term 2015 beyond
Creating a Content focus agency All these can be enable via the following means
Demand- The content creation race bull There is a need to free up empower human capital to create more content which are relevant
segmented engaging and entertaining
How does media prima refocus its resources into where it matters Instead of multiple teams doing the same thing ndash there is a challenge to create a lean and efficient organization
Challenges Freeing Resources
Instead of looking at a Media based financial segment reporting structurally force the teams to integrate by changing the dynamics of PampL
Next page
Solution Redefining Business Units Paradigms
Take a step up from producing beyond the current vernacular program to meet shifting consumer needs
Challenges ndash Lifestyle lead Variety
Creating Channel programs which are target segment focus based on lifestyles hellip
Acquisition of content as content regulations will be relaxed
Solution Target Segment focus
Using financial view to free resources for content developmentFinancial segment reporting may create a ldquosilordquo mentality ndash which encourages each head of business to protect their bottom line Hence a less effective in operations
Our recommendation is to expand content creation to cut across and shift paradigms to free up resources and focus on new revenue streams And create new content for different segment
Tele
visi
on N
etw
ork
Radi
o N
etw
ork
Out
door
Med
ia
Prin
t M
edia
Oth
er M
edia
Current Financial Segment Reporting
Tele
visi
on N
etw
ork
Radi
o N
etw
ork
Out
door
Med
ia
Prin
t M
edia
Oth
er M
edia
Production
Content
Subscription
Advertising
Recommended Segment Reporting
Lifestyle Segments
Lifestyle Segments
Lifestyle Segments
Lifestyle Segments
Lifestyle Segments
Lifestyle Segments
By changing the business segment reporting it also affects the company structure
The benefits - Flexibility and empowers knowledge
economy ndash talent content driven
- Builds at strong work culture which may be replicated in the region
- Expansion to embark on talent and content crowd sourcing - open innovation creation
Media Prima can take this opportunity to achieve SPECIALIZATION COORDINATION AND COOPERATION Currently team structure ndash of Integrated Marketing Division is created as a temporary solution hellip to enable integration It will move towards a network model to haste integration fast and response to technology and consumer needs
Subcription
Advertising
Production
TechnologyPartner
Content
How Moving from aggregator to content creator
Content Focus Leveraging on content to Embark on Revenue shifts
Long term sustainable leadership
Restructuring to liberateresources for Content
Sustainable Talent development -
Partnership
Riding the Technology Wave
Short term (2012) Mid Term (by 2013-2015) Long term 2015 beyond
Technology ndash Enable Media Prima to leap into Interactive Content
Interactive Content
UniFi Axiata
Media Prima
Electronics Manufacturer
Demand - A ready market bull There is a latent demand for content-gt consumers are
willing to Pay bull Technology has accustomed consumers to interacting
with contentbull Regulatory push to shift from analogue to digital by
2015
However unlike Media Primarsquos western counterparts ie Time Warner Communication Media Prima does not have the advantages of cable infrastructure
Challenges ndash Limitation
Media Prima could depend on existing suppliers of connectivity and technology- Telecommunications ie AXIATA and - Manufacturing companies ie Samsungto take the leap into interactive content Unifi TM
Solution ndash Smart Partnerships
Maximizing Unrelated Diversification
It is not a Fad but a trend
Smart TV is an inevitable trend says Baeguen Kang vice president of
research and development at South Koreas LG Electronics Co the worlds second-largest seller of TV sets by unit volume As people experienced smartphones and tablet PCs the larger screen on a TV is very attractive for apps and Web content
210 million TV sets sold world-wide had an Internet connection (2010)
21 50It will be the forecast in (2014)
Source Evan Ramstad (January 2011)A ldquoManufacturers Turn to Smart TV After 3-D Disappointsrdquo The Wall Street Journal online httponlinewsjcomarticleSB10001424052748704835504576059783074010902html
As technology develops Current cost is will drop exponentially reflecting the Moorersquos Law
Hence lowering the cost of access for interactive content
Example of Smart TV
Smart Hub It is a front facing interface just like a main menu
when consumers turn on their TV There are few utilities that consumers can choose to be entertained
Video ndash consumers can choose from array of video collections that required to be paid
Apps ndash an internet-enabled applications like You Tube Facebook Twitter Skype and others
Internet browsing ndash just like PC internet browsing
Music photo and TV watching
Smart ConnectivityWIFI enabled that allows consumers to connect to all mobile devices like smart phone tablet PC notebook and camera with Samsung Wireless Router called 1 foot This connectivity is being called ldquoAllSharerdquo by Samsung
httpotbresearchcomau200509report-1-industry-forum
MEDIA PRIMA IS CURRENTLY HERE
This will ultimately lead Media Prima to reduce it dependence on advertising revenue
Others ndash Utilising the SMART TV technology and Apps to create any existing Media Prima businesses
NEW Revenue Streams for Media Prima
To take advantage of SMART TV and collaborate with SMART TV manufacturers Media Prima can look into following utilities
Collaborate with manufacturers to allow consumers to browse and pay for Media Prima video collections
Selling local music for Malaysia market
Collaborate with local or international content developers to create Malaysia specific contents for paid subscription or free for common content to attract new consumers
How
Content Focus Leveraging on content to Embark on Revenue shifts
Long term sustainable leadership
Restructuring to liberateresources for Content
Sustainable Talent development -
Partnership
Riding the Technology Wave
Short term (2012) Mid Term (by 2013-2015) Long term 2015 beyond
Building Talents in the long run
Education Building on its strategic CSR ndash Media Prima could champion the
development of the content industry by partnering with local universities in the areas of technology media and communication
Crowd Sourcing To haste up the strategic CSR it too could embark on crowd
sourcing for content ndash via scripts and interactive content In which Media Prima could support a great idea and develop the ideas for monetization
This is a synergistic and natural development from the networks structure (open innovation)
Summary ndash Media Prima
Develop Talent Pool
Ensure Vibrant Content Industry
Technologycreates ubiquitous
Low Access Cost
To spur the industry forward
Strong talent develops Content development
demand for access
Strong content industry drives demand for Talent drives demand for content
Our recommendations are aligned to help spur the industry forwardhellip
Restructuring to liberateresources for Content
Sustainable Talent development -
Partnership
Riding the Technology Wave ndash Via Smart
Partnerships
References
References
1 Anon ldquoMedia Prima Berhad implements Accenture integrated broadcast systemrdquo Accenture Press Release httpnewsroomaccenturecomarticle_displaycfmarticle_id=5005 viewed 3 November 2011
2 Anon ldquoNew exciting and vibrant offerings from MPB television networks in 2010rdquo Media Prima Press Release httpwwwmediaprimacommypressreleasepressreleaseaspxid=150 viewed 3 November 2011
3 Anderson J ldquoResource-based competitiveness managerial implications of the resource-based viewrdquo Strategic Direction Vol26 No5 2010 pp1-2
4 Arman Arshad (2006) Size matters Retrieved December 2 2011 from asiaviewsorg httpwwwasiaviewsorgindexphpoption=com_contentampview=articleampid=2171headlinealias2171ampcatid=1headlinesampItemid=2
5 Asia Times (2007 November 29) Malaysian media giant grasps for Internet Retrieved November 3 2011 from httpwwwatimescomatimesSoutheast_AsiaIK29Ae02html
6 Barney JB amp Hesterly WS (2008) Strategic Management and Competitive Advantage The Five Forces Model of Environmental Threats pp39Prentice Hall
7 BBC (2011) BBC News product launches on connected TV Retrieved from bbccoukpressofficepressreleasesstories201106_june17newsshtml
8 Boston Consulting Group (2011) Lean Advantage in Media Boston Consulting Group
9 Boston Consulting Group (2011) Running Forward Walking Backward Boston Consulting Group
10 Business Times (2011) Media Prima net revenue grows to RM119b Kuala Lumpur New Straits Times
11 Business Times (2011) Media Prima on track to achie1048665ing 2011 target Retrieved from www1btimescomm1048668Current_NewsBTIMESarticlespimeArticle
References (1)
12 Business Times (2011) Media Prima Puncak Semangat in early talks Retrieved from httpwwwbtimescommyarticlespimmaArticle
13 Carl W Stern George Stalk Carl W Stern George Stalk Stern CW amp Stalk G (2011) Perspectives of Strategy from the Boston Consulting Group Retrieved December 3 2011 from Value Based Managementnet httpwwwvaluebasedmanagementnetmethods_bcgmatrixhtml
14 ecmlibra (2011) Adex momentum to taper off in 2012 ecmlibra
15 Gershon R A amp Ratnadeep S V (2004) Viacom Inc A Case Study in Transnational Media Management Journal of Media Business Studies 1 (1) 47-69
16 Grant RM ldquoThe resource-based theory of competitive advantage implications for strategy formulationrdquo California Management Review Vol 3 2011 httpwwwskynetie~karenArticlesGrant1_NBpdf viewed 15 November 2011
17 GreyReview (2011) TonTon Streaming Over 11 Million Video Hours A Month now with 16 millions registered users Retrieved from httpwwwgreyreviewcom20110731tonton-serving-over-1-1-million-video-hours-a-month-now-with-1-6-registered-users
18 Heavy Reading (2011) Telecom in TV Land A Roadmap to New Digital Media Ecosystem Retrieved from wwwheavyreadingcomdetailsaspsku_id=1773ampskuitem_itemid=1030
19 Hegedus N (2010) The Great Scare EBR 3 10-17
20 JohnsonGScholesK amp Whittington (2008) Exploring Corporate Strategy Competitive Forces ndash the Five Forces Framework pp 59-64 Prentice Hall
21 kinetic (2011) Moving World Asia Hong Kong
References (2)
22 Knowledgefaber (2009) Telcos Avatar - As Media Companies 20 Retrieved from httpknowledgefabercomindexphpoption=com_contentampview=articleampid=40telecom-and-media-convergenceampcatid=10telecomampItemid=42
23 Knowledgefaber (2011) Telcos Avatar - As Media Companies 20 Retrieved from httpknowledgefabercomindexphpoption=com_contentampview=articleampid=40
24 Malik O (2011) GIGAOM Retrieved from httpgigaomcom20110223old-media-is-being-unbundled-just-like-telecom-was
25 Maxis with TM Astro with TIME Best Strategy to IPTV Market Retrieved December 1 2011 httpbizthestarcommynewsstoryaspfile=201111business7704581ampsec=business
26 Media Prima (2010) Annual Report Media Prima Berhad27 Media Prima Berhad (2011) 11 Nov 2011 - New Exciting amp Vibrant Offerings From MPB Television Retrieved from
wwwmediaprimacommypressreleasepressreleaseaspxid=15028 Media Prima (2010) Sustainability Report Media Prima Berhad29 OSK (2011) Media Prima OSK30 Pocket-Lint (2011) Samsung Smart TV hits 2 million mark Retrieved from
httpwwwpocket-lintcomnews40593samsung-smart-tv-2-million31 PricewaterhouseCoopers (2011) Achieving corporate financial PwC32 PricewaterhouseCoopers (2007) Financial Reporting Standards (FRS) in Malaysia PricewaterhouseCoopers33 SKMM (MCMC) (2009) Advertising Development in Malaysia SKMM34 SKMM (MCMC) (2011) Content Development SKMM35 Techpinions (2011) Interactive TV Trends - How the TV experience is changing - Part II Retrieved from
httptechpinionscominteractive-tv-trends-E28093-how-the-tv-experience-is-changing-part-ii4066
References (3)
36 The Edge (2011) Media Prima best proxy to sector Retrieved from wwwtheedgemalaysiacom37 The Edge Malaysia (2011 September 26) Education the mother of all reforms Retrieved October 30 2011 from
httpwwwtheedgemalaysiacomin-the-financial-daily193478-education-the-mother-of-all-reformshtml38 The Star Online (2011) Main players in the competitive TV sector Retrieved from bizthestarcommynewsstoryasp
file=20111126business997401739 The Star Online (2011) Maxis ready to move up value Retrieved from
bizthestarcommynewsstoryaspfile=201111business7704581ampse40 The Star Online (2011) New players enter the TV Retrieved from
bizthestarcommynewsstoryaspfile=20111126business997300841 The Star Newspaper (December 1 2011) Capital TV to make its debut today42 The Star Online (January 1 2011) Maxis ready to move up value chain Retrieved December 3 2011
httpbizthestarcommynewsstoryaspfile=201111business7704581ampsec=business43 The Star Online (2011 April 21) Media Prima to invest more on local content Retrieved October 30 2011 from C
Usersa34ffzzDesktopMedia PrimaUsed articlesMedia Prima to invest more in local contentmht44 Time Warners (2010) Annual Report Time Warners45 WHAT HI FI (2011) Samsung aims for 50m TV sales worldwide in 2012 set to announce launch date for Google TV
product Retrieved from httpwwwwhathificomnewssamsung-aims-for-50m-tv-sales-worldwide-in-2012-set-to-announce-launch-date-for-google-tv-produ
46 Woroch G A (1996) Turning the Cables Elsevier47 Zanuddin H (2007) Political influence in Malaysia and Thailand media sector Jati Vol12
- MEdiA PRIMA
- Agenda
- Company Profile
- Media Primarsquos Commitment amp Direction moving forward
- Media Industry Business Model ndash Content Driven
- Our Tasks ndash How
- PEST Analysis
- Politics Legal Issues amp Impact
- Economic Issues and Impact
- Social Issues and Impact
- Social Issues and Impact
- Technology Issues and Impact
- In short
- Porterrsquos 5 Forces Analysis
- Porterrsquos Five Forces ndash Competitive Analysis
- Financials
- Media Prima Financial Highlights
- However in further analysis
- Value Chain Analysis
- Resource Based View
- In the context of the Content industry value chain Mapped again
- Appraising capabilities which drives profitability
- Mapping Media Prima revenue streams against the Diversification
- Slide 25
- Related Constrained Diversification
- Related Constrained Diversification (2)
- Slide 28
- Related Linked Diversification
- Slide 30
- Social Responsibility Analysis
- Social Responsibility
- Social Responsibility ndash cont
- Media Prima Acknowledges it various stakeholder via Stakeholder
- It has moved on to 2nd stage of CSR
- SWOT Analysis
- SWOT Analysis ndash Summary
- Media Primarsquos Current situation in summary
- Moving forward 2012 and beyond
- Recommended Destination and future growth of Media Prima
- How Moving from aggregator to content creator
- How Moving from aggregator to content creator (2)
- Creating a Content focus agency All these can be enable via
- Using financial view to free resources for content development
- By changing the business segment reporting it also affects the
- How Moving from aggregator to content creator (3)
- Technology ndash Enable Media Prima to leap into Interactive Conten
- It is not a Fad but a trend
- Slide 50
- Example of Smart TV
- This will ultimately lead Media Prima to reduce it dependence o
- NEW Revenue Streams for Media Prima
- How
- Building Talents in the long run
- Summary ndash Media Prima
- References
- References
- References (1)
- References (2)
- References (3)
-
Company Profile
1 Media Prima Berhad an integrated media investment group competes amongst the media conglomerate of Malaysia It is the only integrated media player in Malaysia
2 Its core business is in CONTENT distribution aggregation ndash generating revenue via selling advertising space although it is moving towards content creation
Source httpwwwmediaprimacommy HBS ndash Article
Media Primarsquos Commitment amp Direction moving forward
ldquoContent and integration of platforms are our drivers of growthhellip our content needs to be platform-agnostic engaging relevant
ldquohellipour ability to direct their (Advertiserrsquos) advertising to precise target groups across hellip fully-integrated range of media is the key to our successrdquo
Datorsquo Amrin Group Managing Director of Media Prima Berhad (2011)
Source httpwwwmediaprimacommypressreleasepressreleaseaspxid=150
Media Industry Business Model ndash Content Driven
Business Model Mediarsquos revenue is driven by
1 Source httpwwwmediaprimacommy2 HBS ndash Article
Hence our task is to help Media Prima continue to attract consumer (viewer) amp
to increase customerrsquos (advertiser) dependence on Media Primarsquos content
Consumers Attracting viewers to content
Customers a) Revenue from Advertisers ie Sponsorship and placing advertising in
channels of relevant content which their target audience watches
b) Revenue from Subscribers of Content ie Online TV (TontonTV) Newspapers Digital Content
Our Tasks ndash How - continue to attract consumer (viewer) amp - to increase customerrsquos (advertiser) dependence on Media
Primarsquos content
The solutions lie within the understanding of
bull the environment around the organization
bull its competitive landscape
bull the organizationrsquos internal capabilities and
bull strategies it has embarked upon
PEST Analysis
Politics Legal Issues amp Impact
Source 1 httpenwikipediaorgwikiDigital_television_in_Malaysiacite_note-102 bizthestarcommynewsstoryaspfile=20111126business99740173 httpwwwconsumerorgmyindexphpdevelopmentprivate-sector479-astros-monopoly-has-short-changed-malaysian-tv-viewers
Change from Analogue TV to Digital TV by 2015bull Analogue TV broadcasts would be shut down in stages and due
to complete by 2015 as per recommendation from ASEAN bull Digital will open is in evitable
Deregulation of content bull But the regulator of the industry has yet to come up with details
on how it will go about disbanding the monopoly on content
Would do away with monopoly in the pay-TV broadcasting sectorbull With the introduction of newer IPTV services bull And Astrorsquos exclusive Pay TV license will end by 2017
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 (F)
-5
0
5
10
15
20
25
16
23
2
910
17
3 4
1513
7
1614
68
1
45
75
6 65
-2
726
ADEX Growth GDP Growth
Slowing down of GDP
Economic Issues and Impact
Source httpwwwtheedgemalaysiacomin-the-financial-daily196495-slower-tv-adex-points-to-quiet-adspend-for-the-rest-of-2011html
bull Ad Ex (Advertising Expenditure) fluctuates with GDP And as Media Primarsquos main source of revenue is from Ad Ex it will be affected by the projected slow down of the 2012 economy as multinational advertisers become more cautious
bull Organization for Economic Cooperation and Development projected a 03 growth in 2012 instead of the 2 forecast
bull Malaysian perspective GDP growth of 51 (Nomura)
51 2012
Social Issues and ImpactOnline creeps in time spent increases and trust levels bull More time spent on Online gt TV and consumer are referring to
online to make purchase decision hence cross platform presence is needed to reach consumer (Malaysian Digital Consumer Report 2011)
Reading Magazine
Reading Newspapers
Video on Mobile Phone
Radio Stream via Internet
Internet via Mobile Phone
Online Games on PC
Listening to Radio
Watching TV
Internet
0 5 10 15 20 25
3434751535658
106198
Average Weekly Hours Spent on different media
Online activities beyond Watching TV
Source 1 QuickPlay Media 2 httpwwwgartnercomtechnologyhomejsp
httpwwwthemalaysianreservecommainindexphpoption=com_contentampview=articleampid=899move-over-tv-the-net-is-where-the-action-isampcatid=36corporate-malaysiaampItemid=120
Online activities beyond Newspapers and Magazines
76 of consumers indicate that they watch more TV on tablet than before a shift in media consumption behavior
Social Issues and Impact
Source Kinetic Insights on People on the Move Moving World Asia (2011)
Consumers are On The Move Disconnect from traditional Channels bull 107 Hr Weekday -gt Highest in ASIAbull Requires mobile channel to deliver and keep up with consumers bull Moving from radio -gt mobile phones -gt tablets
Outdoor
On Mobile
BUT
Broadband Penetration
Mobile Penetration
Technology Issues and Impact
Household broadband penetration at 615 and will grow to 75 by 2015
75 107
Source httpwwwthemalaysianreservecommainindexphpoption=com_contentampview=articleampid=899move-over-tv-the-net-is-where-the-action-isampcatid=36corporate-malaysiaampItemid=120
Malaysia a Digital Nation Netizens (constant access to internet) make up 40 of the
total population of 27 million Tablet PC usage and ownership netizen are expected to
increase from 18 to 75 in 2012
In short
1 Legislative deregulation spurs the attractiveness of the
market
2 Economic impose pressures for 2012
3 Social shifts leads the way to new media
4 Technology is the catalytic enable of Media organization
shift into New Media
Porterrsquos 5 Forces Analysis
Astro is the only direct challenger as it is the closest to an integrated media organisation
Power of Substitutes 1 Technology and Sharing of
screen ndash Moving away from TV to mobile content and social media decreases the share of attention
2 Self Generated content by Netizens ndash User Generated Content - youtube
Power of Suppliers 1 Content is king and that is what
drives viewership ndash and not the media organisation that aggregates it
2 Content lead experience is dependent on technological development
Threat of New Entrants 1 Introduction of new IPTV which
offers variety of channelsDETV and ABN
2 New entrants have infrastructure backing hence offering product bundling of triple play ie Unifi YTL Comms
Power of Consumers 1 Consumer Moving away from
Print TV and Radio - they are the ones that drive demand
2 Advertiser have a hard time reaching the fragmented audience (beyond traditional media)
Porterrsquos Five Forces ndash Competitive Analysis
Customers are dependant on content (Media Prima) to reach consumers
Competitive Rivalry
Source bizthestarcommynewsstoryaspfile=20111126business9974017
Nevertheless Media Prima is still in control as it complements their services by offering them content
But its audiences are fragmented across 150 channels versus ours which focus 4 stations
Content creators and aggregators need to mirror consumerrsquos media consumption trends
Can be mitigated by internalizing content development but Media Prima needs to keep its content up to date with technology development
Financials
Media Prima Financial Highlights
1327millionProfit After Tax and Minority Interest (ldquoPATAMIrdquo)September 2011 (9 Months)
in the corresponding period for 20101105 million
A healthy GROWTH
Source Media Prima Annual Report 2011
However in further analysisHowever the bulk of its revenue comes from advertising that is in turn dependent on the economic outlook the question arises as to whether Media Prima should diversify its income stream Especially when gt80 of Astrorsquos revenue is on subscription
Reduce Media Primarsquos dependence on advertising revenueas it highly fluctuates with the market conditions
Group
2010 2009
RMrsquo000 RMrsquo000
Advertising revenue 1237961 80 725857 98 Circulation revenue 290691 19 0 Sale of programmes videos cable and laser rights and media revenue 15408 1 11287 2 Fees from provision of production services and sponsorship 2583 0 6885 1 Fees from provision of procurement services Dividends from subsidiaries Dividends from an associate 1546643 100 744029 100
Source Media Prima Annual Report 2011
Value Chain Analysis
Resource Based View
The resource-based view is grounded in the perspective that a firm is a collection of unique resources and capabilities that provides the basis for its strategies and the primary source of its return
SupportActivities
Primary Activities
Strategy Development 4
Resource Identification 1Capabilities Determination 2Competitive advantage 3
Resource Gap Analysis 5
Source Porter Value Chain Robert M Grant
Process of CONTENT aggregation Process of CONTENT creation
In the context of the Content industry value chainMapped against Porterrsquos Value chain
Createbull Scriptwritersbull Actorsbull Animatorsbull Gamesbull developer
Publishbull Production housesbull TV Advert Film
Packagebull Media Primabull Astrobull RTMbull Maxisbull Digibull Celcom
DistributebullTelekombull MBNS (Measat)bull RTM
Content industry value chain
Porterrsquos Value Chain
Human Resource Management
Technological DevelopmentProcurement
Marketing amp Sales
Develop Talent Pool
Ensure Vibrant Content Industry
Technologycreates ubiquitous
Low Access Cost
To spur the industry forward
Strong talent develops Content development
demand for access
Strong content industry drives demand for Talent Drive demand for content
Services
Source SKMM Regulatory Compliance Course for Telcos amp Celcos
MARKETINGStrategies are focused on branding activities and marketing communications aggressive Aamp P and active participation in on-ground activities that promote brand awareness And Established Integrated marketing arm
TECHNOLOGY DEVELOPMENT Alt Media the digital arm successfully launched TonTon TV a cutting edge video portal that offers customization and interactivity of social networking Giving Media Prima an advantage of being able to direct advertisers to precise target groups
PROCUREMENT Stringent supplier selection in terms of 70 are local suppliers Sourcing of content which are relevant responsible engaging especially with the advent of new media
SERVICESMedia Prima fully owns Primeworks Studio helps maximize the economies of scale in content production whilst enhancing the quality of content of all television networks
HUMAN CAPITALPrioritize human capital development in news and editorial operation radio network artist and talent management etc Creating an in-house talent pool to develop content
Content Barriers to entry
ndash securing talents - Leadership position in development of local talent and content to leading the industry
Vertical bargaining power
DifferentiationAnd Competitive advantage
- Consumer insights - Integrated media organization
Activities Benefit
Competitiveness leading to Margins
Goal
Appraising capabilities which drives profitability
Source Media Prima Annual Report 2011
Mapping Media Prima revenue streams against the Diversification Map
HIGH
LOW
HIGHLOW
Shar
ing
Ope
ratio
nal R
elat
edne
ss B
etw
een
Busi
ness
Corporate Relatedness Transferring skills into business through corporate HQ
Related Constrained Diversification
Vertical Integration Market Power
Content Creation and Talent development Prima Works enables Media Prima to create localized content for the local market
Both operation and Corporate Relatedness (Rare Capability and can create Diseconomies of scale)
New Media is both an operation and corporate relatedness diversification as it require Media Prima to go beyond playing the role as aggregator but also content producer leveraging on its strength
Unrelated Diversification (Financial Economies)This area of diversification which is unrelated in operation and skills transfer Media Prima has not exploited
Related Linked Diversification (Economies of Scope)As newscontent are cross platforms and the business models are the same Media Prima was able to share similar content across platforms and acquire related companies
Opportunities - Create more segmented programmes and move into interactive content
OpportunitiesHowever more needs to be done in the new are with the advent of Interactive TV
Opportunities Although unrelated area often has high risk it is crucial at this point for Media Prima to extend into this area in smart partnerships with telecommunication companies ie Axiata TM
OpportunitiesMedia Prima has maximized its diversification strategy in this area BUT the market is yet to be ready amp there is a need to link both NSTP and Media Prima
CurrentPrimeworks Studios Sdn Bhd (owned by Media Prima) is Malaysias biggest production company producing TV content since 1984 and feature films since 1994 generating over 5000 hours of TV content and 10 movies annually
Related Constrained Diversification
ChallengesBut the reality is that it is not able to compete with the myriad of channels of its competitors which are dependent on overseas content
Opportunities However more needs to be doneas channels become more segmented-Procuring more content to compete on quantity - or it could change the content game and move into interactive content
Source Creation of An Integrated Media Group 2009 httpwwwmediaprimacommy
TV Newspaper
Radio
Outdoor
New Medi
a
4 3 3
1 2
gt150
17
2 1
gt14
3
22
22
YTL Comms
ABN 100
Ove
rvie
w o
f com
petit
ors
thei
r bus
ines
s po
rtfol
ios
Related Constrained Diversification
Media Company
Advertisers Corporations(Customers )
Viewers(Consumers)
Consumer Pay for Product
CONTENT
Advertiser payFor (Ad space) $$
1 httpwwwlongtailcomthe_long_tail200809the-three-kindshtml
$
Opportunities The potential here is also for Media Prima to drive content syndication ndash providing content to other media stations abroad
Media Prima is currently doing by syndicating content to ASTRO and Unifi
Competitors
Media Company
Viewers(Consumers)
CONTENT PRO
1 httpwwwlongtailcomthe_long_tail200809the-three-kindshtml
$
C
C
C FREE CONTENT FREE CONTENT
FREE CONTENT
Both operation and Corporate Relatedness
CurrentMedia Primarsquos intention to leverage on both its operations and Corporate relatedness to shift its revenue structure to be less dependent on advertising revenue and move toward subscriber revenue where a few subsidies everyone else via versioning ldquoprice discriminationrdquo
ChallengesIt has to some degree been successful to introduce this ndash via TonTon TV however the revenue from this segment has yet to be significant
To date there are 16 show packages and over 50 single episodes for viewers to purchase ndash which is limited
Opportunities However more needs or can be done in this new area with the advent of Interactive TV
Media Company
Advertisers Corporations(Customers )
Viewers(Consumers)
Consumer Pay for Product
FREE
CONTENT
Advertiser payFor (Ad space) $$
Source Website1 httpwwwlongtailcomthe_long_tail200809the-three-kindshtml2 Creation of An Integrated Media 2009 Grouphttpwwwmediaprimacommyinvestorcentercp2009NSTPGOpdf3 httpwwwtheedgemalaysiacomin-the-financial-daily164479-media-prima-best-proxy-to-sector-says-oskhtml 4 Media Prima net revenue grows to RM119b 2011 httpwwwbtimescommyCurrent_NewsBTIMESarticles20111118202427Articleindex_html
Related Linked Diversification
Current Media Prima has expanded across media with the idea in the hope of a) Leveraging on its expertise of
Advertisers subsiding viewers model b) Share back-office consolidation which
creates operations efficiencies in operation ie Editorial Talents
c) Cross marketing opportunities across platforms - Where Advertisers could purchase cross buy across platforms
Challenges Market ndash Not readyThe market is not ready for bundled and cross market offering According to Dato Amrin Awaluddin Group Managing Director of Media Prima no doubt there was head roads but more effort needs to be done to integrate the platforms better
Internally ndash Structure is not integrated In terms of unlocking NSTPs value he says it would be done in two phases `First is more short term like consolidating in terms of operations while the second stage will entail selling of products and cross-promoting our content which would be an ongoing revenue- generation exerciselsquo And he quoted Joran a property of Berita Harian (NST) ndash a nationwide fishing event being brought to TV3 as an example
Opportunities - The structure impeded cross platform and working in silo
does not help
- Hence there is a need to further shift paradigms via a structural change to free up resources to focus on content
- The market will not know what they want until we present them with the opportunity benefit
Social Responsibility Analysis
Social Responsibility
Media Primarsquos approach to Social Responsibility is based on the key triple bottom line ndash social environmental and economic It considers the socio-economic impact of its business activities in the aim to create value to its stakeholders via the 4 categories ie community workplace marketplace and environment
Community1EducationFocusing on education to raise awareness of the importance of education and increase the academic standards of underprivileged children and underperforming schools eg PINTAR Programme NST School Sponsorship Programme
2 HumanitarianRaise funds for humanitarian aid and provided updates on the local and world disaster crisis to the public and raised awareness of the funds eg Humanitarian Aid for Gaza Humanitarian Aid for Flood Victims in Pakistan
3 Other community programmesProduced outreach programmes to reflect and highlight local and community issues and to be the eyes and ears of the public and engage in public awareness through its businessesrsquo media resources and platforms in print interactive media and television eg Project Sunshine
Social Responsibility ndash cont
Environment - EfficiencyStrongly committed to being an environmentally friendly Company by using recycled paper especially in its newspapers business efficient usage of electricity in offices water management reducing amount of waste produced throughout its businesses and other environmental initiatives such as lsquosave our beachrsquo project and WWFrsquos Earth Hour
Marketplace ndash Responsible ContentFocusing on product responsibility in providing high quality products and is committed to establishing a horizontal specialisation system based on collaboration with stakeholders The production flow is illustrated in the diagram below
Workplace ndash Right CultureIt aims to create a workplace where its people have the opportunity to be the best they possibly can to have the right culture safe working environment and human capital development with fair processes
Media Prima Acknowledges it various stakeholder via Stakeholders Management
Media Prima is aware of the diversity of its stakeholders and the different goals and demand of its stakeholders
The Company conducts active engagement with its stakeholders to fully understand their needs and increase their trust in the Company through formal and informal mechanisms as follows
It has moved on to 2nd stage of CSR
1st Generation 2nd Generation 3rd Generation
Philanthropic short term risk management
Product Process innovation business and corporate governance model long term sustainability Strategic CSR
3rd Generation Multi- stakeholder standards and partnerships institutional building CR- Oriented advocacy and public policy
Opportunity
What is next for Media Prima to shape the industry
Creating content that generate advertising dollars amp donations of the poor social awareness
By leveraging on its content distribution capabilities
SWOT Analysis
SWOT Analysis ndash Summary
Strengths 1 Strong market share in TV segment2 Malaysiarsquos only integrated media
organization- have vertical and horizontal diversification advantage
3 Established value chains strength which complements the required core competencies
4 Have move across 3 revenue models
Weaknesses1 limited number of stations variety and choice
for consumer2 Despite diversification revenues still mainly
driven by advertisers and TV -gt cross platforms is needed
3 Financial segmentation may hinder potentials of the company
Opportunities 1 Broadband infrastructure ndash via HSBB2 Development of technology ndash creating
medias gadgets that increase digital interaction and content consumption
3 Consumers are willing to pay for content4 Possible deregulation of content ndash leveling
the playing field
Threats 1 2012 forecasting a financial slow down
affecting Ad Ex ndash hence revenue is reduced2 Increase competition New Entrants Pay TV
player amp continual competition from ASTRO3 Changing consumer habits towards media
consumption -gt moving away from traditional media ndash hence have to fight for consumerrsquos attention
Right Technology (Gadget and Infrastructure) at the Right time (deregulation) amp Right consumers (shift in media habits and willingness to pay for content ndash ASTRO as indicator)
Vertical Value Chain advantage to compete in content development
Media Primarsquos Current situation in summary
+VE
-VE Revenue dependent on advertising which is affected correlated to GDP
Resources organization structure holds back effectiveness of organization
Moving forward2012 and beyond
Recommended Destination and future growth of Media Prima
Revenue mainly from advertising
Revenue from advertising
Content SubscriptionBy viewers
Content driven Complementary Services for advertiser (Auxillary Services)
Media Prima
Media Prima
Content Syndicationto competitors
+
How Moving from aggregator to content creator
Content Focus Leveraging on content to Embark on Revenue shifts
Long term sustainable leadership
Restructuring to liberateresources for Content
Sustainable Talent development -
Partnership
Riding the Technology Wave
Short term (2012) Mid Term (by 2013-2015) Long term 2015 beyond
How Moving from aggregator to content creator
Content Focus Leveraging on content to Embark on Revenue shifts
Long term sustainable leadership
Restructuring to liberateresources for Content
Sustainable Talent development -
Partnership
Riding the Technology Wave
Short term (2012) Mid Term (by 2013-2015) Long term 2015 beyond
Creating a Content focus agency All these can be enable via the following means
Demand- The content creation race bull There is a need to free up empower human capital to create more content which are relevant
segmented engaging and entertaining
How does media prima refocus its resources into where it matters Instead of multiple teams doing the same thing ndash there is a challenge to create a lean and efficient organization
Challenges Freeing Resources
Instead of looking at a Media based financial segment reporting structurally force the teams to integrate by changing the dynamics of PampL
Next page
Solution Redefining Business Units Paradigms
Take a step up from producing beyond the current vernacular program to meet shifting consumer needs
Challenges ndash Lifestyle lead Variety
Creating Channel programs which are target segment focus based on lifestyles hellip
Acquisition of content as content regulations will be relaxed
Solution Target Segment focus
Using financial view to free resources for content developmentFinancial segment reporting may create a ldquosilordquo mentality ndash which encourages each head of business to protect their bottom line Hence a less effective in operations
Our recommendation is to expand content creation to cut across and shift paradigms to free up resources and focus on new revenue streams And create new content for different segment
Tele
visi
on N
etw
ork
Radi
o N
etw
ork
Out
door
Med
ia
Prin
t M
edia
Oth
er M
edia
Current Financial Segment Reporting
Tele
visi
on N
etw
ork
Radi
o N
etw
ork
Out
door
Med
ia
Prin
t M
edia
Oth
er M
edia
Production
Content
Subscription
Advertising
Recommended Segment Reporting
Lifestyle Segments
Lifestyle Segments
Lifestyle Segments
Lifestyle Segments
Lifestyle Segments
Lifestyle Segments
By changing the business segment reporting it also affects the company structure
The benefits - Flexibility and empowers knowledge
economy ndash talent content driven
- Builds at strong work culture which may be replicated in the region
- Expansion to embark on talent and content crowd sourcing - open innovation creation
Media Prima can take this opportunity to achieve SPECIALIZATION COORDINATION AND COOPERATION Currently team structure ndash of Integrated Marketing Division is created as a temporary solution hellip to enable integration It will move towards a network model to haste integration fast and response to technology and consumer needs
Subcription
Advertising
Production
TechnologyPartner
Content
How Moving from aggregator to content creator
Content Focus Leveraging on content to Embark on Revenue shifts
Long term sustainable leadership
Restructuring to liberateresources for Content
Sustainable Talent development -
Partnership
Riding the Technology Wave
Short term (2012) Mid Term (by 2013-2015) Long term 2015 beyond
Technology ndash Enable Media Prima to leap into Interactive Content
Interactive Content
UniFi Axiata
Media Prima
Electronics Manufacturer
Demand - A ready market bull There is a latent demand for content-gt consumers are
willing to Pay bull Technology has accustomed consumers to interacting
with contentbull Regulatory push to shift from analogue to digital by
2015
However unlike Media Primarsquos western counterparts ie Time Warner Communication Media Prima does not have the advantages of cable infrastructure
Challenges ndash Limitation
Media Prima could depend on existing suppliers of connectivity and technology- Telecommunications ie AXIATA and - Manufacturing companies ie Samsungto take the leap into interactive content Unifi TM
Solution ndash Smart Partnerships
Maximizing Unrelated Diversification
It is not a Fad but a trend
Smart TV is an inevitable trend says Baeguen Kang vice president of
research and development at South Koreas LG Electronics Co the worlds second-largest seller of TV sets by unit volume As people experienced smartphones and tablet PCs the larger screen on a TV is very attractive for apps and Web content
210 million TV sets sold world-wide had an Internet connection (2010)
21 50It will be the forecast in (2014)
Source Evan Ramstad (January 2011)A ldquoManufacturers Turn to Smart TV After 3-D Disappointsrdquo The Wall Street Journal online httponlinewsjcomarticleSB10001424052748704835504576059783074010902html
As technology develops Current cost is will drop exponentially reflecting the Moorersquos Law
Hence lowering the cost of access for interactive content
Example of Smart TV
Smart Hub It is a front facing interface just like a main menu
when consumers turn on their TV There are few utilities that consumers can choose to be entertained
Video ndash consumers can choose from array of video collections that required to be paid
Apps ndash an internet-enabled applications like You Tube Facebook Twitter Skype and others
Internet browsing ndash just like PC internet browsing
Music photo and TV watching
Smart ConnectivityWIFI enabled that allows consumers to connect to all mobile devices like smart phone tablet PC notebook and camera with Samsung Wireless Router called 1 foot This connectivity is being called ldquoAllSharerdquo by Samsung
httpotbresearchcomau200509report-1-industry-forum
MEDIA PRIMA IS CURRENTLY HERE
This will ultimately lead Media Prima to reduce it dependence on advertising revenue
Others ndash Utilising the SMART TV technology and Apps to create any existing Media Prima businesses
NEW Revenue Streams for Media Prima
To take advantage of SMART TV and collaborate with SMART TV manufacturers Media Prima can look into following utilities
Collaborate with manufacturers to allow consumers to browse and pay for Media Prima video collections
Selling local music for Malaysia market
Collaborate with local or international content developers to create Malaysia specific contents for paid subscription or free for common content to attract new consumers
How
Content Focus Leveraging on content to Embark on Revenue shifts
Long term sustainable leadership
Restructuring to liberateresources for Content
Sustainable Talent development -
Partnership
Riding the Technology Wave
Short term (2012) Mid Term (by 2013-2015) Long term 2015 beyond
Building Talents in the long run
Education Building on its strategic CSR ndash Media Prima could champion the
development of the content industry by partnering with local universities in the areas of technology media and communication
Crowd Sourcing To haste up the strategic CSR it too could embark on crowd
sourcing for content ndash via scripts and interactive content In which Media Prima could support a great idea and develop the ideas for monetization
This is a synergistic and natural development from the networks structure (open innovation)
Summary ndash Media Prima
Develop Talent Pool
Ensure Vibrant Content Industry
Technologycreates ubiquitous
Low Access Cost
To spur the industry forward
Strong talent develops Content development
demand for access
Strong content industry drives demand for Talent drives demand for content
Our recommendations are aligned to help spur the industry forwardhellip
Restructuring to liberateresources for Content
Sustainable Talent development -
Partnership
Riding the Technology Wave ndash Via Smart
Partnerships
References
References
1 Anon ldquoMedia Prima Berhad implements Accenture integrated broadcast systemrdquo Accenture Press Release httpnewsroomaccenturecomarticle_displaycfmarticle_id=5005 viewed 3 November 2011
2 Anon ldquoNew exciting and vibrant offerings from MPB television networks in 2010rdquo Media Prima Press Release httpwwwmediaprimacommypressreleasepressreleaseaspxid=150 viewed 3 November 2011
3 Anderson J ldquoResource-based competitiveness managerial implications of the resource-based viewrdquo Strategic Direction Vol26 No5 2010 pp1-2
4 Arman Arshad (2006) Size matters Retrieved December 2 2011 from asiaviewsorg httpwwwasiaviewsorgindexphpoption=com_contentampview=articleampid=2171headlinealias2171ampcatid=1headlinesampItemid=2
5 Asia Times (2007 November 29) Malaysian media giant grasps for Internet Retrieved November 3 2011 from httpwwwatimescomatimesSoutheast_AsiaIK29Ae02html
6 Barney JB amp Hesterly WS (2008) Strategic Management and Competitive Advantage The Five Forces Model of Environmental Threats pp39Prentice Hall
7 BBC (2011) BBC News product launches on connected TV Retrieved from bbccoukpressofficepressreleasesstories201106_june17newsshtml
8 Boston Consulting Group (2011) Lean Advantage in Media Boston Consulting Group
9 Boston Consulting Group (2011) Running Forward Walking Backward Boston Consulting Group
10 Business Times (2011) Media Prima net revenue grows to RM119b Kuala Lumpur New Straits Times
11 Business Times (2011) Media Prima on track to achie1048665ing 2011 target Retrieved from www1btimescomm1048668Current_NewsBTIMESarticlespimeArticle
References (1)
12 Business Times (2011) Media Prima Puncak Semangat in early talks Retrieved from httpwwwbtimescommyarticlespimmaArticle
13 Carl W Stern George Stalk Carl W Stern George Stalk Stern CW amp Stalk G (2011) Perspectives of Strategy from the Boston Consulting Group Retrieved December 3 2011 from Value Based Managementnet httpwwwvaluebasedmanagementnetmethods_bcgmatrixhtml
14 ecmlibra (2011) Adex momentum to taper off in 2012 ecmlibra
15 Gershon R A amp Ratnadeep S V (2004) Viacom Inc A Case Study in Transnational Media Management Journal of Media Business Studies 1 (1) 47-69
16 Grant RM ldquoThe resource-based theory of competitive advantage implications for strategy formulationrdquo California Management Review Vol 3 2011 httpwwwskynetie~karenArticlesGrant1_NBpdf viewed 15 November 2011
17 GreyReview (2011) TonTon Streaming Over 11 Million Video Hours A Month now with 16 millions registered users Retrieved from httpwwwgreyreviewcom20110731tonton-serving-over-1-1-million-video-hours-a-month-now-with-1-6-registered-users
18 Heavy Reading (2011) Telecom in TV Land A Roadmap to New Digital Media Ecosystem Retrieved from wwwheavyreadingcomdetailsaspsku_id=1773ampskuitem_itemid=1030
19 Hegedus N (2010) The Great Scare EBR 3 10-17
20 JohnsonGScholesK amp Whittington (2008) Exploring Corporate Strategy Competitive Forces ndash the Five Forces Framework pp 59-64 Prentice Hall
21 kinetic (2011) Moving World Asia Hong Kong
References (2)
22 Knowledgefaber (2009) Telcos Avatar - As Media Companies 20 Retrieved from httpknowledgefabercomindexphpoption=com_contentampview=articleampid=40telecom-and-media-convergenceampcatid=10telecomampItemid=42
23 Knowledgefaber (2011) Telcos Avatar - As Media Companies 20 Retrieved from httpknowledgefabercomindexphpoption=com_contentampview=articleampid=40
24 Malik O (2011) GIGAOM Retrieved from httpgigaomcom20110223old-media-is-being-unbundled-just-like-telecom-was
25 Maxis with TM Astro with TIME Best Strategy to IPTV Market Retrieved December 1 2011 httpbizthestarcommynewsstoryaspfile=201111business7704581ampsec=business
26 Media Prima (2010) Annual Report Media Prima Berhad27 Media Prima Berhad (2011) 11 Nov 2011 - New Exciting amp Vibrant Offerings From MPB Television Retrieved from
wwwmediaprimacommypressreleasepressreleaseaspxid=15028 Media Prima (2010) Sustainability Report Media Prima Berhad29 OSK (2011) Media Prima OSK30 Pocket-Lint (2011) Samsung Smart TV hits 2 million mark Retrieved from
httpwwwpocket-lintcomnews40593samsung-smart-tv-2-million31 PricewaterhouseCoopers (2011) Achieving corporate financial PwC32 PricewaterhouseCoopers (2007) Financial Reporting Standards (FRS) in Malaysia PricewaterhouseCoopers33 SKMM (MCMC) (2009) Advertising Development in Malaysia SKMM34 SKMM (MCMC) (2011) Content Development SKMM35 Techpinions (2011) Interactive TV Trends - How the TV experience is changing - Part II Retrieved from
httptechpinionscominteractive-tv-trends-E28093-how-the-tv-experience-is-changing-part-ii4066
References (3)
36 The Edge (2011) Media Prima best proxy to sector Retrieved from wwwtheedgemalaysiacom37 The Edge Malaysia (2011 September 26) Education the mother of all reforms Retrieved October 30 2011 from
httpwwwtheedgemalaysiacomin-the-financial-daily193478-education-the-mother-of-all-reformshtml38 The Star Online (2011) Main players in the competitive TV sector Retrieved from bizthestarcommynewsstoryasp
file=20111126business997401739 The Star Online (2011) Maxis ready to move up value Retrieved from
bizthestarcommynewsstoryaspfile=201111business7704581ampse40 The Star Online (2011) New players enter the TV Retrieved from
bizthestarcommynewsstoryaspfile=20111126business997300841 The Star Newspaper (December 1 2011) Capital TV to make its debut today42 The Star Online (January 1 2011) Maxis ready to move up value chain Retrieved December 3 2011
httpbizthestarcommynewsstoryaspfile=201111business7704581ampsec=business43 The Star Online (2011 April 21) Media Prima to invest more on local content Retrieved October 30 2011 from C
Usersa34ffzzDesktopMedia PrimaUsed articlesMedia Prima to invest more in local contentmht44 Time Warners (2010) Annual Report Time Warners45 WHAT HI FI (2011) Samsung aims for 50m TV sales worldwide in 2012 set to announce launch date for Google TV
product Retrieved from httpwwwwhathificomnewssamsung-aims-for-50m-tv-sales-worldwide-in-2012-set-to-announce-launch-date-for-google-tv-produ
46 Woroch G A (1996) Turning the Cables Elsevier47 Zanuddin H (2007) Political influence in Malaysia and Thailand media sector Jati Vol12
- MEdiA PRIMA
- Agenda
- Company Profile
- Media Primarsquos Commitment amp Direction moving forward
- Media Industry Business Model ndash Content Driven
- Our Tasks ndash How
- PEST Analysis
- Politics Legal Issues amp Impact
- Economic Issues and Impact
- Social Issues and Impact
- Social Issues and Impact
- Technology Issues and Impact
- In short
- Porterrsquos 5 Forces Analysis
- Porterrsquos Five Forces ndash Competitive Analysis
- Financials
- Media Prima Financial Highlights
- However in further analysis
- Value Chain Analysis
- Resource Based View
- In the context of the Content industry value chain Mapped again
- Appraising capabilities which drives profitability
- Mapping Media Prima revenue streams against the Diversification
- Slide 25
- Related Constrained Diversification
- Related Constrained Diversification (2)
- Slide 28
- Related Linked Diversification
- Slide 30
- Social Responsibility Analysis
- Social Responsibility
- Social Responsibility ndash cont
- Media Prima Acknowledges it various stakeholder via Stakeholder
- It has moved on to 2nd stage of CSR
- SWOT Analysis
- SWOT Analysis ndash Summary
- Media Primarsquos Current situation in summary
- Moving forward 2012 and beyond
- Recommended Destination and future growth of Media Prima
- How Moving from aggregator to content creator
- How Moving from aggregator to content creator (2)
- Creating a Content focus agency All these can be enable via
- Using financial view to free resources for content development
- By changing the business segment reporting it also affects the
- How Moving from aggregator to content creator (3)
- Technology ndash Enable Media Prima to leap into Interactive Conten
- It is not a Fad but a trend
- Slide 50
- Example of Smart TV
- This will ultimately lead Media Prima to reduce it dependence o
- NEW Revenue Streams for Media Prima
- How
- Building Talents in the long run
- Summary ndash Media Prima
- References
- References
- References (1)
- References (2)
- References (3)
-
Media Primarsquos Commitment amp Direction moving forward
ldquoContent and integration of platforms are our drivers of growthhellip our content needs to be platform-agnostic engaging relevant
ldquohellipour ability to direct their (Advertiserrsquos) advertising to precise target groups across hellip fully-integrated range of media is the key to our successrdquo
Datorsquo Amrin Group Managing Director of Media Prima Berhad (2011)
Source httpwwwmediaprimacommypressreleasepressreleaseaspxid=150
Media Industry Business Model ndash Content Driven
Business Model Mediarsquos revenue is driven by
1 Source httpwwwmediaprimacommy2 HBS ndash Article
Hence our task is to help Media Prima continue to attract consumer (viewer) amp
to increase customerrsquos (advertiser) dependence on Media Primarsquos content
Consumers Attracting viewers to content
Customers a) Revenue from Advertisers ie Sponsorship and placing advertising in
channels of relevant content which their target audience watches
b) Revenue from Subscribers of Content ie Online TV (TontonTV) Newspapers Digital Content
Our Tasks ndash How - continue to attract consumer (viewer) amp - to increase customerrsquos (advertiser) dependence on Media
Primarsquos content
The solutions lie within the understanding of
bull the environment around the organization
bull its competitive landscape
bull the organizationrsquos internal capabilities and
bull strategies it has embarked upon
PEST Analysis
Politics Legal Issues amp Impact
Source 1 httpenwikipediaorgwikiDigital_television_in_Malaysiacite_note-102 bizthestarcommynewsstoryaspfile=20111126business99740173 httpwwwconsumerorgmyindexphpdevelopmentprivate-sector479-astros-monopoly-has-short-changed-malaysian-tv-viewers
Change from Analogue TV to Digital TV by 2015bull Analogue TV broadcasts would be shut down in stages and due
to complete by 2015 as per recommendation from ASEAN bull Digital will open is in evitable
Deregulation of content bull But the regulator of the industry has yet to come up with details
on how it will go about disbanding the monopoly on content
Would do away with monopoly in the pay-TV broadcasting sectorbull With the introduction of newer IPTV services bull And Astrorsquos exclusive Pay TV license will end by 2017
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 (F)
-5
0
5
10
15
20
25
16
23
2
910
17
3 4
1513
7
1614
68
1
45
75
6 65
-2
726
ADEX Growth GDP Growth
Slowing down of GDP
Economic Issues and Impact
Source httpwwwtheedgemalaysiacomin-the-financial-daily196495-slower-tv-adex-points-to-quiet-adspend-for-the-rest-of-2011html
bull Ad Ex (Advertising Expenditure) fluctuates with GDP And as Media Primarsquos main source of revenue is from Ad Ex it will be affected by the projected slow down of the 2012 economy as multinational advertisers become more cautious
bull Organization for Economic Cooperation and Development projected a 03 growth in 2012 instead of the 2 forecast
bull Malaysian perspective GDP growth of 51 (Nomura)
51 2012
Social Issues and ImpactOnline creeps in time spent increases and trust levels bull More time spent on Online gt TV and consumer are referring to
online to make purchase decision hence cross platform presence is needed to reach consumer (Malaysian Digital Consumer Report 2011)
Reading Magazine
Reading Newspapers
Video on Mobile Phone
Radio Stream via Internet
Internet via Mobile Phone
Online Games on PC
Listening to Radio
Watching TV
Internet
0 5 10 15 20 25
3434751535658
106198
Average Weekly Hours Spent on different media
Online activities beyond Watching TV
Source 1 QuickPlay Media 2 httpwwwgartnercomtechnologyhomejsp
httpwwwthemalaysianreservecommainindexphpoption=com_contentampview=articleampid=899move-over-tv-the-net-is-where-the-action-isampcatid=36corporate-malaysiaampItemid=120
Online activities beyond Newspapers and Magazines
76 of consumers indicate that they watch more TV on tablet than before a shift in media consumption behavior
Social Issues and Impact
Source Kinetic Insights on People on the Move Moving World Asia (2011)
Consumers are On The Move Disconnect from traditional Channels bull 107 Hr Weekday -gt Highest in ASIAbull Requires mobile channel to deliver and keep up with consumers bull Moving from radio -gt mobile phones -gt tablets
Outdoor
On Mobile
BUT
Broadband Penetration
Mobile Penetration
Technology Issues and Impact
Household broadband penetration at 615 and will grow to 75 by 2015
75 107
Source httpwwwthemalaysianreservecommainindexphpoption=com_contentampview=articleampid=899move-over-tv-the-net-is-where-the-action-isampcatid=36corporate-malaysiaampItemid=120
Malaysia a Digital Nation Netizens (constant access to internet) make up 40 of the
total population of 27 million Tablet PC usage and ownership netizen are expected to
increase from 18 to 75 in 2012
In short
1 Legislative deregulation spurs the attractiveness of the
market
2 Economic impose pressures for 2012
3 Social shifts leads the way to new media
4 Technology is the catalytic enable of Media organization
shift into New Media
Porterrsquos 5 Forces Analysis
Astro is the only direct challenger as it is the closest to an integrated media organisation
Power of Substitutes 1 Technology and Sharing of
screen ndash Moving away from TV to mobile content and social media decreases the share of attention
2 Self Generated content by Netizens ndash User Generated Content - youtube
Power of Suppliers 1 Content is king and that is what
drives viewership ndash and not the media organisation that aggregates it
2 Content lead experience is dependent on technological development
Threat of New Entrants 1 Introduction of new IPTV which
offers variety of channelsDETV and ABN
2 New entrants have infrastructure backing hence offering product bundling of triple play ie Unifi YTL Comms
Power of Consumers 1 Consumer Moving away from
Print TV and Radio - they are the ones that drive demand
2 Advertiser have a hard time reaching the fragmented audience (beyond traditional media)
Porterrsquos Five Forces ndash Competitive Analysis
Customers are dependant on content (Media Prima) to reach consumers
Competitive Rivalry
Source bizthestarcommynewsstoryaspfile=20111126business9974017
Nevertheless Media Prima is still in control as it complements their services by offering them content
But its audiences are fragmented across 150 channels versus ours which focus 4 stations
Content creators and aggregators need to mirror consumerrsquos media consumption trends
Can be mitigated by internalizing content development but Media Prima needs to keep its content up to date with technology development
Financials
Media Prima Financial Highlights
1327millionProfit After Tax and Minority Interest (ldquoPATAMIrdquo)September 2011 (9 Months)
in the corresponding period for 20101105 million
A healthy GROWTH
Source Media Prima Annual Report 2011
However in further analysisHowever the bulk of its revenue comes from advertising that is in turn dependent on the economic outlook the question arises as to whether Media Prima should diversify its income stream Especially when gt80 of Astrorsquos revenue is on subscription
Reduce Media Primarsquos dependence on advertising revenueas it highly fluctuates with the market conditions
Group
2010 2009
RMrsquo000 RMrsquo000
Advertising revenue 1237961 80 725857 98 Circulation revenue 290691 19 0 Sale of programmes videos cable and laser rights and media revenue 15408 1 11287 2 Fees from provision of production services and sponsorship 2583 0 6885 1 Fees from provision of procurement services Dividends from subsidiaries Dividends from an associate 1546643 100 744029 100
Source Media Prima Annual Report 2011
Value Chain Analysis
Resource Based View
The resource-based view is grounded in the perspective that a firm is a collection of unique resources and capabilities that provides the basis for its strategies and the primary source of its return
SupportActivities
Primary Activities
Strategy Development 4
Resource Identification 1Capabilities Determination 2Competitive advantage 3
Resource Gap Analysis 5
Source Porter Value Chain Robert M Grant
Process of CONTENT aggregation Process of CONTENT creation
In the context of the Content industry value chainMapped against Porterrsquos Value chain
Createbull Scriptwritersbull Actorsbull Animatorsbull Gamesbull developer
Publishbull Production housesbull TV Advert Film
Packagebull Media Primabull Astrobull RTMbull Maxisbull Digibull Celcom
DistributebullTelekombull MBNS (Measat)bull RTM
Content industry value chain
Porterrsquos Value Chain
Human Resource Management
Technological DevelopmentProcurement
Marketing amp Sales
Develop Talent Pool
Ensure Vibrant Content Industry
Technologycreates ubiquitous
Low Access Cost
To spur the industry forward
Strong talent develops Content development
demand for access
Strong content industry drives demand for Talent Drive demand for content
Services
Source SKMM Regulatory Compliance Course for Telcos amp Celcos
MARKETINGStrategies are focused on branding activities and marketing communications aggressive Aamp P and active participation in on-ground activities that promote brand awareness And Established Integrated marketing arm
TECHNOLOGY DEVELOPMENT Alt Media the digital arm successfully launched TonTon TV a cutting edge video portal that offers customization and interactivity of social networking Giving Media Prima an advantage of being able to direct advertisers to precise target groups
PROCUREMENT Stringent supplier selection in terms of 70 are local suppliers Sourcing of content which are relevant responsible engaging especially with the advent of new media
SERVICESMedia Prima fully owns Primeworks Studio helps maximize the economies of scale in content production whilst enhancing the quality of content of all television networks
HUMAN CAPITALPrioritize human capital development in news and editorial operation radio network artist and talent management etc Creating an in-house talent pool to develop content
Content Barriers to entry
ndash securing talents - Leadership position in development of local talent and content to leading the industry
Vertical bargaining power
DifferentiationAnd Competitive advantage
- Consumer insights - Integrated media organization
Activities Benefit
Competitiveness leading to Margins
Goal
Appraising capabilities which drives profitability
Source Media Prima Annual Report 2011
Mapping Media Prima revenue streams against the Diversification Map
HIGH
LOW
HIGHLOW
Shar
ing
Ope
ratio
nal R
elat
edne
ss B
etw
een
Busi
ness
Corporate Relatedness Transferring skills into business through corporate HQ
Related Constrained Diversification
Vertical Integration Market Power
Content Creation and Talent development Prima Works enables Media Prima to create localized content for the local market
Both operation and Corporate Relatedness (Rare Capability and can create Diseconomies of scale)
New Media is both an operation and corporate relatedness diversification as it require Media Prima to go beyond playing the role as aggregator but also content producer leveraging on its strength
Unrelated Diversification (Financial Economies)This area of diversification which is unrelated in operation and skills transfer Media Prima has not exploited
Related Linked Diversification (Economies of Scope)As newscontent are cross platforms and the business models are the same Media Prima was able to share similar content across platforms and acquire related companies
Opportunities - Create more segmented programmes and move into interactive content
OpportunitiesHowever more needs to be done in the new are with the advent of Interactive TV
Opportunities Although unrelated area often has high risk it is crucial at this point for Media Prima to extend into this area in smart partnerships with telecommunication companies ie Axiata TM
OpportunitiesMedia Prima has maximized its diversification strategy in this area BUT the market is yet to be ready amp there is a need to link both NSTP and Media Prima
CurrentPrimeworks Studios Sdn Bhd (owned by Media Prima) is Malaysias biggest production company producing TV content since 1984 and feature films since 1994 generating over 5000 hours of TV content and 10 movies annually
Related Constrained Diversification
ChallengesBut the reality is that it is not able to compete with the myriad of channels of its competitors which are dependent on overseas content
Opportunities However more needs to be doneas channels become more segmented-Procuring more content to compete on quantity - or it could change the content game and move into interactive content
Source Creation of An Integrated Media Group 2009 httpwwwmediaprimacommy
TV Newspaper
Radio
Outdoor
New Medi
a
4 3 3
1 2
gt150
17
2 1
gt14
3
22
22
YTL Comms
ABN 100
Ove
rvie
w o
f com
petit
ors
thei
r bus
ines
s po
rtfol
ios
Related Constrained Diversification
Media Company
Advertisers Corporations(Customers )
Viewers(Consumers)
Consumer Pay for Product
CONTENT
Advertiser payFor (Ad space) $$
1 httpwwwlongtailcomthe_long_tail200809the-three-kindshtml
$
Opportunities The potential here is also for Media Prima to drive content syndication ndash providing content to other media stations abroad
Media Prima is currently doing by syndicating content to ASTRO and Unifi
Competitors
Media Company
Viewers(Consumers)
CONTENT PRO
1 httpwwwlongtailcomthe_long_tail200809the-three-kindshtml
$
C
C
C FREE CONTENT FREE CONTENT
FREE CONTENT
Both operation and Corporate Relatedness
CurrentMedia Primarsquos intention to leverage on both its operations and Corporate relatedness to shift its revenue structure to be less dependent on advertising revenue and move toward subscriber revenue where a few subsidies everyone else via versioning ldquoprice discriminationrdquo
ChallengesIt has to some degree been successful to introduce this ndash via TonTon TV however the revenue from this segment has yet to be significant
To date there are 16 show packages and over 50 single episodes for viewers to purchase ndash which is limited
Opportunities However more needs or can be done in this new area with the advent of Interactive TV
Media Company
Advertisers Corporations(Customers )
Viewers(Consumers)
Consumer Pay for Product
FREE
CONTENT
Advertiser payFor (Ad space) $$
Source Website1 httpwwwlongtailcomthe_long_tail200809the-three-kindshtml2 Creation of An Integrated Media 2009 Grouphttpwwwmediaprimacommyinvestorcentercp2009NSTPGOpdf3 httpwwwtheedgemalaysiacomin-the-financial-daily164479-media-prima-best-proxy-to-sector-says-oskhtml 4 Media Prima net revenue grows to RM119b 2011 httpwwwbtimescommyCurrent_NewsBTIMESarticles20111118202427Articleindex_html
Related Linked Diversification
Current Media Prima has expanded across media with the idea in the hope of a) Leveraging on its expertise of
Advertisers subsiding viewers model b) Share back-office consolidation which
creates operations efficiencies in operation ie Editorial Talents
c) Cross marketing opportunities across platforms - Where Advertisers could purchase cross buy across platforms
Challenges Market ndash Not readyThe market is not ready for bundled and cross market offering According to Dato Amrin Awaluddin Group Managing Director of Media Prima no doubt there was head roads but more effort needs to be done to integrate the platforms better
Internally ndash Structure is not integrated In terms of unlocking NSTPs value he says it would be done in two phases `First is more short term like consolidating in terms of operations while the second stage will entail selling of products and cross-promoting our content which would be an ongoing revenue- generation exerciselsquo And he quoted Joran a property of Berita Harian (NST) ndash a nationwide fishing event being brought to TV3 as an example
Opportunities - The structure impeded cross platform and working in silo
does not help
- Hence there is a need to further shift paradigms via a structural change to free up resources to focus on content
- The market will not know what they want until we present them with the opportunity benefit
Social Responsibility Analysis
Social Responsibility
Media Primarsquos approach to Social Responsibility is based on the key triple bottom line ndash social environmental and economic It considers the socio-economic impact of its business activities in the aim to create value to its stakeholders via the 4 categories ie community workplace marketplace and environment
Community1EducationFocusing on education to raise awareness of the importance of education and increase the academic standards of underprivileged children and underperforming schools eg PINTAR Programme NST School Sponsorship Programme
2 HumanitarianRaise funds for humanitarian aid and provided updates on the local and world disaster crisis to the public and raised awareness of the funds eg Humanitarian Aid for Gaza Humanitarian Aid for Flood Victims in Pakistan
3 Other community programmesProduced outreach programmes to reflect and highlight local and community issues and to be the eyes and ears of the public and engage in public awareness through its businessesrsquo media resources and platforms in print interactive media and television eg Project Sunshine
Social Responsibility ndash cont
Environment - EfficiencyStrongly committed to being an environmentally friendly Company by using recycled paper especially in its newspapers business efficient usage of electricity in offices water management reducing amount of waste produced throughout its businesses and other environmental initiatives such as lsquosave our beachrsquo project and WWFrsquos Earth Hour
Marketplace ndash Responsible ContentFocusing on product responsibility in providing high quality products and is committed to establishing a horizontal specialisation system based on collaboration with stakeholders The production flow is illustrated in the diagram below
Workplace ndash Right CultureIt aims to create a workplace where its people have the opportunity to be the best they possibly can to have the right culture safe working environment and human capital development with fair processes
Media Prima Acknowledges it various stakeholder via Stakeholders Management
Media Prima is aware of the diversity of its stakeholders and the different goals and demand of its stakeholders
The Company conducts active engagement with its stakeholders to fully understand their needs and increase their trust in the Company through formal and informal mechanisms as follows
It has moved on to 2nd stage of CSR
1st Generation 2nd Generation 3rd Generation
Philanthropic short term risk management
Product Process innovation business and corporate governance model long term sustainability Strategic CSR
3rd Generation Multi- stakeholder standards and partnerships institutional building CR- Oriented advocacy and public policy
Opportunity
What is next for Media Prima to shape the industry
Creating content that generate advertising dollars amp donations of the poor social awareness
By leveraging on its content distribution capabilities
SWOT Analysis
SWOT Analysis ndash Summary
Strengths 1 Strong market share in TV segment2 Malaysiarsquos only integrated media
organization- have vertical and horizontal diversification advantage
3 Established value chains strength which complements the required core competencies
4 Have move across 3 revenue models
Weaknesses1 limited number of stations variety and choice
for consumer2 Despite diversification revenues still mainly
driven by advertisers and TV -gt cross platforms is needed
3 Financial segmentation may hinder potentials of the company
Opportunities 1 Broadband infrastructure ndash via HSBB2 Development of technology ndash creating
medias gadgets that increase digital interaction and content consumption
3 Consumers are willing to pay for content4 Possible deregulation of content ndash leveling
the playing field
Threats 1 2012 forecasting a financial slow down
affecting Ad Ex ndash hence revenue is reduced2 Increase competition New Entrants Pay TV
player amp continual competition from ASTRO3 Changing consumer habits towards media
consumption -gt moving away from traditional media ndash hence have to fight for consumerrsquos attention
Right Technology (Gadget and Infrastructure) at the Right time (deregulation) amp Right consumers (shift in media habits and willingness to pay for content ndash ASTRO as indicator)
Vertical Value Chain advantage to compete in content development
Media Primarsquos Current situation in summary
+VE
-VE Revenue dependent on advertising which is affected correlated to GDP
Resources organization structure holds back effectiveness of organization
Moving forward2012 and beyond
Recommended Destination and future growth of Media Prima
Revenue mainly from advertising
Revenue from advertising
Content SubscriptionBy viewers
Content driven Complementary Services for advertiser (Auxillary Services)
Media Prima
Media Prima
Content Syndicationto competitors
+
How Moving from aggregator to content creator
Content Focus Leveraging on content to Embark on Revenue shifts
Long term sustainable leadership
Restructuring to liberateresources for Content
Sustainable Talent development -
Partnership
Riding the Technology Wave
Short term (2012) Mid Term (by 2013-2015) Long term 2015 beyond
How Moving from aggregator to content creator
Content Focus Leveraging on content to Embark on Revenue shifts
Long term sustainable leadership
Restructuring to liberateresources for Content
Sustainable Talent development -
Partnership
Riding the Technology Wave
Short term (2012) Mid Term (by 2013-2015) Long term 2015 beyond
Creating a Content focus agency All these can be enable via the following means
Demand- The content creation race bull There is a need to free up empower human capital to create more content which are relevant
segmented engaging and entertaining
How does media prima refocus its resources into where it matters Instead of multiple teams doing the same thing ndash there is a challenge to create a lean and efficient organization
Challenges Freeing Resources
Instead of looking at a Media based financial segment reporting structurally force the teams to integrate by changing the dynamics of PampL
Next page
Solution Redefining Business Units Paradigms
Take a step up from producing beyond the current vernacular program to meet shifting consumer needs
Challenges ndash Lifestyle lead Variety
Creating Channel programs which are target segment focus based on lifestyles hellip
Acquisition of content as content regulations will be relaxed
Solution Target Segment focus
Using financial view to free resources for content developmentFinancial segment reporting may create a ldquosilordquo mentality ndash which encourages each head of business to protect their bottom line Hence a less effective in operations
Our recommendation is to expand content creation to cut across and shift paradigms to free up resources and focus on new revenue streams And create new content for different segment
Tele
visi
on N
etw
ork
Radi
o N
etw
ork
Out
door
Med
ia
Prin
t M
edia
Oth
er M
edia
Current Financial Segment Reporting
Tele
visi
on N
etw
ork
Radi
o N
etw
ork
Out
door
Med
ia
Prin
t M
edia
Oth
er M
edia
Production
Content
Subscription
Advertising
Recommended Segment Reporting
Lifestyle Segments
Lifestyle Segments
Lifestyle Segments
Lifestyle Segments
Lifestyle Segments
Lifestyle Segments
By changing the business segment reporting it also affects the company structure
The benefits - Flexibility and empowers knowledge
economy ndash talent content driven
- Builds at strong work culture which may be replicated in the region
- Expansion to embark on talent and content crowd sourcing - open innovation creation
Media Prima can take this opportunity to achieve SPECIALIZATION COORDINATION AND COOPERATION Currently team structure ndash of Integrated Marketing Division is created as a temporary solution hellip to enable integration It will move towards a network model to haste integration fast and response to technology and consumer needs
Subcription
Advertising
Production
TechnologyPartner
Content
How Moving from aggregator to content creator
Content Focus Leveraging on content to Embark on Revenue shifts
Long term sustainable leadership
Restructuring to liberateresources for Content
Sustainable Talent development -
Partnership
Riding the Technology Wave
Short term (2012) Mid Term (by 2013-2015) Long term 2015 beyond
Technology ndash Enable Media Prima to leap into Interactive Content
Interactive Content
UniFi Axiata
Media Prima
Electronics Manufacturer
Demand - A ready market bull There is a latent demand for content-gt consumers are
willing to Pay bull Technology has accustomed consumers to interacting
with contentbull Regulatory push to shift from analogue to digital by
2015
However unlike Media Primarsquos western counterparts ie Time Warner Communication Media Prima does not have the advantages of cable infrastructure
Challenges ndash Limitation
Media Prima could depend on existing suppliers of connectivity and technology- Telecommunications ie AXIATA and - Manufacturing companies ie Samsungto take the leap into interactive content Unifi TM
Solution ndash Smart Partnerships
Maximizing Unrelated Diversification
It is not a Fad but a trend
Smart TV is an inevitable trend says Baeguen Kang vice president of
research and development at South Koreas LG Electronics Co the worlds second-largest seller of TV sets by unit volume As people experienced smartphones and tablet PCs the larger screen on a TV is very attractive for apps and Web content
210 million TV sets sold world-wide had an Internet connection (2010)
21 50It will be the forecast in (2014)
Source Evan Ramstad (January 2011)A ldquoManufacturers Turn to Smart TV After 3-D Disappointsrdquo The Wall Street Journal online httponlinewsjcomarticleSB10001424052748704835504576059783074010902html
As technology develops Current cost is will drop exponentially reflecting the Moorersquos Law
Hence lowering the cost of access for interactive content
Example of Smart TV
Smart Hub It is a front facing interface just like a main menu
when consumers turn on their TV There are few utilities that consumers can choose to be entertained
Video ndash consumers can choose from array of video collections that required to be paid
Apps ndash an internet-enabled applications like You Tube Facebook Twitter Skype and others
Internet browsing ndash just like PC internet browsing
Music photo and TV watching
Smart ConnectivityWIFI enabled that allows consumers to connect to all mobile devices like smart phone tablet PC notebook and camera with Samsung Wireless Router called 1 foot This connectivity is being called ldquoAllSharerdquo by Samsung
httpotbresearchcomau200509report-1-industry-forum
MEDIA PRIMA IS CURRENTLY HERE
This will ultimately lead Media Prima to reduce it dependence on advertising revenue
Others ndash Utilising the SMART TV technology and Apps to create any existing Media Prima businesses
NEW Revenue Streams for Media Prima
To take advantage of SMART TV and collaborate with SMART TV manufacturers Media Prima can look into following utilities
Collaborate with manufacturers to allow consumers to browse and pay for Media Prima video collections
Selling local music for Malaysia market
Collaborate with local or international content developers to create Malaysia specific contents for paid subscription or free for common content to attract new consumers
How
Content Focus Leveraging on content to Embark on Revenue shifts
Long term sustainable leadership
Restructuring to liberateresources for Content
Sustainable Talent development -
Partnership
Riding the Technology Wave
Short term (2012) Mid Term (by 2013-2015) Long term 2015 beyond
Building Talents in the long run
Education Building on its strategic CSR ndash Media Prima could champion the
development of the content industry by partnering with local universities in the areas of technology media and communication
Crowd Sourcing To haste up the strategic CSR it too could embark on crowd
sourcing for content ndash via scripts and interactive content In which Media Prima could support a great idea and develop the ideas for monetization
This is a synergistic and natural development from the networks structure (open innovation)
Summary ndash Media Prima
Develop Talent Pool
Ensure Vibrant Content Industry
Technologycreates ubiquitous
Low Access Cost
To spur the industry forward
Strong talent develops Content development
demand for access
Strong content industry drives demand for Talent drives demand for content
Our recommendations are aligned to help spur the industry forwardhellip
Restructuring to liberateresources for Content
Sustainable Talent development -
Partnership
Riding the Technology Wave ndash Via Smart
Partnerships
References
References
1 Anon ldquoMedia Prima Berhad implements Accenture integrated broadcast systemrdquo Accenture Press Release httpnewsroomaccenturecomarticle_displaycfmarticle_id=5005 viewed 3 November 2011
2 Anon ldquoNew exciting and vibrant offerings from MPB television networks in 2010rdquo Media Prima Press Release httpwwwmediaprimacommypressreleasepressreleaseaspxid=150 viewed 3 November 2011
3 Anderson J ldquoResource-based competitiveness managerial implications of the resource-based viewrdquo Strategic Direction Vol26 No5 2010 pp1-2
4 Arman Arshad (2006) Size matters Retrieved December 2 2011 from asiaviewsorg httpwwwasiaviewsorgindexphpoption=com_contentampview=articleampid=2171headlinealias2171ampcatid=1headlinesampItemid=2
5 Asia Times (2007 November 29) Malaysian media giant grasps for Internet Retrieved November 3 2011 from httpwwwatimescomatimesSoutheast_AsiaIK29Ae02html
6 Barney JB amp Hesterly WS (2008) Strategic Management and Competitive Advantage The Five Forces Model of Environmental Threats pp39Prentice Hall
7 BBC (2011) BBC News product launches on connected TV Retrieved from bbccoukpressofficepressreleasesstories201106_june17newsshtml
8 Boston Consulting Group (2011) Lean Advantage in Media Boston Consulting Group
9 Boston Consulting Group (2011) Running Forward Walking Backward Boston Consulting Group
10 Business Times (2011) Media Prima net revenue grows to RM119b Kuala Lumpur New Straits Times
11 Business Times (2011) Media Prima on track to achie1048665ing 2011 target Retrieved from www1btimescomm1048668Current_NewsBTIMESarticlespimeArticle
References (1)
12 Business Times (2011) Media Prima Puncak Semangat in early talks Retrieved from httpwwwbtimescommyarticlespimmaArticle
13 Carl W Stern George Stalk Carl W Stern George Stalk Stern CW amp Stalk G (2011) Perspectives of Strategy from the Boston Consulting Group Retrieved December 3 2011 from Value Based Managementnet httpwwwvaluebasedmanagementnetmethods_bcgmatrixhtml
14 ecmlibra (2011) Adex momentum to taper off in 2012 ecmlibra
15 Gershon R A amp Ratnadeep S V (2004) Viacom Inc A Case Study in Transnational Media Management Journal of Media Business Studies 1 (1) 47-69
16 Grant RM ldquoThe resource-based theory of competitive advantage implications for strategy formulationrdquo California Management Review Vol 3 2011 httpwwwskynetie~karenArticlesGrant1_NBpdf viewed 15 November 2011
17 GreyReview (2011) TonTon Streaming Over 11 Million Video Hours A Month now with 16 millions registered users Retrieved from httpwwwgreyreviewcom20110731tonton-serving-over-1-1-million-video-hours-a-month-now-with-1-6-registered-users
18 Heavy Reading (2011) Telecom in TV Land A Roadmap to New Digital Media Ecosystem Retrieved from wwwheavyreadingcomdetailsaspsku_id=1773ampskuitem_itemid=1030
19 Hegedus N (2010) The Great Scare EBR 3 10-17
20 JohnsonGScholesK amp Whittington (2008) Exploring Corporate Strategy Competitive Forces ndash the Five Forces Framework pp 59-64 Prentice Hall
21 kinetic (2011) Moving World Asia Hong Kong
References (2)
22 Knowledgefaber (2009) Telcos Avatar - As Media Companies 20 Retrieved from httpknowledgefabercomindexphpoption=com_contentampview=articleampid=40telecom-and-media-convergenceampcatid=10telecomampItemid=42
23 Knowledgefaber (2011) Telcos Avatar - As Media Companies 20 Retrieved from httpknowledgefabercomindexphpoption=com_contentampview=articleampid=40
24 Malik O (2011) GIGAOM Retrieved from httpgigaomcom20110223old-media-is-being-unbundled-just-like-telecom-was
25 Maxis with TM Astro with TIME Best Strategy to IPTV Market Retrieved December 1 2011 httpbizthestarcommynewsstoryaspfile=201111business7704581ampsec=business
26 Media Prima (2010) Annual Report Media Prima Berhad27 Media Prima Berhad (2011) 11 Nov 2011 - New Exciting amp Vibrant Offerings From MPB Television Retrieved from
wwwmediaprimacommypressreleasepressreleaseaspxid=15028 Media Prima (2010) Sustainability Report Media Prima Berhad29 OSK (2011) Media Prima OSK30 Pocket-Lint (2011) Samsung Smart TV hits 2 million mark Retrieved from
httpwwwpocket-lintcomnews40593samsung-smart-tv-2-million31 PricewaterhouseCoopers (2011) Achieving corporate financial PwC32 PricewaterhouseCoopers (2007) Financial Reporting Standards (FRS) in Malaysia PricewaterhouseCoopers33 SKMM (MCMC) (2009) Advertising Development in Malaysia SKMM34 SKMM (MCMC) (2011) Content Development SKMM35 Techpinions (2011) Interactive TV Trends - How the TV experience is changing - Part II Retrieved from
httptechpinionscominteractive-tv-trends-E28093-how-the-tv-experience-is-changing-part-ii4066
References (3)
36 The Edge (2011) Media Prima best proxy to sector Retrieved from wwwtheedgemalaysiacom37 The Edge Malaysia (2011 September 26) Education the mother of all reforms Retrieved October 30 2011 from
httpwwwtheedgemalaysiacomin-the-financial-daily193478-education-the-mother-of-all-reformshtml38 The Star Online (2011) Main players in the competitive TV sector Retrieved from bizthestarcommynewsstoryasp
file=20111126business997401739 The Star Online (2011) Maxis ready to move up value Retrieved from
bizthestarcommynewsstoryaspfile=201111business7704581ampse40 The Star Online (2011) New players enter the TV Retrieved from
bizthestarcommynewsstoryaspfile=20111126business997300841 The Star Newspaper (December 1 2011) Capital TV to make its debut today42 The Star Online (January 1 2011) Maxis ready to move up value chain Retrieved December 3 2011
httpbizthestarcommynewsstoryaspfile=201111business7704581ampsec=business43 The Star Online (2011 April 21) Media Prima to invest more on local content Retrieved October 30 2011 from C
Usersa34ffzzDesktopMedia PrimaUsed articlesMedia Prima to invest more in local contentmht44 Time Warners (2010) Annual Report Time Warners45 WHAT HI FI (2011) Samsung aims for 50m TV sales worldwide in 2012 set to announce launch date for Google TV
product Retrieved from httpwwwwhathificomnewssamsung-aims-for-50m-tv-sales-worldwide-in-2012-set-to-announce-launch-date-for-google-tv-produ
46 Woroch G A (1996) Turning the Cables Elsevier47 Zanuddin H (2007) Political influence in Malaysia and Thailand media sector Jati Vol12
- MEdiA PRIMA
- Agenda
- Company Profile
- Media Primarsquos Commitment amp Direction moving forward
- Media Industry Business Model ndash Content Driven
- Our Tasks ndash How
- PEST Analysis
- Politics Legal Issues amp Impact
- Economic Issues and Impact
- Social Issues and Impact
- Social Issues and Impact
- Technology Issues and Impact
- In short
- Porterrsquos 5 Forces Analysis
- Porterrsquos Five Forces ndash Competitive Analysis
- Financials
- Media Prima Financial Highlights
- However in further analysis
- Value Chain Analysis
- Resource Based View
- In the context of the Content industry value chain Mapped again
- Appraising capabilities which drives profitability
- Mapping Media Prima revenue streams against the Diversification
- Slide 25
- Related Constrained Diversification
- Related Constrained Diversification (2)
- Slide 28
- Related Linked Diversification
- Slide 30
- Social Responsibility Analysis
- Social Responsibility
- Social Responsibility ndash cont
- Media Prima Acknowledges it various stakeholder via Stakeholder
- It has moved on to 2nd stage of CSR
- SWOT Analysis
- SWOT Analysis ndash Summary
- Media Primarsquos Current situation in summary
- Moving forward 2012 and beyond
- Recommended Destination and future growth of Media Prima
- How Moving from aggregator to content creator
- How Moving from aggregator to content creator (2)
- Creating a Content focus agency All these can be enable via
- Using financial view to free resources for content development
- By changing the business segment reporting it also affects the
- How Moving from aggregator to content creator (3)
- Technology ndash Enable Media Prima to leap into Interactive Conten
- It is not a Fad but a trend
- Slide 50
- Example of Smart TV
- This will ultimately lead Media Prima to reduce it dependence o
- NEW Revenue Streams for Media Prima
- How
- Building Talents in the long run
- Summary ndash Media Prima
- References
- References
- References (1)
- References (2)
- References (3)
-
Media Industry Business Model ndash Content Driven
Business Model Mediarsquos revenue is driven by
1 Source httpwwwmediaprimacommy2 HBS ndash Article
Hence our task is to help Media Prima continue to attract consumer (viewer) amp
to increase customerrsquos (advertiser) dependence on Media Primarsquos content
Consumers Attracting viewers to content
Customers a) Revenue from Advertisers ie Sponsorship and placing advertising in
channels of relevant content which their target audience watches
b) Revenue from Subscribers of Content ie Online TV (TontonTV) Newspapers Digital Content
Our Tasks ndash How - continue to attract consumer (viewer) amp - to increase customerrsquos (advertiser) dependence on Media
Primarsquos content
The solutions lie within the understanding of
bull the environment around the organization
bull its competitive landscape
bull the organizationrsquos internal capabilities and
bull strategies it has embarked upon
PEST Analysis
Politics Legal Issues amp Impact
Source 1 httpenwikipediaorgwikiDigital_television_in_Malaysiacite_note-102 bizthestarcommynewsstoryaspfile=20111126business99740173 httpwwwconsumerorgmyindexphpdevelopmentprivate-sector479-astros-monopoly-has-short-changed-malaysian-tv-viewers
Change from Analogue TV to Digital TV by 2015bull Analogue TV broadcasts would be shut down in stages and due
to complete by 2015 as per recommendation from ASEAN bull Digital will open is in evitable
Deregulation of content bull But the regulator of the industry has yet to come up with details
on how it will go about disbanding the monopoly on content
Would do away with monopoly in the pay-TV broadcasting sectorbull With the introduction of newer IPTV services bull And Astrorsquos exclusive Pay TV license will end by 2017
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 (F)
-5
0
5
10
15
20
25
16
23
2
910
17
3 4
1513
7
1614
68
1
45
75
6 65
-2
726
ADEX Growth GDP Growth
Slowing down of GDP
Economic Issues and Impact
Source httpwwwtheedgemalaysiacomin-the-financial-daily196495-slower-tv-adex-points-to-quiet-adspend-for-the-rest-of-2011html
bull Ad Ex (Advertising Expenditure) fluctuates with GDP And as Media Primarsquos main source of revenue is from Ad Ex it will be affected by the projected slow down of the 2012 economy as multinational advertisers become more cautious
bull Organization for Economic Cooperation and Development projected a 03 growth in 2012 instead of the 2 forecast
bull Malaysian perspective GDP growth of 51 (Nomura)
51 2012
Social Issues and ImpactOnline creeps in time spent increases and trust levels bull More time spent on Online gt TV and consumer are referring to
online to make purchase decision hence cross platform presence is needed to reach consumer (Malaysian Digital Consumer Report 2011)
Reading Magazine
Reading Newspapers
Video on Mobile Phone
Radio Stream via Internet
Internet via Mobile Phone
Online Games on PC
Listening to Radio
Watching TV
Internet
0 5 10 15 20 25
3434751535658
106198
Average Weekly Hours Spent on different media
Online activities beyond Watching TV
Source 1 QuickPlay Media 2 httpwwwgartnercomtechnologyhomejsp
httpwwwthemalaysianreservecommainindexphpoption=com_contentampview=articleampid=899move-over-tv-the-net-is-where-the-action-isampcatid=36corporate-malaysiaampItemid=120
Online activities beyond Newspapers and Magazines
76 of consumers indicate that they watch more TV on tablet than before a shift in media consumption behavior
Social Issues and Impact
Source Kinetic Insights on People on the Move Moving World Asia (2011)
Consumers are On The Move Disconnect from traditional Channels bull 107 Hr Weekday -gt Highest in ASIAbull Requires mobile channel to deliver and keep up with consumers bull Moving from radio -gt mobile phones -gt tablets
Outdoor
On Mobile
BUT
Broadband Penetration
Mobile Penetration
Technology Issues and Impact
Household broadband penetration at 615 and will grow to 75 by 2015
75 107
Source httpwwwthemalaysianreservecommainindexphpoption=com_contentampview=articleampid=899move-over-tv-the-net-is-where-the-action-isampcatid=36corporate-malaysiaampItemid=120
Malaysia a Digital Nation Netizens (constant access to internet) make up 40 of the
total population of 27 million Tablet PC usage and ownership netizen are expected to
increase from 18 to 75 in 2012
In short
1 Legislative deregulation spurs the attractiveness of the
market
2 Economic impose pressures for 2012
3 Social shifts leads the way to new media
4 Technology is the catalytic enable of Media organization
shift into New Media
Porterrsquos 5 Forces Analysis
Astro is the only direct challenger as it is the closest to an integrated media organisation
Power of Substitutes 1 Technology and Sharing of
screen ndash Moving away from TV to mobile content and social media decreases the share of attention
2 Self Generated content by Netizens ndash User Generated Content - youtube
Power of Suppliers 1 Content is king and that is what
drives viewership ndash and not the media organisation that aggregates it
2 Content lead experience is dependent on technological development
Threat of New Entrants 1 Introduction of new IPTV which
offers variety of channelsDETV and ABN
2 New entrants have infrastructure backing hence offering product bundling of triple play ie Unifi YTL Comms
Power of Consumers 1 Consumer Moving away from
Print TV and Radio - they are the ones that drive demand
2 Advertiser have a hard time reaching the fragmented audience (beyond traditional media)
Porterrsquos Five Forces ndash Competitive Analysis
Customers are dependant on content (Media Prima) to reach consumers
Competitive Rivalry
Source bizthestarcommynewsstoryaspfile=20111126business9974017
Nevertheless Media Prima is still in control as it complements their services by offering them content
But its audiences are fragmented across 150 channels versus ours which focus 4 stations
Content creators and aggregators need to mirror consumerrsquos media consumption trends
Can be mitigated by internalizing content development but Media Prima needs to keep its content up to date with technology development
Financials
Media Prima Financial Highlights
1327millionProfit After Tax and Minority Interest (ldquoPATAMIrdquo)September 2011 (9 Months)
in the corresponding period for 20101105 million
A healthy GROWTH
Source Media Prima Annual Report 2011
However in further analysisHowever the bulk of its revenue comes from advertising that is in turn dependent on the economic outlook the question arises as to whether Media Prima should diversify its income stream Especially when gt80 of Astrorsquos revenue is on subscription
Reduce Media Primarsquos dependence on advertising revenueas it highly fluctuates with the market conditions
Group
2010 2009
RMrsquo000 RMrsquo000
Advertising revenue 1237961 80 725857 98 Circulation revenue 290691 19 0 Sale of programmes videos cable and laser rights and media revenue 15408 1 11287 2 Fees from provision of production services and sponsorship 2583 0 6885 1 Fees from provision of procurement services Dividends from subsidiaries Dividends from an associate 1546643 100 744029 100
Source Media Prima Annual Report 2011
Value Chain Analysis
Resource Based View
The resource-based view is grounded in the perspective that a firm is a collection of unique resources and capabilities that provides the basis for its strategies and the primary source of its return
SupportActivities
Primary Activities
Strategy Development 4
Resource Identification 1Capabilities Determination 2Competitive advantage 3
Resource Gap Analysis 5
Source Porter Value Chain Robert M Grant
Process of CONTENT aggregation Process of CONTENT creation
In the context of the Content industry value chainMapped against Porterrsquos Value chain
Createbull Scriptwritersbull Actorsbull Animatorsbull Gamesbull developer
Publishbull Production housesbull TV Advert Film
Packagebull Media Primabull Astrobull RTMbull Maxisbull Digibull Celcom
DistributebullTelekombull MBNS (Measat)bull RTM
Content industry value chain
Porterrsquos Value Chain
Human Resource Management
Technological DevelopmentProcurement
Marketing amp Sales
Develop Talent Pool
Ensure Vibrant Content Industry
Technologycreates ubiquitous
Low Access Cost
To spur the industry forward
Strong talent develops Content development
demand for access
Strong content industry drives demand for Talent Drive demand for content
Services
Source SKMM Regulatory Compliance Course for Telcos amp Celcos
MARKETINGStrategies are focused on branding activities and marketing communications aggressive Aamp P and active participation in on-ground activities that promote brand awareness And Established Integrated marketing arm
TECHNOLOGY DEVELOPMENT Alt Media the digital arm successfully launched TonTon TV a cutting edge video portal that offers customization and interactivity of social networking Giving Media Prima an advantage of being able to direct advertisers to precise target groups
PROCUREMENT Stringent supplier selection in terms of 70 are local suppliers Sourcing of content which are relevant responsible engaging especially with the advent of new media
SERVICESMedia Prima fully owns Primeworks Studio helps maximize the economies of scale in content production whilst enhancing the quality of content of all television networks
HUMAN CAPITALPrioritize human capital development in news and editorial operation radio network artist and talent management etc Creating an in-house talent pool to develop content
Content Barriers to entry
ndash securing talents - Leadership position in development of local talent and content to leading the industry
Vertical bargaining power
DifferentiationAnd Competitive advantage
- Consumer insights - Integrated media organization
Activities Benefit
Competitiveness leading to Margins
Goal
Appraising capabilities which drives profitability
Source Media Prima Annual Report 2011
Mapping Media Prima revenue streams against the Diversification Map
HIGH
LOW
HIGHLOW
Shar
ing
Ope
ratio
nal R
elat
edne
ss B
etw
een
Busi
ness
Corporate Relatedness Transferring skills into business through corporate HQ
Related Constrained Diversification
Vertical Integration Market Power
Content Creation and Talent development Prima Works enables Media Prima to create localized content for the local market
Both operation and Corporate Relatedness (Rare Capability and can create Diseconomies of scale)
New Media is both an operation and corporate relatedness diversification as it require Media Prima to go beyond playing the role as aggregator but also content producer leveraging on its strength
Unrelated Diversification (Financial Economies)This area of diversification which is unrelated in operation and skills transfer Media Prima has not exploited
Related Linked Diversification (Economies of Scope)As newscontent are cross platforms and the business models are the same Media Prima was able to share similar content across platforms and acquire related companies
Opportunities - Create more segmented programmes and move into interactive content
OpportunitiesHowever more needs to be done in the new are with the advent of Interactive TV
Opportunities Although unrelated area often has high risk it is crucial at this point for Media Prima to extend into this area in smart partnerships with telecommunication companies ie Axiata TM
OpportunitiesMedia Prima has maximized its diversification strategy in this area BUT the market is yet to be ready amp there is a need to link both NSTP and Media Prima
CurrentPrimeworks Studios Sdn Bhd (owned by Media Prima) is Malaysias biggest production company producing TV content since 1984 and feature films since 1994 generating over 5000 hours of TV content and 10 movies annually
Related Constrained Diversification
ChallengesBut the reality is that it is not able to compete with the myriad of channels of its competitors which are dependent on overseas content
Opportunities However more needs to be doneas channels become more segmented-Procuring more content to compete on quantity - or it could change the content game and move into interactive content
Source Creation of An Integrated Media Group 2009 httpwwwmediaprimacommy
TV Newspaper
Radio
Outdoor
New Medi
a
4 3 3
1 2
gt150
17
2 1
gt14
3
22
22
YTL Comms
ABN 100
Ove
rvie
w o
f com
petit
ors
thei
r bus
ines
s po
rtfol
ios
Related Constrained Diversification
Media Company
Advertisers Corporations(Customers )
Viewers(Consumers)
Consumer Pay for Product
CONTENT
Advertiser payFor (Ad space) $$
1 httpwwwlongtailcomthe_long_tail200809the-three-kindshtml
$
Opportunities The potential here is also for Media Prima to drive content syndication ndash providing content to other media stations abroad
Media Prima is currently doing by syndicating content to ASTRO and Unifi
Competitors
Media Company
Viewers(Consumers)
CONTENT PRO
1 httpwwwlongtailcomthe_long_tail200809the-three-kindshtml
$
C
C
C FREE CONTENT FREE CONTENT
FREE CONTENT
Both operation and Corporate Relatedness
CurrentMedia Primarsquos intention to leverage on both its operations and Corporate relatedness to shift its revenue structure to be less dependent on advertising revenue and move toward subscriber revenue where a few subsidies everyone else via versioning ldquoprice discriminationrdquo
ChallengesIt has to some degree been successful to introduce this ndash via TonTon TV however the revenue from this segment has yet to be significant
To date there are 16 show packages and over 50 single episodes for viewers to purchase ndash which is limited
Opportunities However more needs or can be done in this new area with the advent of Interactive TV
Media Company
Advertisers Corporations(Customers )
Viewers(Consumers)
Consumer Pay for Product
FREE
CONTENT
Advertiser payFor (Ad space) $$
Source Website1 httpwwwlongtailcomthe_long_tail200809the-three-kindshtml2 Creation of An Integrated Media 2009 Grouphttpwwwmediaprimacommyinvestorcentercp2009NSTPGOpdf3 httpwwwtheedgemalaysiacomin-the-financial-daily164479-media-prima-best-proxy-to-sector-says-oskhtml 4 Media Prima net revenue grows to RM119b 2011 httpwwwbtimescommyCurrent_NewsBTIMESarticles20111118202427Articleindex_html
Related Linked Diversification
Current Media Prima has expanded across media with the idea in the hope of a) Leveraging on its expertise of
Advertisers subsiding viewers model b) Share back-office consolidation which
creates operations efficiencies in operation ie Editorial Talents
c) Cross marketing opportunities across platforms - Where Advertisers could purchase cross buy across platforms
Challenges Market ndash Not readyThe market is not ready for bundled and cross market offering According to Dato Amrin Awaluddin Group Managing Director of Media Prima no doubt there was head roads but more effort needs to be done to integrate the platforms better
Internally ndash Structure is not integrated In terms of unlocking NSTPs value he says it would be done in two phases `First is more short term like consolidating in terms of operations while the second stage will entail selling of products and cross-promoting our content which would be an ongoing revenue- generation exerciselsquo And he quoted Joran a property of Berita Harian (NST) ndash a nationwide fishing event being brought to TV3 as an example
Opportunities - The structure impeded cross platform and working in silo
does not help
- Hence there is a need to further shift paradigms via a structural change to free up resources to focus on content
- The market will not know what they want until we present them with the opportunity benefit
Social Responsibility Analysis
Social Responsibility
Media Primarsquos approach to Social Responsibility is based on the key triple bottom line ndash social environmental and economic It considers the socio-economic impact of its business activities in the aim to create value to its stakeholders via the 4 categories ie community workplace marketplace and environment
Community1EducationFocusing on education to raise awareness of the importance of education and increase the academic standards of underprivileged children and underperforming schools eg PINTAR Programme NST School Sponsorship Programme
2 HumanitarianRaise funds for humanitarian aid and provided updates on the local and world disaster crisis to the public and raised awareness of the funds eg Humanitarian Aid for Gaza Humanitarian Aid for Flood Victims in Pakistan
3 Other community programmesProduced outreach programmes to reflect and highlight local and community issues and to be the eyes and ears of the public and engage in public awareness through its businessesrsquo media resources and platforms in print interactive media and television eg Project Sunshine
Social Responsibility ndash cont
Environment - EfficiencyStrongly committed to being an environmentally friendly Company by using recycled paper especially in its newspapers business efficient usage of electricity in offices water management reducing amount of waste produced throughout its businesses and other environmental initiatives such as lsquosave our beachrsquo project and WWFrsquos Earth Hour
Marketplace ndash Responsible ContentFocusing on product responsibility in providing high quality products and is committed to establishing a horizontal specialisation system based on collaboration with stakeholders The production flow is illustrated in the diagram below
Workplace ndash Right CultureIt aims to create a workplace where its people have the opportunity to be the best they possibly can to have the right culture safe working environment and human capital development with fair processes
Media Prima Acknowledges it various stakeholder via Stakeholders Management
Media Prima is aware of the diversity of its stakeholders and the different goals and demand of its stakeholders
The Company conducts active engagement with its stakeholders to fully understand their needs and increase their trust in the Company through formal and informal mechanisms as follows
It has moved on to 2nd stage of CSR
1st Generation 2nd Generation 3rd Generation
Philanthropic short term risk management
Product Process innovation business and corporate governance model long term sustainability Strategic CSR
3rd Generation Multi- stakeholder standards and partnerships institutional building CR- Oriented advocacy and public policy
Opportunity
What is next for Media Prima to shape the industry
Creating content that generate advertising dollars amp donations of the poor social awareness
By leveraging on its content distribution capabilities
SWOT Analysis
SWOT Analysis ndash Summary
Strengths 1 Strong market share in TV segment2 Malaysiarsquos only integrated media
organization- have vertical and horizontal diversification advantage
3 Established value chains strength which complements the required core competencies
4 Have move across 3 revenue models
Weaknesses1 limited number of stations variety and choice
for consumer2 Despite diversification revenues still mainly
driven by advertisers and TV -gt cross platforms is needed
3 Financial segmentation may hinder potentials of the company
Opportunities 1 Broadband infrastructure ndash via HSBB2 Development of technology ndash creating
medias gadgets that increase digital interaction and content consumption
3 Consumers are willing to pay for content4 Possible deregulation of content ndash leveling
the playing field
Threats 1 2012 forecasting a financial slow down
affecting Ad Ex ndash hence revenue is reduced2 Increase competition New Entrants Pay TV
player amp continual competition from ASTRO3 Changing consumer habits towards media
consumption -gt moving away from traditional media ndash hence have to fight for consumerrsquos attention
Right Technology (Gadget and Infrastructure) at the Right time (deregulation) amp Right consumers (shift in media habits and willingness to pay for content ndash ASTRO as indicator)
Vertical Value Chain advantage to compete in content development
Media Primarsquos Current situation in summary
+VE
-VE Revenue dependent on advertising which is affected correlated to GDP
Resources organization structure holds back effectiveness of organization
Moving forward2012 and beyond
Recommended Destination and future growth of Media Prima
Revenue mainly from advertising
Revenue from advertising
Content SubscriptionBy viewers
Content driven Complementary Services for advertiser (Auxillary Services)
Media Prima
Media Prima
Content Syndicationto competitors
+
How Moving from aggregator to content creator
Content Focus Leveraging on content to Embark on Revenue shifts
Long term sustainable leadership
Restructuring to liberateresources for Content
Sustainable Talent development -
Partnership
Riding the Technology Wave
Short term (2012) Mid Term (by 2013-2015) Long term 2015 beyond
How Moving from aggregator to content creator
Content Focus Leveraging on content to Embark on Revenue shifts
Long term sustainable leadership
Restructuring to liberateresources for Content
Sustainable Talent development -
Partnership
Riding the Technology Wave
Short term (2012) Mid Term (by 2013-2015) Long term 2015 beyond
Creating a Content focus agency All these can be enable via the following means
Demand- The content creation race bull There is a need to free up empower human capital to create more content which are relevant
segmented engaging and entertaining
How does media prima refocus its resources into where it matters Instead of multiple teams doing the same thing ndash there is a challenge to create a lean and efficient organization
Challenges Freeing Resources
Instead of looking at a Media based financial segment reporting structurally force the teams to integrate by changing the dynamics of PampL
Next page
Solution Redefining Business Units Paradigms
Take a step up from producing beyond the current vernacular program to meet shifting consumer needs
Challenges ndash Lifestyle lead Variety
Creating Channel programs which are target segment focus based on lifestyles hellip
Acquisition of content as content regulations will be relaxed
Solution Target Segment focus
Using financial view to free resources for content developmentFinancial segment reporting may create a ldquosilordquo mentality ndash which encourages each head of business to protect their bottom line Hence a less effective in operations
Our recommendation is to expand content creation to cut across and shift paradigms to free up resources and focus on new revenue streams And create new content for different segment
Tele
visi
on N
etw
ork
Radi
o N
etw
ork
Out
door
Med
ia
Prin
t M
edia
Oth
er M
edia
Current Financial Segment Reporting
Tele
visi
on N
etw
ork
Radi
o N
etw
ork
Out
door
Med
ia
Prin
t M
edia
Oth
er M
edia
Production
Content
Subscription
Advertising
Recommended Segment Reporting
Lifestyle Segments
Lifestyle Segments
Lifestyle Segments
Lifestyle Segments
Lifestyle Segments
Lifestyle Segments
By changing the business segment reporting it also affects the company structure
The benefits - Flexibility and empowers knowledge
economy ndash talent content driven
- Builds at strong work culture which may be replicated in the region
- Expansion to embark on talent and content crowd sourcing - open innovation creation
Media Prima can take this opportunity to achieve SPECIALIZATION COORDINATION AND COOPERATION Currently team structure ndash of Integrated Marketing Division is created as a temporary solution hellip to enable integration It will move towards a network model to haste integration fast and response to technology and consumer needs
Subcription
Advertising
Production
TechnologyPartner
Content
How Moving from aggregator to content creator
Content Focus Leveraging on content to Embark on Revenue shifts
Long term sustainable leadership
Restructuring to liberateresources for Content
Sustainable Talent development -
Partnership
Riding the Technology Wave
Short term (2012) Mid Term (by 2013-2015) Long term 2015 beyond
Technology ndash Enable Media Prima to leap into Interactive Content
Interactive Content
UniFi Axiata
Media Prima
Electronics Manufacturer
Demand - A ready market bull There is a latent demand for content-gt consumers are
willing to Pay bull Technology has accustomed consumers to interacting
with contentbull Regulatory push to shift from analogue to digital by
2015
However unlike Media Primarsquos western counterparts ie Time Warner Communication Media Prima does not have the advantages of cable infrastructure
Challenges ndash Limitation
Media Prima could depend on existing suppliers of connectivity and technology- Telecommunications ie AXIATA and - Manufacturing companies ie Samsungto take the leap into interactive content Unifi TM
Solution ndash Smart Partnerships
Maximizing Unrelated Diversification
It is not a Fad but a trend
Smart TV is an inevitable trend says Baeguen Kang vice president of
research and development at South Koreas LG Electronics Co the worlds second-largest seller of TV sets by unit volume As people experienced smartphones and tablet PCs the larger screen on a TV is very attractive for apps and Web content
210 million TV sets sold world-wide had an Internet connection (2010)
21 50It will be the forecast in (2014)
Source Evan Ramstad (January 2011)A ldquoManufacturers Turn to Smart TV After 3-D Disappointsrdquo The Wall Street Journal online httponlinewsjcomarticleSB10001424052748704835504576059783074010902html
As technology develops Current cost is will drop exponentially reflecting the Moorersquos Law
Hence lowering the cost of access for interactive content
Example of Smart TV
Smart Hub It is a front facing interface just like a main menu
when consumers turn on their TV There are few utilities that consumers can choose to be entertained
Video ndash consumers can choose from array of video collections that required to be paid
Apps ndash an internet-enabled applications like You Tube Facebook Twitter Skype and others
Internet browsing ndash just like PC internet browsing
Music photo and TV watching
Smart ConnectivityWIFI enabled that allows consumers to connect to all mobile devices like smart phone tablet PC notebook and camera with Samsung Wireless Router called 1 foot This connectivity is being called ldquoAllSharerdquo by Samsung
httpotbresearchcomau200509report-1-industry-forum
MEDIA PRIMA IS CURRENTLY HERE
This will ultimately lead Media Prima to reduce it dependence on advertising revenue
Others ndash Utilising the SMART TV technology and Apps to create any existing Media Prima businesses
NEW Revenue Streams for Media Prima
To take advantage of SMART TV and collaborate with SMART TV manufacturers Media Prima can look into following utilities
Collaborate with manufacturers to allow consumers to browse and pay for Media Prima video collections
Selling local music for Malaysia market
Collaborate with local or international content developers to create Malaysia specific contents for paid subscription or free for common content to attract new consumers
How
Content Focus Leveraging on content to Embark on Revenue shifts
Long term sustainable leadership
Restructuring to liberateresources for Content
Sustainable Talent development -
Partnership
Riding the Technology Wave
Short term (2012) Mid Term (by 2013-2015) Long term 2015 beyond
Building Talents in the long run
Education Building on its strategic CSR ndash Media Prima could champion the
development of the content industry by partnering with local universities in the areas of technology media and communication
Crowd Sourcing To haste up the strategic CSR it too could embark on crowd
sourcing for content ndash via scripts and interactive content In which Media Prima could support a great idea and develop the ideas for monetization
This is a synergistic and natural development from the networks structure (open innovation)
Summary ndash Media Prima
Develop Talent Pool
Ensure Vibrant Content Industry
Technologycreates ubiquitous
Low Access Cost
To spur the industry forward
Strong talent develops Content development
demand for access
Strong content industry drives demand for Talent drives demand for content
Our recommendations are aligned to help spur the industry forwardhellip
Restructuring to liberateresources for Content
Sustainable Talent development -
Partnership
Riding the Technology Wave ndash Via Smart
Partnerships
References
References
1 Anon ldquoMedia Prima Berhad implements Accenture integrated broadcast systemrdquo Accenture Press Release httpnewsroomaccenturecomarticle_displaycfmarticle_id=5005 viewed 3 November 2011
2 Anon ldquoNew exciting and vibrant offerings from MPB television networks in 2010rdquo Media Prima Press Release httpwwwmediaprimacommypressreleasepressreleaseaspxid=150 viewed 3 November 2011
3 Anderson J ldquoResource-based competitiveness managerial implications of the resource-based viewrdquo Strategic Direction Vol26 No5 2010 pp1-2
4 Arman Arshad (2006) Size matters Retrieved December 2 2011 from asiaviewsorg httpwwwasiaviewsorgindexphpoption=com_contentampview=articleampid=2171headlinealias2171ampcatid=1headlinesampItemid=2
5 Asia Times (2007 November 29) Malaysian media giant grasps for Internet Retrieved November 3 2011 from httpwwwatimescomatimesSoutheast_AsiaIK29Ae02html
6 Barney JB amp Hesterly WS (2008) Strategic Management and Competitive Advantage The Five Forces Model of Environmental Threats pp39Prentice Hall
7 BBC (2011) BBC News product launches on connected TV Retrieved from bbccoukpressofficepressreleasesstories201106_june17newsshtml
8 Boston Consulting Group (2011) Lean Advantage in Media Boston Consulting Group
9 Boston Consulting Group (2011) Running Forward Walking Backward Boston Consulting Group
10 Business Times (2011) Media Prima net revenue grows to RM119b Kuala Lumpur New Straits Times
11 Business Times (2011) Media Prima on track to achie1048665ing 2011 target Retrieved from www1btimescomm1048668Current_NewsBTIMESarticlespimeArticle
References (1)
12 Business Times (2011) Media Prima Puncak Semangat in early talks Retrieved from httpwwwbtimescommyarticlespimmaArticle
13 Carl W Stern George Stalk Carl W Stern George Stalk Stern CW amp Stalk G (2011) Perspectives of Strategy from the Boston Consulting Group Retrieved December 3 2011 from Value Based Managementnet httpwwwvaluebasedmanagementnetmethods_bcgmatrixhtml
14 ecmlibra (2011) Adex momentum to taper off in 2012 ecmlibra
15 Gershon R A amp Ratnadeep S V (2004) Viacom Inc A Case Study in Transnational Media Management Journal of Media Business Studies 1 (1) 47-69
16 Grant RM ldquoThe resource-based theory of competitive advantage implications for strategy formulationrdquo California Management Review Vol 3 2011 httpwwwskynetie~karenArticlesGrant1_NBpdf viewed 15 November 2011
17 GreyReview (2011) TonTon Streaming Over 11 Million Video Hours A Month now with 16 millions registered users Retrieved from httpwwwgreyreviewcom20110731tonton-serving-over-1-1-million-video-hours-a-month-now-with-1-6-registered-users
18 Heavy Reading (2011) Telecom in TV Land A Roadmap to New Digital Media Ecosystem Retrieved from wwwheavyreadingcomdetailsaspsku_id=1773ampskuitem_itemid=1030
19 Hegedus N (2010) The Great Scare EBR 3 10-17
20 JohnsonGScholesK amp Whittington (2008) Exploring Corporate Strategy Competitive Forces ndash the Five Forces Framework pp 59-64 Prentice Hall
21 kinetic (2011) Moving World Asia Hong Kong
References (2)
22 Knowledgefaber (2009) Telcos Avatar - As Media Companies 20 Retrieved from httpknowledgefabercomindexphpoption=com_contentampview=articleampid=40telecom-and-media-convergenceampcatid=10telecomampItemid=42
23 Knowledgefaber (2011) Telcos Avatar - As Media Companies 20 Retrieved from httpknowledgefabercomindexphpoption=com_contentampview=articleampid=40
24 Malik O (2011) GIGAOM Retrieved from httpgigaomcom20110223old-media-is-being-unbundled-just-like-telecom-was
25 Maxis with TM Astro with TIME Best Strategy to IPTV Market Retrieved December 1 2011 httpbizthestarcommynewsstoryaspfile=201111business7704581ampsec=business
26 Media Prima (2010) Annual Report Media Prima Berhad27 Media Prima Berhad (2011) 11 Nov 2011 - New Exciting amp Vibrant Offerings From MPB Television Retrieved from
wwwmediaprimacommypressreleasepressreleaseaspxid=15028 Media Prima (2010) Sustainability Report Media Prima Berhad29 OSK (2011) Media Prima OSK30 Pocket-Lint (2011) Samsung Smart TV hits 2 million mark Retrieved from
httpwwwpocket-lintcomnews40593samsung-smart-tv-2-million31 PricewaterhouseCoopers (2011) Achieving corporate financial PwC32 PricewaterhouseCoopers (2007) Financial Reporting Standards (FRS) in Malaysia PricewaterhouseCoopers33 SKMM (MCMC) (2009) Advertising Development in Malaysia SKMM34 SKMM (MCMC) (2011) Content Development SKMM35 Techpinions (2011) Interactive TV Trends - How the TV experience is changing - Part II Retrieved from
httptechpinionscominteractive-tv-trends-E28093-how-the-tv-experience-is-changing-part-ii4066
References (3)
36 The Edge (2011) Media Prima best proxy to sector Retrieved from wwwtheedgemalaysiacom37 The Edge Malaysia (2011 September 26) Education the mother of all reforms Retrieved October 30 2011 from
httpwwwtheedgemalaysiacomin-the-financial-daily193478-education-the-mother-of-all-reformshtml38 The Star Online (2011) Main players in the competitive TV sector Retrieved from bizthestarcommynewsstoryasp
file=20111126business997401739 The Star Online (2011) Maxis ready to move up value Retrieved from
bizthestarcommynewsstoryaspfile=201111business7704581ampse40 The Star Online (2011) New players enter the TV Retrieved from
bizthestarcommynewsstoryaspfile=20111126business997300841 The Star Newspaper (December 1 2011) Capital TV to make its debut today42 The Star Online (January 1 2011) Maxis ready to move up value chain Retrieved December 3 2011
httpbizthestarcommynewsstoryaspfile=201111business7704581ampsec=business43 The Star Online (2011 April 21) Media Prima to invest more on local content Retrieved October 30 2011 from C
Usersa34ffzzDesktopMedia PrimaUsed articlesMedia Prima to invest more in local contentmht44 Time Warners (2010) Annual Report Time Warners45 WHAT HI FI (2011) Samsung aims for 50m TV sales worldwide in 2012 set to announce launch date for Google TV
product Retrieved from httpwwwwhathificomnewssamsung-aims-for-50m-tv-sales-worldwide-in-2012-set-to-announce-launch-date-for-google-tv-produ
46 Woroch G A (1996) Turning the Cables Elsevier47 Zanuddin H (2007) Political influence in Malaysia and Thailand media sector Jati Vol12
- MEdiA PRIMA
- Agenda
- Company Profile
- Media Primarsquos Commitment amp Direction moving forward
- Media Industry Business Model ndash Content Driven
- Our Tasks ndash How
- PEST Analysis
- Politics Legal Issues amp Impact
- Economic Issues and Impact
- Social Issues and Impact
- Social Issues and Impact
- Technology Issues and Impact
- In short
- Porterrsquos 5 Forces Analysis
- Porterrsquos Five Forces ndash Competitive Analysis
- Financials
- Media Prima Financial Highlights
- However in further analysis
- Value Chain Analysis
- Resource Based View
- In the context of the Content industry value chain Mapped again
- Appraising capabilities which drives profitability
- Mapping Media Prima revenue streams against the Diversification
- Slide 25
- Related Constrained Diversification
- Related Constrained Diversification (2)
- Slide 28
- Related Linked Diversification
- Slide 30
- Social Responsibility Analysis
- Social Responsibility
- Social Responsibility ndash cont
- Media Prima Acknowledges it various stakeholder via Stakeholder
- It has moved on to 2nd stage of CSR
- SWOT Analysis
- SWOT Analysis ndash Summary
- Media Primarsquos Current situation in summary
- Moving forward 2012 and beyond
- Recommended Destination and future growth of Media Prima
- How Moving from aggregator to content creator
- How Moving from aggregator to content creator (2)
- Creating a Content focus agency All these can be enable via
- Using financial view to free resources for content development
- By changing the business segment reporting it also affects the
- How Moving from aggregator to content creator (3)
- Technology ndash Enable Media Prima to leap into Interactive Conten
- It is not a Fad but a trend
- Slide 50
- Example of Smart TV
- This will ultimately lead Media Prima to reduce it dependence o
- NEW Revenue Streams for Media Prima
- How
- Building Talents in the long run
- Summary ndash Media Prima
- References
- References
- References (1)
- References (2)
- References (3)
-
Our Tasks ndash How - continue to attract consumer (viewer) amp - to increase customerrsquos (advertiser) dependence on Media
Primarsquos content
The solutions lie within the understanding of
bull the environment around the organization
bull its competitive landscape
bull the organizationrsquos internal capabilities and
bull strategies it has embarked upon
PEST Analysis
Politics Legal Issues amp Impact
Source 1 httpenwikipediaorgwikiDigital_television_in_Malaysiacite_note-102 bizthestarcommynewsstoryaspfile=20111126business99740173 httpwwwconsumerorgmyindexphpdevelopmentprivate-sector479-astros-monopoly-has-short-changed-malaysian-tv-viewers
Change from Analogue TV to Digital TV by 2015bull Analogue TV broadcasts would be shut down in stages and due
to complete by 2015 as per recommendation from ASEAN bull Digital will open is in evitable
Deregulation of content bull But the regulator of the industry has yet to come up with details
on how it will go about disbanding the monopoly on content
Would do away with monopoly in the pay-TV broadcasting sectorbull With the introduction of newer IPTV services bull And Astrorsquos exclusive Pay TV license will end by 2017
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 (F)
-5
0
5
10
15
20
25
16
23
2
910
17
3 4
1513
7
1614
68
1
45
75
6 65
-2
726
ADEX Growth GDP Growth
Slowing down of GDP
Economic Issues and Impact
Source httpwwwtheedgemalaysiacomin-the-financial-daily196495-slower-tv-adex-points-to-quiet-adspend-for-the-rest-of-2011html
bull Ad Ex (Advertising Expenditure) fluctuates with GDP And as Media Primarsquos main source of revenue is from Ad Ex it will be affected by the projected slow down of the 2012 economy as multinational advertisers become more cautious
bull Organization for Economic Cooperation and Development projected a 03 growth in 2012 instead of the 2 forecast
bull Malaysian perspective GDP growth of 51 (Nomura)
51 2012
Social Issues and ImpactOnline creeps in time spent increases and trust levels bull More time spent on Online gt TV and consumer are referring to
online to make purchase decision hence cross platform presence is needed to reach consumer (Malaysian Digital Consumer Report 2011)
Reading Magazine
Reading Newspapers
Video on Mobile Phone
Radio Stream via Internet
Internet via Mobile Phone
Online Games on PC
Listening to Radio
Watching TV
Internet
0 5 10 15 20 25
3434751535658
106198
Average Weekly Hours Spent on different media
Online activities beyond Watching TV
Source 1 QuickPlay Media 2 httpwwwgartnercomtechnologyhomejsp
httpwwwthemalaysianreservecommainindexphpoption=com_contentampview=articleampid=899move-over-tv-the-net-is-where-the-action-isampcatid=36corporate-malaysiaampItemid=120
Online activities beyond Newspapers and Magazines
76 of consumers indicate that they watch more TV on tablet than before a shift in media consumption behavior
Social Issues and Impact
Source Kinetic Insights on People on the Move Moving World Asia (2011)
Consumers are On The Move Disconnect from traditional Channels bull 107 Hr Weekday -gt Highest in ASIAbull Requires mobile channel to deliver and keep up with consumers bull Moving from radio -gt mobile phones -gt tablets
Outdoor
On Mobile
BUT
Broadband Penetration
Mobile Penetration
Technology Issues and Impact
Household broadband penetration at 615 and will grow to 75 by 2015
75 107
Source httpwwwthemalaysianreservecommainindexphpoption=com_contentampview=articleampid=899move-over-tv-the-net-is-where-the-action-isampcatid=36corporate-malaysiaampItemid=120
Malaysia a Digital Nation Netizens (constant access to internet) make up 40 of the
total population of 27 million Tablet PC usage and ownership netizen are expected to
increase from 18 to 75 in 2012
In short
1 Legislative deregulation spurs the attractiveness of the
market
2 Economic impose pressures for 2012
3 Social shifts leads the way to new media
4 Technology is the catalytic enable of Media organization
shift into New Media
Porterrsquos 5 Forces Analysis
Astro is the only direct challenger as it is the closest to an integrated media organisation
Power of Substitutes 1 Technology and Sharing of
screen ndash Moving away from TV to mobile content and social media decreases the share of attention
2 Self Generated content by Netizens ndash User Generated Content - youtube
Power of Suppliers 1 Content is king and that is what
drives viewership ndash and not the media organisation that aggregates it
2 Content lead experience is dependent on technological development
Threat of New Entrants 1 Introduction of new IPTV which
offers variety of channelsDETV and ABN
2 New entrants have infrastructure backing hence offering product bundling of triple play ie Unifi YTL Comms
Power of Consumers 1 Consumer Moving away from
Print TV and Radio - they are the ones that drive demand
2 Advertiser have a hard time reaching the fragmented audience (beyond traditional media)
Porterrsquos Five Forces ndash Competitive Analysis
Customers are dependant on content (Media Prima) to reach consumers
Competitive Rivalry
Source bizthestarcommynewsstoryaspfile=20111126business9974017
Nevertheless Media Prima is still in control as it complements their services by offering them content
But its audiences are fragmented across 150 channels versus ours which focus 4 stations
Content creators and aggregators need to mirror consumerrsquos media consumption trends
Can be mitigated by internalizing content development but Media Prima needs to keep its content up to date with technology development
Financials
Media Prima Financial Highlights
1327millionProfit After Tax and Minority Interest (ldquoPATAMIrdquo)September 2011 (9 Months)
in the corresponding period for 20101105 million
A healthy GROWTH
Source Media Prima Annual Report 2011
However in further analysisHowever the bulk of its revenue comes from advertising that is in turn dependent on the economic outlook the question arises as to whether Media Prima should diversify its income stream Especially when gt80 of Astrorsquos revenue is on subscription
Reduce Media Primarsquos dependence on advertising revenueas it highly fluctuates with the market conditions
Group
2010 2009
RMrsquo000 RMrsquo000
Advertising revenue 1237961 80 725857 98 Circulation revenue 290691 19 0 Sale of programmes videos cable and laser rights and media revenue 15408 1 11287 2 Fees from provision of production services and sponsorship 2583 0 6885 1 Fees from provision of procurement services Dividends from subsidiaries Dividends from an associate 1546643 100 744029 100
Source Media Prima Annual Report 2011
Value Chain Analysis
Resource Based View
The resource-based view is grounded in the perspective that a firm is a collection of unique resources and capabilities that provides the basis for its strategies and the primary source of its return
SupportActivities
Primary Activities
Strategy Development 4
Resource Identification 1Capabilities Determination 2Competitive advantage 3
Resource Gap Analysis 5
Source Porter Value Chain Robert M Grant
Process of CONTENT aggregation Process of CONTENT creation
In the context of the Content industry value chainMapped against Porterrsquos Value chain
Createbull Scriptwritersbull Actorsbull Animatorsbull Gamesbull developer
Publishbull Production housesbull TV Advert Film
Packagebull Media Primabull Astrobull RTMbull Maxisbull Digibull Celcom
DistributebullTelekombull MBNS (Measat)bull RTM
Content industry value chain
Porterrsquos Value Chain
Human Resource Management
Technological DevelopmentProcurement
Marketing amp Sales
Develop Talent Pool
Ensure Vibrant Content Industry
Technologycreates ubiquitous
Low Access Cost
To spur the industry forward
Strong talent develops Content development
demand for access
Strong content industry drives demand for Talent Drive demand for content
Services
Source SKMM Regulatory Compliance Course for Telcos amp Celcos
MARKETINGStrategies are focused on branding activities and marketing communications aggressive Aamp P and active participation in on-ground activities that promote brand awareness And Established Integrated marketing arm
TECHNOLOGY DEVELOPMENT Alt Media the digital arm successfully launched TonTon TV a cutting edge video portal that offers customization and interactivity of social networking Giving Media Prima an advantage of being able to direct advertisers to precise target groups
PROCUREMENT Stringent supplier selection in terms of 70 are local suppliers Sourcing of content which are relevant responsible engaging especially with the advent of new media
SERVICESMedia Prima fully owns Primeworks Studio helps maximize the economies of scale in content production whilst enhancing the quality of content of all television networks
HUMAN CAPITALPrioritize human capital development in news and editorial operation radio network artist and talent management etc Creating an in-house talent pool to develop content
Content Barriers to entry
ndash securing talents - Leadership position in development of local talent and content to leading the industry
Vertical bargaining power
DifferentiationAnd Competitive advantage
- Consumer insights - Integrated media organization
Activities Benefit
Competitiveness leading to Margins
Goal
Appraising capabilities which drives profitability
Source Media Prima Annual Report 2011
Mapping Media Prima revenue streams against the Diversification Map
HIGH
LOW
HIGHLOW
Shar
ing
Ope
ratio
nal R
elat
edne
ss B
etw
een
Busi
ness
Corporate Relatedness Transferring skills into business through corporate HQ
Related Constrained Diversification
Vertical Integration Market Power
Content Creation and Talent development Prima Works enables Media Prima to create localized content for the local market
Both operation and Corporate Relatedness (Rare Capability and can create Diseconomies of scale)
New Media is both an operation and corporate relatedness diversification as it require Media Prima to go beyond playing the role as aggregator but also content producer leveraging on its strength
Unrelated Diversification (Financial Economies)This area of diversification which is unrelated in operation and skills transfer Media Prima has not exploited
Related Linked Diversification (Economies of Scope)As newscontent are cross platforms and the business models are the same Media Prima was able to share similar content across platforms and acquire related companies
Opportunities - Create more segmented programmes and move into interactive content
OpportunitiesHowever more needs to be done in the new are with the advent of Interactive TV
Opportunities Although unrelated area often has high risk it is crucial at this point for Media Prima to extend into this area in smart partnerships with telecommunication companies ie Axiata TM
OpportunitiesMedia Prima has maximized its diversification strategy in this area BUT the market is yet to be ready amp there is a need to link both NSTP and Media Prima
CurrentPrimeworks Studios Sdn Bhd (owned by Media Prima) is Malaysias biggest production company producing TV content since 1984 and feature films since 1994 generating over 5000 hours of TV content and 10 movies annually
Related Constrained Diversification
ChallengesBut the reality is that it is not able to compete with the myriad of channels of its competitors which are dependent on overseas content
Opportunities However more needs to be doneas channels become more segmented-Procuring more content to compete on quantity - or it could change the content game and move into interactive content
Source Creation of An Integrated Media Group 2009 httpwwwmediaprimacommy
TV Newspaper
Radio
Outdoor
New Medi
a
4 3 3
1 2
gt150
17
2 1
gt14
3
22
22
YTL Comms
ABN 100
Ove
rvie
w o
f com
petit
ors
thei
r bus
ines
s po
rtfol
ios
Related Constrained Diversification
Media Company
Advertisers Corporations(Customers )
Viewers(Consumers)
Consumer Pay for Product
CONTENT
Advertiser payFor (Ad space) $$
1 httpwwwlongtailcomthe_long_tail200809the-three-kindshtml
$
Opportunities The potential here is also for Media Prima to drive content syndication ndash providing content to other media stations abroad
Media Prima is currently doing by syndicating content to ASTRO and Unifi
Competitors
Media Company
Viewers(Consumers)
CONTENT PRO
1 httpwwwlongtailcomthe_long_tail200809the-three-kindshtml
$
C
C
C FREE CONTENT FREE CONTENT
FREE CONTENT
Both operation and Corporate Relatedness
CurrentMedia Primarsquos intention to leverage on both its operations and Corporate relatedness to shift its revenue structure to be less dependent on advertising revenue and move toward subscriber revenue where a few subsidies everyone else via versioning ldquoprice discriminationrdquo
ChallengesIt has to some degree been successful to introduce this ndash via TonTon TV however the revenue from this segment has yet to be significant
To date there are 16 show packages and over 50 single episodes for viewers to purchase ndash which is limited
Opportunities However more needs or can be done in this new area with the advent of Interactive TV
Media Company
Advertisers Corporations(Customers )
Viewers(Consumers)
Consumer Pay for Product
FREE
CONTENT
Advertiser payFor (Ad space) $$
Source Website1 httpwwwlongtailcomthe_long_tail200809the-three-kindshtml2 Creation of An Integrated Media 2009 Grouphttpwwwmediaprimacommyinvestorcentercp2009NSTPGOpdf3 httpwwwtheedgemalaysiacomin-the-financial-daily164479-media-prima-best-proxy-to-sector-says-oskhtml 4 Media Prima net revenue grows to RM119b 2011 httpwwwbtimescommyCurrent_NewsBTIMESarticles20111118202427Articleindex_html
Related Linked Diversification
Current Media Prima has expanded across media with the idea in the hope of a) Leveraging on its expertise of
Advertisers subsiding viewers model b) Share back-office consolidation which
creates operations efficiencies in operation ie Editorial Talents
c) Cross marketing opportunities across platforms - Where Advertisers could purchase cross buy across platforms
Challenges Market ndash Not readyThe market is not ready for bundled and cross market offering According to Dato Amrin Awaluddin Group Managing Director of Media Prima no doubt there was head roads but more effort needs to be done to integrate the platforms better
Internally ndash Structure is not integrated In terms of unlocking NSTPs value he says it would be done in two phases `First is more short term like consolidating in terms of operations while the second stage will entail selling of products and cross-promoting our content which would be an ongoing revenue- generation exerciselsquo And he quoted Joran a property of Berita Harian (NST) ndash a nationwide fishing event being brought to TV3 as an example
Opportunities - The structure impeded cross platform and working in silo
does not help
- Hence there is a need to further shift paradigms via a structural change to free up resources to focus on content
- The market will not know what they want until we present them with the opportunity benefit
Social Responsibility Analysis
Social Responsibility
Media Primarsquos approach to Social Responsibility is based on the key triple bottom line ndash social environmental and economic It considers the socio-economic impact of its business activities in the aim to create value to its stakeholders via the 4 categories ie community workplace marketplace and environment
Community1EducationFocusing on education to raise awareness of the importance of education and increase the academic standards of underprivileged children and underperforming schools eg PINTAR Programme NST School Sponsorship Programme
2 HumanitarianRaise funds for humanitarian aid and provided updates on the local and world disaster crisis to the public and raised awareness of the funds eg Humanitarian Aid for Gaza Humanitarian Aid for Flood Victims in Pakistan
3 Other community programmesProduced outreach programmes to reflect and highlight local and community issues and to be the eyes and ears of the public and engage in public awareness through its businessesrsquo media resources and platforms in print interactive media and television eg Project Sunshine
Social Responsibility ndash cont
Environment - EfficiencyStrongly committed to being an environmentally friendly Company by using recycled paper especially in its newspapers business efficient usage of electricity in offices water management reducing amount of waste produced throughout its businesses and other environmental initiatives such as lsquosave our beachrsquo project and WWFrsquos Earth Hour
Marketplace ndash Responsible ContentFocusing on product responsibility in providing high quality products and is committed to establishing a horizontal specialisation system based on collaboration with stakeholders The production flow is illustrated in the diagram below
Workplace ndash Right CultureIt aims to create a workplace where its people have the opportunity to be the best they possibly can to have the right culture safe working environment and human capital development with fair processes
Media Prima Acknowledges it various stakeholder via Stakeholders Management
Media Prima is aware of the diversity of its stakeholders and the different goals and demand of its stakeholders
The Company conducts active engagement with its stakeholders to fully understand their needs and increase their trust in the Company through formal and informal mechanisms as follows
It has moved on to 2nd stage of CSR
1st Generation 2nd Generation 3rd Generation
Philanthropic short term risk management
Product Process innovation business and corporate governance model long term sustainability Strategic CSR
3rd Generation Multi- stakeholder standards and partnerships institutional building CR- Oriented advocacy and public policy
Opportunity
What is next for Media Prima to shape the industry
Creating content that generate advertising dollars amp donations of the poor social awareness
By leveraging on its content distribution capabilities
SWOT Analysis
SWOT Analysis ndash Summary
Strengths 1 Strong market share in TV segment2 Malaysiarsquos only integrated media
organization- have vertical and horizontal diversification advantage
3 Established value chains strength which complements the required core competencies
4 Have move across 3 revenue models
Weaknesses1 limited number of stations variety and choice
for consumer2 Despite diversification revenues still mainly
driven by advertisers and TV -gt cross platforms is needed
3 Financial segmentation may hinder potentials of the company
Opportunities 1 Broadband infrastructure ndash via HSBB2 Development of technology ndash creating
medias gadgets that increase digital interaction and content consumption
3 Consumers are willing to pay for content4 Possible deregulation of content ndash leveling
the playing field
Threats 1 2012 forecasting a financial slow down
affecting Ad Ex ndash hence revenue is reduced2 Increase competition New Entrants Pay TV
player amp continual competition from ASTRO3 Changing consumer habits towards media
consumption -gt moving away from traditional media ndash hence have to fight for consumerrsquos attention
Right Technology (Gadget and Infrastructure) at the Right time (deregulation) amp Right consumers (shift in media habits and willingness to pay for content ndash ASTRO as indicator)
Vertical Value Chain advantage to compete in content development
Media Primarsquos Current situation in summary
+VE
-VE Revenue dependent on advertising which is affected correlated to GDP
Resources organization structure holds back effectiveness of organization
Moving forward2012 and beyond
Recommended Destination and future growth of Media Prima
Revenue mainly from advertising
Revenue from advertising
Content SubscriptionBy viewers
Content driven Complementary Services for advertiser (Auxillary Services)
Media Prima
Media Prima
Content Syndicationto competitors
+
How Moving from aggregator to content creator
Content Focus Leveraging on content to Embark on Revenue shifts
Long term sustainable leadership
Restructuring to liberateresources for Content
Sustainable Talent development -
Partnership
Riding the Technology Wave
Short term (2012) Mid Term (by 2013-2015) Long term 2015 beyond
How Moving from aggregator to content creator
Content Focus Leveraging on content to Embark on Revenue shifts
Long term sustainable leadership
Restructuring to liberateresources for Content
Sustainable Talent development -
Partnership
Riding the Technology Wave
Short term (2012) Mid Term (by 2013-2015) Long term 2015 beyond
Creating a Content focus agency All these can be enable via the following means
Demand- The content creation race bull There is a need to free up empower human capital to create more content which are relevant
segmented engaging and entertaining
How does media prima refocus its resources into where it matters Instead of multiple teams doing the same thing ndash there is a challenge to create a lean and efficient organization
Challenges Freeing Resources
Instead of looking at a Media based financial segment reporting structurally force the teams to integrate by changing the dynamics of PampL
Next page
Solution Redefining Business Units Paradigms
Take a step up from producing beyond the current vernacular program to meet shifting consumer needs
Challenges ndash Lifestyle lead Variety
Creating Channel programs which are target segment focus based on lifestyles hellip
Acquisition of content as content regulations will be relaxed
Solution Target Segment focus
Using financial view to free resources for content developmentFinancial segment reporting may create a ldquosilordquo mentality ndash which encourages each head of business to protect their bottom line Hence a less effective in operations
Our recommendation is to expand content creation to cut across and shift paradigms to free up resources and focus on new revenue streams And create new content for different segment
Tele
visi
on N
etw
ork
Radi
o N
etw
ork
Out
door
Med
ia
Prin
t M
edia
Oth
er M
edia
Current Financial Segment Reporting
Tele
visi
on N
etw
ork
Radi
o N
etw
ork
Out
door
Med
ia
Prin
t M
edia
Oth
er M
edia
Production
Content
Subscription
Advertising
Recommended Segment Reporting
Lifestyle Segments
Lifestyle Segments
Lifestyle Segments
Lifestyle Segments
Lifestyle Segments
Lifestyle Segments
By changing the business segment reporting it also affects the company structure
The benefits - Flexibility and empowers knowledge
economy ndash talent content driven
- Builds at strong work culture which may be replicated in the region
- Expansion to embark on talent and content crowd sourcing - open innovation creation
Media Prima can take this opportunity to achieve SPECIALIZATION COORDINATION AND COOPERATION Currently team structure ndash of Integrated Marketing Division is created as a temporary solution hellip to enable integration It will move towards a network model to haste integration fast and response to technology and consumer needs
Subcription
Advertising
Production
TechnologyPartner
Content
How Moving from aggregator to content creator
Content Focus Leveraging on content to Embark on Revenue shifts
Long term sustainable leadership
Restructuring to liberateresources for Content
Sustainable Talent development -
Partnership
Riding the Technology Wave
Short term (2012) Mid Term (by 2013-2015) Long term 2015 beyond
Technology ndash Enable Media Prima to leap into Interactive Content
Interactive Content
UniFi Axiata
Media Prima
Electronics Manufacturer
Demand - A ready market bull There is a latent demand for content-gt consumers are
willing to Pay bull Technology has accustomed consumers to interacting
with contentbull Regulatory push to shift from analogue to digital by
2015
However unlike Media Primarsquos western counterparts ie Time Warner Communication Media Prima does not have the advantages of cable infrastructure
Challenges ndash Limitation
Media Prima could depend on existing suppliers of connectivity and technology- Telecommunications ie AXIATA and - Manufacturing companies ie Samsungto take the leap into interactive content Unifi TM
Solution ndash Smart Partnerships
Maximizing Unrelated Diversification
It is not a Fad but a trend
Smart TV is an inevitable trend says Baeguen Kang vice president of
research and development at South Koreas LG Electronics Co the worlds second-largest seller of TV sets by unit volume As people experienced smartphones and tablet PCs the larger screen on a TV is very attractive for apps and Web content
210 million TV sets sold world-wide had an Internet connection (2010)
21 50It will be the forecast in (2014)
Source Evan Ramstad (January 2011)A ldquoManufacturers Turn to Smart TV After 3-D Disappointsrdquo The Wall Street Journal online httponlinewsjcomarticleSB10001424052748704835504576059783074010902html
As technology develops Current cost is will drop exponentially reflecting the Moorersquos Law
Hence lowering the cost of access for interactive content
Example of Smart TV
Smart Hub It is a front facing interface just like a main menu
when consumers turn on their TV There are few utilities that consumers can choose to be entertained
Video ndash consumers can choose from array of video collections that required to be paid
Apps ndash an internet-enabled applications like You Tube Facebook Twitter Skype and others
Internet browsing ndash just like PC internet browsing
Music photo and TV watching
Smart ConnectivityWIFI enabled that allows consumers to connect to all mobile devices like smart phone tablet PC notebook and camera with Samsung Wireless Router called 1 foot This connectivity is being called ldquoAllSharerdquo by Samsung
httpotbresearchcomau200509report-1-industry-forum
MEDIA PRIMA IS CURRENTLY HERE
This will ultimately lead Media Prima to reduce it dependence on advertising revenue
Others ndash Utilising the SMART TV technology and Apps to create any existing Media Prima businesses
NEW Revenue Streams for Media Prima
To take advantage of SMART TV and collaborate with SMART TV manufacturers Media Prima can look into following utilities
Collaborate with manufacturers to allow consumers to browse and pay for Media Prima video collections
Selling local music for Malaysia market
Collaborate with local or international content developers to create Malaysia specific contents for paid subscription or free for common content to attract new consumers
How
Content Focus Leveraging on content to Embark on Revenue shifts
Long term sustainable leadership
Restructuring to liberateresources for Content
Sustainable Talent development -
Partnership
Riding the Technology Wave
Short term (2012) Mid Term (by 2013-2015) Long term 2015 beyond
Building Talents in the long run
Education Building on its strategic CSR ndash Media Prima could champion the
development of the content industry by partnering with local universities in the areas of technology media and communication
Crowd Sourcing To haste up the strategic CSR it too could embark on crowd
sourcing for content ndash via scripts and interactive content In which Media Prima could support a great idea and develop the ideas for monetization
This is a synergistic and natural development from the networks structure (open innovation)
Summary ndash Media Prima
Develop Talent Pool
Ensure Vibrant Content Industry
Technologycreates ubiquitous
Low Access Cost
To spur the industry forward
Strong talent develops Content development
demand for access
Strong content industry drives demand for Talent drives demand for content
Our recommendations are aligned to help spur the industry forwardhellip
Restructuring to liberateresources for Content
Sustainable Talent development -
Partnership
Riding the Technology Wave ndash Via Smart
Partnerships
References
References
1 Anon ldquoMedia Prima Berhad implements Accenture integrated broadcast systemrdquo Accenture Press Release httpnewsroomaccenturecomarticle_displaycfmarticle_id=5005 viewed 3 November 2011
2 Anon ldquoNew exciting and vibrant offerings from MPB television networks in 2010rdquo Media Prima Press Release httpwwwmediaprimacommypressreleasepressreleaseaspxid=150 viewed 3 November 2011
3 Anderson J ldquoResource-based competitiveness managerial implications of the resource-based viewrdquo Strategic Direction Vol26 No5 2010 pp1-2
4 Arman Arshad (2006) Size matters Retrieved December 2 2011 from asiaviewsorg httpwwwasiaviewsorgindexphpoption=com_contentampview=articleampid=2171headlinealias2171ampcatid=1headlinesampItemid=2
5 Asia Times (2007 November 29) Malaysian media giant grasps for Internet Retrieved November 3 2011 from httpwwwatimescomatimesSoutheast_AsiaIK29Ae02html
6 Barney JB amp Hesterly WS (2008) Strategic Management and Competitive Advantage The Five Forces Model of Environmental Threats pp39Prentice Hall
7 BBC (2011) BBC News product launches on connected TV Retrieved from bbccoukpressofficepressreleasesstories201106_june17newsshtml
8 Boston Consulting Group (2011) Lean Advantage in Media Boston Consulting Group
9 Boston Consulting Group (2011) Running Forward Walking Backward Boston Consulting Group
10 Business Times (2011) Media Prima net revenue grows to RM119b Kuala Lumpur New Straits Times
11 Business Times (2011) Media Prima on track to achie1048665ing 2011 target Retrieved from www1btimescomm1048668Current_NewsBTIMESarticlespimeArticle
References (1)
12 Business Times (2011) Media Prima Puncak Semangat in early talks Retrieved from httpwwwbtimescommyarticlespimmaArticle
13 Carl W Stern George Stalk Carl W Stern George Stalk Stern CW amp Stalk G (2011) Perspectives of Strategy from the Boston Consulting Group Retrieved December 3 2011 from Value Based Managementnet httpwwwvaluebasedmanagementnetmethods_bcgmatrixhtml
14 ecmlibra (2011) Adex momentum to taper off in 2012 ecmlibra
15 Gershon R A amp Ratnadeep S V (2004) Viacom Inc A Case Study in Transnational Media Management Journal of Media Business Studies 1 (1) 47-69
16 Grant RM ldquoThe resource-based theory of competitive advantage implications for strategy formulationrdquo California Management Review Vol 3 2011 httpwwwskynetie~karenArticlesGrant1_NBpdf viewed 15 November 2011
17 GreyReview (2011) TonTon Streaming Over 11 Million Video Hours A Month now with 16 millions registered users Retrieved from httpwwwgreyreviewcom20110731tonton-serving-over-1-1-million-video-hours-a-month-now-with-1-6-registered-users
18 Heavy Reading (2011) Telecom in TV Land A Roadmap to New Digital Media Ecosystem Retrieved from wwwheavyreadingcomdetailsaspsku_id=1773ampskuitem_itemid=1030
19 Hegedus N (2010) The Great Scare EBR 3 10-17
20 JohnsonGScholesK amp Whittington (2008) Exploring Corporate Strategy Competitive Forces ndash the Five Forces Framework pp 59-64 Prentice Hall
21 kinetic (2011) Moving World Asia Hong Kong
References (2)
22 Knowledgefaber (2009) Telcos Avatar - As Media Companies 20 Retrieved from httpknowledgefabercomindexphpoption=com_contentampview=articleampid=40telecom-and-media-convergenceampcatid=10telecomampItemid=42
23 Knowledgefaber (2011) Telcos Avatar - As Media Companies 20 Retrieved from httpknowledgefabercomindexphpoption=com_contentampview=articleampid=40
24 Malik O (2011) GIGAOM Retrieved from httpgigaomcom20110223old-media-is-being-unbundled-just-like-telecom-was
25 Maxis with TM Astro with TIME Best Strategy to IPTV Market Retrieved December 1 2011 httpbizthestarcommynewsstoryaspfile=201111business7704581ampsec=business
26 Media Prima (2010) Annual Report Media Prima Berhad27 Media Prima Berhad (2011) 11 Nov 2011 - New Exciting amp Vibrant Offerings From MPB Television Retrieved from
wwwmediaprimacommypressreleasepressreleaseaspxid=15028 Media Prima (2010) Sustainability Report Media Prima Berhad29 OSK (2011) Media Prima OSK30 Pocket-Lint (2011) Samsung Smart TV hits 2 million mark Retrieved from
httpwwwpocket-lintcomnews40593samsung-smart-tv-2-million31 PricewaterhouseCoopers (2011) Achieving corporate financial PwC32 PricewaterhouseCoopers (2007) Financial Reporting Standards (FRS) in Malaysia PricewaterhouseCoopers33 SKMM (MCMC) (2009) Advertising Development in Malaysia SKMM34 SKMM (MCMC) (2011) Content Development SKMM35 Techpinions (2011) Interactive TV Trends - How the TV experience is changing - Part II Retrieved from
httptechpinionscominteractive-tv-trends-E28093-how-the-tv-experience-is-changing-part-ii4066
References (3)
36 The Edge (2011) Media Prima best proxy to sector Retrieved from wwwtheedgemalaysiacom37 The Edge Malaysia (2011 September 26) Education the mother of all reforms Retrieved October 30 2011 from
httpwwwtheedgemalaysiacomin-the-financial-daily193478-education-the-mother-of-all-reformshtml38 The Star Online (2011) Main players in the competitive TV sector Retrieved from bizthestarcommynewsstoryasp
file=20111126business997401739 The Star Online (2011) Maxis ready to move up value Retrieved from
bizthestarcommynewsstoryaspfile=201111business7704581ampse40 The Star Online (2011) New players enter the TV Retrieved from
bizthestarcommynewsstoryaspfile=20111126business997300841 The Star Newspaper (December 1 2011) Capital TV to make its debut today42 The Star Online (January 1 2011) Maxis ready to move up value chain Retrieved December 3 2011
httpbizthestarcommynewsstoryaspfile=201111business7704581ampsec=business43 The Star Online (2011 April 21) Media Prima to invest more on local content Retrieved October 30 2011 from C
Usersa34ffzzDesktopMedia PrimaUsed articlesMedia Prima to invest more in local contentmht44 Time Warners (2010) Annual Report Time Warners45 WHAT HI FI (2011) Samsung aims for 50m TV sales worldwide in 2012 set to announce launch date for Google TV
product Retrieved from httpwwwwhathificomnewssamsung-aims-for-50m-tv-sales-worldwide-in-2012-set-to-announce-launch-date-for-google-tv-produ
46 Woroch G A (1996) Turning the Cables Elsevier47 Zanuddin H (2007) Political influence in Malaysia and Thailand media sector Jati Vol12
- MEdiA PRIMA
- Agenda
- Company Profile
- Media Primarsquos Commitment amp Direction moving forward
- Media Industry Business Model ndash Content Driven
- Our Tasks ndash How
- PEST Analysis
- Politics Legal Issues amp Impact
- Economic Issues and Impact
- Social Issues and Impact
- Social Issues and Impact
- Technology Issues and Impact
- In short
- Porterrsquos 5 Forces Analysis
- Porterrsquos Five Forces ndash Competitive Analysis
- Financials
- Media Prima Financial Highlights
- However in further analysis
- Value Chain Analysis
- Resource Based View
- In the context of the Content industry value chain Mapped again
- Appraising capabilities which drives profitability
- Mapping Media Prima revenue streams against the Diversification
- Slide 25
- Related Constrained Diversification
- Related Constrained Diversification (2)
- Slide 28
- Related Linked Diversification
- Slide 30
- Social Responsibility Analysis
- Social Responsibility
- Social Responsibility ndash cont
- Media Prima Acknowledges it various stakeholder via Stakeholder
- It has moved on to 2nd stage of CSR
- SWOT Analysis
- SWOT Analysis ndash Summary
- Media Primarsquos Current situation in summary
- Moving forward 2012 and beyond
- Recommended Destination and future growth of Media Prima
- How Moving from aggregator to content creator
- How Moving from aggregator to content creator (2)
- Creating a Content focus agency All these can be enable via
- Using financial view to free resources for content development
- By changing the business segment reporting it also affects the
- How Moving from aggregator to content creator (3)
- Technology ndash Enable Media Prima to leap into Interactive Conten
- It is not a Fad but a trend
- Slide 50
- Example of Smart TV
- This will ultimately lead Media Prima to reduce it dependence o
- NEW Revenue Streams for Media Prima
- How
- Building Talents in the long run
- Summary ndash Media Prima
- References
- References
- References (1)
- References (2)
- References (3)
-
PEST Analysis
Politics Legal Issues amp Impact
Source 1 httpenwikipediaorgwikiDigital_television_in_Malaysiacite_note-102 bizthestarcommynewsstoryaspfile=20111126business99740173 httpwwwconsumerorgmyindexphpdevelopmentprivate-sector479-astros-monopoly-has-short-changed-malaysian-tv-viewers
Change from Analogue TV to Digital TV by 2015bull Analogue TV broadcasts would be shut down in stages and due
to complete by 2015 as per recommendation from ASEAN bull Digital will open is in evitable
Deregulation of content bull But the regulator of the industry has yet to come up with details
on how it will go about disbanding the monopoly on content
Would do away with monopoly in the pay-TV broadcasting sectorbull With the introduction of newer IPTV services bull And Astrorsquos exclusive Pay TV license will end by 2017
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 (F)
-5
0
5
10
15
20
25
16
23
2
910
17
3 4
1513
7
1614
68
1
45
75
6 65
-2
726
ADEX Growth GDP Growth
Slowing down of GDP
Economic Issues and Impact
Source httpwwwtheedgemalaysiacomin-the-financial-daily196495-slower-tv-adex-points-to-quiet-adspend-for-the-rest-of-2011html
bull Ad Ex (Advertising Expenditure) fluctuates with GDP And as Media Primarsquos main source of revenue is from Ad Ex it will be affected by the projected slow down of the 2012 economy as multinational advertisers become more cautious
bull Organization for Economic Cooperation and Development projected a 03 growth in 2012 instead of the 2 forecast
bull Malaysian perspective GDP growth of 51 (Nomura)
51 2012
Social Issues and ImpactOnline creeps in time spent increases and trust levels bull More time spent on Online gt TV and consumer are referring to
online to make purchase decision hence cross platform presence is needed to reach consumer (Malaysian Digital Consumer Report 2011)
Reading Magazine
Reading Newspapers
Video on Mobile Phone
Radio Stream via Internet
Internet via Mobile Phone
Online Games on PC
Listening to Radio
Watching TV
Internet
0 5 10 15 20 25
3434751535658
106198
Average Weekly Hours Spent on different media
Online activities beyond Watching TV
Source 1 QuickPlay Media 2 httpwwwgartnercomtechnologyhomejsp
httpwwwthemalaysianreservecommainindexphpoption=com_contentampview=articleampid=899move-over-tv-the-net-is-where-the-action-isampcatid=36corporate-malaysiaampItemid=120
Online activities beyond Newspapers and Magazines
76 of consumers indicate that they watch more TV on tablet than before a shift in media consumption behavior
Social Issues and Impact
Source Kinetic Insights on People on the Move Moving World Asia (2011)
Consumers are On The Move Disconnect from traditional Channels bull 107 Hr Weekday -gt Highest in ASIAbull Requires mobile channel to deliver and keep up with consumers bull Moving from radio -gt mobile phones -gt tablets
Outdoor
On Mobile
BUT
Broadband Penetration
Mobile Penetration
Technology Issues and Impact
Household broadband penetration at 615 and will grow to 75 by 2015
75 107
Source httpwwwthemalaysianreservecommainindexphpoption=com_contentampview=articleampid=899move-over-tv-the-net-is-where-the-action-isampcatid=36corporate-malaysiaampItemid=120
Malaysia a Digital Nation Netizens (constant access to internet) make up 40 of the
total population of 27 million Tablet PC usage and ownership netizen are expected to
increase from 18 to 75 in 2012
In short
1 Legislative deregulation spurs the attractiveness of the
market
2 Economic impose pressures for 2012
3 Social shifts leads the way to new media
4 Technology is the catalytic enable of Media organization
shift into New Media
Porterrsquos 5 Forces Analysis
Astro is the only direct challenger as it is the closest to an integrated media organisation
Power of Substitutes 1 Technology and Sharing of
screen ndash Moving away from TV to mobile content and social media decreases the share of attention
2 Self Generated content by Netizens ndash User Generated Content - youtube
Power of Suppliers 1 Content is king and that is what
drives viewership ndash and not the media organisation that aggregates it
2 Content lead experience is dependent on technological development
Threat of New Entrants 1 Introduction of new IPTV which
offers variety of channelsDETV and ABN
2 New entrants have infrastructure backing hence offering product bundling of triple play ie Unifi YTL Comms
Power of Consumers 1 Consumer Moving away from
Print TV and Radio - they are the ones that drive demand
2 Advertiser have a hard time reaching the fragmented audience (beyond traditional media)
Porterrsquos Five Forces ndash Competitive Analysis
Customers are dependant on content (Media Prima) to reach consumers
Competitive Rivalry
Source bizthestarcommynewsstoryaspfile=20111126business9974017
Nevertheless Media Prima is still in control as it complements their services by offering them content
But its audiences are fragmented across 150 channels versus ours which focus 4 stations
Content creators and aggregators need to mirror consumerrsquos media consumption trends
Can be mitigated by internalizing content development but Media Prima needs to keep its content up to date with technology development
Financials
Media Prima Financial Highlights
1327millionProfit After Tax and Minority Interest (ldquoPATAMIrdquo)September 2011 (9 Months)
in the corresponding period for 20101105 million
A healthy GROWTH
Source Media Prima Annual Report 2011
However in further analysisHowever the bulk of its revenue comes from advertising that is in turn dependent on the economic outlook the question arises as to whether Media Prima should diversify its income stream Especially when gt80 of Astrorsquos revenue is on subscription
Reduce Media Primarsquos dependence on advertising revenueas it highly fluctuates with the market conditions
Group
2010 2009
RMrsquo000 RMrsquo000
Advertising revenue 1237961 80 725857 98 Circulation revenue 290691 19 0 Sale of programmes videos cable and laser rights and media revenue 15408 1 11287 2 Fees from provision of production services and sponsorship 2583 0 6885 1 Fees from provision of procurement services Dividends from subsidiaries Dividends from an associate 1546643 100 744029 100
Source Media Prima Annual Report 2011
Value Chain Analysis
Resource Based View
The resource-based view is grounded in the perspective that a firm is a collection of unique resources and capabilities that provides the basis for its strategies and the primary source of its return
SupportActivities
Primary Activities
Strategy Development 4
Resource Identification 1Capabilities Determination 2Competitive advantage 3
Resource Gap Analysis 5
Source Porter Value Chain Robert M Grant
Process of CONTENT aggregation Process of CONTENT creation
In the context of the Content industry value chainMapped against Porterrsquos Value chain
Createbull Scriptwritersbull Actorsbull Animatorsbull Gamesbull developer
Publishbull Production housesbull TV Advert Film
Packagebull Media Primabull Astrobull RTMbull Maxisbull Digibull Celcom
DistributebullTelekombull MBNS (Measat)bull RTM
Content industry value chain
Porterrsquos Value Chain
Human Resource Management
Technological DevelopmentProcurement
Marketing amp Sales
Develop Talent Pool
Ensure Vibrant Content Industry
Technologycreates ubiquitous
Low Access Cost
To spur the industry forward
Strong talent develops Content development
demand for access
Strong content industry drives demand for Talent Drive demand for content
Services
Source SKMM Regulatory Compliance Course for Telcos amp Celcos
MARKETINGStrategies are focused on branding activities and marketing communications aggressive Aamp P and active participation in on-ground activities that promote brand awareness And Established Integrated marketing arm
TECHNOLOGY DEVELOPMENT Alt Media the digital arm successfully launched TonTon TV a cutting edge video portal that offers customization and interactivity of social networking Giving Media Prima an advantage of being able to direct advertisers to precise target groups
PROCUREMENT Stringent supplier selection in terms of 70 are local suppliers Sourcing of content which are relevant responsible engaging especially with the advent of new media
SERVICESMedia Prima fully owns Primeworks Studio helps maximize the economies of scale in content production whilst enhancing the quality of content of all television networks
HUMAN CAPITALPrioritize human capital development in news and editorial operation radio network artist and talent management etc Creating an in-house talent pool to develop content
Content Barriers to entry
ndash securing talents - Leadership position in development of local talent and content to leading the industry
Vertical bargaining power
DifferentiationAnd Competitive advantage
- Consumer insights - Integrated media organization
Activities Benefit
Competitiveness leading to Margins
Goal
Appraising capabilities which drives profitability
Source Media Prima Annual Report 2011
Mapping Media Prima revenue streams against the Diversification Map
HIGH
LOW
HIGHLOW
Shar
ing
Ope
ratio
nal R
elat
edne
ss B
etw
een
Busi
ness
Corporate Relatedness Transferring skills into business through corporate HQ
Related Constrained Diversification
Vertical Integration Market Power
Content Creation and Talent development Prima Works enables Media Prima to create localized content for the local market
Both operation and Corporate Relatedness (Rare Capability and can create Diseconomies of scale)
New Media is both an operation and corporate relatedness diversification as it require Media Prima to go beyond playing the role as aggregator but also content producer leveraging on its strength
Unrelated Diversification (Financial Economies)This area of diversification which is unrelated in operation and skills transfer Media Prima has not exploited
Related Linked Diversification (Economies of Scope)As newscontent are cross platforms and the business models are the same Media Prima was able to share similar content across platforms and acquire related companies
Opportunities - Create more segmented programmes and move into interactive content
OpportunitiesHowever more needs to be done in the new are with the advent of Interactive TV
Opportunities Although unrelated area often has high risk it is crucial at this point for Media Prima to extend into this area in smart partnerships with telecommunication companies ie Axiata TM
OpportunitiesMedia Prima has maximized its diversification strategy in this area BUT the market is yet to be ready amp there is a need to link both NSTP and Media Prima
CurrentPrimeworks Studios Sdn Bhd (owned by Media Prima) is Malaysias biggest production company producing TV content since 1984 and feature films since 1994 generating over 5000 hours of TV content and 10 movies annually
Related Constrained Diversification
ChallengesBut the reality is that it is not able to compete with the myriad of channels of its competitors which are dependent on overseas content
Opportunities However more needs to be doneas channels become more segmented-Procuring more content to compete on quantity - or it could change the content game and move into interactive content
Source Creation of An Integrated Media Group 2009 httpwwwmediaprimacommy
TV Newspaper
Radio
Outdoor
New Medi
a
4 3 3
1 2
gt150
17
2 1
gt14
3
22
22
YTL Comms
ABN 100
Ove
rvie
w o
f com
petit
ors
thei
r bus
ines
s po
rtfol
ios
Related Constrained Diversification
Media Company
Advertisers Corporations(Customers )
Viewers(Consumers)
Consumer Pay for Product
CONTENT
Advertiser payFor (Ad space) $$
1 httpwwwlongtailcomthe_long_tail200809the-three-kindshtml
$
Opportunities The potential here is also for Media Prima to drive content syndication ndash providing content to other media stations abroad
Media Prima is currently doing by syndicating content to ASTRO and Unifi
Competitors
Media Company
Viewers(Consumers)
CONTENT PRO
1 httpwwwlongtailcomthe_long_tail200809the-three-kindshtml
$
C
C
C FREE CONTENT FREE CONTENT
FREE CONTENT
Both operation and Corporate Relatedness
CurrentMedia Primarsquos intention to leverage on both its operations and Corporate relatedness to shift its revenue structure to be less dependent on advertising revenue and move toward subscriber revenue where a few subsidies everyone else via versioning ldquoprice discriminationrdquo
ChallengesIt has to some degree been successful to introduce this ndash via TonTon TV however the revenue from this segment has yet to be significant
To date there are 16 show packages and over 50 single episodes for viewers to purchase ndash which is limited
Opportunities However more needs or can be done in this new area with the advent of Interactive TV
Media Company
Advertisers Corporations(Customers )
Viewers(Consumers)
Consumer Pay for Product
FREE
CONTENT
Advertiser payFor (Ad space) $$
Source Website1 httpwwwlongtailcomthe_long_tail200809the-three-kindshtml2 Creation of An Integrated Media 2009 Grouphttpwwwmediaprimacommyinvestorcentercp2009NSTPGOpdf3 httpwwwtheedgemalaysiacomin-the-financial-daily164479-media-prima-best-proxy-to-sector-says-oskhtml 4 Media Prima net revenue grows to RM119b 2011 httpwwwbtimescommyCurrent_NewsBTIMESarticles20111118202427Articleindex_html
Related Linked Diversification
Current Media Prima has expanded across media with the idea in the hope of a) Leveraging on its expertise of
Advertisers subsiding viewers model b) Share back-office consolidation which
creates operations efficiencies in operation ie Editorial Talents
c) Cross marketing opportunities across platforms - Where Advertisers could purchase cross buy across platforms
Challenges Market ndash Not readyThe market is not ready for bundled and cross market offering According to Dato Amrin Awaluddin Group Managing Director of Media Prima no doubt there was head roads but more effort needs to be done to integrate the platforms better
Internally ndash Structure is not integrated In terms of unlocking NSTPs value he says it would be done in two phases `First is more short term like consolidating in terms of operations while the second stage will entail selling of products and cross-promoting our content which would be an ongoing revenue- generation exerciselsquo And he quoted Joran a property of Berita Harian (NST) ndash a nationwide fishing event being brought to TV3 as an example
Opportunities - The structure impeded cross platform and working in silo
does not help
- Hence there is a need to further shift paradigms via a structural change to free up resources to focus on content
- The market will not know what they want until we present them with the opportunity benefit
Social Responsibility Analysis
Social Responsibility
Media Primarsquos approach to Social Responsibility is based on the key triple bottom line ndash social environmental and economic It considers the socio-economic impact of its business activities in the aim to create value to its stakeholders via the 4 categories ie community workplace marketplace and environment
Community1EducationFocusing on education to raise awareness of the importance of education and increase the academic standards of underprivileged children and underperforming schools eg PINTAR Programme NST School Sponsorship Programme
2 HumanitarianRaise funds for humanitarian aid and provided updates on the local and world disaster crisis to the public and raised awareness of the funds eg Humanitarian Aid for Gaza Humanitarian Aid for Flood Victims in Pakistan
3 Other community programmesProduced outreach programmes to reflect and highlight local and community issues and to be the eyes and ears of the public and engage in public awareness through its businessesrsquo media resources and platforms in print interactive media and television eg Project Sunshine
Social Responsibility ndash cont
Environment - EfficiencyStrongly committed to being an environmentally friendly Company by using recycled paper especially in its newspapers business efficient usage of electricity in offices water management reducing amount of waste produced throughout its businesses and other environmental initiatives such as lsquosave our beachrsquo project and WWFrsquos Earth Hour
Marketplace ndash Responsible ContentFocusing on product responsibility in providing high quality products and is committed to establishing a horizontal specialisation system based on collaboration with stakeholders The production flow is illustrated in the diagram below
Workplace ndash Right CultureIt aims to create a workplace where its people have the opportunity to be the best they possibly can to have the right culture safe working environment and human capital development with fair processes
Media Prima Acknowledges it various stakeholder via Stakeholders Management
Media Prima is aware of the diversity of its stakeholders and the different goals and demand of its stakeholders
The Company conducts active engagement with its stakeholders to fully understand their needs and increase their trust in the Company through formal and informal mechanisms as follows
It has moved on to 2nd stage of CSR
1st Generation 2nd Generation 3rd Generation
Philanthropic short term risk management
Product Process innovation business and corporate governance model long term sustainability Strategic CSR
3rd Generation Multi- stakeholder standards and partnerships institutional building CR- Oriented advocacy and public policy
Opportunity
What is next for Media Prima to shape the industry
Creating content that generate advertising dollars amp donations of the poor social awareness
By leveraging on its content distribution capabilities
SWOT Analysis
SWOT Analysis ndash Summary
Strengths 1 Strong market share in TV segment2 Malaysiarsquos only integrated media
organization- have vertical and horizontal diversification advantage
3 Established value chains strength which complements the required core competencies
4 Have move across 3 revenue models
Weaknesses1 limited number of stations variety and choice
for consumer2 Despite diversification revenues still mainly
driven by advertisers and TV -gt cross platforms is needed
3 Financial segmentation may hinder potentials of the company
Opportunities 1 Broadband infrastructure ndash via HSBB2 Development of technology ndash creating
medias gadgets that increase digital interaction and content consumption
3 Consumers are willing to pay for content4 Possible deregulation of content ndash leveling
the playing field
Threats 1 2012 forecasting a financial slow down
affecting Ad Ex ndash hence revenue is reduced2 Increase competition New Entrants Pay TV
player amp continual competition from ASTRO3 Changing consumer habits towards media
consumption -gt moving away from traditional media ndash hence have to fight for consumerrsquos attention
Right Technology (Gadget and Infrastructure) at the Right time (deregulation) amp Right consumers (shift in media habits and willingness to pay for content ndash ASTRO as indicator)
Vertical Value Chain advantage to compete in content development
Media Primarsquos Current situation in summary
+VE
-VE Revenue dependent on advertising which is affected correlated to GDP
Resources organization structure holds back effectiveness of organization
Moving forward2012 and beyond
Recommended Destination and future growth of Media Prima
Revenue mainly from advertising
Revenue from advertising
Content SubscriptionBy viewers
Content driven Complementary Services for advertiser (Auxillary Services)
Media Prima
Media Prima
Content Syndicationto competitors
+
How Moving from aggregator to content creator
Content Focus Leveraging on content to Embark on Revenue shifts
Long term sustainable leadership
Restructuring to liberateresources for Content
Sustainable Talent development -
Partnership
Riding the Technology Wave
Short term (2012) Mid Term (by 2013-2015) Long term 2015 beyond
How Moving from aggregator to content creator
Content Focus Leveraging on content to Embark on Revenue shifts
Long term sustainable leadership
Restructuring to liberateresources for Content
Sustainable Talent development -
Partnership
Riding the Technology Wave
Short term (2012) Mid Term (by 2013-2015) Long term 2015 beyond
Creating a Content focus agency All these can be enable via the following means
Demand- The content creation race bull There is a need to free up empower human capital to create more content which are relevant
segmented engaging and entertaining
How does media prima refocus its resources into where it matters Instead of multiple teams doing the same thing ndash there is a challenge to create a lean and efficient organization
Challenges Freeing Resources
Instead of looking at a Media based financial segment reporting structurally force the teams to integrate by changing the dynamics of PampL
Next page
Solution Redefining Business Units Paradigms
Take a step up from producing beyond the current vernacular program to meet shifting consumer needs
Challenges ndash Lifestyle lead Variety
Creating Channel programs which are target segment focus based on lifestyles hellip
Acquisition of content as content regulations will be relaxed
Solution Target Segment focus
Using financial view to free resources for content developmentFinancial segment reporting may create a ldquosilordquo mentality ndash which encourages each head of business to protect their bottom line Hence a less effective in operations
Our recommendation is to expand content creation to cut across and shift paradigms to free up resources and focus on new revenue streams And create new content for different segment
Tele
visi
on N
etw
ork
Radi
o N
etw
ork
Out
door
Med
ia
Prin
t M
edia
Oth
er M
edia
Current Financial Segment Reporting
Tele
visi
on N
etw
ork
Radi
o N
etw
ork
Out
door
Med
ia
Prin
t M
edia
Oth
er M
edia
Production
Content
Subscription
Advertising
Recommended Segment Reporting
Lifestyle Segments
Lifestyle Segments
Lifestyle Segments
Lifestyle Segments
Lifestyle Segments
Lifestyle Segments
By changing the business segment reporting it also affects the company structure
The benefits - Flexibility and empowers knowledge
economy ndash talent content driven
- Builds at strong work culture which may be replicated in the region
- Expansion to embark on talent and content crowd sourcing - open innovation creation
Media Prima can take this opportunity to achieve SPECIALIZATION COORDINATION AND COOPERATION Currently team structure ndash of Integrated Marketing Division is created as a temporary solution hellip to enable integration It will move towards a network model to haste integration fast and response to technology and consumer needs
Subcription
Advertising
Production
TechnologyPartner
Content
How Moving from aggregator to content creator
Content Focus Leveraging on content to Embark on Revenue shifts
Long term sustainable leadership
Restructuring to liberateresources for Content
Sustainable Talent development -
Partnership
Riding the Technology Wave
Short term (2012) Mid Term (by 2013-2015) Long term 2015 beyond
Technology ndash Enable Media Prima to leap into Interactive Content
Interactive Content
UniFi Axiata
Media Prima
Electronics Manufacturer
Demand - A ready market bull There is a latent demand for content-gt consumers are
willing to Pay bull Technology has accustomed consumers to interacting
with contentbull Regulatory push to shift from analogue to digital by
2015
However unlike Media Primarsquos western counterparts ie Time Warner Communication Media Prima does not have the advantages of cable infrastructure
Challenges ndash Limitation
Media Prima could depend on existing suppliers of connectivity and technology- Telecommunications ie AXIATA and - Manufacturing companies ie Samsungto take the leap into interactive content Unifi TM
Solution ndash Smart Partnerships
Maximizing Unrelated Diversification
It is not a Fad but a trend
Smart TV is an inevitable trend says Baeguen Kang vice president of
research and development at South Koreas LG Electronics Co the worlds second-largest seller of TV sets by unit volume As people experienced smartphones and tablet PCs the larger screen on a TV is very attractive for apps and Web content
210 million TV sets sold world-wide had an Internet connection (2010)
21 50It will be the forecast in (2014)
Source Evan Ramstad (January 2011)A ldquoManufacturers Turn to Smart TV After 3-D Disappointsrdquo The Wall Street Journal online httponlinewsjcomarticleSB10001424052748704835504576059783074010902html
As technology develops Current cost is will drop exponentially reflecting the Moorersquos Law
Hence lowering the cost of access for interactive content
Example of Smart TV
Smart Hub It is a front facing interface just like a main menu
when consumers turn on their TV There are few utilities that consumers can choose to be entertained
Video ndash consumers can choose from array of video collections that required to be paid
Apps ndash an internet-enabled applications like You Tube Facebook Twitter Skype and others
Internet browsing ndash just like PC internet browsing
Music photo and TV watching
Smart ConnectivityWIFI enabled that allows consumers to connect to all mobile devices like smart phone tablet PC notebook and camera with Samsung Wireless Router called 1 foot This connectivity is being called ldquoAllSharerdquo by Samsung
httpotbresearchcomau200509report-1-industry-forum
MEDIA PRIMA IS CURRENTLY HERE
This will ultimately lead Media Prima to reduce it dependence on advertising revenue
Others ndash Utilising the SMART TV technology and Apps to create any existing Media Prima businesses
NEW Revenue Streams for Media Prima
To take advantage of SMART TV and collaborate with SMART TV manufacturers Media Prima can look into following utilities
Collaborate with manufacturers to allow consumers to browse and pay for Media Prima video collections
Selling local music for Malaysia market
Collaborate with local or international content developers to create Malaysia specific contents for paid subscription or free for common content to attract new consumers
How
Content Focus Leveraging on content to Embark on Revenue shifts
Long term sustainable leadership
Restructuring to liberateresources for Content
Sustainable Talent development -
Partnership
Riding the Technology Wave
Short term (2012) Mid Term (by 2013-2015) Long term 2015 beyond
Building Talents in the long run
Education Building on its strategic CSR ndash Media Prima could champion the
development of the content industry by partnering with local universities in the areas of technology media and communication
Crowd Sourcing To haste up the strategic CSR it too could embark on crowd
sourcing for content ndash via scripts and interactive content In which Media Prima could support a great idea and develop the ideas for monetization
This is a synergistic and natural development from the networks structure (open innovation)
Summary ndash Media Prima
Develop Talent Pool
Ensure Vibrant Content Industry
Technologycreates ubiquitous
Low Access Cost
To spur the industry forward
Strong talent develops Content development
demand for access
Strong content industry drives demand for Talent drives demand for content
Our recommendations are aligned to help spur the industry forwardhellip
Restructuring to liberateresources for Content
Sustainable Talent development -
Partnership
Riding the Technology Wave ndash Via Smart
Partnerships
References
References
1 Anon ldquoMedia Prima Berhad implements Accenture integrated broadcast systemrdquo Accenture Press Release httpnewsroomaccenturecomarticle_displaycfmarticle_id=5005 viewed 3 November 2011
2 Anon ldquoNew exciting and vibrant offerings from MPB television networks in 2010rdquo Media Prima Press Release httpwwwmediaprimacommypressreleasepressreleaseaspxid=150 viewed 3 November 2011
3 Anderson J ldquoResource-based competitiveness managerial implications of the resource-based viewrdquo Strategic Direction Vol26 No5 2010 pp1-2
4 Arman Arshad (2006) Size matters Retrieved December 2 2011 from asiaviewsorg httpwwwasiaviewsorgindexphpoption=com_contentampview=articleampid=2171headlinealias2171ampcatid=1headlinesampItemid=2
5 Asia Times (2007 November 29) Malaysian media giant grasps for Internet Retrieved November 3 2011 from httpwwwatimescomatimesSoutheast_AsiaIK29Ae02html
6 Barney JB amp Hesterly WS (2008) Strategic Management and Competitive Advantage The Five Forces Model of Environmental Threats pp39Prentice Hall
7 BBC (2011) BBC News product launches on connected TV Retrieved from bbccoukpressofficepressreleasesstories201106_june17newsshtml
8 Boston Consulting Group (2011) Lean Advantage in Media Boston Consulting Group
9 Boston Consulting Group (2011) Running Forward Walking Backward Boston Consulting Group
10 Business Times (2011) Media Prima net revenue grows to RM119b Kuala Lumpur New Straits Times
11 Business Times (2011) Media Prima on track to achie1048665ing 2011 target Retrieved from www1btimescomm1048668Current_NewsBTIMESarticlespimeArticle
References (1)
12 Business Times (2011) Media Prima Puncak Semangat in early talks Retrieved from httpwwwbtimescommyarticlespimmaArticle
13 Carl W Stern George Stalk Carl W Stern George Stalk Stern CW amp Stalk G (2011) Perspectives of Strategy from the Boston Consulting Group Retrieved December 3 2011 from Value Based Managementnet httpwwwvaluebasedmanagementnetmethods_bcgmatrixhtml
14 ecmlibra (2011) Adex momentum to taper off in 2012 ecmlibra
15 Gershon R A amp Ratnadeep S V (2004) Viacom Inc A Case Study in Transnational Media Management Journal of Media Business Studies 1 (1) 47-69
16 Grant RM ldquoThe resource-based theory of competitive advantage implications for strategy formulationrdquo California Management Review Vol 3 2011 httpwwwskynetie~karenArticlesGrant1_NBpdf viewed 15 November 2011
17 GreyReview (2011) TonTon Streaming Over 11 Million Video Hours A Month now with 16 millions registered users Retrieved from httpwwwgreyreviewcom20110731tonton-serving-over-1-1-million-video-hours-a-month-now-with-1-6-registered-users
18 Heavy Reading (2011) Telecom in TV Land A Roadmap to New Digital Media Ecosystem Retrieved from wwwheavyreadingcomdetailsaspsku_id=1773ampskuitem_itemid=1030
19 Hegedus N (2010) The Great Scare EBR 3 10-17
20 JohnsonGScholesK amp Whittington (2008) Exploring Corporate Strategy Competitive Forces ndash the Five Forces Framework pp 59-64 Prentice Hall
21 kinetic (2011) Moving World Asia Hong Kong
References (2)
22 Knowledgefaber (2009) Telcos Avatar - As Media Companies 20 Retrieved from httpknowledgefabercomindexphpoption=com_contentampview=articleampid=40telecom-and-media-convergenceampcatid=10telecomampItemid=42
23 Knowledgefaber (2011) Telcos Avatar - As Media Companies 20 Retrieved from httpknowledgefabercomindexphpoption=com_contentampview=articleampid=40
24 Malik O (2011) GIGAOM Retrieved from httpgigaomcom20110223old-media-is-being-unbundled-just-like-telecom-was
25 Maxis with TM Astro with TIME Best Strategy to IPTV Market Retrieved December 1 2011 httpbizthestarcommynewsstoryaspfile=201111business7704581ampsec=business
26 Media Prima (2010) Annual Report Media Prima Berhad27 Media Prima Berhad (2011) 11 Nov 2011 - New Exciting amp Vibrant Offerings From MPB Television Retrieved from
wwwmediaprimacommypressreleasepressreleaseaspxid=15028 Media Prima (2010) Sustainability Report Media Prima Berhad29 OSK (2011) Media Prima OSK30 Pocket-Lint (2011) Samsung Smart TV hits 2 million mark Retrieved from
httpwwwpocket-lintcomnews40593samsung-smart-tv-2-million31 PricewaterhouseCoopers (2011) Achieving corporate financial PwC32 PricewaterhouseCoopers (2007) Financial Reporting Standards (FRS) in Malaysia PricewaterhouseCoopers33 SKMM (MCMC) (2009) Advertising Development in Malaysia SKMM34 SKMM (MCMC) (2011) Content Development SKMM35 Techpinions (2011) Interactive TV Trends - How the TV experience is changing - Part II Retrieved from
httptechpinionscominteractive-tv-trends-E28093-how-the-tv-experience-is-changing-part-ii4066
References (3)
36 The Edge (2011) Media Prima best proxy to sector Retrieved from wwwtheedgemalaysiacom37 The Edge Malaysia (2011 September 26) Education the mother of all reforms Retrieved October 30 2011 from
httpwwwtheedgemalaysiacomin-the-financial-daily193478-education-the-mother-of-all-reformshtml38 The Star Online (2011) Main players in the competitive TV sector Retrieved from bizthestarcommynewsstoryasp
file=20111126business997401739 The Star Online (2011) Maxis ready to move up value Retrieved from
bizthestarcommynewsstoryaspfile=201111business7704581ampse40 The Star Online (2011) New players enter the TV Retrieved from
bizthestarcommynewsstoryaspfile=20111126business997300841 The Star Newspaper (December 1 2011) Capital TV to make its debut today42 The Star Online (January 1 2011) Maxis ready to move up value chain Retrieved December 3 2011
httpbizthestarcommynewsstoryaspfile=201111business7704581ampsec=business43 The Star Online (2011 April 21) Media Prima to invest more on local content Retrieved October 30 2011 from C
Usersa34ffzzDesktopMedia PrimaUsed articlesMedia Prima to invest more in local contentmht44 Time Warners (2010) Annual Report Time Warners45 WHAT HI FI (2011) Samsung aims for 50m TV sales worldwide in 2012 set to announce launch date for Google TV
product Retrieved from httpwwwwhathificomnewssamsung-aims-for-50m-tv-sales-worldwide-in-2012-set-to-announce-launch-date-for-google-tv-produ
46 Woroch G A (1996) Turning the Cables Elsevier47 Zanuddin H (2007) Political influence in Malaysia and Thailand media sector Jati Vol12
- MEdiA PRIMA
- Agenda
- Company Profile
- Media Primarsquos Commitment amp Direction moving forward
- Media Industry Business Model ndash Content Driven
- Our Tasks ndash How
- PEST Analysis
- Politics Legal Issues amp Impact
- Economic Issues and Impact
- Social Issues and Impact
- Social Issues and Impact
- Technology Issues and Impact
- In short
- Porterrsquos 5 Forces Analysis
- Porterrsquos Five Forces ndash Competitive Analysis
- Financials
- Media Prima Financial Highlights
- However in further analysis
- Value Chain Analysis
- Resource Based View
- In the context of the Content industry value chain Mapped again
- Appraising capabilities which drives profitability
- Mapping Media Prima revenue streams against the Diversification
- Slide 25
- Related Constrained Diversification
- Related Constrained Diversification (2)
- Slide 28
- Related Linked Diversification
- Slide 30
- Social Responsibility Analysis
- Social Responsibility
- Social Responsibility ndash cont
- Media Prima Acknowledges it various stakeholder via Stakeholder
- It has moved on to 2nd stage of CSR
- SWOT Analysis
- SWOT Analysis ndash Summary
- Media Primarsquos Current situation in summary
- Moving forward 2012 and beyond
- Recommended Destination and future growth of Media Prima
- How Moving from aggregator to content creator
- How Moving from aggregator to content creator (2)
- Creating a Content focus agency All these can be enable via
- Using financial view to free resources for content development
- By changing the business segment reporting it also affects the
- How Moving from aggregator to content creator (3)
- Technology ndash Enable Media Prima to leap into Interactive Conten
- It is not a Fad but a trend
- Slide 50
- Example of Smart TV
- This will ultimately lead Media Prima to reduce it dependence o
- NEW Revenue Streams for Media Prima
- How
- Building Talents in the long run
- Summary ndash Media Prima
- References
- References
- References (1)
- References (2)
- References (3)
-
Politics Legal Issues amp Impact
Source 1 httpenwikipediaorgwikiDigital_television_in_Malaysiacite_note-102 bizthestarcommynewsstoryaspfile=20111126business99740173 httpwwwconsumerorgmyindexphpdevelopmentprivate-sector479-astros-monopoly-has-short-changed-malaysian-tv-viewers
Change from Analogue TV to Digital TV by 2015bull Analogue TV broadcasts would be shut down in stages and due
to complete by 2015 as per recommendation from ASEAN bull Digital will open is in evitable
Deregulation of content bull But the regulator of the industry has yet to come up with details
on how it will go about disbanding the monopoly on content
Would do away with monopoly in the pay-TV broadcasting sectorbull With the introduction of newer IPTV services bull And Astrorsquos exclusive Pay TV license will end by 2017
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 (F)
-5
0
5
10
15
20
25
16
23
2
910
17
3 4
1513
7
1614
68
1
45
75
6 65
-2
726
ADEX Growth GDP Growth
Slowing down of GDP
Economic Issues and Impact
Source httpwwwtheedgemalaysiacomin-the-financial-daily196495-slower-tv-adex-points-to-quiet-adspend-for-the-rest-of-2011html
bull Ad Ex (Advertising Expenditure) fluctuates with GDP And as Media Primarsquos main source of revenue is from Ad Ex it will be affected by the projected slow down of the 2012 economy as multinational advertisers become more cautious
bull Organization for Economic Cooperation and Development projected a 03 growth in 2012 instead of the 2 forecast
bull Malaysian perspective GDP growth of 51 (Nomura)
51 2012
Social Issues and ImpactOnline creeps in time spent increases and trust levels bull More time spent on Online gt TV and consumer are referring to
online to make purchase decision hence cross platform presence is needed to reach consumer (Malaysian Digital Consumer Report 2011)
Reading Magazine
Reading Newspapers
Video on Mobile Phone
Radio Stream via Internet
Internet via Mobile Phone
Online Games on PC
Listening to Radio
Watching TV
Internet
0 5 10 15 20 25
3434751535658
106198
Average Weekly Hours Spent on different media
Online activities beyond Watching TV
Source 1 QuickPlay Media 2 httpwwwgartnercomtechnologyhomejsp
httpwwwthemalaysianreservecommainindexphpoption=com_contentampview=articleampid=899move-over-tv-the-net-is-where-the-action-isampcatid=36corporate-malaysiaampItemid=120
Online activities beyond Newspapers and Magazines
76 of consumers indicate that they watch more TV on tablet than before a shift in media consumption behavior
Social Issues and Impact
Source Kinetic Insights on People on the Move Moving World Asia (2011)
Consumers are On The Move Disconnect from traditional Channels bull 107 Hr Weekday -gt Highest in ASIAbull Requires mobile channel to deliver and keep up with consumers bull Moving from radio -gt mobile phones -gt tablets
Outdoor
On Mobile
BUT
Broadband Penetration
Mobile Penetration
Technology Issues and Impact
Household broadband penetration at 615 and will grow to 75 by 2015
75 107
Source httpwwwthemalaysianreservecommainindexphpoption=com_contentampview=articleampid=899move-over-tv-the-net-is-where-the-action-isampcatid=36corporate-malaysiaampItemid=120
Malaysia a Digital Nation Netizens (constant access to internet) make up 40 of the
total population of 27 million Tablet PC usage and ownership netizen are expected to
increase from 18 to 75 in 2012
In short
1 Legislative deregulation spurs the attractiveness of the
market
2 Economic impose pressures for 2012
3 Social shifts leads the way to new media
4 Technology is the catalytic enable of Media organization
shift into New Media
Porterrsquos 5 Forces Analysis
Astro is the only direct challenger as it is the closest to an integrated media organisation
Power of Substitutes 1 Technology and Sharing of
screen ndash Moving away from TV to mobile content and social media decreases the share of attention
2 Self Generated content by Netizens ndash User Generated Content - youtube
Power of Suppliers 1 Content is king and that is what
drives viewership ndash and not the media organisation that aggregates it
2 Content lead experience is dependent on technological development
Threat of New Entrants 1 Introduction of new IPTV which
offers variety of channelsDETV and ABN
2 New entrants have infrastructure backing hence offering product bundling of triple play ie Unifi YTL Comms
Power of Consumers 1 Consumer Moving away from
Print TV and Radio - they are the ones that drive demand
2 Advertiser have a hard time reaching the fragmented audience (beyond traditional media)
Porterrsquos Five Forces ndash Competitive Analysis
Customers are dependant on content (Media Prima) to reach consumers
Competitive Rivalry
Source bizthestarcommynewsstoryaspfile=20111126business9974017
Nevertheless Media Prima is still in control as it complements their services by offering them content
But its audiences are fragmented across 150 channels versus ours which focus 4 stations
Content creators and aggregators need to mirror consumerrsquos media consumption trends
Can be mitigated by internalizing content development but Media Prima needs to keep its content up to date with technology development
Financials
Media Prima Financial Highlights
1327millionProfit After Tax and Minority Interest (ldquoPATAMIrdquo)September 2011 (9 Months)
in the corresponding period for 20101105 million
A healthy GROWTH
Source Media Prima Annual Report 2011
However in further analysisHowever the bulk of its revenue comes from advertising that is in turn dependent on the economic outlook the question arises as to whether Media Prima should diversify its income stream Especially when gt80 of Astrorsquos revenue is on subscription
Reduce Media Primarsquos dependence on advertising revenueas it highly fluctuates with the market conditions
Group
2010 2009
RMrsquo000 RMrsquo000
Advertising revenue 1237961 80 725857 98 Circulation revenue 290691 19 0 Sale of programmes videos cable and laser rights and media revenue 15408 1 11287 2 Fees from provision of production services and sponsorship 2583 0 6885 1 Fees from provision of procurement services Dividends from subsidiaries Dividends from an associate 1546643 100 744029 100
Source Media Prima Annual Report 2011
Value Chain Analysis
Resource Based View
The resource-based view is grounded in the perspective that a firm is a collection of unique resources and capabilities that provides the basis for its strategies and the primary source of its return
SupportActivities
Primary Activities
Strategy Development 4
Resource Identification 1Capabilities Determination 2Competitive advantage 3
Resource Gap Analysis 5
Source Porter Value Chain Robert M Grant
Process of CONTENT aggregation Process of CONTENT creation
In the context of the Content industry value chainMapped against Porterrsquos Value chain
Createbull Scriptwritersbull Actorsbull Animatorsbull Gamesbull developer
Publishbull Production housesbull TV Advert Film
Packagebull Media Primabull Astrobull RTMbull Maxisbull Digibull Celcom
DistributebullTelekombull MBNS (Measat)bull RTM
Content industry value chain
Porterrsquos Value Chain
Human Resource Management
Technological DevelopmentProcurement
Marketing amp Sales
Develop Talent Pool
Ensure Vibrant Content Industry
Technologycreates ubiquitous
Low Access Cost
To spur the industry forward
Strong talent develops Content development
demand for access
Strong content industry drives demand for Talent Drive demand for content
Services
Source SKMM Regulatory Compliance Course for Telcos amp Celcos
MARKETINGStrategies are focused on branding activities and marketing communications aggressive Aamp P and active participation in on-ground activities that promote brand awareness And Established Integrated marketing arm
TECHNOLOGY DEVELOPMENT Alt Media the digital arm successfully launched TonTon TV a cutting edge video portal that offers customization and interactivity of social networking Giving Media Prima an advantage of being able to direct advertisers to precise target groups
PROCUREMENT Stringent supplier selection in terms of 70 are local suppliers Sourcing of content which are relevant responsible engaging especially with the advent of new media
SERVICESMedia Prima fully owns Primeworks Studio helps maximize the economies of scale in content production whilst enhancing the quality of content of all television networks
HUMAN CAPITALPrioritize human capital development in news and editorial operation radio network artist and talent management etc Creating an in-house talent pool to develop content
Content Barriers to entry
ndash securing talents - Leadership position in development of local talent and content to leading the industry
Vertical bargaining power
DifferentiationAnd Competitive advantage
- Consumer insights - Integrated media organization
Activities Benefit
Competitiveness leading to Margins
Goal
Appraising capabilities which drives profitability
Source Media Prima Annual Report 2011
Mapping Media Prima revenue streams against the Diversification Map
HIGH
LOW
HIGHLOW
Shar
ing
Ope
ratio
nal R
elat
edne
ss B
etw
een
Busi
ness
Corporate Relatedness Transferring skills into business through corporate HQ
Related Constrained Diversification
Vertical Integration Market Power
Content Creation and Talent development Prima Works enables Media Prima to create localized content for the local market
Both operation and Corporate Relatedness (Rare Capability and can create Diseconomies of scale)
New Media is both an operation and corporate relatedness diversification as it require Media Prima to go beyond playing the role as aggregator but also content producer leveraging on its strength
Unrelated Diversification (Financial Economies)This area of diversification which is unrelated in operation and skills transfer Media Prima has not exploited
Related Linked Diversification (Economies of Scope)As newscontent are cross platforms and the business models are the same Media Prima was able to share similar content across platforms and acquire related companies
Opportunities - Create more segmented programmes and move into interactive content
OpportunitiesHowever more needs to be done in the new are with the advent of Interactive TV
Opportunities Although unrelated area often has high risk it is crucial at this point for Media Prima to extend into this area in smart partnerships with telecommunication companies ie Axiata TM
OpportunitiesMedia Prima has maximized its diversification strategy in this area BUT the market is yet to be ready amp there is a need to link both NSTP and Media Prima
CurrentPrimeworks Studios Sdn Bhd (owned by Media Prima) is Malaysias biggest production company producing TV content since 1984 and feature films since 1994 generating over 5000 hours of TV content and 10 movies annually
Related Constrained Diversification
ChallengesBut the reality is that it is not able to compete with the myriad of channels of its competitors which are dependent on overseas content
Opportunities However more needs to be doneas channels become more segmented-Procuring more content to compete on quantity - or it could change the content game and move into interactive content
Source Creation of An Integrated Media Group 2009 httpwwwmediaprimacommy
TV Newspaper
Radio
Outdoor
New Medi
a
4 3 3
1 2
gt150
17
2 1
gt14
3
22
22
YTL Comms
ABN 100
Ove
rvie
w o
f com
petit
ors
thei
r bus
ines
s po
rtfol
ios
Related Constrained Diversification
Media Company
Advertisers Corporations(Customers )
Viewers(Consumers)
Consumer Pay for Product
CONTENT
Advertiser payFor (Ad space) $$
1 httpwwwlongtailcomthe_long_tail200809the-three-kindshtml
$
Opportunities The potential here is also for Media Prima to drive content syndication ndash providing content to other media stations abroad
Media Prima is currently doing by syndicating content to ASTRO and Unifi
Competitors
Media Company
Viewers(Consumers)
CONTENT PRO
1 httpwwwlongtailcomthe_long_tail200809the-three-kindshtml
$
C
C
C FREE CONTENT FREE CONTENT
FREE CONTENT
Both operation and Corporate Relatedness
CurrentMedia Primarsquos intention to leverage on both its operations and Corporate relatedness to shift its revenue structure to be less dependent on advertising revenue and move toward subscriber revenue where a few subsidies everyone else via versioning ldquoprice discriminationrdquo
ChallengesIt has to some degree been successful to introduce this ndash via TonTon TV however the revenue from this segment has yet to be significant
To date there are 16 show packages and over 50 single episodes for viewers to purchase ndash which is limited
Opportunities However more needs or can be done in this new area with the advent of Interactive TV
Media Company
Advertisers Corporations(Customers )
Viewers(Consumers)
Consumer Pay for Product
FREE
CONTENT
Advertiser payFor (Ad space) $$
Source Website1 httpwwwlongtailcomthe_long_tail200809the-three-kindshtml2 Creation of An Integrated Media 2009 Grouphttpwwwmediaprimacommyinvestorcentercp2009NSTPGOpdf3 httpwwwtheedgemalaysiacomin-the-financial-daily164479-media-prima-best-proxy-to-sector-says-oskhtml 4 Media Prima net revenue grows to RM119b 2011 httpwwwbtimescommyCurrent_NewsBTIMESarticles20111118202427Articleindex_html
Related Linked Diversification
Current Media Prima has expanded across media with the idea in the hope of a) Leveraging on its expertise of
Advertisers subsiding viewers model b) Share back-office consolidation which
creates operations efficiencies in operation ie Editorial Talents
c) Cross marketing opportunities across platforms - Where Advertisers could purchase cross buy across platforms
Challenges Market ndash Not readyThe market is not ready for bundled and cross market offering According to Dato Amrin Awaluddin Group Managing Director of Media Prima no doubt there was head roads but more effort needs to be done to integrate the platforms better
Internally ndash Structure is not integrated In terms of unlocking NSTPs value he says it would be done in two phases `First is more short term like consolidating in terms of operations while the second stage will entail selling of products and cross-promoting our content which would be an ongoing revenue- generation exerciselsquo And he quoted Joran a property of Berita Harian (NST) ndash a nationwide fishing event being brought to TV3 as an example
Opportunities - The structure impeded cross platform and working in silo
does not help
- Hence there is a need to further shift paradigms via a structural change to free up resources to focus on content
- The market will not know what they want until we present them with the opportunity benefit
Social Responsibility Analysis
Social Responsibility
Media Primarsquos approach to Social Responsibility is based on the key triple bottom line ndash social environmental and economic It considers the socio-economic impact of its business activities in the aim to create value to its stakeholders via the 4 categories ie community workplace marketplace and environment
Community1EducationFocusing on education to raise awareness of the importance of education and increase the academic standards of underprivileged children and underperforming schools eg PINTAR Programme NST School Sponsorship Programme
2 HumanitarianRaise funds for humanitarian aid and provided updates on the local and world disaster crisis to the public and raised awareness of the funds eg Humanitarian Aid for Gaza Humanitarian Aid for Flood Victims in Pakistan
3 Other community programmesProduced outreach programmes to reflect and highlight local and community issues and to be the eyes and ears of the public and engage in public awareness through its businessesrsquo media resources and platforms in print interactive media and television eg Project Sunshine
Social Responsibility ndash cont
Environment - EfficiencyStrongly committed to being an environmentally friendly Company by using recycled paper especially in its newspapers business efficient usage of electricity in offices water management reducing amount of waste produced throughout its businesses and other environmental initiatives such as lsquosave our beachrsquo project and WWFrsquos Earth Hour
Marketplace ndash Responsible ContentFocusing on product responsibility in providing high quality products and is committed to establishing a horizontal specialisation system based on collaboration with stakeholders The production flow is illustrated in the diagram below
Workplace ndash Right CultureIt aims to create a workplace where its people have the opportunity to be the best they possibly can to have the right culture safe working environment and human capital development with fair processes
Media Prima Acknowledges it various stakeholder via Stakeholders Management
Media Prima is aware of the diversity of its stakeholders and the different goals and demand of its stakeholders
The Company conducts active engagement with its stakeholders to fully understand their needs and increase their trust in the Company through formal and informal mechanisms as follows
It has moved on to 2nd stage of CSR
1st Generation 2nd Generation 3rd Generation
Philanthropic short term risk management
Product Process innovation business and corporate governance model long term sustainability Strategic CSR
3rd Generation Multi- stakeholder standards and partnerships institutional building CR- Oriented advocacy and public policy
Opportunity
What is next for Media Prima to shape the industry
Creating content that generate advertising dollars amp donations of the poor social awareness
By leveraging on its content distribution capabilities
SWOT Analysis
SWOT Analysis ndash Summary
Strengths 1 Strong market share in TV segment2 Malaysiarsquos only integrated media
organization- have vertical and horizontal diversification advantage
3 Established value chains strength which complements the required core competencies
4 Have move across 3 revenue models
Weaknesses1 limited number of stations variety and choice
for consumer2 Despite diversification revenues still mainly
driven by advertisers and TV -gt cross platforms is needed
3 Financial segmentation may hinder potentials of the company
Opportunities 1 Broadband infrastructure ndash via HSBB2 Development of technology ndash creating
medias gadgets that increase digital interaction and content consumption
3 Consumers are willing to pay for content4 Possible deregulation of content ndash leveling
the playing field
Threats 1 2012 forecasting a financial slow down
affecting Ad Ex ndash hence revenue is reduced2 Increase competition New Entrants Pay TV
player amp continual competition from ASTRO3 Changing consumer habits towards media
consumption -gt moving away from traditional media ndash hence have to fight for consumerrsquos attention
Right Technology (Gadget and Infrastructure) at the Right time (deregulation) amp Right consumers (shift in media habits and willingness to pay for content ndash ASTRO as indicator)
Vertical Value Chain advantage to compete in content development
Media Primarsquos Current situation in summary
+VE
-VE Revenue dependent on advertising which is affected correlated to GDP
Resources organization structure holds back effectiveness of organization
Moving forward2012 and beyond
Recommended Destination and future growth of Media Prima
Revenue mainly from advertising
Revenue from advertising
Content SubscriptionBy viewers
Content driven Complementary Services for advertiser (Auxillary Services)
Media Prima
Media Prima
Content Syndicationto competitors
+
How Moving from aggregator to content creator
Content Focus Leveraging on content to Embark on Revenue shifts
Long term sustainable leadership
Restructuring to liberateresources for Content
Sustainable Talent development -
Partnership
Riding the Technology Wave
Short term (2012) Mid Term (by 2013-2015) Long term 2015 beyond
How Moving from aggregator to content creator
Content Focus Leveraging on content to Embark on Revenue shifts
Long term sustainable leadership
Restructuring to liberateresources for Content
Sustainable Talent development -
Partnership
Riding the Technology Wave
Short term (2012) Mid Term (by 2013-2015) Long term 2015 beyond
Creating a Content focus agency All these can be enable via the following means
Demand- The content creation race bull There is a need to free up empower human capital to create more content which are relevant
segmented engaging and entertaining
How does media prima refocus its resources into where it matters Instead of multiple teams doing the same thing ndash there is a challenge to create a lean and efficient organization
Challenges Freeing Resources
Instead of looking at a Media based financial segment reporting structurally force the teams to integrate by changing the dynamics of PampL
Next page
Solution Redefining Business Units Paradigms
Take a step up from producing beyond the current vernacular program to meet shifting consumer needs
Challenges ndash Lifestyle lead Variety
Creating Channel programs which are target segment focus based on lifestyles hellip
Acquisition of content as content regulations will be relaxed
Solution Target Segment focus
Using financial view to free resources for content developmentFinancial segment reporting may create a ldquosilordquo mentality ndash which encourages each head of business to protect their bottom line Hence a less effective in operations
Our recommendation is to expand content creation to cut across and shift paradigms to free up resources and focus on new revenue streams And create new content for different segment
Tele
visi
on N
etw
ork
Radi
o N
etw
ork
Out
door
Med
ia
Prin
t M
edia
Oth
er M
edia
Current Financial Segment Reporting
Tele
visi
on N
etw
ork
Radi
o N
etw
ork
Out
door
Med
ia
Prin
t M
edia
Oth
er M
edia
Production
Content
Subscription
Advertising
Recommended Segment Reporting
Lifestyle Segments
Lifestyle Segments
Lifestyle Segments
Lifestyle Segments
Lifestyle Segments
Lifestyle Segments
By changing the business segment reporting it also affects the company structure
The benefits - Flexibility and empowers knowledge
economy ndash talent content driven
- Builds at strong work culture which may be replicated in the region
- Expansion to embark on talent and content crowd sourcing - open innovation creation
Media Prima can take this opportunity to achieve SPECIALIZATION COORDINATION AND COOPERATION Currently team structure ndash of Integrated Marketing Division is created as a temporary solution hellip to enable integration It will move towards a network model to haste integration fast and response to technology and consumer needs
Subcription
Advertising
Production
TechnologyPartner
Content
How Moving from aggregator to content creator
Content Focus Leveraging on content to Embark on Revenue shifts
Long term sustainable leadership
Restructuring to liberateresources for Content
Sustainable Talent development -
Partnership
Riding the Technology Wave
Short term (2012) Mid Term (by 2013-2015) Long term 2015 beyond
Technology ndash Enable Media Prima to leap into Interactive Content
Interactive Content
UniFi Axiata
Media Prima
Electronics Manufacturer
Demand - A ready market bull There is a latent demand for content-gt consumers are
willing to Pay bull Technology has accustomed consumers to interacting
with contentbull Regulatory push to shift from analogue to digital by
2015
However unlike Media Primarsquos western counterparts ie Time Warner Communication Media Prima does not have the advantages of cable infrastructure
Challenges ndash Limitation
Media Prima could depend on existing suppliers of connectivity and technology- Telecommunications ie AXIATA and - Manufacturing companies ie Samsungto take the leap into interactive content Unifi TM
Solution ndash Smart Partnerships
Maximizing Unrelated Diversification
It is not a Fad but a trend
Smart TV is an inevitable trend says Baeguen Kang vice president of
research and development at South Koreas LG Electronics Co the worlds second-largest seller of TV sets by unit volume As people experienced smartphones and tablet PCs the larger screen on a TV is very attractive for apps and Web content
210 million TV sets sold world-wide had an Internet connection (2010)
21 50It will be the forecast in (2014)
Source Evan Ramstad (January 2011)A ldquoManufacturers Turn to Smart TV After 3-D Disappointsrdquo The Wall Street Journal online httponlinewsjcomarticleSB10001424052748704835504576059783074010902html
As technology develops Current cost is will drop exponentially reflecting the Moorersquos Law
Hence lowering the cost of access for interactive content
Example of Smart TV
Smart Hub It is a front facing interface just like a main menu
when consumers turn on their TV There are few utilities that consumers can choose to be entertained
Video ndash consumers can choose from array of video collections that required to be paid
Apps ndash an internet-enabled applications like You Tube Facebook Twitter Skype and others
Internet browsing ndash just like PC internet browsing
Music photo and TV watching
Smart ConnectivityWIFI enabled that allows consumers to connect to all mobile devices like smart phone tablet PC notebook and camera with Samsung Wireless Router called 1 foot This connectivity is being called ldquoAllSharerdquo by Samsung
httpotbresearchcomau200509report-1-industry-forum
MEDIA PRIMA IS CURRENTLY HERE
This will ultimately lead Media Prima to reduce it dependence on advertising revenue
Others ndash Utilising the SMART TV technology and Apps to create any existing Media Prima businesses
NEW Revenue Streams for Media Prima
To take advantage of SMART TV and collaborate with SMART TV manufacturers Media Prima can look into following utilities
Collaborate with manufacturers to allow consumers to browse and pay for Media Prima video collections
Selling local music for Malaysia market
Collaborate with local or international content developers to create Malaysia specific contents for paid subscription or free for common content to attract new consumers
How
Content Focus Leveraging on content to Embark on Revenue shifts
Long term sustainable leadership
Restructuring to liberateresources for Content
Sustainable Talent development -
Partnership
Riding the Technology Wave
Short term (2012) Mid Term (by 2013-2015) Long term 2015 beyond
Building Talents in the long run
Education Building on its strategic CSR ndash Media Prima could champion the
development of the content industry by partnering with local universities in the areas of technology media and communication
Crowd Sourcing To haste up the strategic CSR it too could embark on crowd
sourcing for content ndash via scripts and interactive content In which Media Prima could support a great idea and develop the ideas for monetization
This is a synergistic and natural development from the networks structure (open innovation)
Summary ndash Media Prima
Develop Talent Pool
Ensure Vibrant Content Industry
Technologycreates ubiquitous
Low Access Cost
To spur the industry forward
Strong talent develops Content development
demand for access
Strong content industry drives demand for Talent drives demand for content
Our recommendations are aligned to help spur the industry forwardhellip
Restructuring to liberateresources for Content
Sustainable Talent development -
Partnership
Riding the Technology Wave ndash Via Smart
Partnerships
References
References
1 Anon ldquoMedia Prima Berhad implements Accenture integrated broadcast systemrdquo Accenture Press Release httpnewsroomaccenturecomarticle_displaycfmarticle_id=5005 viewed 3 November 2011
2 Anon ldquoNew exciting and vibrant offerings from MPB television networks in 2010rdquo Media Prima Press Release httpwwwmediaprimacommypressreleasepressreleaseaspxid=150 viewed 3 November 2011
3 Anderson J ldquoResource-based competitiveness managerial implications of the resource-based viewrdquo Strategic Direction Vol26 No5 2010 pp1-2
4 Arman Arshad (2006) Size matters Retrieved December 2 2011 from asiaviewsorg httpwwwasiaviewsorgindexphpoption=com_contentampview=articleampid=2171headlinealias2171ampcatid=1headlinesampItemid=2
5 Asia Times (2007 November 29) Malaysian media giant grasps for Internet Retrieved November 3 2011 from httpwwwatimescomatimesSoutheast_AsiaIK29Ae02html
6 Barney JB amp Hesterly WS (2008) Strategic Management and Competitive Advantage The Five Forces Model of Environmental Threats pp39Prentice Hall
7 BBC (2011) BBC News product launches on connected TV Retrieved from bbccoukpressofficepressreleasesstories201106_june17newsshtml
8 Boston Consulting Group (2011) Lean Advantage in Media Boston Consulting Group
9 Boston Consulting Group (2011) Running Forward Walking Backward Boston Consulting Group
10 Business Times (2011) Media Prima net revenue grows to RM119b Kuala Lumpur New Straits Times
11 Business Times (2011) Media Prima on track to achie1048665ing 2011 target Retrieved from www1btimescomm1048668Current_NewsBTIMESarticlespimeArticle
References (1)
12 Business Times (2011) Media Prima Puncak Semangat in early talks Retrieved from httpwwwbtimescommyarticlespimmaArticle
13 Carl W Stern George Stalk Carl W Stern George Stalk Stern CW amp Stalk G (2011) Perspectives of Strategy from the Boston Consulting Group Retrieved December 3 2011 from Value Based Managementnet httpwwwvaluebasedmanagementnetmethods_bcgmatrixhtml
14 ecmlibra (2011) Adex momentum to taper off in 2012 ecmlibra
15 Gershon R A amp Ratnadeep S V (2004) Viacom Inc A Case Study in Transnational Media Management Journal of Media Business Studies 1 (1) 47-69
16 Grant RM ldquoThe resource-based theory of competitive advantage implications for strategy formulationrdquo California Management Review Vol 3 2011 httpwwwskynetie~karenArticlesGrant1_NBpdf viewed 15 November 2011
17 GreyReview (2011) TonTon Streaming Over 11 Million Video Hours A Month now with 16 millions registered users Retrieved from httpwwwgreyreviewcom20110731tonton-serving-over-1-1-million-video-hours-a-month-now-with-1-6-registered-users
18 Heavy Reading (2011) Telecom in TV Land A Roadmap to New Digital Media Ecosystem Retrieved from wwwheavyreadingcomdetailsaspsku_id=1773ampskuitem_itemid=1030
19 Hegedus N (2010) The Great Scare EBR 3 10-17
20 JohnsonGScholesK amp Whittington (2008) Exploring Corporate Strategy Competitive Forces ndash the Five Forces Framework pp 59-64 Prentice Hall
21 kinetic (2011) Moving World Asia Hong Kong
References (2)
22 Knowledgefaber (2009) Telcos Avatar - As Media Companies 20 Retrieved from httpknowledgefabercomindexphpoption=com_contentampview=articleampid=40telecom-and-media-convergenceampcatid=10telecomampItemid=42
23 Knowledgefaber (2011) Telcos Avatar - As Media Companies 20 Retrieved from httpknowledgefabercomindexphpoption=com_contentampview=articleampid=40
24 Malik O (2011) GIGAOM Retrieved from httpgigaomcom20110223old-media-is-being-unbundled-just-like-telecom-was
25 Maxis with TM Astro with TIME Best Strategy to IPTV Market Retrieved December 1 2011 httpbizthestarcommynewsstoryaspfile=201111business7704581ampsec=business
26 Media Prima (2010) Annual Report Media Prima Berhad27 Media Prima Berhad (2011) 11 Nov 2011 - New Exciting amp Vibrant Offerings From MPB Television Retrieved from
wwwmediaprimacommypressreleasepressreleaseaspxid=15028 Media Prima (2010) Sustainability Report Media Prima Berhad29 OSK (2011) Media Prima OSK30 Pocket-Lint (2011) Samsung Smart TV hits 2 million mark Retrieved from
httpwwwpocket-lintcomnews40593samsung-smart-tv-2-million31 PricewaterhouseCoopers (2011) Achieving corporate financial PwC32 PricewaterhouseCoopers (2007) Financial Reporting Standards (FRS) in Malaysia PricewaterhouseCoopers33 SKMM (MCMC) (2009) Advertising Development in Malaysia SKMM34 SKMM (MCMC) (2011) Content Development SKMM35 Techpinions (2011) Interactive TV Trends - How the TV experience is changing - Part II Retrieved from
httptechpinionscominteractive-tv-trends-E28093-how-the-tv-experience-is-changing-part-ii4066
References (3)
36 The Edge (2011) Media Prima best proxy to sector Retrieved from wwwtheedgemalaysiacom37 The Edge Malaysia (2011 September 26) Education the mother of all reforms Retrieved October 30 2011 from
httpwwwtheedgemalaysiacomin-the-financial-daily193478-education-the-mother-of-all-reformshtml38 The Star Online (2011) Main players in the competitive TV sector Retrieved from bizthestarcommynewsstoryasp
file=20111126business997401739 The Star Online (2011) Maxis ready to move up value Retrieved from
bizthestarcommynewsstoryaspfile=201111business7704581ampse40 The Star Online (2011) New players enter the TV Retrieved from
bizthestarcommynewsstoryaspfile=20111126business997300841 The Star Newspaper (December 1 2011) Capital TV to make its debut today42 The Star Online (January 1 2011) Maxis ready to move up value chain Retrieved December 3 2011
httpbizthestarcommynewsstoryaspfile=201111business7704581ampsec=business43 The Star Online (2011 April 21) Media Prima to invest more on local content Retrieved October 30 2011 from C
Usersa34ffzzDesktopMedia PrimaUsed articlesMedia Prima to invest more in local contentmht44 Time Warners (2010) Annual Report Time Warners45 WHAT HI FI (2011) Samsung aims for 50m TV sales worldwide in 2012 set to announce launch date for Google TV
product Retrieved from httpwwwwhathificomnewssamsung-aims-for-50m-tv-sales-worldwide-in-2012-set-to-announce-launch-date-for-google-tv-produ
46 Woroch G A (1996) Turning the Cables Elsevier47 Zanuddin H (2007) Political influence in Malaysia and Thailand media sector Jati Vol12
- MEdiA PRIMA
- Agenda
- Company Profile
- Media Primarsquos Commitment amp Direction moving forward
- Media Industry Business Model ndash Content Driven
- Our Tasks ndash How
- PEST Analysis
- Politics Legal Issues amp Impact
- Economic Issues and Impact
- Social Issues and Impact
- Social Issues and Impact
- Technology Issues and Impact
- In short
- Porterrsquos 5 Forces Analysis
- Porterrsquos Five Forces ndash Competitive Analysis
- Financials
- Media Prima Financial Highlights
- However in further analysis
- Value Chain Analysis
- Resource Based View
- In the context of the Content industry value chain Mapped again
- Appraising capabilities which drives profitability
- Mapping Media Prima revenue streams against the Diversification
- Slide 25
- Related Constrained Diversification
- Related Constrained Diversification (2)
- Slide 28
- Related Linked Diversification
- Slide 30
- Social Responsibility Analysis
- Social Responsibility
- Social Responsibility ndash cont
- Media Prima Acknowledges it various stakeholder via Stakeholder
- It has moved on to 2nd stage of CSR
- SWOT Analysis
- SWOT Analysis ndash Summary
- Media Primarsquos Current situation in summary
- Moving forward 2012 and beyond
- Recommended Destination and future growth of Media Prima
- How Moving from aggregator to content creator
- How Moving from aggregator to content creator (2)
- Creating a Content focus agency All these can be enable via
- Using financial view to free resources for content development
- By changing the business segment reporting it also affects the
- How Moving from aggregator to content creator (3)
- Technology ndash Enable Media Prima to leap into Interactive Conten
- It is not a Fad but a trend
- Slide 50
- Example of Smart TV
- This will ultimately lead Media Prima to reduce it dependence o
- NEW Revenue Streams for Media Prima
- How
- Building Talents in the long run
- Summary ndash Media Prima
- References
- References
- References (1)
- References (2)
- References (3)
-
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 (F)
-5
0
5
10
15
20
25
16
23
2
910
17
3 4
1513
7
1614
68
1
45
75
6 65
-2
726
ADEX Growth GDP Growth
Slowing down of GDP
Economic Issues and Impact
Source httpwwwtheedgemalaysiacomin-the-financial-daily196495-slower-tv-adex-points-to-quiet-adspend-for-the-rest-of-2011html
bull Ad Ex (Advertising Expenditure) fluctuates with GDP And as Media Primarsquos main source of revenue is from Ad Ex it will be affected by the projected slow down of the 2012 economy as multinational advertisers become more cautious
bull Organization for Economic Cooperation and Development projected a 03 growth in 2012 instead of the 2 forecast
bull Malaysian perspective GDP growth of 51 (Nomura)
51 2012
Social Issues and ImpactOnline creeps in time spent increases and trust levels bull More time spent on Online gt TV and consumer are referring to
online to make purchase decision hence cross platform presence is needed to reach consumer (Malaysian Digital Consumer Report 2011)
Reading Magazine
Reading Newspapers
Video on Mobile Phone
Radio Stream via Internet
Internet via Mobile Phone
Online Games on PC
Listening to Radio
Watching TV
Internet
0 5 10 15 20 25
3434751535658
106198
Average Weekly Hours Spent on different media
Online activities beyond Watching TV
Source 1 QuickPlay Media 2 httpwwwgartnercomtechnologyhomejsp
httpwwwthemalaysianreservecommainindexphpoption=com_contentampview=articleampid=899move-over-tv-the-net-is-where-the-action-isampcatid=36corporate-malaysiaampItemid=120
Online activities beyond Newspapers and Magazines
76 of consumers indicate that they watch more TV on tablet than before a shift in media consumption behavior
Social Issues and Impact
Source Kinetic Insights on People on the Move Moving World Asia (2011)
Consumers are On The Move Disconnect from traditional Channels bull 107 Hr Weekday -gt Highest in ASIAbull Requires mobile channel to deliver and keep up with consumers bull Moving from radio -gt mobile phones -gt tablets
Outdoor
On Mobile
BUT
Broadband Penetration
Mobile Penetration
Technology Issues and Impact
Household broadband penetration at 615 and will grow to 75 by 2015
75 107
Source httpwwwthemalaysianreservecommainindexphpoption=com_contentampview=articleampid=899move-over-tv-the-net-is-where-the-action-isampcatid=36corporate-malaysiaampItemid=120
Malaysia a Digital Nation Netizens (constant access to internet) make up 40 of the
total population of 27 million Tablet PC usage and ownership netizen are expected to
increase from 18 to 75 in 2012
In short
1 Legislative deregulation spurs the attractiveness of the
market
2 Economic impose pressures for 2012
3 Social shifts leads the way to new media
4 Technology is the catalytic enable of Media organization
shift into New Media
Porterrsquos 5 Forces Analysis
Astro is the only direct challenger as it is the closest to an integrated media organisation
Power of Substitutes 1 Technology and Sharing of
screen ndash Moving away from TV to mobile content and social media decreases the share of attention
2 Self Generated content by Netizens ndash User Generated Content - youtube
Power of Suppliers 1 Content is king and that is what
drives viewership ndash and not the media organisation that aggregates it
2 Content lead experience is dependent on technological development
Threat of New Entrants 1 Introduction of new IPTV which
offers variety of channelsDETV and ABN
2 New entrants have infrastructure backing hence offering product bundling of triple play ie Unifi YTL Comms
Power of Consumers 1 Consumer Moving away from
Print TV and Radio - they are the ones that drive demand
2 Advertiser have a hard time reaching the fragmented audience (beyond traditional media)
Porterrsquos Five Forces ndash Competitive Analysis
Customers are dependant on content (Media Prima) to reach consumers
Competitive Rivalry
Source bizthestarcommynewsstoryaspfile=20111126business9974017
Nevertheless Media Prima is still in control as it complements their services by offering them content
But its audiences are fragmented across 150 channels versus ours which focus 4 stations
Content creators and aggregators need to mirror consumerrsquos media consumption trends
Can be mitigated by internalizing content development but Media Prima needs to keep its content up to date with technology development
Financials
Media Prima Financial Highlights
1327millionProfit After Tax and Minority Interest (ldquoPATAMIrdquo)September 2011 (9 Months)
in the corresponding period for 20101105 million
A healthy GROWTH
Source Media Prima Annual Report 2011
However in further analysisHowever the bulk of its revenue comes from advertising that is in turn dependent on the economic outlook the question arises as to whether Media Prima should diversify its income stream Especially when gt80 of Astrorsquos revenue is on subscription
Reduce Media Primarsquos dependence on advertising revenueas it highly fluctuates with the market conditions
Group
2010 2009
RMrsquo000 RMrsquo000
Advertising revenue 1237961 80 725857 98 Circulation revenue 290691 19 0 Sale of programmes videos cable and laser rights and media revenue 15408 1 11287 2 Fees from provision of production services and sponsorship 2583 0 6885 1 Fees from provision of procurement services Dividends from subsidiaries Dividends from an associate 1546643 100 744029 100
Source Media Prima Annual Report 2011
Value Chain Analysis
Resource Based View
The resource-based view is grounded in the perspective that a firm is a collection of unique resources and capabilities that provides the basis for its strategies and the primary source of its return
SupportActivities
Primary Activities
Strategy Development 4
Resource Identification 1Capabilities Determination 2Competitive advantage 3
Resource Gap Analysis 5
Source Porter Value Chain Robert M Grant
Process of CONTENT aggregation Process of CONTENT creation
In the context of the Content industry value chainMapped against Porterrsquos Value chain
Createbull Scriptwritersbull Actorsbull Animatorsbull Gamesbull developer
Publishbull Production housesbull TV Advert Film
Packagebull Media Primabull Astrobull RTMbull Maxisbull Digibull Celcom
DistributebullTelekombull MBNS (Measat)bull RTM
Content industry value chain
Porterrsquos Value Chain
Human Resource Management
Technological DevelopmentProcurement
Marketing amp Sales
Develop Talent Pool
Ensure Vibrant Content Industry
Technologycreates ubiquitous
Low Access Cost
To spur the industry forward
Strong talent develops Content development
demand for access
Strong content industry drives demand for Talent Drive demand for content
Services
Source SKMM Regulatory Compliance Course for Telcos amp Celcos
MARKETINGStrategies are focused on branding activities and marketing communications aggressive Aamp P and active participation in on-ground activities that promote brand awareness And Established Integrated marketing arm
TECHNOLOGY DEVELOPMENT Alt Media the digital arm successfully launched TonTon TV a cutting edge video portal that offers customization and interactivity of social networking Giving Media Prima an advantage of being able to direct advertisers to precise target groups
PROCUREMENT Stringent supplier selection in terms of 70 are local suppliers Sourcing of content which are relevant responsible engaging especially with the advent of new media
SERVICESMedia Prima fully owns Primeworks Studio helps maximize the economies of scale in content production whilst enhancing the quality of content of all television networks
HUMAN CAPITALPrioritize human capital development in news and editorial operation radio network artist and talent management etc Creating an in-house talent pool to develop content
Content Barriers to entry
ndash securing talents - Leadership position in development of local talent and content to leading the industry
Vertical bargaining power
DifferentiationAnd Competitive advantage
- Consumer insights - Integrated media organization
Activities Benefit
Competitiveness leading to Margins
Goal
Appraising capabilities which drives profitability
Source Media Prima Annual Report 2011
Mapping Media Prima revenue streams against the Diversification Map
HIGH
LOW
HIGHLOW
Shar
ing
Ope
ratio
nal R
elat
edne
ss B
etw
een
Busi
ness
Corporate Relatedness Transferring skills into business through corporate HQ
Related Constrained Diversification
Vertical Integration Market Power
Content Creation and Talent development Prima Works enables Media Prima to create localized content for the local market
Both operation and Corporate Relatedness (Rare Capability and can create Diseconomies of scale)
New Media is both an operation and corporate relatedness diversification as it require Media Prima to go beyond playing the role as aggregator but also content producer leveraging on its strength
Unrelated Diversification (Financial Economies)This area of diversification which is unrelated in operation and skills transfer Media Prima has not exploited
Related Linked Diversification (Economies of Scope)As newscontent are cross platforms and the business models are the same Media Prima was able to share similar content across platforms and acquire related companies
Opportunities - Create more segmented programmes and move into interactive content
OpportunitiesHowever more needs to be done in the new are with the advent of Interactive TV
Opportunities Although unrelated area often has high risk it is crucial at this point for Media Prima to extend into this area in smart partnerships with telecommunication companies ie Axiata TM
OpportunitiesMedia Prima has maximized its diversification strategy in this area BUT the market is yet to be ready amp there is a need to link both NSTP and Media Prima
CurrentPrimeworks Studios Sdn Bhd (owned by Media Prima) is Malaysias biggest production company producing TV content since 1984 and feature films since 1994 generating over 5000 hours of TV content and 10 movies annually
Related Constrained Diversification
ChallengesBut the reality is that it is not able to compete with the myriad of channels of its competitors which are dependent on overseas content
Opportunities However more needs to be doneas channels become more segmented-Procuring more content to compete on quantity - or it could change the content game and move into interactive content
Source Creation of An Integrated Media Group 2009 httpwwwmediaprimacommy
TV Newspaper
Radio
Outdoor
New Medi
a
4 3 3
1 2
gt150
17
2 1
gt14
3
22
22
YTL Comms
ABN 100
Ove
rvie
w o
f com
petit
ors
thei
r bus
ines
s po
rtfol
ios
Related Constrained Diversification
Media Company
Advertisers Corporations(Customers )
Viewers(Consumers)
Consumer Pay for Product
CONTENT
Advertiser payFor (Ad space) $$
1 httpwwwlongtailcomthe_long_tail200809the-three-kindshtml
$
Opportunities The potential here is also for Media Prima to drive content syndication ndash providing content to other media stations abroad
Media Prima is currently doing by syndicating content to ASTRO and Unifi
Competitors
Media Company
Viewers(Consumers)
CONTENT PRO
1 httpwwwlongtailcomthe_long_tail200809the-three-kindshtml
$
C
C
C FREE CONTENT FREE CONTENT
FREE CONTENT
Both operation and Corporate Relatedness
CurrentMedia Primarsquos intention to leverage on both its operations and Corporate relatedness to shift its revenue structure to be less dependent on advertising revenue and move toward subscriber revenue where a few subsidies everyone else via versioning ldquoprice discriminationrdquo
ChallengesIt has to some degree been successful to introduce this ndash via TonTon TV however the revenue from this segment has yet to be significant
To date there are 16 show packages and over 50 single episodes for viewers to purchase ndash which is limited
Opportunities However more needs or can be done in this new area with the advent of Interactive TV
Media Company
Advertisers Corporations(Customers )
Viewers(Consumers)
Consumer Pay for Product
FREE
CONTENT
Advertiser payFor (Ad space) $$
Source Website1 httpwwwlongtailcomthe_long_tail200809the-three-kindshtml2 Creation of An Integrated Media 2009 Grouphttpwwwmediaprimacommyinvestorcentercp2009NSTPGOpdf3 httpwwwtheedgemalaysiacomin-the-financial-daily164479-media-prima-best-proxy-to-sector-says-oskhtml 4 Media Prima net revenue grows to RM119b 2011 httpwwwbtimescommyCurrent_NewsBTIMESarticles20111118202427Articleindex_html
Related Linked Diversification
Current Media Prima has expanded across media with the idea in the hope of a) Leveraging on its expertise of
Advertisers subsiding viewers model b) Share back-office consolidation which
creates operations efficiencies in operation ie Editorial Talents
c) Cross marketing opportunities across platforms - Where Advertisers could purchase cross buy across platforms
Challenges Market ndash Not readyThe market is not ready for bundled and cross market offering According to Dato Amrin Awaluddin Group Managing Director of Media Prima no doubt there was head roads but more effort needs to be done to integrate the platforms better
Internally ndash Structure is not integrated In terms of unlocking NSTPs value he says it would be done in two phases `First is more short term like consolidating in terms of operations while the second stage will entail selling of products and cross-promoting our content which would be an ongoing revenue- generation exerciselsquo And he quoted Joran a property of Berita Harian (NST) ndash a nationwide fishing event being brought to TV3 as an example
Opportunities - The structure impeded cross platform and working in silo
does not help
- Hence there is a need to further shift paradigms via a structural change to free up resources to focus on content
- The market will not know what they want until we present them with the opportunity benefit
Social Responsibility Analysis
Social Responsibility
Media Primarsquos approach to Social Responsibility is based on the key triple bottom line ndash social environmental and economic It considers the socio-economic impact of its business activities in the aim to create value to its stakeholders via the 4 categories ie community workplace marketplace and environment
Community1EducationFocusing on education to raise awareness of the importance of education and increase the academic standards of underprivileged children and underperforming schools eg PINTAR Programme NST School Sponsorship Programme
2 HumanitarianRaise funds for humanitarian aid and provided updates on the local and world disaster crisis to the public and raised awareness of the funds eg Humanitarian Aid for Gaza Humanitarian Aid for Flood Victims in Pakistan
3 Other community programmesProduced outreach programmes to reflect and highlight local and community issues and to be the eyes and ears of the public and engage in public awareness through its businessesrsquo media resources and platforms in print interactive media and television eg Project Sunshine
Social Responsibility ndash cont
Environment - EfficiencyStrongly committed to being an environmentally friendly Company by using recycled paper especially in its newspapers business efficient usage of electricity in offices water management reducing amount of waste produced throughout its businesses and other environmental initiatives such as lsquosave our beachrsquo project and WWFrsquos Earth Hour
Marketplace ndash Responsible ContentFocusing on product responsibility in providing high quality products and is committed to establishing a horizontal specialisation system based on collaboration with stakeholders The production flow is illustrated in the diagram below
Workplace ndash Right CultureIt aims to create a workplace where its people have the opportunity to be the best they possibly can to have the right culture safe working environment and human capital development with fair processes
Media Prima Acknowledges it various stakeholder via Stakeholders Management
Media Prima is aware of the diversity of its stakeholders and the different goals and demand of its stakeholders
The Company conducts active engagement with its stakeholders to fully understand their needs and increase their trust in the Company through formal and informal mechanisms as follows
It has moved on to 2nd stage of CSR
1st Generation 2nd Generation 3rd Generation
Philanthropic short term risk management
Product Process innovation business and corporate governance model long term sustainability Strategic CSR
3rd Generation Multi- stakeholder standards and partnerships institutional building CR- Oriented advocacy and public policy
Opportunity
What is next for Media Prima to shape the industry
Creating content that generate advertising dollars amp donations of the poor social awareness
By leveraging on its content distribution capabilities
SWOT Analysis
SWOT Analysis ndash Summary
Strengths 1 Strong market share in TV segment2 Malaysiarsquos only integrated media
organization- have vertical and horizontal diversification advantage
3 Established value chains strength which complements the required core competencies
4 Have move across 3 revenue models
Weaknesses1 limited number of stations variety and choice
for consumer2 Despite diversification revenues still mainly
driven by advertisers and TV -gt cross platforms is needed
3 Financial segmentation may hinder potentials of the company
Opportunities 1 Broadband infrastructure ndash via HSBB2 Development of technology ndash creating
medias gadgets that increase digital interaction and content consumption
3 Consumers are willing to pay for content4 Possible deregulation of content ndash leveling
the playing field
Threats 1 2012 forecasting a financial slow down
affecting Ad Ex ndash hence revenue is reduced2 Increase competition New Entrants Pay TV
player amp continual competition from ASTRO3 Changing consumer habits towards media
consumption -gt moving away from traditional media ndash hence have to fight for consumerrsquos attention
Right Technology (Gadget and Infrastructure) at the Right time (deregulation) amp Right consumers (shift in media habits and willingness to pay for content ndash ASTRO as indicator)
Vertical Value Chain advantage to compete in content development
Media Primarsquos Current situation in summary
+VE
-VE Revenue dependent on advertising which is affected correlated to GDP
Resources organization structure holds back effectiveness of organization
Moving forward2012 and beyond
Recommended Destination and future growth of Media Prima
Revenue mainly from advertising
Revenue from advertising
Content SubscriptionBy viewers
Content driven Complementary Services for advertiser (Auxillary Services)
Media Prima
Media Prima
Content Syndicationto competitors
+
How Moving from aggregator to content creator
Content Focus Leveraging on content to Embark on Revenue shifts
Long term sustainable leadership
Restructuring to liberateresources for Content
Sustainable Talent development -
Partnership
Riding the Technology Wave
Short term (2012) Mid Term (by 2013-2015) Long term 2015 beyond
How Moving from aggregator to content creator
Content Focus Leveraging on content to Embark on Revenue shifts
Long term sustainable leadership
Restructuring to liberateresources for Content
Sustainable Talent development -
Partnership
Riding the Technology Wave
Short term (2012) Mid Term (by 2013-2015) Long term 2015 beyond
Creating a Content focus agency All these can be enable via the following means
Demand- The content creation race bull There is a need to free up empower human capital to create more content which are relevant
segmented engaging and entertaining
How does media prima refocus its resources into where it matters Instead of multiple teams doing the same thing ndash there is a challenge to create a lean and efficient organization
Challenges Freeing Resources
Instead of looking at a Media based financial segment reporting structurally force the teams to integrate by changing the dynamics of PampL
Next page
Solution Redefining Business Units Paradigms
Take a step up from producing beyond the current vernacular program to meet shifting consumer needs
Challenges ndash Lifestyle lead Variety
Creating Channel programs which are target segment focus based on lifestyles hellip
Acquisition of content as content regulations will be relaxed
Solution Target Segment focus
Using financial view to free resources for content developmentFinancial segment reporting may create a ldquosilordquo mentality ndash which encourages each head of business to protect their bottom line Hence a less effective in operations
Our recommendation is to expand content creation to cut across and shift paradigms to free up resources and focus on new revenue streams And create new content for different segment
Tele
visi
on N
etw
ork
Radi
o N
etw
ork
Out
door
Med
ia
Prin
t M
edia
Oth
er M
edia
Current Financial Segment Reporting
Tele
visi
on N
etw
ork
Radi
o N
etw
ork
Out
door
Med
ia
Prin
t M
edia
Oth
er M
edia
Production
Content
Subscription
Advertising
Recommended Segment Reporting
Lifestyle Segments
Lifestyle Segments
Lifestyle Segments
Lifestyle Segments
Lifestyle Segments
Lifestyle Segments
By changing the business segment reporting it also affects the company structure
The benefits - Flexibility and empowers knowledge
economy ndash talent content driven
- Builds at strong work culture which may be replicated in the region
- Expansion to embark on talent and content crowd sourcing - open innovation creation
Media Prima can take this opportunity to achieve SPECIALIZATION COORDINATION AND COOPERATION Currently team structure ndash of Integrated Marketing Division is created as a temporary solution hellip to enable integration It will move towards a network model to haste integration fast and response to technology and consumer needs
Subcription
Advertising
Production
TechnologyPartner
Content
How Moving from aggregator to content creator
Content Focus Leveraging on content to Embark on Revenue shifts
Long term sustainable leadership
Restructuring to liberateresources for Content
Sustainable Talent development -
Partnership
Riding the Technology Wave
Short term (2012) Mid Term (by 2013-2015) Long term 2015 beyond
Technology ndash Enable Media Prima to leap into Interactive Content
Interactive Content
UniFi Axiata
Media Prima
Electronics Manufacturer
Demand - A ready market bull There is a latent demand for content-gt consumers are
willing to Pay bull Technology has accustomed consumers to interacting
with contentbull Regulatory push to shift from analogue to digital by
2015
However unlike Media Primarsquos western counterparts ie Time Warner Communication Media Prima does not have the advantages of cable infrastructure
Challenges ndash Limitation
Media Prima could depend on existing suppliers of connectivity and technology- Telecommunications ie AXIATA and - Manufacturing companies ie Samsungto take the leap into interactive content Unifi TM
Solution ndash Smart Partnerships
Maximizing Unrelated Diversification
It is not a Fad but a trend
Smart TV is an inevitable trend says Baeguen Kang vice president of
research and development at South Koreas LG Electronics Co the worlds second-largest seller of TV sets by unit volume As people experienced smartphones and tablet PCs the larger screen on a TV is very attractive for apps and Web content
210 million TV sets sold world-wide had an Internet connection (2010)
21 50It will be the forecast in (2014)
Source Evan Ramstad (January 2011)A ldquoManufacturers Turn to Smart TV After 3-D Disappointsrdquo The Wall Street Journal online httponlinewsjcomarticleSB10001424052748704835504576059783074010902html
As technology develops Current cost is will drop exponentially reflecting the Moorersquos Law
Hence lowering the cost of access for interactive content
Example of Smart TV
Smart Hub It is a front facing interface just like a main menu
when consumers turn on their TV There are few utilities that consumers can choose to be entertained
Video ndash consumers can choose from array of video collections that required to be paid
Apps ndash an internet-enabled applications like You Tube Facebook Twitter Skype and others
Internet browsing ndash just like PC internet browsing
Music photo and TV watching
Smart ConnectivityWIFI enabled that allows consumers to connect to all mobile devices like smart phone tablet PC notebook and camera with Samsung Wireless Router called 1 foot This connectivity is being called ldquoAllSharerdquo by Samsung
httpotbresearchcomau200509report-1-industry-forum
MEDIA PRIMA IS CURRENTLY HERE
This will ultimately lead Media Prima to reduce it dependence on advertising revenue
Others ndash Utilising the SMART TV technology and Apps to create any existing Media Prima businesses
NEW Revenue Streams for Media Prima
To take advantage of SMART TV and collaborate with SMART TV manufacturers Media Prima can look into following utilities
Collaborate with manufacturers to allow consumers to browse and pay for Media Prima video collections
Selling local music for Malaysia market
Collaborate with local or international content developers to create Malaysia specific contents for paid subscription or free for common content to attract new consumers
How
Content Focus Leveraging on content to Embark on Revenue shifts
Long term sustainable leadership
Restructuring to liberateresources for Content
Sustainable Talent development -
Partnership
Riding the Technology Wave
Short term (2012) Mid Term (by 2013-2015) Long term 2015 beyond
Building Talents in the long run
Education Building on its strategic CSR ndash Media Prima could champion the
development of the content industry by partnering with local universities in the areas of technology media and communication
Crowd Sourcing To haste up the strategic CSR it too could embark on crowd
sourcing for content ndash via scripts and interactive content In which Media Prima could support a great idea and develop the ideas for monetization
This is a synergistic and natural development from the networks structure (open innovation)
Summary ndash Media Prima
Develop Talent Pool
Ensure Vibrant Content Industry
Technologycreates ubiquitous
Low Access Cost
To spur the industry forward
Strong talent develops Content development
demand for access
Strong content industry drives demand for Talent drives demand for content
Our recommendations are aligned to help spur the industry forwardhellip
Restructuring to liberateresources for Content
Sustainable Talent development -
Partnership
Riding the Technology Wave ndash Via Smart
Partnerships
References
References
1 Anon ldquoMedia Prima Berhad implements Accenture integrated broadcast systemrdquo Accenture Press Release httpnewsroomaccenturecomarticle_displaycfmarticle_id=5005 viewed 3 November 2011
2 Anon ldquoNew exciting and vibrant offerings from MPB television networks in 2010rdquo Media Prima Press Release httpwwwmediaprimacommypressreleasepressreleaseaspxid=150 viewed 3 November 2011
3 Anderson J ldquoResource-based competitiveness managerial implications of the resource-based viewrdquo Strategic Direction Vol26 No5 2010 pp1-2
4 Arman Arshad (2006) Size matters Retrieved December 2 2011 from asiaviewsorg httpwwwasiaviewsorgindexphpoption=com_contentampview=articleampid=2171headlinealias2171ampcatid=1headlinesampItemid=2
5 Asia Times (2007 November 29) Malaysian media giant grasps for Internet Retrieved November 3 2011 from httpwwwatimescomatimesSoutheast_AsiaIK29Ae02html
6 Barney JB amp Hesterly WS (2008) Strategic Management and Competitive Advantage The Five Forces Model of Environmental Threats pp39Prentice Hall
7 BBC (2011) BBC News product launches on connected TV Retrieved from bbccoukpressofficepressreleasesstories201106_june17newsshtml
8 Boston Consulting Group (2011) Lean Advantage in Media Boston Consulting Group
9 Boston Consulting Group (2011) Running Forward Walking Backward Boston Consulting Group
10 Business Times (2011) Media Prima net revenue grows to RM119b Kuala Lumpur New Straits Times
11 Business Times (2011) Media Prima on track to achie1048665ing 2011 target Retrieved from www1btimescomm1048668Current_NewsBTIMESarticlespimeArticle
References (1)
12 Business Times (2011) Media Prima Puncak Semangat in early talks Retrieved from httpwwwbtimescommyarticlespimmaArticle
13 Carl W Stern George Stalk Carl W Stern George Stalk Stern CW amp Stalk G (2011) Perspectives of Strategy from the Boston Consulting Group Retrieved December 3 2011 from Value Based Managementnet httpwwwvaluebasedmanagementnetmethods_bcgmatrixhtml
14 ecmlibra (2011) Adex momentum to taper off in 2012 ecmlibra
15 Gershon R A amp Ratnadeep S V (2004) Viacom Inc A Case Study in Transnational Media Management Journal of Media Business Studies 1 (1) 47-69
16 Grant RM ldquoThe resource-based theory of competitive advantage implications for strategy formulationrdquo California Management Review Vol 3 2011 httpwwwskynetie~karenArticlesGrant1_NBpdf viewed 15 November 2011
17 GreyReview (2011) TonTon Streaming Over 11 Million Video Hours A Month now with 16 millions registered users Retrieved from httpwwwgreyreviewcom20110731tonton-serving-over-1-1-million-video-hours-a-month-now-with-1-6-registered-users
18 Heavy Reading (2011) Telecom in TV Land A Roadmap to New Digital Media Ecosystem Retrieved from wwwheavyreadingcomdetailsaspsku_id=1773ampskuitem_itemid=1030
19 Hegedus N (2010) The Great Scare EBR 3 10-17
20 JohnsonGScholesK amp Whittington (2008) Exploring Corporate Strategy Competitive Forces ndash the Five Forces Framework pp 59-64 Prentice Hall
21 kinetic (2011) Moving World Asia Hong Kong
References (2)
22 Knowledgefaber (2009) Telcos Avatar - As Media Companies 20 Retrieved from httpknowledgefabercomindexphpoption=com_contentampview=articleampid=40telecom-and-media-convergenceampcatid=10telecomampItemid=42
23 Knowledgefaber (2011) Telcos Avatar - As Media Companies 20 Retrieved from httpknowledgefabercomindexphpoption=com_contentampview=articleampid=40
24 Malik O (2011) GIGAOM Retrieved from httpgigaomcom20110223old-media-is-being-unbundled-just-like-telecom-was
25 Maxis with TM Astro with TIME Best Strategy to IPTV Market Retrieved December 1 2011 httpbizthestarcommynewsstoryaspfile=201111business7704581ampsec=business
26 Media Prima (2010) Annual Report Media Prima Berhad27 Media Prima Berhad (2011) 11 Nov 2011 - New Exciting amp Vibrant Offerings From MPB Television Retrieved from
wwwmediaprimacommypressreleasepressreleaseaspxid=15028 Media Prima (2010) Sustainability Report Media Prima Berhad29 OSK (2011) Media Prima OSK30 Pocket-Lint (2011) Samsung Smart TV hits 2 million mark Retrieved from
httpwwwpocket-lintcomnews40593samsung-smart-tv-2-million31 PricewaterhouseCoopers (2011) Achieving corporate financial PwC32 PricewaterhouseCoopers (2007) Financial Reporting Standards (FRS) in Malaysia PricewaterhouseCoopers33 SKMM (MCMC) (2009) Advertising Development in Malaysia SKMM34 SKMM (MCMC) (2011) Content Development SKMM35 Techpinions (2011) Interactive TV Trends - How the TV experience is changing - Part II Retrieved from
httptechpinionscominteractive-tv-trends-E28093-how-the-tv-experience-is-changing-part-ii4066
References (3)
36 The Edge (2011) Media Prima best proxy to sector Retrieved from wwwtheedgemalaysiacom37 The Edge Malaysia (2011 September 26) Education the mother of all reforms Retrieved October 30 2011 from
httpwwwtheedgemalaysiacomin-the-financial-daily193478-education-the-mother-of-all-reformshtml38 The Star Online (2011) Main players in the competitive TV sector Retrieved from bizthestarcommynewsstoryasp
file=20111126business997401739 The Star Online (2011) Maxis ready to move up value Retrieved from
bizthestarcommynewsstoryaspfile=201111business7704581ampse40 The Star Online (2011) New players enter the TV Retrieved from
bizthestarcommynewsstoryaspfile=20111126business997300841 The Star Newspaper (December 1 2011) Capital TV to make its debut today42 The Star Online (January 1 2011) Maxis ready to move up value chain Retrieved December 3 2011
httpbizthestarcommynewsstoryaspfile=201111business7704581ampsec=business43 The Star Online (2011 April 21) Media Prima to invest more on local content Retrieved October 30 2011 from C
Usersa34ffzzDesktopMedia PrimaUsed articlesMedia Prima to invest more in local contentmht44 Time Warners (2010) Annual Report Time Warners45 WHAT HI FI (2011) Samsung aims for 50m TV sales worldwide in 2012 set to announce launch date for Google TV
product Retrieved from httpwwwwhathificomnewssamsung-aims-for-50m-tv-sales-worldwide-in-2012-set-to-announce-launch-date-for-google-tv-produ
46 Woroch G A (1996) Turning the Cables Elsevier47 Zanuddin H (2007) Political influence in Malaysia and Thailand media sector Jati Vol12
- MEdiA PRIMA
- Agenda
- Company Profile
- Media Primarsquos Commitment amp Direction moving forward
- Media Industry Business Model ndash Content Driven
- Our Tasks ndash How
- PEST Analysis
- Politics Legal Issues amp Impact
- Economic Issues and Impact
- Social Issues and Impact
- Social Issues and Impact
- Technology Issues and Impact
- In short
- Porterrsquos 5 Forces Analysis
- Porterrsquos Five Forces ndash Competitive Analysis
- Financials
- Media Prima Financial Highlights
- However in further analysis
- Value Chain Analysis
- Resource Based View
- In the context of the Content industry value chain Mapped again
- Appraising capabilities which drives profitability
- Mapping Media Prima revenue streams against the Diversification
- Slide 25
- Related Constrained Diversification
- Related Constrained Diversification (2)
- Slide 28
- Related Linked Diversification
- Slide 30
- Social Responsibility Analysis
- Social Responsibility
- Social Responsibility ndash cont
- Media Prima Acknowledges it various stakeholder via Stakeholder
- It has moved on to 2nd stage of CSR
- SWOT Analysis
- SWOT Analysis ndash Summary
- Media Primarsquos Current situation in summary
- Moving forward 2012 and beyond
- Recommended Destination and future growth of Media Prima
- How Moving from aggregator to content creator
- How Moving from aggregator to content creator (2)
- Creating a Content focus agency All these can be enable via
- Using financial view to free resources for content development
- By changing the business segment reporting it also affects the
- How Moving from aggregator to content creator (3)
- Technology ndash Enable Media Prima to leap into Interactive Conten
- It is not a Fad but a trend
- Slide 50
- Example of Smart TV
- This will ultimately lead Media Prima to reduce it dependence o
- NEW Revenue Streams for Media Prima
- How
- Building Talents in the long run
- Summary ndash Media Prima
- References
- References
- References (1)
- References (2)
- References (3)
-
Social Issues and ImpactOnline creeps in time spent increases and trust levels bull More time spent on Online gt TV and consumer are referring to
online to make purchase decision hence cross platform presence is needed to reach consumer (Malaysian Digital Consumer Report 2011)
Reading Magazine
Reading Newspapers
Video on Mobile Phone
Radio Stream via Internet
Internet via Mobile Phone
Online Games on PC
Listening to Radio
Watching TV
Internet
0 5 10 15 20 25
3434751535658
106198
Average Weekly Hours Spent on different media
Online activities beyond Watching TV
Source 1 QuickPlay Media 2 httpwwwgartnercomtechnologyhomejsp
httpwwwthemalaysianreservecommainindexphpoption=com_contentampview=articleampid=899move-over-tv-the-net-is-where-the-action-isampcatid=36corporate-malaysiaampItemid=120
Online activities beyond Newspapers and Magazines
76 of consumers indicate that they watch more TV on tablet than before a shift in media consumption behavior
Social Issues and Impact
Source Kinetic Insights on People on the Move Moving World Asia (2011)
Consumers are On The Move Disconnect from traditional Channels bull 107 Hr Weekday -gt Highest in ASIAbull Requires mobile channel to deliver and keep up with consumers bull Moving from radio -gt mobile phones -gt tablets
Outdoor
On Mobile
BUT
Broadband Penetration
Mobile Penetration
Technology Issues and Impact
Household broadband penetration at 615 and will grow to 75 by 2015
75 107
Source httpwwwthemalaysianreservecommainindexphpoption=com_contentampview=articleampid=899move-over-tv-the-net-is-where-the-action-isampcatid=36corporate-malaysiaampItemid=120
Malaysia a Digital Nation Netizens (constant access to internet) make up 40 of the
total population of 27 million Tablet PC usage and ownership netizen are expected to
increase from 18 to 75 in 2012
In short
1 Legislative deregulation spurs the attractiveness of the
market
2 Economic impose pressures for 2012
3 Social shifts leads the way to new media
4 Technology is the catalytic enable of Media organization
shift into New Media
Porterrsquos 5 Forces Analysis
Astro is the only direct challenger as it is the closest to an integrated media organisation
Power of Substitutes 1 Technology and Sharing of
screen ndash Moving away from TV to mobile content and social media decreases the share of attention
2 Self Generated content by Netizens ndash User Generated Content - youtube
Power of Suppliers 1 Content is king and that is what
drives viewership ndash and not the media organisation that aggregates it
2 Content lead experience is dependent on technological development
Threat of New Entrants 1 Introduction of new IPTV which
offers variety of channelsDETV and ABN
2 New entrants have infrastructure backing hence offering product bundling of triple play ie Unifi YTL Comms
Power of Consumers 1 Consumer Moving away from
Print TV and Radio - they are the ones that drive demand
2 Advertiser have a hard time reaching the fragmented audience (beyond traditional media)
Porterrsquos Five Forces ndash Competitive Analysis
Customers are dependant on content (Media Prima) to reach consumers
Competitive Rivalry
Source bizthestarcommynewsstoryaspfile=20111126business9974017
Nevertheless Media Prima is still in control as it complements their services by offering them content
But its audiences are fragmented across 150 channels versus ours which focus 4 stations
Content creators and aggregators need to mirror consumerrsquos media consumption trends
Can be mitigated by internalizing content development but Media Prima needs to keep its content up to date with technology development
Financials
Media Prima Financial Highlights
1327millionProfit After Tax and Minority Interest (ldquoPATAMIrdquo)September 2011 (9 Months)
in the corresponding period for 20101105 million
A healthy GROWTH
Source Media Prima Annual Report 2011
However in further analysisHowever the bulk of its revenue comes from advertising that is in turn dependent on the economic outlook the question arises as to whether Media Prima should diversify its income stream Especially when gt80 of Astrorsquos revenue is on subscription
Reduce Media Primarsquos dependence on advertising revenueas it highly fluctuates with the market conditions
Group
2010 2009
RMrsquo000 RMrsquo000
Advertising revenue 1237961 80 725857 98 Circulation revenue 290691 19 0 Sale of programmes videos cable and laser rights and media revenue 15408 1 11287 2 Fees from provision of production services and sponsorship 2583 0 6885 1 Fees from provision of procurement services Dividends from subsidiaries Dividends from an associate 1546643 100 744029 100
Source Media Prima Annual Report 2011
Value Chain Analysis
Resource Based View
The resource-based view is grounded in the perspective that a firm is a collection of unique resources and capabilities that provides the basis for its strategies and the primary source of its return
SupportActivities
Primary Activities
Strategy Development 4
Resource Identification 1Capabilities Determination 2Competitive advantage 3
Resource Gap Analysis 5
Source Porter Value Chain Robert M Grant
Process of CONTENT aggregation Process of CONTENT creation
In the context of the Content industry value chainMapped against Porterrsquos Value chain
Createbull Scriptwritersbull Actorsbull Animatorsbull Gamesbull developer
Publishbull Production housesbull TV Advert Film
Packagebull Media Primabull Astrobull RTMbull Maxisbull Digibull Celcom
DistributebullTelekombull MBNS (Measat)bull RTM
Content industry value chain
Porterrsquos Value Chain
Human Resource Management
Technological DevelopmentProcurement
Marketing amp Sales
Develop Talent Pool
Ensure Vibrant Content Industry
Technologycreates ubiquitous
Low Access Cost
To spur the industry forward
Strong talent develops Content development
demand for access
Strong content industry drives demand for Talent Drive demand for content
Services
Source SKMM Regulatory Compliance Course for Telcos amp Celcos
MARKETINGStrategies are focused on branding activities and marketing communications aggressive Aamp P and active participation in on-ground activities that promote brand awareness And Established Integrated marketing arm
TECHNOLOGY DEVELOPMENT Alt Media the digital arm successfully launched TonTon TV a cutting edge video portal that offers customization and interactivity of social networking Giving Media Prima an advantage of being able to direct advertisers to precise target groups
PROCUREMENT Stringent supplier selection in terms of 70 are local suppliers Sourcing of content which are relevant responsible engaging especially with the advent of new media
SERVICESMedia Prima fully owns Primeworks Studio helps maximize the economies of scale in content production whilst enhancing the quality of content of all television networks
HUMAN CAPITALPrioritize human capital development in news and editorial operation radio network artist and talent management etc Creating an in-house talent pool to develop content
Content Barriers to entry
ndash securing talents - Leadership position in development of local talent and content to leading the industry
Vertical bargaining power
DifferentiationAnd Competitive advantage
- Consumer insights - Integrated media organization
Activities Benefit
Competitiveness leading to Margins
Goal
Appraising capabilities which drives profitability
Source Media Prima Annual Report 2011
Mapping Media Prima revenue streams against the Diversification Map
HIGH
LOW
HIGHLOW
Shar
ing
Ope
ratio
nal R
elat
edne
ss B
etw
een
Busi
ness
Corporate Relatedness Transferring skills into business through corporate HQ
Related Constrained Diversification
Vertical Integration Market Power
Content Creation and Talent development Prima Works enables Media Prima to create localized content for the local market
Both operation and Corporate Relatedness (Rare Capability and can create Diseconomies of scale)
New Media is both an operation and corporate relatedness diversification as it require Media Prima to go beyond playing the role as aggregator but also content producer leveraging on its strength
Unrelated Diversification (Financial Economies)This area of diversification which is unrelated in operation and skills transfer Media Prima has not exploited
Related Linked Diversification (Economies of Scope)As newscontent are cross platforms and the business models are the same Media Prima was able to share similar content across platforms and acquire related companies
Opportunities - Create more segmented programmes and move into interactive content
OpportunitiesHowever more needs to be done in the new are with the advent of Interactive TV
Opportunities Although unrelated area often has high risk it is crucial at this point for Media Prima to extend into this area in smart partnerships with telecommunication companies ie Axiata TM
OpportunitiesMedia Prima has maximized its diversification strategy in this area BUT the market is yet to be ready amp there is a need to link both NSTP and Media Prima
CurrentPrimeworks Studios Sdn Bhd (owned by Media Prima) is Malaysias biggest production company producing TV content since 1984 and feature films since 1994 generating over 5000 hours of TV content and 10 movies annually
Related Constrained Diversification
ChallengesBut the reality is that it is not able to compete with the myriad of channels of its competitors which are dependent on overseas content
Opportunities However more needs to be doneas channels become more segmented-Procuring more content to compete on quantity - or it could change the content game and move into interactive content
Source Creation of An Integrated Media Group 2009 httpwwwmediaprimacommy
TV Newspaper
Radio
Outdoor
New Medi
a
4 3 3
1 2
gt150
17
2 1
gt14
3
22
22
YTL Comms
ABN 100
Ove
rvie
w o
f com
petit
ors
thei
r bus
ines
s po
rtfol
ios
Related Constrained Diversification
Media Company
Advertisers Corporations(Customers )
Viewers(Consumers)
Consumer Pay for Product
CONTENT
Advertiser payFor (Ad space) $$
1 httpwwwlongtailcomthe_long_tail200809the-three-kindshtml
$
Opportunities The potential here is also for Media Prima to drive content syndication ndash providing content to other media stations abroad
Media Prima is currently doing by syndicating content to ASTRO and Unifi
Competitors
Media Company
Viewers(Consumers)
CONTENT PRO
1 httpwwwlongtailcomthe_long_tail200809the-three-kindshtml
$
C
C
C FREE CONTENT FREE CONTENT
FREE CONTENT
Both operation and Corporate Relatedness
CurrentMedia Primarsquos intention to leverage on both its operations and Corporate relatedness to shift its revenue structure to be less dependent on advertising revenue and move toward subscriber revenue where a few subsidies everyone else via versioning ldquoprice discriminationrdquo
ChallengesIt has to some degree been successful to introduce this ndash via TonTon TV however the revenue from this segment has yet to be significant
To date there are 16 show packages and over 50 single episodes for viewers to purchase ndash which is limited
Opportunities However more needs or can be done in this new area with the advent of Interactive TV
Media Company
Advertisers Corporations(Customers )
Viewers(Consumers)
Consumer Pay for Product
FREE
CONTENT
Advertiser payFor (Ad space) $$
Source Website1 httpwwwlongtailcomthe_long_tail200809the-three-kindshtml2 Creation of An Integrated Media 2009 Grouphttpwwwmediaprimacommyinvestorcentercp2009NSTPGOpdf3 httpwwwtheedgemalaysiacomin-the-financial-daily164479-media-prima-best-proxy-to-sector-says-oskhtml 4 Media Prima net revenue grows to RM119b 2011 httpwwwbtimescommyCurrent_NewsBTIMESarticles20111118202427Articleindex_html
Related Linked Diversification
Current Media Prima has expanded across media with the idea in the hope of a) Leveraging on its expertise of
Advertisers subsiding viewers model b) Share back-office consolidation which
creates operations efficiencies in operation ie Editorial Talents
c) Cross marketing opportunities across platforms - Where Advertisers could purchase cross buy across platforms
Challenges Market ndash Not readyThe market is not ready for bundled and cross market offering According to Dato Amrin Awaluddin Group Managing Director of Media Prima no doubt there was head roads but more effort needs to be done to integrate the platforms better
Internally ndash Structure is not integrated In terms of unlocking NSTPs value he says it would be done in two phases `First is more short term like consolidating in terms of operations while the second stage will entail selling of products and cross-promoting our content which would be an ongoing revenue- generation exerciselsquo And he quoted Joran a property of Berita Harian (NST) ndash a nationwide fishing event being brought to TV3 as an example
Opportunities - The structure impeded cross platform and working in silo
does not help
- Hence there is a need to further shift paradigms via a structural change to free up resources to focus on content
- The market will not know what they want until we present them with the opportunity benefit
Social Responsibility Analysis
Social Responsibility
Media Primarsquos approach to Social Responsibility is based on the key triple bottom line ndash social environmental and economic It considers the socio-economic impact of its business activities in the aim to create value to its stakeholders via the 4 categories ie community workplace marketplace and environment
Community1EducationFocusing on education to raise awareness of the importance of education and increase the academic standards of underprivileged children and underperforming schools eg PINTAR Programme NST School Sponsorship Programme
2 HumanitarianRaise funds for humanitarian aid and provided updates on the local and world disaster crisis to the public and raised awareness of the funds eg Humanitarian Aid for Gaza Humanitarian Aid for Flood Victims in Pakistan
3 Other community programmesProduced outreach programmes to reflect and highlight local and community issues and to be the eyes and ears of the public and engage in public awareness through its businessesrsquo media resources and platforms in print interactive media and television eg Project Sunshine
Social Responsibility ndash cont
Environment - EfficiencyStrongly committed to being an environmentally friendly Company by using recycled paper especially in its newspapers business efficient usage of electricity in offices water management reducing amount of waste produced throughout its businesses and other environmental initiatives such as lsquosave our beachrsquo project and WWFrsquos Earth Hour
Marketplace ndash Responsible ContentFocusing on product responsibility in providing high quality products and is committed to establishing a horizontal specialisation system based on collaboration with stakeholders The production flow is illustrated in the diagram below
Workplace ndash Right CultureIt aims to create a workplace where its people have the opportunity to be the best they possibly can to have the right culture safe working environment and human capital development with fair processes
Media Prima Acknowledges it various stakeholder via Stakeholders Management
Media Prima is aware of the diversity of its stakeholders and the different goals and demand of its stakeholders
The Company conducts active engagement with its stakeholders to fully understand their needs and increase their trust in the Company through formal and informal mechanisms as follows
It has moved on to 2nd stage of CSR
1st Generation 2nd Generation 3rd Generation
Philanthropic short term risk management
Product Process innovation business and corporate governance model long term sustainability Strategic CSR
3rd Generation Multi- stakeholder standards and partnerships institutional building CR- Oriented advocacy and public policy
Opportunity
What is next for Media Prima to shape the industry
Creating content that generate advertising dollars amp donations of the poor social awareness
By leveraging on its content distribution capabilities
SWOT Analysis
SWOT Analysis ndash Summary
Strengths 1 Strong market share in TV segment2 Malaysiarsquos only integrated media
organization- have vertical and horizontal diversification advantage
3 Established value chains strength which complements the required core competencies
4 Have move across 3 revenue models
Weaknesses1 limited number of stations variety and choice
for consumer2 Despite diversification revenues still mainly
driven by advertisers and TV -gt cross platforms is needed
3 Financial segmentation may hinder potentials of the company
Opportunities 1 Broadband infrastructure ndash via HSBB2 Development of technology ndash creating
medias gadgets that increase digital interaction and content consumption
3 Consumers are willing to pay for content4 Possible deregulation of content ndash leveling
the playing field
Threats 1 2012 forecasting a financial slow down
affecting Ad Ex ndash hence revenue is reduced2 Increase competition New Entrants Pay TV
player amp continual competition from ASTRO3 Changing consumer habits towards media
consumption -gt moving away from traditional media ndash hence have to fight for consumerrsquos attention
Right Technology (Gadget and Infrastructure) at the Right time (deregulation) amp Right consumers (shift in media habits and willingness to pay for content ndash ASTRO as indicator)
Vertical Value Chain advantage to compete in content development
Media Primarsquos Current situation in summary
+VE
-VE Revenue dependent on advertising which is affected correlated to GDP
Resources organization structure holds back effectiveness of organization
Moving forward2012 and beyond
Recommended Destination and future growth of Media Prima
Revenue mainly from advertising
Revenue from advertising
Content SubscriptionBy viewers
Content driven Complementary Services for advertiser (Auxillary Services)
Media Prima
Media Prima
Content Syndicationto competitors
+
How Moving from aggregator to content creator
Content Focus Leveraging on content to Embark on Revenue shifts
Long term sustainable leadership
Restructuring to liberateresources for Content
Sustainable Talent development -
Partnership
Riding the Technology Wave
Short term (2012) Mid Term (by 2013-2015) Long term 2015 beyond
How Moving from aggregator to content creator
Content Focus Leveraging on content to Embark on Revenue shifts
Long term sustainable leadership
Restructuring to liberateresources for Content
Sustainable Talent development -
Partnership
Riding the Technology Wave
Short term (2012) Mid Term (by 2013-2015) Long term 2015 beyond
Creating a Content focus agency All these can be enable via the following means
Demand- The content creation race bull There is a need to free up empower human capital to create more content which are relevant
segmented engaging and entertaining
How does media prima refocus its resources into where it matters Instead of multiple teams doing the same thing ndash there is a challenge to create a lean and efficient organization
Challenges Freeing Resources
Instead of looking at a Media based financial segment reporting structurally force the teams to integrate by changing the dynamics of PampL
Next page
Solution Redefining Business Units Paradigms
Take a step up from producing beyond the current vernacular program to meet shifting consumer needs
Challenges ndash Lifestyle lead Variety
Creating Channel programs which are target segment focus based on lifestyles hellip
Acquisition of content as content regulations will be relaxed
Solution Target Segment focus
Using financial view to free resources for content developmentFinancial segment reporting may create a ldquosilordquo mentality ndash which encourages each head of business to protect their bottom line Hence a less effective in operations
Our recommendation is to expand content creation to cut across and shift paradigms to free up resources and focus on new revenue streams And create new content for different segment
Tele
visi
on N
etw
ork
Radi
o N
etw
ork
Out
door
Med
ia
Prin
t M
edia
Oth
er M
edia
Current Financial Segment Reporting
Tele
visi
on N
etw
ork
Radi
o N
etw
ork
Out
door
Med
ia
Prin
t M
edia
Oth
er M
edia
Production
Content
Subscription
Advertising
Recommended Segment Reporting
Lifestyle Segments
Lifestyle Segments
Lifestyle Segments
Lifestyle Segments
Lifestyle Segments
Lifestyle Segments
By changing the business segment reporting it also affects the company structure
The benefits - Flexibility and empowers knowledge
economy ndash talent content driven
- Builds at strong work culture which may be replicated in the region
- Expansion to embark on talent and content crowd sourcing - open innovation creation
Media Prima can take this opportunity to achieve SPECIALIZATION COORDINATION AND COOPERATION Currently team structure ndash of Integrated Marketing Division is created as a temporary solution hellip to enable integration It will move towards a network model to haste integration fast and response to technology and consumer needs
Subcription
Advertising
Production
TechnologyPartner
Content
How Moving from aggregator to content creator
Content Focus Leveraging on content to Embark on Revenue shifts
Long term sustainable leadership
Restructuring to liberateresources for Content
Sustainable Talent development -
Partnership
Riding the Technology Wave
Short term (2012) Mid Term (by 2013-2015) Long term 2015 beyond
Technology ndash Enable Media Prima to leap into Interactive Content
Interactive Content
UniFi Axiata
Media Prima
Electronics Manufacturer
Demand - A ready market bull There is a latent demand for content-gt consumers are
willing to Pay bull Technology has accustomed consumers to interacting
with contentbull Regulatory push to shift from analogue to digital by
2015
However unlike Media Primarsquos western counterparts ie Time Warner Communication Media Prima does not have the advantages of cable infrastructure
Challenges ndash Limitation
Media Prima could depend on existing suppliers of connectivity and technology- Telecommunications ie AXIATA and - Manufacturing companies ie Samsungto take the leap into interactive content Unifi TM
Solution ndash Smart Partnerships
Maximizing Unrelated Diversification
It is not a Fad but a trend
Smart TV is an inevitable trend says Baeguen Kang vice president of
research and development at South Koreas LG Electronics Co the worlds second-largest seller of TV sets by unit volume As people experienced smartphones and tablet PCs the larger screen on a TV is very attractive for apps and Web content
210 million TV sets sold world-wide had an Internet connection (2010)
21 50It will be the forecast in (2014)
Source Evan Ramstad (January 2011)A ldquoManufacturers Turn to Smart TV After 3-D Disappointsrdquo The Wall Street Journal online httponlinewsjcomarticleSB10001424052748704835504576059783074010902html
As technology develops Current cost is will drop exponentially reflecting the Moorersquos Law
Hence lowering the cost of access for interactive content
Example of Smart TV
Smart Hub It is a front facing interface just like a main menu
when consumers turn on their TV There are few utilities that consumers can choose to be entertained
Video ndash consumers can choose from array of video collections that required to be paid
Apps ndash an internet-enabled applications like You Tube Facebook Twitter Skype and others
Internet browsing ndash just like PC internet browsing
Music photo and TV watching
Smart ConnectivityWIFI enabled that allows consumers to connect to all mobile devices like smart phone tablet PC notebook and camera with Samsung Wireless Router called 1 foot This connectivity is being called ldquoAllSharerdquo by Samsung
httpotbresearchcomau200509report-1-industry-forum
MEDIA PRIMA IS CURRENTLY HERE
This will ultimately lead Media Prima to reduce it dependence on advertising revenue
Others ndash Utilising the SMART TV technology and Apps to create any existing Media Prima businesses
NEW Revenue Streams for Media Prima
To take advantage of SMART TV and collaborate with SMART TV manufacturers Media Prima can look into following utilities
Collaborate with manufacturers to allow consumers to browse and pay for Media Prima video collections
Selling local music for Malaysia market
Collaborate with local or international content developers to create Malaysia specific contents for paid subscription or free for common content to attract new consumers
How
Content Focus Leveraging on content to Embark on Revenue shifts
Long term sustainable leadership
Restructuring to liberateresources for Content
Sustainable Talent development -
Partnership
Riding the Technology Wave
Short term (2012) Mid Term (by 2013-2015) Long term 2015 beyond
Building Talents in the long run
Education Building on its strategic CSR ndash Media Prima could champion the
development of the content industry by partnering with local universities in the areas of technology media and communication
Crowd Sourcing To haste up the strategic CSR it too could embark on crowd
sourcing for content ndash via scripts and interactive content In which Media Prima could support a great idea and develop the ideas for monetization
This is a synergistic and natural development from the networks structure (open innovation)
Summary ndash Media Prima
Develop Talent Pool
Ensure Vibrant Content Industry
Technologycreates ubiquitous
Low Access Cost
To spur the industry forward
Strong talent develops Content development
demand for access
Strong content industry drives demand for Talent drives demand for content
Our recommendations are aligned to help spur the industry forwardhellip
Restructuring to liberateresources for Content
Sustainable Talent development -
Partnership
Riding the Technology Wave ndash Via Smart
Partnerships
References
References
1 Anon ldquoMedia Prima Berhad implements Accenture integrated broadcast systemrdquo Accenture Press Release httpnewsroomaccenturecomarticle_displaycfmarticle_id=5005 viewed 3 November 2011
2 Anon ldquoNew exciting and vibrant offerings from MPB television networks in 2010rdquo Media Prima Press Release httpwwwmediaprimacommypressreleasepressreleaseaspxid=150 viewed 3 November 2011
3 Anderson J ldquoResource-based competitiveness managerial implications of the resource-based viewrdquo Strategic Direction Vol26 No5 2010 pp1-2
4 Arman Arshad (2006) Size matters Retrieved December 2 2011 from asiaviewsorg httpwwwasiaviewsorgindexphpoption=com_contentampview=articleampid=2171headlinealias2171ampcatid=1headlinesampItemid=2
5 Asia Times (2007 November 29) Malaysian media giant grasps for Internet Retrieved November 3 2011 from httpwwwatimescomatimesSoutheast_AsiaIK29Ae02html
6 Barney JB amp Hesterly WS (2008) Strategic Management and Competitive Advantage The Five Forces Model of Environmental Threats pp39Prentice Hall
7 BBC (2011) BBC News product launches on connected TV Retrieved from bbccoukpressofficepressreleasesstories201106_june17newsshtml
8 Boston Consulting Group (2011) Lean Advantage in Media Boston Consulting Group
9 Boston Consulting Group (2011) Running Forward Walking Backward Boston Consulting Group
10 Business Times (2011) Media Prima net revenue grows to RM119b Kuala Lumpur New Straits Times
11 Business Times (2011) Media Prima on track to achie1048665ing 2011 target Retrieved from www1btimescomm1048668Current_NewsBTIMESarticlespimeArticle
References (1)
12 Business Times (2011) Media Prima Puncak Semangat in early talks Retrieved from httpwwwbtimescommyarticlespimmaArticle
13 Carl W Stern George Stalk Carl W Stern George Stalk Stern CW amp Stalk G (2011) Perspectives of Strategy from the Boston Consulting Group Retrieved December 3 2011 from Value Based Managementnet httpwwwvaluebasedmanagementnetmethods_bcgmatrixhtml
14 ecmlibra (2011) Adex momentum to taper off in 2012 ecmlibra
15 Gershon R A amp Ratnadeep S V (2004) Viacom Inc A Case Study in Transnational Media Management Journal of Media Business Studies 1 (1) 47-69
16 Grant RM ldquoThe resource-based theory of competitive advantage implications for strategy formulationrdquo California Management Review Vol 3 2011 httpwwwskynetie~karenArticlesGrant1_NBpdf viewed 15 November 2011
17 GreyReview (2011) TonTon Streaming Over 11 Million Video Hours A Month now with 16 millions registered users Retrieved from httpwwwgreyreviewcom20110731tonton-serving-over-1-1-million-video-hours-a-month-now-with-1-6-registered-users
18 Heavy Reading (2011) Telecom in TV Land A Roadmap to New Digital Media Ecosystem Retrieved from wwwheavyreadingcomdetailsaspsku_id=1773ampskuitem_itemid=1030
19 Hegedus N (2010) The Great Scare EBR 3 10-17
20 JohnsonGScholesK amp Whittington (2008) Exploring Corporate Strategy Competitive Forces ndash the Five Forces Framework pp 59-64 Prentice Hall
21 kinetic (2011) Moving World Asia Hong Kong
References (2)
22 Knowledgefaber (2009) Telcos Avatar - As Media Companies 20 Retrieved from httpknowledgefabercomindexphpoption=com_contentampview=articleampid=40telecom-and-media-convergenceampcatid=10telecomampItemid=42
23 Knowledgefaber (2011) Telcos Avatar - As Media Companies 20 Retrieved from httpknowledgefabercomindexphpoption=com_contentampview=articleampid=40
24 Malik O (2011) GIGAOM Retrieved from httpgigaomcom20110223old-media-is-being-unbundled-just-like-telecom-was
25 Maxis with TM Astro with TIME Best Strategy to IPTV Market Retrieved December 1 2011 httpbizthestarcommynewsstoryaspfile=201111business7704581ampsec=business
26 Media Prima (2010) Annual Report Media Prima Berhad27 Media Prima Berhad (2011) 11 Nov 2011 - New Exciting amp Vibrant Offerings From MPB Television Retrieved from
wwwmediaprimacommypressreleasepressreleaseaspxid=15028 Media Prima (2010) Sustainability Report Media Prima Berhad29 OSK (2011) Media Prima OSK30 Pocket-Lint (2011) Samsung Smart TV hits 2 million mark Retrieved from
httpwwwpocket-lintcomnews40593samsung-smart-tv-2-million31 PricewaterhouseCoopers (2011) Achieving corporate financial PwC32 PricewaterhouseCoopers (2007) Financial Reporting Standards (FRS) in Malaysia PricewaterhouseCoopers33 SKMM (MCMC) (2009) Advertising Development in Malaysia SKMM34 SKMM (MCMC) (2011) Content Development SKMM35 Techpinions (2011) Interactive TV Trends - How the TV experience is changing - Part II Retrieved from
httptechpinionscominteractive-tv-trends-E28093-how-the-tv-experience-is-changing-part-ii4066
References (3)
36 The Edge (2011) Media Prima best proxy to sector Retrieved from wwwtheedgemalaysiacom37 The Edge Malaysia (2011 September 26) Education the mother of all reforms Retrieved October 30 2011 from
httpwwwtheedgemalaysiacomin-the-financial-daily193478-education-the-mother-of-all-reformshtml38 The Star Online (2011) Main players in the competitive TV sector Retrieved from bizthestarcommynewsstoryasp
file=20111126business997401739 The Star Online (2011) Maxis ready to move up value Retrieved from
bizthestarcommynewsstoryaspfile=201111business7704581ampse40 The Star Online (2011) New players enter the TV Retrieved from
bizthestarcommynewsstoryaspfile=20111126business997300841 The Star Newspaper (December 1 2011) Capital TV to make its debut today42 The Star Online (January 1 2011) Maxis ready to move up value chain Retrieved December 3 2011
httpbizthestarcommynewsstoryaspfile=201111business7704581ampsec=business43 The Star Online (2011 April 21) Media Prima to invest more on local content Retrieved October 30 2011 from C
Usersa34ffzzDesktopMedia PrimaUsed articlesMedia Prima to invest more in local contentmht44 Time Warners (2010) Annual Report Time Warners45 WHAT HI FI (2011) Samsung aims for 50m TV sales worldwide in 2012 set to announce launch date for Google TV
product Retrieved from httpwwwwhathificomnewssamsung-aims-for-50m-tv-sales-worldwide-in-2012-set-to-announce-launch-date-for-google-tv-produ
46 Woroch G A (1996) Turning the Cables Elsevier47 Zanuddin H (2007) Political influence in Malaysia and Thailand media sector Jati Vol12
- MEdiA PRIMA
- Agenda
- Company Profile
- Media Primarsquos Commitment amp Direction moving forward
- Media Industry Business Model ndash Content Driven
- Our Tasks ndash How
- PEST Analysis
- Politics Legal Issues amp Impact
- Economic Issues and Impact
- Social Issues and Impact
- Social Issues and Impact
- Technology Issues and Impact
- In short
- Porterrsquos 5 Forces Analysis
- Porterrsquos Five Forces ndash Competitive Analysis
- Financials
- Media Prima Financial Highlights
- However in further analysis
- Value Chain Analysis
- Resource Based View
- In the context of the Content industry value chain Mapped again
- Appraising capabilities which drives profitability
- Mapping Media Prima revenue streams against the Diversification
- Slide 25
- Related Constrained Diversification
- Related Constrained Diversification (2)
- Slide 28
- Related Linked Diversification
- Slide 30
- Social Responsibility Analysis
- Social Responsibility
- Social Responsibility ndash cont
- Media Prima Acknowledges it various stakeholder via Stakeholder
- It has moved on to 2nd stage of CSR
- SWOT Analysis
- SWOT Analysis ndash Summary
- Media Primarsquos Current situation in summary
- Moving forward 2012 and beyond
- Recommended Destination and future growth of Media Prima
- How Moving from aggregator to content creator
- How Moving from aggregator to content creator (2)
- Creating a Content focus agency All these can be enable via
- Using financial view to free resources for content development
- By changing the business segment reporting it also affects the
- How Moving from aggregator to content creator (3)
- Technology ndash Enable Media Prima to leap into Interactive Conten
- It is not a Fad but a trend
- Slide 50
- Example of Smart TV
- This will ultimately lead Media Prima to reduce it dependence o
- NEW Revenue Streams for Media Prima
- How
- Building Talents in the long run
- Summary ndash Media Prima
- References
- References
- References (1)
- References (2)
- References (3)
-
Social Issues and Impact
Source Kinetic Insights on People on the Move Moving World Asia (2011)
Consumers are On The Move Disconnect from traditional Channels bull 107 Hr Weekday -gt Highest in ASIAbull Requires mobile channel to deliver and keep up with consumers bull Moving from radio -gt mobile phones -gt tablets
Outdoor
On Mobile
BUT
Broadband Penetration
Mobile Penetration
Technology Issues and Impact
Household broadband penetration at 615 and will grow to 75 by 2015
75 107
Source httpwwwthemalaysianreservecommainindexphpoption=com_contentampview=articleampid=899move-over-tv-the-net-is-where-the-action-isampcatid=36corporate-malaysiaampItemid=120
Malaysia a Digital Nation Netizens (constant access to internet) make up 40 of the
total population of 27 million Tablet PC usage and ownership netizen are expected to
increase from 18 to 75 in 2012
In short
1 Legislative deregulation spurs the attractiveness of the
market
2 Economic impose pressures for 2012
3 Social shifts leads the way to new media
4 Technology is the catalytic enable of Media organization
shift into New Media
Porterrsquos 5 Forces Analysis
Astro is the only direct challenger as it is the closest to an integrated media organisation
Power of Substitutes 1 Technology and Sharing of
screen ndash Moving away from TV to mobile content and social media decreases the share of attention
2 Self Generated content by Netizens ndash User Generated Content - youtube
Power of Suppliers 1 Content is king and that is what
drives viewership ndash and not the media organisation that aggregates it
2 Content lead experience is dependent on technological development
Threat of New Entrants 1 Introduction of new IPTV which
offers variety of channelsDETV and ABN
2 New entrants have infrastructure backing hence offering product bundling of triple play ie Unifi YTL Comms
Power of Consumers 1 Consumer Moving away from
Print TV and Radio - they are the ones that drive demand
2 Advertiser have a hard time reaching the fragmented audience (beyond traditional media)
Porterrsquos Five Forces ndash Competitive Analysis
Customers are dependant on content (Media Prima) to reach consumers
Competitive Rivalry
Source bizthestarcommynewsstoryaspfile=20111126business9974017
Nevertheless Media Prima is still in control as it complements their services by offering them content
But its audiences are fragmented across 150 channels versus ours which focus 4 stations
Content creators and aggregators need to mirror consumerrsquos media consumption trends
Can be mitigated by internalizing content development but Media Prima needs to keep its content up to date with technology development
Financials
Media Prima Financial Highlights
1327millionProfit After Tax and Minority Interest (ldquoPATAMIrdquo)September 2011 (9 Months)
in the corresponding period for 20101105 million
A healthy GROWTH
Source Media Prima Annual Report 2011
However in further analysisHowever the bulk of its revenue comes from advertising that is in turn dependent on the economic outlook the question arises as to whether Media Prima should diversify its income stream Especially when gt80 of Astrorsquos revenue is on subscription
Reduce Media Primarsquos dependence on advertising revenueas it highly fluctuates with the market conditions
Group
2010 2009
RMrsquo000 RMrsquo000
Advertising revenue 1237961 80 725857 98 Circulation revenue 290691 19 0 Sale of programmes videos cable and laser rights and media revenue 15408 1 11287 2 Fees from provision of production services and sponsorship 2583 0 6885 1 Fees from provision of procurement services Dividends from subsidiaries Dividends from an associate 1546643 100 744029 100
Source Media Prima Annual Report 2011
Value Chain Analysis
Resource Based View
The resource-based view is grounded in the perspective that a firm is a collection of unique resources and capabilities that provides the basis for its strategies and the primary source of its return
SupportActivities
Primary Activities
Strategy Development 4
Resource Identification 1Capabilities Determination 2Competitive advantage 3
Resource Gap Analysis 5
Source Porter Value Chain Robert M Grant
Process of CONTENT aggregation Process of CONTENT creation
In the context of the Content industry value chainMapped against Porterrsquos Value chain
Createbull Scriptwritersbull Actorsbull Animatorsbull Gamesbull developer
Publishbull Production housesbull TV Advert Film
Packagebull Media Primabull Astrobull RTMbull Maxisbull Digibull Celcom
DistributebullTelekombull MBNS (Measat)bull RTM
Content industry value chain
Porterrsquos Value Chain
Human Resource Management
Technological DevelopmentProcurement
Marketing amp Sales
Develop Talent Pool
Ensure Vibrant Content Industry
Technologycreates ubiquitous
Low Access Cost
To spur the industry forward
Strong talent develops Content development
demand for access
Strong content industry drives demand for Talent Drive demand for content
Services
Source SKMM Regulatory Compliance Course for Telcos amp Celcos
MARKETINGStrategies are focused on branding activities and marketing communications aggressive Aamp P and active participation in on-ground activities that promote brand awareness And Established Integrated marketing arm
TECHNOLOGY DEVELOPMENT Alt Media the digital arm successfully launched TonTon TV a cutting edge video portal that offers customization and interactivity of social networking Giving Media Prima an advantage of being able to direct advertisers to precise target groups
PROCUREMENT Stringent supplier selection in terms of 70 are local suppliers Sourcing of content which are relevant responsible engaging especially with the advent of new media
SERVICESMedia Prima fully owns Primeworks Studio helps maximize the economies of scale in content production whilst enhancing the quality of content of all television networks
HUMAN CAPITALPrioritize human capital development in news and editorial operation radio network artist and talent management etc Creating an in-house talent pool to develop content
Content Barriers to entry
ndash securing talents - Leadership position in development of local talent and content to leading the industry
Vertical bargaining power
DifferentiationAnd Competitive advantage
- Consumer insights - Integrated media organization
Activities Benefit
Competitiveness leading to Margins
Goal
Appraising capabilities which drives profitability
Source Media Prima Annual Report 2011
Mapping Media Prima revenue streams against the Diversification Map
HIGH
LOW
HIGHLOW
Shar
ing
Ope
ratio
nal R
elat
edne
ss B
etw
een
Busi
ness
Corporate Relatedness Transferring skills into business through corporate HQ
Related Constrained Diversification
Vertical Integration Market Power
Content Creation and Talent development Prima Works enables Media Prima to create localized content for the local market
Both operation and Corporate Relatedness (Rare Capability and can create Diseconomies of scale)
New Media is both an operation and corporate relatedness diversification as it require Media Prima to go beyond playing the role as aggregator but also content producer leveraging on its strength
Unrelated Diversification (Financial Economies)This area of diversification which is unrelated in operation and skills transfer Media Prima has not exploited
Related Linked Diversification (Economies of Scope)As newscontent are cross platforms and the business models are the same Media Prima was able to share similar content across platforms and acquire related companies
Opportunities - Create more segmented programmes and move into interactive content
OpportunitiesHowever more needs to be done in the new are with the advent of Interactive TV
Opportunities Although unrelated area often has high risk it is crucial at this point for Media Prima to extend into this area in smart partnerships with telecommunication companies ie Axiata TM
OpportunitiesMedia Prima has maximized its diversification strategy in this area BUT the market is yet to be ready amp there is a need to link both NSTP and Media Prima
CurrentPrimeworks Studios Sdn Bhd (owned by Media Prima) is Malaysias biggest production company producing TV content since 1984 and feature films since 1994 generating over 5000 hours of TV content and 10 movies annually
Related Constrained Diversification
ChallengesBut the reality is that it is not able to compete with the myriad of channels of its competitors which are dependent on overseas content
Opportunities However more needs to be doneas channels become more segmented-Procuring more content to compete on quantity - or it could change the content game and move into interactive content
Source Creation of An Integrated Media Group 2009 httpwwwmediaprimacommy
TV Newspaper
Radio
Outdoor
New Medi
a
4 3 3
1 2
gt150
17
2 1
gt14
3
22
22
YTL Comms
ABN 100
Ove
rvie
w o
f com
petit
ors
thei
r bus
ines
s po
rtfol
ios
Related Constrained Diversification
Media Company
Advertisers Corporations(Customers )
Viewers(Consumers)
Consumer Pay for Product
CONTENT
Advertiser payFor (Ad space) $$
1 httpwwwlongtailcomthe_long_tail200809the-three-kindshtml
$
Opportunities The potential here is also for Media Prima to drive content syndication ndash providing content to other media stations abroad
Media Prima is currently doing by syndicating content to ASTRO and Unifi
Competitors
Media Company
Viewers(Consumers)
CONTENT PRO
1 httpwwwlongtailcomthe_long_tail200809the-three-kindshtml
$
C
C
C FREE CONTENT FREE CONTENT
FREE CONTENT
Both operation and Corporate Relatedness
CurrentMedia Primarsquos intention to leverage on both its operations and Corporate relatedness to shift its revenue structure to be less dependent on advertising revenue and move toward subscriber revenue where a few subsidies everyone else via versioning ldquoprice discriminationrdquo
ChallengesIt has to some degree been successful to introduce this ndash via TonTon TV however the revenue from this segment has yet to be significant
To date there are 16 show packages and over 50 single episodes for viewers to purchase ndash which is limited
Opportunities However more needs or can be done in this new area with the advent of Interactive TV
Media Company
Advertisers Corporations(Customers )
Viewers(Consumers)
Consumer Pay for Product
FREE
CONTENT
Advertiser payFor (Ad space) $$
Source Website1 httpwwwlongtailcomthe_long_tail200809the-three-kindshtml2 Creation of An Integrated Media 2009 Grouphttpwwwmediaprimacommyinvestorcentercp2009NSTPGOpdf3 httpwwwtheedgemalaysiacomin-the-financial-daily164479-media-prima-best-proxy-to-sector-says-oskhtml 4 Media Prima net revenue grows to RM119b 2011 httpwwwbtimescommyCurrent_NewsBTIMESarticles20111118202427Articleindex_html
Related Linked Diversification
Current Media Prima has expanded across media with the idea in the hope of a) Leveraging on its expertise of
Advertisers subsiding viewers model b) Share back-office consolidation which
creates operations efficiencies in operation ie Editorial Talents
c) Cross marketing opportunities across platforms - Where Advertisers could purchase cross buy across platforms
Challenges Market ndash Not readyThe market is not ready for bundled and cross market offering According to Dato Amrin Awaluddin Group Managing Director of Media Prima no doubt there was head roads but more effort needs to be done to integrate the platforms better
Internally ndash Structure is not integrated In terms of unlocking NSTPs value he says it would be done in two phases `First is more short term like consolidating in terms of operations while the second stage will entail selling of products and cross-promoting our content which would be an ongoing revenue- generation exerciselsquo And he quoted Joran a property of Berita Harian (NST) ndash a nationwide fishing event being brought to TV3 as an example
Opportunities - The structure impeded cross platform and working in silo
does not help
- Hence there is a need to further shift paradigms via a structural change to free up resources to focus on content
- The market will not know what they want until we present them with the opportunity benefit
Social Responsibility Analysis
Social Responsibility
Media Primarsquos approach to Social Responsibility is based on the key triple bottom line ndash social environmental and economic It considers the socio-economic impact of its business activities in the aim to create value to its stakeholders via the 4 categories ie community workplace marketplace and environment
Community1EducationFocusing on education to raise awareness of the importance of education and increase the academic standards of underprivileged children and underperforming schools eg PINTAR Programme NST School Sponsorship Programme
2 HumanitarianRaise funds for humanitarian aid and provided updates on the local and world disaster crisis to the public and raised awareness of the funds eg Humanitarian Aid for Gaza Humanitarian Aid for Flood Victims in Pakistan
3 Other community programmesProduced outreach programmes to reflect and highlight local and community issues and to be the eyes and ears of the public and engage in public awareness through its businessesrsquo media resources and platforms in print interactive media and television eg Project Sunshine
Social Responsibility ndash cont
Environment - EfficiencyStrongly committed to being an environmentally friendly Company by using recycled paper especially in its newspapers business efficient usage of electricity in offices water management reducing amount of waste produced throughout its businesses and other environmental initiatives such as lsquosave our beachrsquo project and WWFrsquos Earth Hour
Marketplace ndash Responsible ContentFocusing on product responsibility in providing high quality products and is committed to establishing a horizontal specialisation system based on collaboration with stakeholders The production flow is illustrated in the diagram below
Workplace ndash Right CultureIt aims to create a workplace where its people have the opportunity to be the best they possibly can to have the right culture safe working environment and human capital development with fair processes
Media Prima Acknowledges it various stakeholder via Stakeholders Management
Media Prima is aware of the diversity of its stakeholders and the different goals and demand of its stakeholders
The Company conducts active engagement with its stakeholders to fully understand their needs and increase their trust in the Company through formal and informal mechanisms as follows
It has moved on to 2nd stage of CSR
1st Generation 2nd Generation 3rd Generation
Philanthropic short term risk management
Product Process innovation business and corporate governance model long term sustainability Strategic CSR
3rd Generation Multi- stakeholder standards and partnerships institutional building CR- Oriented advocacy and public policy
Opportunity
What is next for Media Prima to shape the industry
Creating content that generate advertising dollars amp donations of the poor social awareness
By leveraging on its content distribution capabilities
SWOT Analysis
SWOT Analysis ndash Summary
Strengths 1 Strong market share in TV segment2 Malaysiarsquos only integrated media
organization- have vertical and horizontal diversification advantage
3 Established value chains strength which complements the required core competencies
4 Have move across 3 revenue models
Weaknesses1 limited number of stations variety and choice
for consumer2 Despite diversification revenues still mainly
driven by advertisers and TV -gt cross platforms is needed
3 Financial segmentation may hinder potentials of the company
Opportunities 1 Broadband infrastructure ndash via HSBB2 Development of technology ndash creating
medias gadgets that increase digital interaction and content consumption
3 Consumers are willing to pay for content4 Possible deregulation of content ndash leveling
the playing field
Threats 1 2012 forecasting a financial slow down
affecting Ad Ex ndash hence revenue is reduced2 Increase competition New Entrants Pay TV
player amp continual competition from ASTRO3 Changing consumer habits towards media
consumption -gt moving away from traditional media ndash hence have to fight for consumerrsquos attention
Right Technology (Gadget and Infrastructure) at the Right time (deregulation) amp Right consumers (shift in media habits and willingness to pay for content ndash ASTRO as indicator)
Vertical Value Chain advantage to compete in content development
Media Primarsquos Current situation in summary
+VE
-VE Revenue dependent on advertising which is affected correlated to GDP
Resources organization structure holds back effectiveness of organization
Moving forward2012 and beyond
Recommended Destination and future growth of Media Prima
Revenue mainly from advertising
Revenue from advertising
Content SubscriptionBy viewers
Content driven Complementary Services for advertiser (Auxillary Services)
Media Prima
Media Prima
Content Syndicationto competitors
+
How Moving from aggregator to content creator
Content Focus Leveraging on content to Embark on Revenue shifts
Long term sustainable leadership
Restructuring to liberateresources for Content
Sustainable Talent development -
Partnership
Riding the Technology Wave
Short term (2012) Mid Term (by 2013-2015) Long term 2015 beyond
How Moving from aggregator to content creator
Content Focus Leveraging on content to Embark on Revenue shifts
Long term sustainable leadership
Restructuring to liberateresources for Content
Sustainable Talent development -
Partnership
Riding the Technology Wave
Short term (2012) Mid Term (by 2013-2015) Long term 2015 beyond
Creating a Content focus agency All these can be enable via the following means
Demand- The content creation race bull There is a need to free up empower human capital to create more content which are relevant
segmented engaging and entertaining
How does media prima refocus its resources into where it matters Instead of multiple teams doing the same thing ndash there is a challenge to create a lean and efficient organization
Challenges Freeing Resources
Instead of looking at a Media based financial segment reporting structurally force the teams to integrate by changing the dynamics of PampL
Next page
Solution Redefining Business Units Paradigms
Take a step up from producing beyond the current vernacular program to meet shifting consumer needs
Challenges ndash Lifestyle lead Variety
Creating Channel programs which are target segment focus based on lifestyles hellip
Acquisition of content as content regulations will be relaxed
Solution Target Segment focus
Using financial view to free resources for content developmentFinancial segment reporting may create a ldquosilordquo mentality ndash which encourages each head of business to protect their bottom line Hence a less effective in operations
Our recommendation is to expand content creation to cut across and shift paradigms to free up resources and focus on new revenue streams And create new content for different segment
Tele
visi
on N
etw
ork
Radi
o N
etw
ork
Out
door
Med
ia
Prin
t M
edia
Oth
er M
edia
Current Financial Segment Reporting
Tele
visi
on N
etw
ork
Radi
o N
etw
ork
Out
door
Med
ia
Prin
t M
edia
Oth
er M
edia
Production
Content
Subscription
Advertising
Recommended Segment Reporting
Lifestyle Segments
Lifestyle Segments
Lifestyle Segments
Lifestyle Segments
Lifestyle Segments
Lifestyle Segments
By changing the business segment reporting it also affects the company structure
The benefits - Flexibility and empowers knowledge
economy ndash talent content driven
- Builds at strong work culture which may be replicated in the region
- Expansion to embark on talent and content crowd sourcing - open innovation creation
Media Prima can take this opportunity to achieve SPECIALIZATION COORDINATION AND COOPERATION Currently team structure ndash of Integrated Marketing Division is created as a temporary solution hellip to enable integration It will move towards a network model to haste integration fast and response to technology and consumer needs
Subcription
Advertising
Production
TechnologyPartner
Content
How Moving from aggregator to content creator
Content Focus Leveraging on content to Embark on Revenue shifts
Long term sustainable leadership
Restructuring to liberateresources for Content
Sustainable Talent development -
Partnership
Riding the Technology Wave
Short term (2012) Mid Term (by 2013-2015) Long term 2015 beyond
Technology ndash Enable Media Prima to leap into Interactive Content
Interactive Content
UniFi Axiata
Media Prima
Electronics Manufacturer
Demand - A ready market bull There is a latent demand for content-gt consumers are
willing to Pay bull Technology has accustomed consumers to interacting
with contentbull Regulatory push to shift from analogue to digital by
2015
However unlike Media Primarsquos western counterparts ie Time Warner Communication Media Prima does not have the advantages of cable infrastructure
Challenges ndash Limitation
Media Prima could depend on existing suppliers of connectivity and technology- Telecommunications ie AXIATA and - Manufacturing companies ie Samsungto take the leap into interactive content Unifi TM
Solution ndash Smart Partnerships
Maximizing Unrelated Diversification
It is not a Fad but a trend
Smart TV is an inevitable trend says Baeguen Kang vice president of
research and development at South Koreas LG Electronics Co the worlds second-largest seller of TV sets by unit volume As people experienced smartphones and tablet PCs the larger screen on a TV is very attractive for apps and Web content
210 million TV sets sold world-wide had an Internet connection (2010)
21 50It will be the forecast in (2014)
Source Evan Ramstad (January 2011)A ldquoManufacturers Turn to Smart TV After 3-D Disappointsrdquo The Wall Street Journal online httponlinewsjcomarticleSB10001424052748704835504576059783074010902html
As technology develops Current cost is will drop exponentially reflecting the Moorersquos Law
Hence lowering the cost of access for interactive content
Example of Smart TV
Smart Hub It is a front facing interface just like a main menu
when consumers turn on their TV There are few utilities that consumers can choose to be entertained
Video ndash consumers can choose from array of video collections that required to be paid
Apps ndash an internet-enabled applications like You Tube Facebook Twitter Skype and others
Internet browsing ndash just like PC internet browsing
Music photo and TV watching
Smart ConnectivityWIFI enabled that allows consumers to connect to all mobile devices like smart phone tablet PC notebook and camera with Samsung Wireless Router called 1 foot This connectivity is being called ldquoAllSharerdquo by Samsung
httpotbresearchcomau200509report-1-industry-forum
MEDIA PRIMA IS CURRENTLY HERE
This will ultimately lead Media Prima to reduce it dependence on advertising revenue
Others ndash Utilising the SMART TV technology and Apps to create any existing Media Prima businesses
NEW Revenue Streams for Media Prima
To take advantage of SMART TV and collaborate with SMART TV manufacturers Media Prima can look into following utilities
Collaborate with manufacturers to allow consumers to browse and pay for Media Prima video collections
Selling local music for Malaysia market
Collaborate with local or international content developers to create Malaysia specific contents for paid subscription or free for common content to attract new consumers
How
Content Focus Leveraging on content to Embark on Revenue shifts
Long term sustainable leadership
Restructuring to liberateresources for Content
Sustainable Talent development -
Partnership
Riding the Technology Wave
Short term (2012) Mid Term (by 2013-2015) Long term 2015 beyond
Building Talents in the long run
Education Building on its strategic CSR ndash Media Prima could champion the
development of the content industry by partnering with local universities in the areas of technology media and communication
Crowd Sourcing To haste up the strategic CSR it too could embark on crowd
sourcing for content ndash via scripts and interactive content In which Media Prima could support a great idea and develop the ideas for monetization
This is a synergistic and natural development from the networks structure (open innovation)
Summary ndash Media Prima
Develop Talent Pool
Ensure Vibrant Content Industry
Technologycreates ubiquitous
Low Access Cost
To spur the industry forward
Strong talent develops Content development
demand for access
Strong content industry drives demand for Talent drives demand for content
Our recommendations are aligned to help spur the industry forwardhellip
Restructuring to liberateresources for Content
Sustainable Talent development -
Partnership
Riding the Technology Wave ndash Via Smart
Partnerships
References
References
1 Anon ldquoMedia Prima Berhad implements Accenture integrated broadcast systemrdquo Accenture Press Release httpnewsroomaccenturecomarticle_displaycfmarticle_id=5005 viewed 3 November 2011
2 Anon ldquoNew exciting and vibrant offerings from MPB television networks in 2010rdquo Media Prima Press Release httpwwwmediaprimacommypressreleasepressreleaseaspxid=150 viewed 3 November 2011
3 Anderson J ldquoResource-based competitiveness managerial implications of the resource-based viewrdquo Strategic Direction Vol26 No5 2010 pp1-2
4 Arman Arshad (2006) Size matters Retrieved December 2 2011 from asiaviewsorg httpwwwasiaviewsorgindexphpoption=com_contentampview=articleampid=2171headlinealias2171ampcatid=1headlinesampItemid=2
5 Asia Times (2007 November 29) Malaysian media giant grasps for Internet Retrieved November 3 2011 from httpwwwatimescomatimesSoutheast_AsiaIK29Ae02html
6 Barney JB amp Hesterly WS (2008) Strategic Management and Competitive Advantage The Five Forces Model of Environmental Threats pp39Prentice Hall
7 BBC (2011) BBC News product launches on connected TV Retrieved from bbccoukpressofficepressreleasesstories201106_june17newsshtml
8 Boston Consulting Group (2011) Lean Advantage in Media Boston Consulting Group
9 Boston Consulting Group (2011) Running Forward Walking Backward Boston Consulting Group
10 Business Times (2011) Media Prima net revenue grows to RM119b Kuala Lumpur New Straits Times
11 Business Times (2011) Media Prima on track to achie1048665ing 2011 target Retrieved from www1btimescomm1048668Current_NewsBTIMESarticlespimeArticle
References (1)
12 Business Times (2011) Media Prima Puncak Semangat in early talks Retrieved from httpwwwbtimescommyarticlespimmaArticle
13 Carl W Stern George Stalk Carl W Stern George Stalk Stern CW amp Stalk G (2011) Perspectives of Strategy from the Boston Consulting Group Retrieved December 3 2011 from Value Based Managementnet httpwwwvaluebasedmanagementnetmethods_bcgmatrixhtml
14 ecmlibra (2011) Adex momentum to taper off in 2012 ecmlibra
15 Gershon R A amp Ratnadeep S V (2004) Viacom Inc A Case Study in Transnational Media Management Journal of Media Business Studies 1 (1) 47-69
16 Grant RM ldquoThe resource-based theory of competitive advantage implications for strategy formulationrdquo California Management Review Vol 3 2011 httpwwwskynetie~karenArticlesGrant1_NBpdf viewed 15 November 2011
17 GreyReview (2011) TonTon Streaming Over 11 Million Video Hours A Month now with 16 millions registered users Retrieved from httpwwwgreyreviewcom20110731tonton-serving-over-1-1-million-video-hours-a-month-now-with-1-6-registered-users
18 Heavy Reading (2011) Telecom in TV Land A Roadmap to New Digital Media Ecosystem Retrieved from wwwheavyreadingcomdetailsaspsku_id=1773ampskuitem_itemid=1030
19 Hegedus N (2010) The Great Scare EBR 3 10-17
20 JohnsonGScholesK amp Whittington (2008) Exploring Corporate Strategy Competitive Forces ndash the Five Forces Framework pp 59-64 Prentice Hall
21 kinetic (2011) Moving World Asia Hong Kong
References (2)
22 Knowledgefaber (2009) Telcos Avatar - As Media Companies 20 Retrieved from httpknowledgefabercomindexphpoption=com_contentampview=articleampid=40telecom-and-media-convergenceampcatid=10telecomampItemid=42
23 Knowledgefaber (2011) Telcos Avatar - As Media Companies 20 Retrieved from httpknowledgefabercomindexphpoption=com_contentampview=articleampid=40
24 Malik O (2011) GIGAOM Retrieved from httpgigaomcom20110223old-media-is-being-unbundled-just-like-telecom-was
25 Maxis with TM Astro with TIME Best Strategy to IPTV Market Retrieved December 1 2011 httpbizthestarcommynewsstoryaspfile=201111business7704581ampsec=business
26 Media Prima (2010) Annual Report Media Prima Berhad27 Media Prima Berhad (2011) 11 Nov 2011 - New Exciting amp Vibrant Offerings From MPB Television Retrieved from
wwwmediaprimacommypressreleasepressreleaseaspxid=15028 Media Prima (2010) Sustainability Report Media Prima Berhad29 OSK (2011) Media Prima OSK30 Pocket-Lint (2011) Samsung Smart TV hits 2 million mark Retrieved from
httpwwwpocket-lintcomnews40593samsung-smart-tv-2-million31 PricewaterhouseCoopers (2011) Achieving corporate financial PwC32 PricewaterhouseCoopers (2007) Financial Reporting Standards (FRS) in Malaysia PricewaterhouseCoopers33 SKMM (MCMC) (2009) Advertising Development in Malaysia SKMM34 SKMM (MCMC) (2011) Content Development SKMM35 Techpinions (2011) Interactive TV Trends - How the TV experience is changing - Part II Retrieved from
httptechpinionscominteractive-tv-trends-E28093-how-the-tv-experience-is-changing-part-ii4066
References (3)
36 The Edge (2011) Media Prima best proxy to sector Retrieved from wwwtheedgemalaysiacom37 The Edge Malaysia (2011 September 26) Education the mother of all reforms Retrieved October 30 2011 from
httpwwwtheedgemalaysiacomin-the-financial-daily193478-education-the-mother-of-all-reformshtml38 The Star Online (2011) Main players in the competitive TV sector Retrieved from bizthestarcommynewsstoryasp
file=20111126business997401739 The Star Online (2011) Maxis ready to move up value Retrieved from
bizthestarcommynewsstoryaspfile=201111business7704581ampse40 The Star Online (2011) New players enter the TV Retrieved from
bizthestarcommynewsstoryaspfile=20111126business997300841 The Star Newspaper (December 1 2011) Capital TV to make its debut today42 The Star Online (January 1 2011) Maxis ready to move up value chain Retrieved December 3 2011
httpbizthestarcommynewsstoryaspfile=201111business7704581ampsec=business43 The Star Online (2011 April 21) Media Prima to invest more on local content Retrieved October 30 2011 from C
Usersa34ffzzDesktopMedia PrimaUsed articlesMedia Prima to invest more in local contentmht44 Time Warners (2010) Annual Report Time Warners45 WHAT HI FI (2011) Samsung aims for 50m TV sales worldwide in 2012 set to announce launch date for Google TV
product Retrieved from httpwwwwhathificomnewssamsung-aims-for-50m-tv-sales-worldwide-in-2012-set-to-announce-launch-date-for-google-tv-produ
46 Woroch G A (1996) Turning the Cables Elsevier47 Zanuddin H (2007) Political influence in Malaysia and Thailand media sector Jati Vol12
- MEdiA PRIMA
- Agenda
- Company Profile
- Media Primarsquos Commitment amp Direction moving forward
- Media Industry Business Model ndash Content Driven
- Our Tasks ndash How
- PEST Analysis
- Politics Legal Issues amp Impact
- Economic Issues and Impact
- Social Issues and Impact
- Social Issues and Impact
- Technology Issues and Impact
- In short
- Porterrsquos 5 Forces Analysis
- Porterrsquos Five Forces ndash Competitive Analysis
- Financials
- Media Prima Financial Highlights
- However in further analysis
- Value Chain Analysis
- Resource Based View
- In the context of the Content industry value chain Mapped again
- Appraising capabilities which drives profitability
- Mapping Media Prima revenue streams against the Diversification
- Slide 25
- Related Constrained Diversification
- Related Constrained Diversification (2)
- Slide 28
- Related Linked Diversification
- Slide 30
- Social Responsibility Analysis
- Social Responsibility
- Social Responsibility ndash cont
- Media Prima Acknowledges it various stakeholder via Stakeholder
- It has moved on to 2nd stage of CSR
- SWOT Analysis
- SWOT Analysis ndash Summary
- Media Primarsquos Current situation in summary
- Moving forward 2012 and beyond
- Recommended Destination and future growth of Media Prima
- How Moving from aggregator to content creator
- How Moving from aggregator to content creator (2)
- Creating a Content focus agency All these can be enable via
- Using financial view to free resources for content development
- By changing the business segment reporting it also affects the
- How Moving from aggregator to content creator (3)
- Technology ndash Enable Media Prima to leap into Interactive Conten
- It is not a Fad but a trend
- Slide 50
- Example of Smart TV
- This will ultimately lead Media Prima to reduce it dependence o
- NEW Revenue Streams for Media Prima
- How
- Building Talents in the long run
- Summary ndash Media Prima
- References
- References
- References (1)
- References (2)
- References (3)
-
Broadband Penetration
Mobile Penetration
Technology Issues and Impact
Household broadband penetration at 615 and will grow to 75 by 2015
75 107
Source httpwwwthemalaysianreservecommainindexphpoption=com_contentampview=articleampid=899move-over-tv-the-net-is-where-the-action-isampcatid=36corporate-malaysiaampItemid=120
Malaysia a Digital Nation Netizens (constant access to internet) make up 40 of the
total population of 27 million Tablet PC usage and ownership netizen are expected to
increase from 18 to 75 in 2012
In short
1 Legislative deregulation spurs the attractiveness of the
market
2 Economic impose pressures for 2012
3 Social shifts leads the way to new media
4 Technology is the catalytic enable of Media organization
shift into New Media
Porterrsquos 5 Forces Analysis
Astro is the only direct challenger as it is the closest to an integrated media organisation
Power of Substitutes 1 Technology and Sharing of
screen ndash Moving away from TV to mobile content and social media decreases the share of attention
2 Self Generated content by Netizens ndash User Generated Content - youtube
Power of Suppliers 1 Content is king and that is what
drives viewership ndash and not the media organisation that aggregates it
2 Content lead experience is dependent on technological development
Threat of New Entrants 1 Introduction of new IPTV which
offers variety of channelsDETV and ABN
2 New entrants have infrastructure backing hence offering product bundling of triple play ie Unifi YTL Comms
Power of Consumers 1 Consumer Moving away from
Print TV and Radio - they are the ones that drive demand
2 Advertiser have a hard time reaching the fragmented audience (beyond traditional media)
Porterrsquos Five Forces ndash Competitive Analysis
Customers are dependant on content (Media Prima) to reach consumers
Competitive Rivalry
Source bizthestarcommynewsstoryaspfile=20111126business9974017
Nevertheless Media Prima is still in control as it complements their services by offering them content
But its audiences are fragmented across 150 channels versus ours which focus 4 stations
Content creators and aggregators need to mirror consumerrsquos media consumption trends
Can be mitigated by internalizing content development but Media Prima needs to keep its content up to date with technology development
Financials
Media Prima Financial Highlights
1327millionProfit After Tax and Minority Interest (ldquoPATAMIrdquo)September 2011 (9 Months)
in the corresponding period for 20101105 million
A healthy GROWTH
Source Media Prima Annual Report 2011
However in further analysisHowever the bulk of its revenue comes from advertising that is in turn dependent on the economic outlook the question arises as to whether Media Prima should diversify its income stream Especially when gt80 of Astrorsquos revenue is on subscription
Reduce Media Primarsquos dependence on advertising revenueas it highly fluctuates with the market conditions
Group
2010 2009
RMrsquo000 RMrsquo000
Advertising revenue 1237961 80 725857 98 Circulation revenue 290691 19 0 Sale of programmes videos cable and laser rights and media revenue 15408 1 11287 2 Fees from provision of production services and sponsorship 2583 0 6885 1 Fees from provision of procurement services Dividends from subsidiaries Dividends from an associate 1546643 100 744029 100
Source Media Prima Annual Report 2011
Value Chain Analysis
Resource Based View
The resource-based view is grounded in the perspective that a firm is a collection of unique resources and capabilities that provides the basis for its strategies and the primary source of its return
SupportActivities
Primary Activities
Strategy Development 4
Resource Identification 1Capabilities Determination 2Competitive advantage 3
Resource Gap Analysis 5
Source Porter Value Chain Robert M Grant
Process of CONTENT aggregation Process of CONTENT creation
In the context of the Content industry value chainMapped against Porterrsquos Value chain
Createbull Scriptwritersbull Actorsbull Animatorsbull Gamesbull developer
Publishbull Production housesbull TV Advert Film
Packagebull Media Primabull Astrobull RTMbull Maxisbull Digibull Celcom
DistributebullTelekombull MBNS (Measat)bull RTM
Content industry value chain
Porterrsquos Value Chain
Human Resource Management
Technological DevelopmentProcurement
Marketing amp Sales
Develop Talent Pool
Ensure Vibrant Content Industry
Technologycreates ubiquitous
Low Access Cost
To spur the industry forward
Strong talent develops Content development
demand for access
Strong content industry drives demand for Talent Drive demand for content
Services
Source SKMM Regulatory Compliance Course for Telcos amp Celcos
MARKETINGStrategies are focused on branding activities and marketing communications aggressive Aamp P and active participation in on-ground activities that promote brand awareness And Established Integrated marketing arm
TECHNOLOGY DEVELOPMENT Alt Media the digital arm successfully launched TonTon TV a cutting edge video portal that offers customization and interactivity of social networking Giving Media Prima an advantage of being able to direct advertisers to precise target groups
PROCUREMENT Stringent supplier selection in terms of 70 are local suppliers Sourcing of content which are relevant responsible engaging especially with the advent of new media
SERVICESMedia Prima fully owns Primeworks Studio helps maximize the economies of scale in content production whilst enhancing the quality of content of all television networks
HUMAN CAPITALPrioritize human capital development in news and editorial operation radio network artist and talent management etc Creating an in-house talent pool to develop content
Content Barriers to entry
ndash securing talents - Leadership position in development of local talent and content to leading the industry
Vertical bargaining power
DifferentiationAnd Competitive advantage
- Consumer insights - Integrated media organization
Activities Benefit
Competitiveness leading to Margins
Goal
Appraising capabilities which drives profitability
Source Media Prima Annual Report 2011
Mapping Media Prima revenue streams against the Diversification Map
HIGH
LOW
HIGHLOW
Shar
ing
Ope
ratio
nal R
elat
edne
ss B
etw
een
Busi
ness
Corporate Relatedness Transferring skills into business through corporate HQ
Related Constrained Diversification
Vertical Integration Market Power
Content Creation and Talent development Prima Works enables Media Prima to create localized content for the local market
Both operation and Corporate Relatedness (Rare Capability and can create Diseconomies of scale)
New Media is both an operation and corporate relatedness diversification as it require Media Prima to go beyond playing the role as aggregator but also content producer leveraging on its strength
Unrelated Diversification (Financial Economies)This area of diversification which is unrelated in operation and skills transfer Media Prima has not exploited
Related Linked Diversification (Economies of Scope)As newscontent are cross platforms and the business models are the same Media Prima was able to share similar content across platforms and acquire related companies
Opportunities - Create more segmented programmes and move into interactive content
OpportunitiesHowever more needs to be done in the new are with the advent of Interactive TV
Opportunities Although unrelated area often has high risk it is crucial at this point for Media Prima to extend into this area in smart partnerships with telecommunication companies ie Axiata TM
OpportunitiesMedia Prima has maximized its diversification strategy in this area BUT the market is yet to be ready amp there is a need to link both NSTP and Media Prima
CurrentPrimeworks Studios Sdn Bhd (owned by Media Prima) is Malaysias biggest production company producing TV content since 1984 and feature films since 1994 generating over 5000 hours of TV content and 10 movies annually
Related Constrained Diversification
ChallengesBut the reality is that it is not able to compete with the myriad of channels of its competitors which are dependent on overseas content
Opportunities However more needs to be doneas channels become more segmented-Procuring more content to compete on quantity - or it could change the content game and move into interactive content
Source Creation of An Integrated Media Group 2009 httpwwwmediaprimacommy
TV Newspaper
Radio
Outdoor
New Medi
a
4 3 3
1 2
gt150
17
2 1
gt14
3
22
22
YTL Comms
ABN 100
Ove
rvie
w o
f com
petit
ors
thei
r bus
ines
s po
rtfol
ios
Related Constrained Diversification
Media Company
Advertisers Corporations(Customers )
Viewers(Consumers)
Consumer Pay for Product
CONTENT
Advertiser payFor (Ad space) $$
1 httpwwwlongtailcomthe_long_tail200809the-three-kindshtml
$
Opportunities The potential here is also for Media Prima to drive content syndication ndash providing content to other media stations abroad
Media Prima is currently doing by syndicating content to ASTRO and Unifi
Competitors
Media Company
Viewers(Consumers)
CONTENT PRO
1 httpwwwlongtailcomthe_long_tail200809the-three-kindshtml
$
C
C
C FREE CONTENT FREE CONTENT
FREE CONTENT
Both operation and Corporate Relatedness
CurrentMedia Primarsquos intention to leverage on both its operations and Corporate relatedness to shift its revenue structure to be less dependent on advertising revenue and move toward subscriber revenue where a few subsidies everyone else via versioning ldquoprice discriminationrdquo
ChallengesIt has to some degree been successful to introduce this ndash via TonTon TV however the revenue from this segment has yet to be significant
To date there are 16 show packages and over 50 single episodes for viewers to purchase ndash which is limited
Opportunities However more needs or can be done in this new area with the advent of Interactive TV
Media Company
Advertisers Corporations(Customers )
Viewers(Consumers)
Consumer Pay for Product
FREE
CONTENT
Advertiser payFor (Ad space) $$
Source Website1 httpwwwlongtailcomthe_long_tail200809the-three-kindshtml2 Creation of An Integrated Media 2009 Grouphttpwwwmediaprimacommyinvestorcentercp2009NSTPGOpdf3 httpwwwtheedgemalaysiacomin-the-financial-daily164479-media-prima-best-proxy-to-sector-says-oskhtml 4 Media Prima net revenue grows to RM119b 2011 httpwwwbtimescommyCurrent_NewsBTIMESarticles20111118202427Articleindex_html
Related Linked Diversification
Current Media Prima has expanded across media with the idea in the hope of a) Leveraging on its expertise of
Advertisers subsiding viewers model b) Share back-office consolidation which
creates operations efficiencies in operation ie Editorial Talents
c) Cross marketing opportunities across platforms - Where Advertisers could purchase cross buy across platforms
Challenges Market ndash Not readyThe market is not ready for bundled and cross market offering According to Dato Amrin Awaluddin Group Managing Director of Media Prima no doubt there was head roads but more effort needs to be done to integrate the platforms better
Internally ndash Structure is not integrated In terms of unlocking NSTPs value he says it would be done in two phases `First is more short term like consolidating in terms of operations while the second stage will entail selling of products and cross-promoting our content which would be an ongoing revenue- generation exerciselsquo And he quoted Joran a property of Berita Harian (NST) ndash a nationwide fishing event being brought to TV3 as an example
Opportunities - The structure impeded cross platform and working in silo
does not help
- Hence there is a need to further shift paradigms via a structural change to free up resources to focus on content
- The market will not know what they want until we present them with the opportunity benefit
Social Responsibility Analysis
Social Responsibility
Media Primarsquos approach to Social Responsibility is based on the key triple bottom line ndash social environmental and economic It considers the socio-economic impact of its business activities in the aim to create value to its stakeholders via the 4 categories ie community workplace marketplace and environment
Community1EducationFocusing on education to raise awareness of the importance of education and increase the academic standards of underprivileged children and underperforming schools eg PINTAR Programme NST School Sponsorship Programme
2 HumanitarianRaise funds for humanitarian aid and provided updates on the local and world disaster crisis to the public and raised awareness of the funds eg Humanitarian Aid for Gaza Humanitarian Aid for Flood Victims in Pakistan
3 Other community programmesProduced outreach programmes to reflect and highlight local and community issues and to be the eyes and ears of the public and engage in public awareness through its businessesrsquo media resources and platforms in print interactive media and television eg Project Sunshine
Social Responsibility ndash cont
Environment - EfficiencyStrongly committed to being an environmentally friendly Company by using recycled paper especially in its newspapers business efficient usage of electricity in offices water management reducing amount of waste produced throughout its businesses and other environmental initiatives such as lsquosave our beachrsquo project and WWFrsquos Earth Hour
Marketplace ndash Responsible ContentFocusing on product responsibility in providing high quality products and is committed to establishing a horizontal specialisation system based on collaboration with stakeholders The production flow is illustrated in the diagram below
Workplace ndash Right CultureIt aims to create a workplace where its people have the opportunity to be the best they possibly can to have the right culture safe working environment and human capital development with fair processes
Media Prima Acknowledges it various stakeholder via Stakeholders Management
Media Prima is aware of the diversity of its stakeholders and the different goals and demand of its stakeholders
The Company conducts active engagement with its stakeholders to fully understand their needs and increase their trust in the Company through formal and informal mechanisms as follows
It has moved on to 2nd stage of CSR
1st Generation 2nd Generation 3rd Generation
Philanthropic short term risk management
Product Process innovation business and corporate governance model long term sustainability Strategic CSR
3rd Generation Multi- stakeholder standards and partnerships institutional building CR- Oriented advocacy and public policy
Opportunity
What is next for Media Prima to shape the industry
Creating content that generate advertising dollars amp donations of the poor social awareness
By leveraging on its content distribution capabilities
SWOT Analysis
SWOT Analysis ndash Summary
Strengths 1 Strong market share in TV segment2 Malaysiarsquos only integrated media
organization- have vertical and horizontal diversification advantage
3 Established value chains strength which complements the required core competencies
4 Have move across 3 revenue models
Weaknesses1 limited number of stations variety and choice
for consumer2 Despite diversification revenues still mainly
driven by advertisers and TV -gt cross platforms is needed
3 Financial segmentation may hinder potentials of the company
Opportunities 1 Broadband infrastructure ndash via HSBB2 Development of technology ndash creating
medias gadgets that increase digital interaction and content consumption
3 Consumers are willing to pay for content4 Possible deregulation of content ndash leveling
the playing field
Threats 1 2012 forecasting a financial slow down
affecting Ad Ex ndash hence revenue is reduced2 Increase competition New Entrants Pay TV
player amp continual competition from ASTRO3 Changing consumer habits towards media
consumption -gt moving away from traditional media ndash hence have to fight for consumerrsquos attention
Right Technology (Gadget and Infrastructure) at the Right time (deregulation) amp Right consumers (shift in media habits and willingness to pay for content ndash ASTRO as indicator)
Vertical Value Chain advantage to compete in content development
Media Primarsquos Current situation in summary
+VE
-VE Revenue dependent on advertising which is affected correlated to GDP
Resources organization structure holds back effectiveness of organization
Moving forward2012 and beyond
Recommended Destination and future growth of Media Prima
Revenue mainly from advertising
Revenue from advertising
Content SubscriptionBy viewers
Content driven Complementary Services for advertiser (Auxillary Services)
Media Prima
Media Prima
Content Syndicationto competitors
+
How Moving from aggregator to content creator
Content Focus Leveraging on content to Embark on Revenue shifts
Long term sustainable leadership
Restructuring to liberateresources for Content
Sustainable Talent development -
Partnership
Riding the Technology Wave
Short term (2012) Mid Term (by 2013-2015) Long term 2015 beyond
How Moving from aggregator to content creator
Content Focus Leveraging on content to Embark on Revenue shifts
Long term sustainable leadership
Restructuring to liberateresources for Content
Sustainable Talent development -
Partnership
Riding the Technology Wave
Short term (2012) Mid Term (by 2013-2015) Long term 2015 beyond
Creating a Content focus agency All these can be enable via the following means
Demand- The content creation race bull There is a need to free up empower human capital to create more content which are relevant
segmented engaging and entertaining
How does media prima refocus its resources into where it matters Instead of multiple teams doing the same thing ndash there is a challenge to create a lean and efficient organization
Challenges Freeing Resources
Instead of looking at a Media based financial segment reporting structurally force the teams to integrate by changing the dynamics of PampL
Next page
Solution Redefining Business Units Paradigms
Take a step up from producing beyond the current vernacular program to meet shifting consumer needs
Challenges ndash Lifestyle lead Variety
Creating Channel programs which are target segment focus based on lifestyles hellip
Acquisition of content as content regulations will be relaxed
Solution Target Segment focus
Using financial view to free resources for content developmentFinancial segment reporting may create a ldquosilordquo mentality ndash which encourages each head of business to protect their bottom line Hence a less effective in operations
Our recommendation is to expand content creation to cut across and shift paradigms to free up resources and focus on new revenue streams And create new content for different segment
Tele
visi
on N
etw
ork
Radi
o N
etw
ork
Out
door
Med
ia
Prin
t M
edia
Oth
er M
edia
Current Financial Segment Reporting
Tele
visi
on N
etw
ork
Radi
o N
etw
ork
Out
door
Med
ia
Prin
t M
edia
Oth
er M
edia
Production
Content
Subscription
Advertising
Recommended Segment Reporting
Lifestyle Segments
Lifestyle Segments
Lifestyle Segments
Lifestyle Segments
Lifestyle Segments
Lifestyle Segments
By changing the business segment reporting it also affects the company structure
The benefits - Flexibility and empowers knowledge
economy ndash talent content driven
- Builds at strong work culture which may be replicated in the region
- Expansion to embark on talent and content crowd sourcing - open innovation creation
Media Prima can take this opportunity to achieve SPECIALIZATION COORDINATION AND COOPERATION Currently team structure ndash of Integrated Marketing Division is created as a temporary solution hellip to enable integration It will move towards a network model to haste integration fast and response to technology and consumer needs
Subcription
Advertising
Production
TechnologyPartner
Content
How Moving from aggregator to content creator
Content Focus Leveraging on content to Embark on Revenue shifts
Long term sustainable leadership
Restructuring to liberateresources for Content
Sustainable Talent development -
Partnership
Riding the Technology Wave
Short term (2012) Mid Term (by 2013-2015) Long term 2015 beyond
Technology ndash Enable Media Prima to leap into Interactive Content
Interactive Content
UniFi Axiata
Media Prima
Electronics Manufacturer
Demand - A ready market bull There is a latent demand for content-gt consumers are
willing to Pay bull Technology has accustomed consumers to interacting
with contentbull Regulatory push to shift from analogue to digital by
2015
However unlike Media Primarsquos western counterparts ie Time Warner Communication Media Prima does not have the advantages of cable infrastructure
Challenges ndash Limitation
Media Prima could depend on existing suppliers of connectivity and technology- Telecommunications ie AXIATA and - Manufacturing companies ie Samsungto take the leap into interactive content Unifi TM
Solution ndash Smart Partnerships
Maximizing Unrelated Diversification
It is not a Fad but a trend
Smart TV is an inevitable trend says Baeguen Kang vice president of
research and development at South Koreas LG Electronics Co the worlds second-largest seller of TV sets by unit volume As people experienced smartphones and tablet PCs the larger screen on a TV is very attractive for apps and Web content
210 million TV sets sold world-wide had an Internet connection (2010)
21 50It will be the forecast in (2014)
Source Evan Ramstad (January 2011)A ldquoManufacturers Turn to Smart TV After 3-D Disappointsrdquo The Wall Street Journal online httponlinewsjcomarticleSB10001424052748704835504576059783074010902html
As technology develops Current cost is will drop exponentially reflecting the Moorersquos Law
Hence lowering the cost of access for interactive content
Example of Smart TV
Smart Hub It is a front facing interface just like a main menu
when consumers turn on their TV There are few utilities that consumers can choose to be entertained
Video ndash consumers can choose from array of video collections that required to be paid
Apps ndash an internet-enabled applications like You Tube Facebook Twitter Skype and others
Internet browsing ndash just like PC internet browsing
Music photo and TV watching
Smart ConnectivityWIFI enabled that allows consumers to connect to all mobile devices like smart phone tablet PC notebook and camera with Samsung Wireless Router called 1 foot This connectivity is being called ldquoAllSharerdquo by Samsung
httpotbresearchcomau200509report-1-industry-forum
MEDIA PRIMA IS CURRENTLY HERE
This will ultimately lead Media Prima to reduce it dependence on advertising revenue
Others ndash Utilising the SMART TV technology and Apps to create any existing Media Prima businesses
NEW Revenue Streams for Media Prima
To take advantage of SMART TV and collaborate with SMART TV manufacturers Media Prima can look into following utilities
Collaborate with manufacturers to allow consumers to browse and pay for Media Prima video collections
Selling local music for Malaysia market
Collaborate with local or international content developers to create Malaysia specific contents for paid subscription or free for common content to attract new consumers
How
Content Focus Leveraging on content to Embark on Revenue shifts
Long term sustainable leadership
Restructuring to liberateresources for Content
Sustainable Talent development -
Partnership
Riding the Technology Wave
Short term (2012) Mid Term (by 2013-2015) Long term 2015 beyond
Building Talents in the long run
Education Building on its strategic CSR ndash Media Prima could champion the
development of the content industry by partnering with local universities in the areas of technology media and communication
Crowd Sourcing To haste up the strategic CSR it too could embark on crowd
sourcing for content ndash via scripts and interactive content In which Media Prima could support a great idea and develop the ideas for monetization
This is a synergistic and natural development from the networks structure (open innovation)
Summary ndash Media Prima
Develop Talent Pool
Ensure Vibrant Content Industry
Technologycreates ubiquitous
Low Access Cost
To spur the industry forward
Strong talent develops Content development
demand for access
Strong content industry drives demand for Talent drives demand for content
Our recommendations are aligned to help spur the industry forwardhellip
Restructuring to liberateresources for Content
Sustainable Talent development -
Partnership
Riding the Technology Wave ndash Via Smart
Partnerships
References
References
1 Anon ldquoMedia Prima Berhad implements Accenture integrated broadcast systemrdquo Accenture Press Release httpnewsroomaccenturecomarticle_displaycfmarticle_id=5005 viewed 3 November 2011
2 Anon ldquoNew exciting and vibrant offerings from MPB television networks in 2010rdquo Media Prima Press Release httpwwwmediaprimacommypressreleasepressreleaseaspxid=150 viewed 3 November 2011
3 Anderson J ldquoResource-based competitiveness managerial implications of the resource-based viewrdquo Strategic Direction Vol26 No5 2010 pp1-2
4 Arman Arshad (2006) Size matters Retrieved December 2 2011 from asiaviewsorg httpwwwasiaviewsorgindexphpoption=com_contentampview=articleampid=2171headlinealias2171ampcatid=1headlinesampItemid=2
5 Asia Times (2007 November 29) Malaysian media giant grasps for Internet Retrieved November 3 2011 from httpwwwatimescomatimesSoutheast_AsiaIK29Ae02html
6 Barney JB amp Hesterly WS (2008) Strategic Management and Competitive Advantage The Five Forces Model of Environmental Threats pp39Prentice Hall
7 BBC (2011) BBC News product launches on connected TV Retrieved from bbccoukpressofficepressreleasesstories201106_june17newsshtml
8 Boston Consulting Group (2011) Lean Advantage in Media Boston Consulting Group
9 Boston Consulting Group (2011) Running Forward Walking Backward Boston Consulting Group
10 Business Times (2011) Media Prima net revenue grows to RM119b Kuala Lumpur New Straits Times
11 Business Times (2011) Media Prima on track to achie1048665ing 2011 target Retrieved from www1btimescomm1048668Current_NewsBTIMESarticlespimeArticle
References (1)
12 Business Times (2011) Media Prima Puncak Semangat in early talks Retrieved from httpwwwbtimescommyarticlespimmaArticle
13 Carl W Stern George Stalk Carl W Stern George Stalk Stern CW amp Stalk G (2011) Perspectives of Strategy from the Boston Consulting Group Retrieved December 3 2011 from Value Based Managementnet httpwwwvaluebasedmanagementnetmethods_bcgmatrixhtml
14 ecmlibra (2011) Adex momentum to taper off in 2012 ecmlibra
15 Gershon R A amp Ratnadeep S V (2004) Viacom Inc A Case Study in Transnational Media Management Journal of Media Business Studies 1 (1) 47-69
16 Grant RM ldquoThe resource-based theory of competitive advantage implications for strategy formulationrdquo California Management Review Vol 3 2011 httpwwwskynetie~karenArticlesGrant1_NBpdf viewed 15 November 2011
17 GreyReview (2011) TonTon Streaming Over 11 Million Video Hours A Month now with 16 millions registered users Retrieved from httpwwwgreyreviewcom20110731tonton-serving-over-1-1-million-video-hours-a-month-now-with-1-6-registered-users
18 Heavy Reading (2011) Telecom in TV Land A Roadmap to New Digital Media Ecosystem Retrieved from wwwheavyreadingcomdetailsaspsku_id=1773ampskuitem_itemid=1030
19 Hegedus N (2010) The Great Scare EBR 3 10-17
20 JohnsonGScholesK amp Whittington (2008) Exploring Corporate Strategy Competitive Forces ndash the Five Forces Framework pp 59-64 Prentice Hall
21 kinetic (2011) Moving World Asia Hong Kong
References (2)
22 Knowledgefaber (2009) Telcos Avatar - As Media Companies 20 Retrieved from httpknowledgefabercomindexphpoption=com_contentampview=articleampid=40telecom-and-media-convergenceampcatid=10telecomampItemid=42
23 Knowledgefaber (2011) Telcos Avatar - As Media Companies 20 Retrieved from httpknowledgefabercomindexphpoption=com_contentampview=articleampid=40
24 Malik O (2011) GIGAOM Retrieved from httpgigaomcom20110223old-media-is-being-unbundled-just-like-telecom-was
25 Maxis with TM Astro with TIME Best Strategy to IPTV Market Retrieved December 1 2011 httpbizthestarcommynewsstoryaspfile=201111business7704581ampsec=business
26 Media Prima (2010) Annual Report Media Prima Berhad27 Media Prima Berhad (2011) 11 Nov 2011 - New Exciting amp Vibrant Offerings From MPB Television Retrieved from
wwwmediaprimacommypressreleasepressreleaseaspxid=15028 Media Prima (2010) Sustainability Report Media Prima Berhad29 OSK (2011) Media Prima OSK30 Pocket-Lint (2011) Samsung Smart TV hits 2 million mark Retrieved from
httpwwwpocket-lintcomnews40593samsung-smart-tv-2-million31 PricewaterhouseCoopers (2011) Achieving corporate financial PwC32 PricewaterhouseCoopers (2007) Financial Reporting Standards (FRS) in Malaysia PricewaterhouseCoopers33 SKMM (MCMC) (2009) Advertising Development in Malaysia SKMM34 SKMM (MCMC) (2011) Content Development SKMM35 Techpinions (2011) Interactive TV Trends - How the TV experience is changing - Part II Retrieved from
httptechpinionscominteractive-tv-trends-E28093-how-the-tv-experience-is-changing-part-ii4066
References (3)
36 The Edge (2011) Media Prima best proxy to sector Retrieved from wwwtheedgemalaysiacom37 The Edge Malaysia (2011 September 26) Education the mother of all reforms Retrieved October 30 2011 from
httpwwwtheedgemalaysiacomin-the-financial-daily193478-education-the-mother-of-all-reformshtml38 The Star Online (2011) Main players in the competitive TV sector Retrieved from bizthestarcommynewsstoryasp
file=20111126business997401739 The Star Online (2011) Maxis ready to move up value Retrieved from
bizthestarcommynewsstoryaspfile=201111business7704581ampse40 The Star Online (2011) New players enter the TV Retrieved from
bizthestarcommynewsstoryaspfile=20111126business997300841 The Star Newspaper (December 1 2011) Capital TV to make its debut today42 The Star Online (January 1 2011) Maxis ready to move up value chain Retrieved December 3 2011
httpbizthestarcommynewsstoryaspfile=201111business7704581ampsec=business43 The Star Online (2011 April 21) Media Prima to invest more on local content Retrieved October 30 2011 from C
Usersa34ffzzDesktopMedia PrimaUsed articlesMedia Prima to invest more in local contentmht44 Time Warners (2010) Annual Report Time Warners45 WHAT HI FI (2011) Samsung aims for 50m TV sales worldwide in 2012 set to announce launch date for Google TV
product Retrieved from httpwwwwhathificomnewssamsung-aims-for-50m-tv-sales-worldwide-in-2012-set-to-announce-launch-date-for-google-tv-produ
46 Woroch G A (1996) Turning the Cables Elsevier47 Zanuddin H (2007) Political influence in Malaysia and Thailand media sector Jati Vol12
- MEdiA PRIMA
- Agenda
- Company Profile
- Media Primarsquos Commitment amp Direction moving forward
- Media Industry Business Model ndash Content Driven
- Our Tasks ndash How
- PEST Analysis
- Politics Legal Issues amp Impact
- Economic Issues and Impact
- Social Issues and Impact
- Social Issues and Impact
- Technology Issues and Impact
- In short
- Porterrsquos 5 Forces Analysis
- Porterrsquos Five Forces ndash Competitive Analysis
- Financials
- Media Prima Financial Highlights
- However in further analysis
- Value Chain Analysis
- Resource Based View
- In the context of the Content industry value chain Mapped again
- Appraising capabilities which drives profitability
- Mapping Media Prima revenue streams against the Diversification
- Slide 25
- Related Constrained Diversification
- Related Constrained Diversification (2)
- Slide 28
- Related Linked Diversification
- Slide 30
- Social Responsibility Analysis
- Social Responsibility
- Social Responsibility ndash cont
- Media Prima Acknowledges it various stakeholder via Stakeholder
- It has moved on to 2nd stage of CSR
- SWOT Analysis
- SWOT Analysis ndash Summary
- Media Primarsquos Current situation in summary
- Moving forward 2012 and beyond
- Recommended Destination and future growth of Media Prima
- How Moving from aggregator to content creator
- How Moving from aggregator to content creator (2)
- Creating a Content focus agency All these can be enable via
- Using financial view to free resources for content development
- By changing the business segment reporting it also affects the
- How Moving from aggregator to content creator (3)
- Technology ndash Enable Media Prima to leap into Interactive Conten
- It is not a Fad but a trend
- Slide 50
- Example of Smart TV
- This will ultimately lead Media Prima to reduce it dependence o
- NEW Revenue Streams for Media Prima
- How
- Building Talents in the long run
- Summary ndash Media Prima
- References
- References
- References (1)
- References (2)
- References (3)
-
In short
1 Legislative deregulation spurs the attractiveness of the
market
2 Economic impose pressures for 2012
3 Social shifts leads the way to new media
4 Technology is the catalytic enable of Media organization
shift into New Media
Porterrsquos 5 Forces Analysis
Astro is the only direct challenger as it is the closest to an integrated media organisation
Power of Substitutes 1 Technology and Sharing of
screen ndash Moving away from TV to mobile content and social media decreases the share of attention
2 Self Generated content by Netizens ndash User Generated Content - youtube
Power of Suppliers 1 Content is king and that is what
drives viewership ndash and not the media organisation that aggregates it
2 Content lead experience is dependent on technological development
Threat of New Entrants 1 Introduction of new IPTV which
offers variety of channelsDETV and ABN
2 New entrants have infrastructure backing hence offering product bundling of triple play ie Unifi YTL Comms
Power of Consumers 1 Consumer Moving away from
Print TV and Radio - they are the ones that drive demand
2 Advertiser have a hard time reaching the fragmented audience (beyond traditional media)
Porterrsquos Five Forces ndash Competitive Analysis
Customers are dependant on content (Media Prima) to reach consumers
Competitive Rivalry
Source bizthestarcommynewsstoryaspfile=20111126business9974017
Nevertheless Media Prima is still in control as it complements their services by offering them content
But its audiences are fragmented across 150 channels versus ours which focus 4 stations
Content creators and aggregators need to mirror consumerrsquos media consumption trends
Can be mitigated by internalizing content development but Media Prima needs to keep its content up to date with technology development
Financials
Media Prima Financial Highlights
1327millionProfit After Tax and Minority Interest (ldquoPATAMIrdquo)September 2011 (9 Months)
in the corresponding period for 20101105 million
A healthy GROWTH
Source Media Prima Annual Report 2011
However in further analysisHowever the bulk of its revenue comes from advertising that is in turn dependent on the economic outlook the question arises as to whether Media Prima should diversify its income stream Especially when gt80 of Astrorsquos revenue is on subscription
Reduce Media Primarsquos dependence on advertising revenueas it highly fluctuates with the market conditions
Group
2010 2009
RMrsquo000 RMrsquo000
Advertising revenue 1237961 80 725857 98 Circulation revenue 290691 19 0 Sale of programmes videos cable and laser rights and media revenue 15408 1 11287 2 Fees from provision of production services and sponsorship 2583 0 6885 1 Fees from provision of procurement services Dividends from subsidiaries Dividends from an associate 1546643 100 744029 100
Source Media Prima Annual Report 2011
Value Chain Analysis
Resource Based View
The resource-based view is grounded in the perspective that a firm is a collection of unique resources and capabilities that provides the basis for its strategies and the primary source of its return
SupportActivities
Primary Activities
Strategy Development 4
Resource Identification 1Capabilities Determination 2Competitive advantage 3
Resource Gap Analysis 5
Source Porter Value Chain Robert M Grant
Process of CONTENT aggregation Process of CONTENT creation
In the context of the Content industry value chainMapped against Porterrsquos Value chain
Createbull Scriptwritersbull Actorsbull Animatorsbull Gamesbull developer
Publishbull Production housesbull TV Advert Film
Packagebull Media Primabull Astrobull RTMbull Maxisbull Digibull Celcom
DistributebullTelekombull MBNS (Measat)bull RTM
Content industry value chain
Porterrsquos Value Chain
Human Resource Management
Technological DevelopmentProcurement
Marketing amp Sales
Develop Talent Pool
Ensure Vibrant Content Industry
Technologycreates ubiquitous
Low Access Cost
To spur the industry forward
Strong talent develops Content development
demand for access
Strong content industry drives demand for Talent Drive demand for content
Services
Source SKMM Regulatory Compliance Course for Telcos amp Celcos
MARKETINGStrategies are focused on branding activities and marketing communications aggressive Aamp P and active participation in on-ground activities that promote brand awareness And Established Integrated marketing arm
TECHNOLOGY DEVELOPMENT Alt Media the digital arm successfully launched TonTon TV a cutting edge video portal that offers customization and interactivity of social networking Giving Media Prima an advantage of being able to direct advertisers to precise target groups
PROCUREMENT Stringent supplier selection in terms of 70 are local suppliers Sourcing of content which are relevant responsible engaging especially with the advent of new media
SERVICESMedia Prima fully owns Primeworks Studio helps maximize the economies of scale in content production whilst enhancing the quality of content of all television networks
HUMAN CAPITALPrioritize human capital development in news and editorial operation radio network artist and talent management etc Creating an in-house talent pool to develop content
Content Barriers to entry
ndash securing talents - Leadership position in development of local talent and content to leading the industry
Vertical bargaining power
DifferentiationAnd Competitive advantage
- Consumer insights - Integrated media organization
Activities Benefit
Competitiveness leading to Margins
Goal
Appraising capabilities which drives profitability
Source Media Prima Annual Report 2011
Mapping Media Prima revenue streams against the Diversification Map
HIGH
LOW
HIGHLOW
Shar
ing
Ope
ratio
nal R
elat
edne
ss B
etw
een
Busi
ness
Corporate Relatedness Transferring skills into business through corporate HQ
Related Constrained Diversification
Vertical Integration Market Power
Content Creation and Talent development Prima Works enables Media Prima to create localized content for the local market
Both operation and Corporate Relatedness (Rare Capability and can create Diseconomies of scale)
New Media is both an operation and corporate relatedness diversification as it require Media Prima to go beyond playing the role as aggregator but also content producer leveraging on its strength
Unrelated Diversification (Financial Economies)This area of diversification which is unrelated in operation and skills transfer Media Prima has not exploited
Related Linked Diversification (Economies of Scope)As newscontent are cross platforms and the business models are the same Media Prima was able to share similar content across platforms and acquire related companies
Opportunities - Create more segmented programmes and move into interactive content
OpportunitiesHowever more needs to be done in the new are with the advent of Interactive TV
Opportunities Although unrelated area often has high risk it is crucial at this point for Media Prima to extend into this area in smart partnerships with telecommunication companies ie Axiata TM
OpportunitiesMedia Prima has maximized its diversification strategy in this area BUT the market is yet to be ready amp there is a need to link both NSTP and Media Prima
CurrentPrimeworks Studios Sdn Bhd (owned by Media Prima) is Malaysias biggest production company producing TV content since 1984 and feature films since 1994 generating over 5000 hours of TV content and 10 movies annually
Related Constrained Diversification
ChallengesBut the reality is that it is not able to compete with the myriad of channels of its competitors which are dependent on overseas content
Opportunities However more needs to be doneas channels become more segmented-Procuring more content to compete on quantity - or it could change the content game and move into interactive content
Source Creation of An Integrated Media Group 2009 httpwwwmediaprimacommy
TV Newspaper
Radio
Outdoor
New Medi
a
4 3 3
1 2
gt150
17
2 1
gt14
3
22
22
YTL Comms
ABN 100
Ove
rvie
w o
f com
petit
ors
thei
r bus
ines
s po
rtfol
ios
Related Constrained Diversification
Media Company
Advertisers Corporations(Customers )
Viewers(Consumers)
Consumer Pay for Product
CONTENT
Advertiser payFor (Ad space) $$
1 httpwwwlongtailcomthe_long_tail200809the-three-kindshtml
$
Opportunities The potential here is also for Media Prima to drive content syndication ndash providing content to other media stations abroad
Media Prima is currently doing by syndicating content to ASTRO and Unifi
Competitors
Media Company
Viewers(Consumers)
CONTENT PRO
1 httpwwwlongtailcomthe_long_tail200809the-three-kindshtml
$
C
C
C FREE CONTENT FREE CONTENT
FREE CONTENT
Both operation and Corporate Relatedness
CurrentMedia Primarsquos intention to leverage on both its operations and Corporate relatedness to shift its revenue structure to be less dependent on advertising revenue and move toward subscriber revenue where a few subsidies everyone else via versioning ldquoprice discriminationrdquo
ChallengesIt has to some degree been successful to introduce this ndash via TonTon TV however the revenue from this segment has yet to be significant
To date there are 16 show packages and over 50 single episodes for viewers to purchase ndash which is limited
Opportunities However more needs or can be done in this new area with the advent of Interactive TV
Media Company
Advertisers Corporations(Customers )
Viewers(Consumers)
Consumer Pay for Product
FREE
CONTENT
Advertiser payFor (Ad space) $$
Source Website1 httpwwwlongtailcomthe_long_tail200809the-three-kindshtml2 Creation of An Integrated Media 2009 Grouphttpwwwmediaprimacommyinvestorcentercp2009NSTPGOpdf3 httpwwwtheedgemalaysiacomin-the-financial-daily164479-media-prima-best-proxy-to-sector-says-oskhtml 4 Media Prima net revenue grows to RM119b 2011 httpwwwbtimescommyCurrent_NewsBTIMESarticles20111118202427Articleindex_html
Related Linked Diversification
Current Media Prima has expanded across media with the idea in the hope of a) Leveraging on its expertise of
Advertisers subsiding viewers model b) Share back-office consolidation which
creates operations efficiencies in operation ie Editorial Talents
c) Cross marketing opportunities across platforms - Where Advertisers could purchase cross buy across platforms
Challenges Market ndash Not readyThe market is not ready for bundled and cross market offering According to Dato Amrin Awaluddin Group Managing Director of Media Prima no doubt there was head roads but more effort needs to be done to integrate the platforms better
Internally ndash Structure is not integrated In terms of unlocking NSTPs value he says it would be done in two phases `First is more short term like consolidating in terms of operations while the second stage will entail selling of products and cross-promoting our content which would be an ongoing revenue- generation exerciselsquo And he quoted Joran a property of Berita Harian (NST) ndash a nationwide fishing event being brought to TV3 as an example
Opportunities - The structure impeded cross platform and working in silo
does not help
- Hence there is a need to further shift paradigms via a structural change to free up resources to focus on content
- The market will not know what they want until we present them with the opportunity benefit
Social Responsibility Analysis
Social Responsibility
Media Primarsquos approach to Social Responsibility is based on the key triple bottom line ndash social environmental and economic It considers the socio-economic impact of its business activities in the aim to create value to its stakeholders via the 4 categories ie community workplace marketplace and environment
Community1EducationFocusing on education to raise awareness of the importance of education and increase the academic standards of underprivileged children and underperforming schools eg PINTAR Programme NST School Sponsorship Programme
2 HumanitarianRaise funds for humanitarian aid and provided updates on the local and world disaster crisis to the public and raised awareness of the funds eg Humanitarian Aid for Gaza Humanitarian Aid for Flood Victims in Pakistan
3 Other community programmesProduced outreach programmes to reflect and highlight local and community issues and to be the eyes and ears of the public and engage in public awareness through its businessesrsquo media resources and platforms in print interactive media and television eg Project Sunshine
Social Responsibility ndash cont
Environment - EfficiencyStrongly committed to being an environmentally friendly Company by using recycled paper especially in its newspapers business efficient usage of electricity in offices water management reducing amount of waste produced throughout its businesses and other environmental initiatives such as lsquosave our beachrsquo project and WWFrsquos Earth Hour
Marketplace ndash Responsible ContentFocusing on product responsibility in providing high quality products and is committed to establishing a horizontal specialisation system based on collaboration with stakeholders The production flow is illustrated in the diagram below
Workplace ndash Right CultureIt aims to create a workplace where its people have the opportunity to be the best they possibly can to have the right culture safe working environment and human capital development with fair processes
Media Prima Acknowledges it various stakeholder via Stakeholders Management
Media Prima is aware of the diversity of its stakeholders and the different goals and demand of its stakeholders
The Company conducts active engagement with its stakeholders to fully understand their needs and increase their trust in the Company through formal and informal mechanisms as follows
It has moved on to 2nd stage of CSR
1st Generation 2nd Generation 3rd Generation
Philanthropic short term risk management
Product Process innovation business and corporate governance model long term sustainability Strategic CSR
3rd Generation Multi- stakeholder standards and partnerships institutional building CR- Oriented advocacy and public policy
Opportunity
What is next for Media Prima to shape the industry
Creating content that generate advertising dollars amp donations of the poor social awareness
By leveraging on its content distribution capabilities
SWOT Analysis
SWOT Analysis ndash Summary
Strengths 1 Strong market share in TV segment2 Malaysiarsquos only integrated media
organization- have vertical and horizontal diversification advantage
3 Established value chains strength which complements the required core competencies
4 Have move across 3 revenue models
Weaknesses1 limited number of stations variety and choice
for consumer2 Despite diversification revenues still mainly
driven by advertisers and TV -gt cross platforms is needed
3 Financial segmentation may hinder potentials of the company
Opportunities 1 Broadband infrastructure ndash via HSBB2 Development of technology ndash creating
medias gadgets that increase digital interaction and content consumption
3 Consumers are willing to pay for content4 Possible deregulation of content ndash leveling
the playing field
Threats 1 2012 forecasting a financial slow down
affecting Ad Ex ndash hence revenue is reduced2 Increase competition New Entrants Pay TV
player amp continual competition from ASTRO3 Changing consumer habits towards media
consumption -gt moving away from traditional media ndash hence have to fight for consumerrsquos attention
Right Technology (Gadget and Infrastructure) at the Right time (deregulation) amp Right consumers (shift in media habits and willingness to pay for content ndash ASTRO as indicator)
Vertical Value Chain advantage to compete in content development
Media Primarsquos Current situation in summary
+VE
-VE Revenue dependent on advertising which is affected correlated to GDP
Resources organization structure holds back effectiveness of organization
Moving forward2012 and beyond
Recommended Destination and future growth of Media Prima
Revenue mainly from advertising
Revenue from advertising
Content SubscriptionBy viewers
Content driven Complementary Services for advertiser (Auxillary Services)
Media Prima
Media Prima
Content Syndicationto competitors
+
How Moving from aggregator to content creator
Content Focus Leveraging on content to Embark on Revenue shifts
Long term sustainable leadership
Restructuring to liberateresources for Content
Sustainable Talent development -
Partnership
Riding the Technology Wave
Short term (2012) Mid Term (by 2013-2015) Long term 2015 beyond
How Moving from aggregator to content creator
Content Focus Leveraging on content to Embark on Revenue shifts
Long term sustainable leadership
Restructuring to liberateresources for Content
Sustainable Talent development -
Partnership
Riding the Technology Wave
Short term (2012) Mid Term (by 2013-2015) Long term 2015 beyond
Creating a Content focus agency All these can be enable via the following means
Demand- The content creation race bull There is a need to free up empower human capital to create more content which are relevant
segmented engaging and entertaining
How does media prima refocus its resources into where it matters Instead of multiple teams doing the same thing ndash there is a challenge to create a lean and efficient organization
Challenges Freeing Resources
Instead of looking at a Media based financial segment reporting structurally force the teams to integrate by changing the dynamics of PampL
Next page
Solution Redefining Business Units Paradigms
Take a step up from producing beyond the current vernacular program to meet shifting consumer needs
Challenges ndash Lifestyle lead Variety
Creating Channel programs which are target segment focus based on lifestyles hellip
Acquisition of content as content regulations will be relaxed
Solution Target Segment focus
Using financial view to free resources for content developmentFinancial segment reporting may create a ldquosilordquo mentality ndash which encourages each head of business to protect their bottom line Hence a less effective in operations
Our recommendation is to expand content creation to cut across and shift paradigms to free up resources and focus on new revenue streams And create new content for different segment
Tele
visi
on N
etw
ork
Radi
o N
etw
ork
Out
door
Med
ia
Prin
t M
edia
Oth
er M
edia
Current Financial Segment Reporting
Tele
visi
on N
etw
ork
Radi
o N
etw
ork
Out
door
Med
ia
Prin
t M
edia
Oth
er M
edia
Production
Content
Subscription
Advertising
Recommended Segment Reporting
Lifestyle Segments
Lifestyle Segments
Lifestyle Segments
Lifestyle Segments
Lifestyle Segments
Lifestyle Segments
By changing the business segment reporting it also affects the company structure
The benefits - Flexibility and empowers knowledge
economy ndash talent content driven
- Builds at strong work culture which may be replicated in the region
- Expansion to embark on talent and content crowd sourcing - open innovation creation
Media Prima can take this opportunity to achieve SPECIALIZATION COORDINATION AND COOPERATION Currently team structure ndash of Integrated Marketing Division is created as a temporary solution hellip to enable integration It will move towards a network model to haste integration fast and response to technology and consumer needs
Subcription
Advertising
Production
TechnologyPartner
Content
How Moving from aggregator to content creator
Content Focus Leveraging on content to Embark on Revenue shifts
Long term sustainable leadership
Restructuring to liberateresources for Content
Sustainable Talent development -
Partnership
Riding the Technology Wave
Short term (2012) Mid Term (by 2013-2015) Long term 2015 beyond
Technology ndash Enable Media Prima to leap into Interactive Content
Interactive Content
UniFi Axiata
Media Prima
Electronics Manufacturer
Demand - A ready market bull There is a latent demand for content-gt consumers are
willing to Pay bull Technology has accustomed consumers to interacting
with contentbull Regulatory push to shift from analogue to digital by
2015
However unlike Media Primarsquos western counterparts ie Time Warner Communication Media Prima does not have the advantages of cable infrastructure
Challenges ndash Limitation
Media Prima could depend on existing suppliers of connectivity and technology- Telecommunications ie AXIATA and - Manufacturing companies ie Samsungto take the leap into interactive content Unifi TM
Solution ndash Smart Partnerships
Maximizing Unrelated Diversification
It is not a Fad but a trend
Smart TV is an inevitable trend says Baeguen Kang vice president of
research and development at South Koreas LG Electronics Co the worlds second-largest seller of TV sets by unit volume As people experienced smartphones and tablet PCs the larger screen on a TV is very attractive for apps and Web content
210 million TV sets sold world-wide had an Internet connection (2010)
21 50It will be the forecast in (2014)
Source Evan Ramstad (January 2011)A ldquoManufacturers Turn to Smart TV After 3-D Disappointsrdquo The Wall Street Journal online httponlinewsjcomarticleSB10001424052748704835504576059783074010902html
As technology develops Current cost is will drop exponentially reflecting the Moorersquos Law
Hence lowering the cost of access for interactive content
Example of Smart TV
Smart Hub It is a front facing interface just like a main menu
when consumers turn on their TV There are few utilities that consumers can choose to be entertained
Video ndash consumers can choose from array of video collections that required to be paid
Apps ndash an internet-enabled applications like You Tube Facebook Twitter Skype and others
Internet browsing ndash just like PC internet browsing
Music photo and TV watching
Smart ConnectivityWIFI enabled that allows consumers to connect to all mobile devices like smart phone tablet PC notebook and camera with Samsung Wireless Router called 1 foot This connectivity is being called ldquoAllSharerdquo by Samsung
httpotbresearchcomau200509report-1-industry-forum
MEDIA PRIMA IS CURRENTLY HERE
This will ultimately lead Media Prima to reduce it dependence on advertising revenue
Others ndash Utilising the SMART TV technology and Apps to create any existing Media Prima businesses
NEW Revenue Streams for Media Prima
To take advantage of SMART TV and collaborate with SMART TV manufacturers Media Prima can look into following utilities
Collaborate with manufacturers to allow consumers to browse and pay for Media Prima video collections
Selling local music for Malaysia market
Collaborate with local or international content developers to create Malaysia specific contents for paid subscription or free for common content to attract new consumers
How
Content Focus Leveraging on content to Embark on Revenue shifts
Long term sustainable leadership
Restructuring to liberateresources for Content
Sustainable Talent development -
Partnership
Riding the Technology Wave
Short term (2012) Mid Term (by 2013-2015) Long term 2015 beyond
Building Talents in the long run
Education Building on its strategic CSR ndash Media Prima could champion the
development of the content industry by partnering with local universities in the areas of technology media and communication
Crowd Sourcing To haste up the strategic CSR it too could embark on crowd
sourcing for content ndash via scripts and interactive content In which Media Prima could support a great idea and develop the ideas for monetization
This is a synergistic and natural development from the networks structure (open innovation)
Summary ndash Media Prima
Develop Talent Pool
Ensure Vibrant Content Industry
Technologycreates ubiquitous
Low Access Cost
To spur the industry forward
Strong talent develops Content development
demand for access
Strong content industry drives demand for Talent drives demand for content
Our recommendations are aligned to help spur the industry forwardhellip
Restructuring to liberateresources for Content
Sustainable Talent development -
Partnership
Riding the Technology Wave ndash Via Smart
Partnerships
References
References
1 Anon ldquoMedia Prima Berhad implements Accenture integrated broadcast systemrdquo Accenture Press Release httpnewsroomaccenturecomarticle_displaycfmarticle_id=5005 viewed 3 November 2011
2 Anon ldquoNew exciting and vibrant offerings from MPB television networks in 2010rdquo Media Prima Press Release httpwwwmediaprimacommypressreleasepressreleaseaspxid=150 viewed 3 November 2011
3 Anderson J ldquoResource-based competitiveness managerial implications of the resource-based viewrdquo Strategic Direction Vol26 No5 2010 pp1-2
4 Arman Arshad (2006) Size matters Retrieved December 2 2011 from asiaviewsorg httpwwwasiaviewsorgindexphpoption=com_contentampview=articleampid=2171headlinealias2171ampcatid=1headlinesampItemid=2
5 Asia Times (2007 November 29) Malaysian media giant grasps for Internet Retrieved November 3 2011 from httpwwwatimescomatimesSoutheast_AsiaIK29Ae02html
6 Barney JB amp Hesterly WS (2008) Strategic Management and Competitive Advantage The Five Forces Model of Environmental Threats pp39Prentice Hall
7 BBC (2011) BBC News product launches on connected TV Retrieved from bbccoukpressofficepressreleasesstories201106_june17newsshtml
8 Boston Consulting Group (2011) Lean Advantage in Media Boston Consulting Group
9 Boston Consulting Group (2011) Running Forward Walking Backward Boston Consulting Group
10 Business Times (2011) Media Prima net revenue grows to RM119b Kuala Lumpur New Straits Times
11 Business Times (2011) Media Prima on track to achie1048665ing 2011 target Retrieved from www1btimescomm1048668Current_NewsBTIMESarticlespimeArticle
References (1)
12 Business Times (2011) Media Prima Puncak Semangat in early talks Retrieved from httpwwwbtimescommyarticlespimmaArticle
13 Carl W Stern George Stalk Carl W Stern George Stalk Stern CW amp Stalk G (2011) Perspectives of Strategy from the Boston Consulting Group Retrieved December 3 2011 from Value Based Managementnet httpwwwvaluebasedmanagementnetmethods_bcgmatrixhtml
14 ecmlibra (2011) Adex momentum to taper off in 2012 ecmlibra
15 Gershon R A amp Ratnadeep S V (2004) Viacom Inc A Case Study in Transnational Media Management Journal of Media Business Studies 1 (1) 47-69
16 Grant RM ldquoThe resource-based theory of competitive advantage implications for strategy formulationrdquo California Management Review Vol 3 2011 httpwwwskynetie~karenArticlesGrant1_NBpdf viewed 15 November 2011
17 GreyReview (2011) TonTon Streaming Over 11 Million Video Hours A Month now with 16 millions registered users Retrieved from httpwwwgreyreviewcom20110731tonton-serving-over-1-1-million-video-hours-a-month-now-with-1-6-registered-users
18 Heavy Reading (2011) Telecom in TV Land A Roadmap to New Digital Media Ecosystem Retrieved from wwwheavyreadingcomdetailsaspsku_id=1773ampskuitem_itemid=1030
19 Hegedus N (2010) The Great Scare EBR 3 10-17
20 JohnsonGScholesK amp Whittington (2008) Exploring Corporate Strategy Competitive Forces ndash the Five Forces Framework pp 59-64 Prentice Hall
21 kinetic (2011) Moving World Asia Hong Kong
References (2)
22 Knowledgefaber (2009) Telcos Avatar - As Media Companies 20 Retrieved from httpknowledgefabercomindexphpoption=com_contentampview=articleampid=40telecom-and-media-convergenceampcatid=10telecomampItemid=42
23 Knowledgefaber (2011) Telcos Avatar - As Media Companies 20 Retrieved from httpknowledgefabercomindexphpoption=com_contentampview=articleampid=40
24 Malik O (2011) GIGAOM Retrieved from httpgigaomcom20110223old-media-is-being-unbundled-just-like-telecom-was
25 Maxis with TM Astro with TIME Best Strategy to IPTV Market Retrieved December 1 2011 httpbizthestarcommynewsstoryaspfile=201111business7704581ampsec=business
26 Media Prima (2010) Annual Report Media Prima Berhad27 Media Prima Berhad (2011) 11 Nov 2011 - New Exciting amp Vibrant Offerings From MPB Television Retrieved from
wwwmediaprimacommypressreleasepressreleaseaspxid=15028 Media Prima (2010) Sustainability Report Media Prima Berhad29 OSK (2011) Media Prima OSK30 Pocket-Lint (2011) Samsung Smart TV hits 2 million mark Retrieved from
httpwwwpocket-lintcomnews40593samsung-smart-tv-2-million31 PricewaterhouseCoopers (2011) Achieving corporate financial PwC32 PricewaterhouseCoopers (2007) Financial Reporting Standards (FRS) in Malaysia PricewaterhouseCoopers33 SKMM (MCMC) (2009) Advertising Development in Malaysia SKMM34 SKMM (MCMC) (2011) Content Development SKMM35 Techpinions (2011) Interactive TV Trends - How the TV experience is changing - Part II Retrieved from
httptechpinionscominteractive-tv-trends-E28093-how-the-tv-experience-is-changing-part-ii4066
References (3)
36 The Edge (2011) Media Prima best proxy to sector Retrieved from wwwtheedgemalaysiacom37 The Edge Malaysia (2011 September 26) Education the mother of all reforms Retrieved October 30 2011 from
httpwwwtheedgemalaysiacomin-the-financial-daily193478-education-the-mother-of-all-reformshtml38 The Star Online (2011) Main players in the competitive TV sector Retrieved from bizthestarcommynewsstoryasp
file=20111126business997401739 The Star Online (2011) Maxis ready to move up value Retrieved from
bizthestarcommynewsstoryaspfile=201111business7704581ampse40 The Star Online (2011) New players enter the TV Retrieved from
bizthestarcommynewsstoryaspfile=20111126business997300841 The Star Newspaper (December 1 2011) Capital TV to make its debut today42 The Star Online (January 1 2011) Maxis ready to move up value chain Retrieved December 3 2011
httpbizthestarcommynewsstoryaspfile=201111business7704581ampsec=business43 The Star Online (2011 April 21) Media Prima to invest more on local content Retrieved October 30 2011 from C
Usersa34ffzzDesktopMedia PrimaUsed articlesMedia Prima to invest more in local contentmht44 Time Warners (2010) Annual Report Time Warners45 WHAT HI FI (2011) Samsung aims for 50m TV sales worldwide in 2012 set to announce launch date for Google TV
product Retrieved from httpwwwwhathificomnewssamsung-aims-for-50m-tv-sales-worldwide-in-2012-set-to-announce-launch-date-for-google-tv-produ
46 Woroch G A (1996) Turning the Cables Elsevier47 Zanuddin H (2007) Political influence in Malaysia and Thailand media sector Jati Vol12
- MEdiA PRIMA
- Agenda
- Company Profile
- Media Primarsquos Commitment amp Direction moving forward
- Media Industry Business Model ndash Content Driven
- Our Tasks ndash How
- PEST Analysis
- Politics Legal Issues amp Impact
- Economic Issues and Impact
- Social Issues and Impact
- Social Issues and Impact
- Technology Issues and Impact
- In short
- Porterrsquos 5 Forces Analysis
- Porterrsquos Five Forces ndash Competitive Analysis
- Financials
- Media Prima Financial Highlights
- However in further analysis
- Value Chain Analysis
- Resource Based View
- In the context of the Content industry value chain Mapped again
- Appraising capabilities which drives profitability
- Mapping Media Prima revenue streams against the Diversification
- Slide 25
- Related Constrained Diversification
- Related Constrained Diversification (2)
- Slide 28
- Related Linked Diversification
- Slide 30
- Social Responsibility Analysis
- Social Responsibility
- Social Responsibility ndash cont
- Media Prima Acknowledges it various stakeholder via Stakeholder
- It has moved on to 2nd stage of CSR
- SWOT Analysis
- SWOT Analysis ndash Summary
- Media Primarsquos Current situation in summary
- Moving forward 2012 and beyond
- Recommended Destination and future growth of Media Prima
- How Moving from aggregator to content creator
- How Moving from aggregator to content creator (2)
- Creating a Content focus agency All these can be enable via
- Using financial view to free resources for content development
- By changing the business segment reporting it also affects the
- How Moving from aggregator to content creator (3)
- Technology ndash Enable Media Prima to leap into Interactive Conten
- It is not a Fad but a trend
- Slide 50
- Example of Smart TV
- This will ultimately lead Media Prima to reduce it dependence o
- NEW Revenue Streams for Media Prima
- How
- Building Talents in the long run
- Summary ndash Media Prima
- References
- References
- References (1)
- References (2)
- References (3)
-
Porterrsquos 5 Forces Analysis
Astro is the only direct challenger as it is the closest to an integrated media organisation
Power of Substitutes 1 Technology and Sharing of
screen ndash Moving away from TV to mobile content and social media decreases the share of attention
2 Self Generated content by Netizens ndash User Generated Content - youtube
Power of Suppliers 1 Content is king and that is what
drives viewership ndash and not the media organisation that aggregates it
2 Content lead experience is dependent on technological development
Threat of New Entrants 1 Introduction of new IPTV which
offers variety of channelsDETV and ABN
2 New entrants have infrastructure backing hence offering product bundling of triple play ie Unifi YTL Comms
Power of Consumers 1 Consumer Moving away from
Print TV and Radio - they are the ones that drive demand
2 Advertiser have a hard time reaching the fragmented audience (beyond traditional media)
Porterrsquos Five Forces ndash Competitive Analysis
Customers are dependant on content (Media Prima) to reach consumers
Competitive Rivalry
Source bizthestarcommynewsstoryaspfile=20111126business9974017
Nevertheless Media Prima is still in control as it complements their services by offering them content
But its audiences are fragmented across 150 channels versus ours which focus 4 stations
Content creators and aggregators need to mirror consumerrsquos media consumption trends
Can be mitigated by internalizing content development but Media Prima needs to keep its content up to date with technology development
Financials
Media Prima Financial Highlights
1327millionProfit After Tax and Minority Interest (ldquoPATAMIrdquo)September 2011 (9 Months)
in the corresponding period for 20101105 million
A healthy GROWTH
Source Media Prima Annual Report 2011
However in further analysisHowever the bulk of its revenue comes from advertising that is in turn dependent on the economic outlook the question arises as to whether Media Prima should diversify its income stream Especially when gt80 of Astrorsquos revenue is on subscription
Reduce Media Primarsquos dependence on advertising revenueas it highly fluctuates with the market conditions
Group
2010 2009
RMrsquo000 RMrsquo000
Advertising revenue 1237961 80 725857 98 Circulation revenue 290691 19 0 Sale of programmes videos cable and laser rights and media revenue 15408 1 11287 2 Fees from provision of production services and sponsorship 2583 0 6885 1 Fees from provision of procurement services Dividends from subsidiaries Dividends from an associate 1546643 100 744029 100
Source Media Prima Annual Report 2011
Value Chain Analysis
Resource Based View
The resource-based view is grounded in the perspective that a firm is a collection of unique resources and capabilities that provides the basis for its strategies and the primary source of its return
SupportActivities
Primary Activities
Strategy Development 4
Resource Identification 1Capabilities Determination 2Competitive advantage 3
Resource Gap Analysis 5
Source Porter Value Chain Robert M Grant
Process of CONTENT aggregation Process of CONTENT creation
In the context of the Content industry value chainMapped against Porterrsquos Value chain
Createbull Scriptwritersbull Actorsbull Animatorsbull Gamesbull developer
Publishbull Production housesbull TV Advert Film
Packagebull Media Primabull Astrobull RTMbull Maxisbull Digibull Celcom
DistributebullTelekombull MBNS (Measat)bull RTM
Content industry value chain
Porterrsquos Value Chain
Human Resource Management
Technological DevelopmentProcurement
Marketing amp Sales
Develop Talent Pool
Ensure Vibrant Content Industry
Technologycreates ubiquitous
Low Access Cost
To spur the industry forward
Strong talent develops Content development
demand for access
Strong content industry drives demand for Talent Drive demand for content
Services
Source SKMM Regulatory Compliance Course for Telcos amp Celcos
MARKETINGStrategies are focused on branding activities and marketing communications aggressive Aamp P and active participation in on-ground activities that promote brand awareness And Established Integrated marketing arm
TECHNOLOGY DEVELOPMENT Alt Media the digital arm successfully launched TonTon TV a cutting edge video portal that offers customization and interactivity of social networking Giving Media Prima an advantage of being able to direct advertisers to precise target groups
PROCUREMENT Stringent supplier selection in terms of 70 are local suppliers Sourcing of content which are relevant responsible engaging especially with the advent of new media
SERVICESMedia Prima fully owns Primeworks Studio helps maximize the economies of scale in content production whilst enhancing the quality of content of all television networks
HUMAN CAPITALPrioritize human capital development in news and editorial operation radio network artist and talent management etc Creating an in-house talent pool to develop content
Content Barriers to entry
ndash securing talents - Leadership position in development of local talent and content to leading the industry
Vertical bargaining power
DifferentiationAnd Competitive advantage
- Consumer insights - Integrated media organization
Activities Benefit
Competitiveness leading to Margins
Goal
Appraising capabilities which drives profitability
Source Media Prima Annual Report 2011
Mapping Media Prima revenue streams against the Diversification Map
HIGH
LOW
HIGHLOW
Shar
ing
Ope
ratio
nal R
elat
edne
ss B
etw
een
Busi
ness
Corporate Relatedness Transferring skills into business through corporate HQ
Related Constrained Diversification
Vertical Integration Market Power
Content Creation and Talent development Prima Works enables Media Prima to create localized content for the local market
Both operation and Corporate Relatedness (Rare Capability and can create Diseconomies of scale)
New Media is both an operation and corporate relatedness diversification as it require Media Prima to go beyond playing the role as aggregator but also content producer leveraging on its strength
Unrelated Diversification (Financial Economies)This area of diversification which is unrelated in operation and skills transfer Media Prima has not exploited
Related Linked Diversification (Economies of Scope)As newscontent are cross platforms and the business models are the same Media Prima was able to share similar content across platforms and acquire related companies
Opportunities - Create more segmented programmes and move into interactive content
OpportunitiesHowever more needs to be done in the new are with the advent of Interactive TV
Opportunities Although unrelated area often has high risk it is crucial at this point for Media Prima to extend into this area in smart partnerships with telecommunication companies ie Axiata TM
OpportunitiesMedia Prima has maximized its diversification strategy in this area BUT the market is yet to be ready amp there is a need to link both NSTP and Media Prima
CurrentPrimeworks Studios Sdn Bhd (owned by Media Prima) is Malaysias biggest production company producing TV content since 1984 and feature films since 1994 generating over 5000 hours of TV content and 10 movies annually
Related Constrained Diversification
ChallengesBut the reality is that it is not able to compete with the myriad of channels of its competitors which are dependent on overseas content
Opportunities However more needs to be doneas channels become more segmented-Procuring more content to compete on quantity - or it could change the content game and move into interactive content
Source Creation of An Integrated Media Group 2009 httpwwwmediaprimacommy
TV Newspaper
Radio
Outdoor
New Medi
a
4 3 3
1 2
gt150
17
2 1
gt14
3
22
22
YTL Comms
ABN 100
Ove
rvie
w o
f com
petit
ors
thei
r bus
ines
s po
rtfol
ios
Related Constrained Diversification
Media Company
Advertisers Corporations(Customers )
Viewers(Consumers)
Consumer Pay for Product
CONTENT
Advertiser payFor (Ad space) $$
1 httpwwwlongtailcomthe_long_tail200809the-three-kindshtml
$
Opportunities The potential here is also for Media Prima to drive content syndication ndash providing content to other media stations abroad
Media Prima is currently doing by syndicating content to ASTRO and Unifi
Competitors
Media Company
Viewers(Consumers)
CONTENT PRO
1 httpwwwlongtailcomthe_long_tail200809the-three-kindshtml
$
C
C
C FREE CONTENT FREE CONTENT
FREE CONTENT
Both operation and Corporate Relatedness
CurrentMedia Primarsquos intention to leverage on both its operations and Corporate relatedness to shift its revenue structure to be less dependent on advertising revenue and move toward subscriber revenue where a few subsidies everyone else via versioning ldquoprice discriminationrdquo
ChallengesIt has to some degree been successful to introduce this ndash via TonTon TV however the revenue from this segment has yet to be significant
To date there are 16 show packages and over 50 single episodes for viewers to purchase ndash which is limited
Opportunities However more needs or can be done in this new area with the advent of Interactive TV
Media Company
Advertisers Corporations(Customers )
Viewers(Consumers)
Consumer Pay for Product
FREE
CONTENT
Advertiser payFor (Ad space) $$
Source Website1 httpwwwlongtailcomthe_long_tail200809the-three-kindshtml2 Creation of An Integrated Media 2009 Grouphttpwwwmediaprimacommyinvestorcentercp2009NSTPGOpdf3 httpwwwtheedgemalaysiacomin-the-financial-daily164479-media-prima-best-proxy-to-sector-says-oskhtml 4 Media Prima net revenue grows to RM119b 2011 httpwwwbtimescommyCurrent_NewsBTIMESarticles20111118202427Articleindex_html
Related Linked Diversification
Current Media Prima has expanded across media with the idea in the hope of a) Leveraging on its expertise of
Advertisers subsiding viewers model b) Share back-office consolidation which
creates operations efficiencies in operation ie Editorial Talents
c) Cross marketing opportunities across platforms - Where Advertisers could purchase cross buy across platforms
Challenges Market ndash Not readyThe market is not ready for bundled and cross market offering According to Dato Amrin Awaluddin Group Managing Director of Media Prima no doubt there was head roads but more effort needs to be done to integrate the platforms better
Internally ndash Structure is not integrated In terms of unlocking NSTPs value he says it would be done in two phases `First is more short term like consolidating in terms of operations while the second stage will entail selling of products and cross-promoting our content which would be an ongoing revenue- generation exerciselsquo And he quoted Joran a property of Berita Harian (NST) ndash a nationwide fishing event being brought to TV3 as an example
Opportunities - The structure impeded cross platform and working in silo
does not help
- Hence there is a need to further shift paradigms via a structural change to free up resources to focus on content
- The market will not know what they want until we present them with the opportunity benefit
Social Responsibility Analysis
Social Responsibility
Media Primarsquos approach to Social Responsibility is based on the key triple bottom line ndash social environmental and economic It considers the socio-economic impact of its business activities in the aim to create value to its stakeholders via the 4 categories ie community workplace marketplace and environment
Community1EducationFocusing on education to raise awareness of the importance of education and increase the academic standards of underprivileged children and underperforming schools eg PINTAR Programme NST School Sponsorship Programme
2 HumanitarianRaise funds for humanitarian aid and provided updates on the local and world disaster crisis to the public and raised awareness of the funds eg Humanitarian Aid for Gaza Humanitarian Aid for Flood Victims in Pakistan
3 Other community programmesProduced outreach programmes to reflect and highlight local and community issues and to be the eyes and ears of the public and engage in public awareness through its businessesrsquo media resources and platforms in print interactive media and television eg Project Sunshine
Social Responsibility ndash cont
Environment - EfficiencyStrongly committed to being an environmentally friendly Company by using recycled paper especially in its newspapers business efficient usage of electricity in offices water management reducing amount of waste produced throughout its businesses and other environmental initiatives such as lsquosave our beachrsquo project and WWFrsquos Earth Hour
Marketplace ndash Responsible ContentFocusing on product responsibility in providing high quality products and is committed to establishing a horizontal specialisation system based on collaboration with stakeholders The production flow is illustrated in the diagram below
Workplace ndash Right CultureIt aims to create a workplace where its people have the opportunity to be the best they possibly can to have the right culture safe working environment and human capital development with fair processes
Media Prima Acknowledges it various stakeholder via Stakeholders Management
Media Prima is aware of the diversity of its stakeholders and the different goals and demand of its stakeholders
The Company conducts active engagement with its stakeholders to fully understand their needs and increase their trust in the Company through formal and informal mechanisms as follows
It has moved on to 2nd stage of CSR
1st Generation 2nd Generation 3rd Generation
Philanthropic short term risk management
Product Process innovation business and corporate governance model long term sustainability Strategic CSR
3rd Generation Multi- stakeholder standards and partnerships institutional building CR- Oriented advocacy and public policy
Opportunity
What is next for Media Prima to shape the industry
Creating content that generate advertising dollars amp donations of the poor social awareness
By leveraging on its content distribution capabilities
SWOT Analysis
SWOT Analysis ndash Summary
Strengths 1 Strong market share in TV segment2 Malaysiarsquos only integrated media
organization- have vertical and horizontal diversification advantage
3 Established value chains strength which complements the required core competencies
4 Have move across 3 revenue models
Weaknesses1 limited number of stations variety and choice
for consumer2 Despite diversification revenues still mainly
driven by advertisers and TV -gt cross platforms is needed
3 Financial segmentation may hinder potentials of the company
Opportunities 1 Broadband infrastructure ndash via HSBB2 Development of technology ndash creating
medias gadgets that increase digital interaction and content consumption
3 Consumers are willing to pay for content4 Possible deregulation of content ndash leveling
the playing field
Threats 1 2012 forecasting a financial slow down
affecting Ad Ex ndash hence revenue is reduced2 Increase competition New Entrants Pay TV
player amp continual competition from ASTRO3 Changing consumer habits towards media
consumption -gt moving away from traditional media ndash hence have to fight for consumerrsquos attention
Right Technology (Gadget and Infrastructure) at the Right time (deregulation) amp Right consumers (shift in media habits and willingness to pay for content ndash ASTRO as indicator)
Vertical Value Chain advantage to compete in content development
Media Primarsquos Current situation in summary
+VE
-VE Revenue dependent on advertising which is affected correlated to GDP
Resources organization structure holds back effectiveness of organization
Moving forward2012 and beyond
Recommended Destination and future growth of Media Prima
Revenue mainly from advertising
Revenue from advertising
Content SubscriptionBy viewers
Content driven Complementary Services for advertiser (Auxillary Services)
Media Prima
Media Prima
Content Syndicationto competitors
+
How Moving from aggregator to content creator
Content Focus Leveraging on content to Embark on Revenue shifts
Long term sustainable leadership
Restructuring to liberateresources for Content
Sustainable Talent development -
Partnership
Riding the Technology Wave
Short term (2012) Mid Term (by 2013-2015) Long term 2015 beyond
How Moving from aggregator to content creator
Content Focus Leveraging on content to Embark on Revenue shifts
Long term sustainable leadership
Restructuring to liberateresources for Content
Sustainable Talent development -
Partnership
Riding the Technology Wave
Short term (2012) Mid Term (by 2013-2015) Long term 2015 beyond
Creating a Content focus agency All these can be enable via the following means
Demand- The content creation race bull There is a need to free up empower human capital to create more content which are relevant
segmented engaging and entertaining
How does media prima refocus its resources into where it matters Instead of multiple teams doing the same thing ndash there is a challenge to create a lean and efficient organization
Challenges Freeing Resources
Instead of looking at a Media based financial segment reporting structurally force the teams to integrate by changing the dynamics of PampL
Next page
Solution Redefining Business Units Paradigms
Take a step up from producing beyond the current vernacular program to meet shifting consumer needs
Challenges ndash Lifestyle lead Variety
Creating Channel programs which are target segment focus based on lifestyles hellip
Acquisition of content as content regulations will be relaxed
Solution Target Segment focus
Using financial view to free resources for content developmentFinancial segment reporting may create a ldquosilordquo mentality ndash which encourages each head of business to protect their bottom line Hence a less effective in operations
Our recommendation is to expand content creation to cut across and shift paradigms to free up resources and focus on new revenue streams And create new content for different segment
Tele
visi
on N
etw
ork
Radi
o N
etw
ork
Out
door
Med
ia
Prin
t M
edia
Oth
er M
edia
Current Financial Segment Reporting
Tele
visi
on N
etw
ork
Radi
o N
etw
ork
Out
door
Med
ia
Prin
t M
edia
Oth
er M
edia
Production
Content
Subscription
Advertising
Recommended Segment Reporting
Lifestyle Segments
Lifestyle Segments
Lifestyle Segments
Lifestyle Segments
Lifestyle Segments
Lifestyle Segments
By changing the business segment reporting it also affects the company structure
The benefits - Flexibility and empowers knowledge
economy ndash talent content driven
- Builds at strong work culture which may be replicated in the region
- Expansion to embark on talent and content crowd sourcing - open innovation creation
Media Prima can take this opportunity to achieve SPECIALIZATION COORDINATION AND COOPERATION Currently team structure ndash of Integrated Marketing Division is created as a temporary solution hellip to enable integration It will move towards a network model to haste integration fast and response to technology and consumer needs
Subcription
Advertising
Production
TechnologyPartner
Content
How Moving from aggregator to content creator
Content Focus Leveraging on content to Embark on Revenue shifts
Long term sustainable leadership
Restructuring to liberateresources for Content
Sustainable Talent development -
Partnership
Riding the Technology Wave
Short term (2012) Mid Term (by 2013-2015) Long term 2015 beyond
Technology ndash Enable Media Prima to leap into Interactive Content
Interactive Content
UniFi Axiata
Media Prima
Electronics Manufacturer
Demand - A ready market bull There is a latent demand for content-gt consumers are
willing to Pay bull Technology has accustomed consumers to interacting
with contentbull Regulatory push to shift from analogue to digital by
2015
However unlike Media Primarsquos western counterparts ie Time Warner Communication Media Prima does not have the advantages of cable infrastructure
Challenges ndash Limitation
Media Prima could depend on existing suppliers of connectivity and technology- Telecommunications ie AXIATA and - Manufacturing companies ie Samsungto take the leap into interactive content Unifi TM
Solution ndash Smart Partnerships
Maximizing Unrelated Diversification
It is not a Fad but a trend
Smart TV is an inevitable trend says Baeguen Kang vice president of
research and development at South Koreas LG Electronics Co the worlds second-largest seller of TV sets by unit volume As people experienced smartphones and tablet PCs the larger screen on a TV is very attractive for apps and Web content
210 million TV sets sold world-wide had an Internet connection (2010)
21 50It will be the forecast in (2014)
Source Evan Ramstad (January 2011)A ldquoManufacturers Turn to Smart TV After 3-D Disappointsrdquo The Wall Street Journal online httponlinewsjcomarticleSB10001424052748704835504576059783074010902html
As technology develops Current cost is will drop exponentially reflecting the Moorersquos Law
Hence lowering the cost of access for interactive content
Example of Smart TV
Smart Hub It is a front facing interface just like a main menu
when consumers turn on their TV There are few utilities that consumers can choose to be entertained
Video ndash consumers can choose from array of video collections that required to be paid
Apps ndash an internet-enabled applications like You Tube Facebook Twitter Skype and others
Internet browsing ndash just like PC internet browsing
Music photo and TV watching
Smart ConnectivityWIFI enabled that allows consumers to connect to all mobile devices like smart phone tablet PC notebook and camera with Samsung Wireless Router called 1 foot This connectivity is being called ldquoAllSharerdquo by Samsung
httpotbresearchcomau200509report-1-industry-forum
MEDIA PRIMA IS CURRENTLY HERE
This will ultimately lead Media Prima to reduce it dependence on advertising revenue
Others ndash Utilising the SMART TV technology and Apps to create any existing Media Prima businesses
NEW Revenue Streams for Media Prima
To take advantage of SMART TV and collaborate with SMART TV manufacturers Media Prima can look into following utilities
Collaborate with manufacturers to allow consumers to browse and pay for Media Prima video collections
Selling local music for Malaysia market
Collaborate with local or international content developers to create Malaysia specific contents for paid subscription or free for common content to attract new consumers
How
Content Focus Leveraging on content to Embark on Revenue shifts
Long term sustainable leadership
Restructuring to liberateresources for Content
Sustainable Talent development -
Partnership
Riding the Technology Wave
Short term (2012) Mid Term (by 2013-2015) Long term 2015 beyond
Building Talents in the long run
Education Building on its strategic CSR ndash Media Prima could champion the
development of the content industry by partnering with local universities in the areas of technology media and communication
Crowd Sourcing To haste up the strategic CSR it too could embark on crowd
sourcing for content ndash via scripts and interactive content In which Media Prima could support a great idea and develop the ideas for monetization
This is a synergistic and natural development from the networks structure (open innovation)
Summary ndash Media Prima
Develop Talent Pool
Ensure Vibrant Content Industry
Technologycreates ubiquitous
Low Access Cost
To spur the industry forward
Strong talent develops Content development
demand for access
Strong content industry drives demand for Talent drives demand for content
Our recommendations are aligned to help spur the industry forwardhellip
Restructuring to liberateresources for Content
Sustainable Talent development -
Partnership
Riding the Technology Wave ndash Via Smart
Partnerships
References
References
1 Anon ldquoMedia Prima Berhad implements Accenture integrated broadcast systemrdquo Accenture Press Release httpnewsroomaccenturecomarticle_displaycfmarticle_id=5005 viewed 3 November 2011
2 Anon ldquoNew exciting and vibrant offerings from MPB television networks in 2010rdquo Media Prima Press Release httpwwwmediaprimacommypressreleasepressreleaseaspxid=150 viewed 3 November 2011
3 Anderson J ldquoResource-based competitiveness managerial implications of the resource-based viewrdquo Strategic Direction Vol26 No5 2010 pp1-2
4 Arman Arshad (2006) Size matters Retrieved December 2 2011 from asiaviewsorg httpwwwasiaviewsorgindexphpoption=com_contentampview=articleampid=2171headlinealias2171ampcatid=1headlinesampItemid=2
5 Asia Times (2007 November 29) Malaysian media giant grasps for Internet Retrieved November 3 2011 from httpwwwatimescomatimesSoutheast_AsiaIK29Ae02html
6 Barney JB amp Hesterly WS (2008) Strategic Management and Competitive Advantage The Five Forces Model of Environmental Threats pp39Prentice Hall
7 BBC (2011) BBC News product launches on connected TV Retrieved from bbccoukpressofficepressreleasesstories201106_june17newsshtml
8 Boston Consulting Group (2011) Lean Advantage in Media Boston Consulting Group
9 Boston Consulting Group (2011) Running Forward Walking Backward Boston Consulting Group
10 Business Times (2011) Media Prima net revenue grows to RM119b Kuala Lumpur New Straits Times
11 Business Times (2011) Media Prima on track to achie1048665ing 2011 target Retrieved from www1btimescomm1048668Current_NewsBTIMESarticlespimeArticle
References (1)
12 Business Times (2011) Media Prima Puncak Semangat in early talks Retrieved from httpwwwbtimescommyarticlespimmaArticle
13 Carl W Stern George Stalk Carl W Stern George Stalk Stern CW amp Stalk G (2011) Perspectives of Strategy from the Boston Consulting Group Retrieved December 3 2011 from Value Based Managementnet httpwwwvaluebasedmanagementnetmethods_bcgmatrixhtml
14 ecmlibra (2011) Adex momentum to taper off in 2012 ecmlibra
15 Gershon R A amp Ratnadeep S V (2004) Viacom Inc A Case Study in Transnational Media Management Journal of Media Business Studies 1 (1) 47-69
16 Grant RM ldquoThe resource-based theory of competitive advantage implications for strategy formulationrdquo California Management Review Vol 3 2011 httpwwwskynetie~karenArticlesGrant1_NBpdf viewed 15 November 2011
17 GreyReview (2011) TonTon Streaming Over 11 Million Video Hours A Month now with 16 millions registered users Retrieved from httpwwwgreyreviewcom20110731tonton-serving-over-1-1-million-video-hours-a-month-now-with-1-6-registered-users
18 Heavy Reading (2011) Telecom in TV Land A Roadmap to New Digital Media Ecosystem Retrieved from wwwheavyreadingcomdetailsaspsku_id=1773ampskuitem_itemid=1030
19 Hegedus N (2010) The Great Scare EBR 3 10-17
20 JohnsonGScholesK amp Whittington (2008) Exploring Corporate Strategy Competitive Forces ndash the Five Forces Framework pp 59-64 Prentice Hall
21 kinetic (2011) Moving World Asia Hong Kong
References (2)
22 Knowledgefaber (2009) Telcos Avatar - As Media Companies 20 Retrieved from httpknowledgefabercomindexphpoption=com_contentampview=articleampid=40telecom-and-media-convergenceampcatid=10telecomampItemid=42
23 Knowledgefaber (2011) Telcos Avatar - As Media Companies 20 Retrieved from httpknowledgefabercomindexphpoption=com_contentampview=articleampid=40
24 Malik O (2011) GIGAOM Retrieved from httpgigaomcom20110223old-media-is-being-unbundled-just-like-telecom-was
25 Maxis with TM Astro with TIME Best Strategy to IPTV Market Retrieved December 1 2011 httpbizthestarcommynewsstoryaspfile=201111business7704581ampsec=business
26 Media Prima (2010) Annual Report Media Prima Berhad27 Media Prima Berhad (2011) 11 Nov 2011 - New Exciting amp Vibrant Offerings From MPB Television Retrieved from
wwwmediaprimacommypressreleasepressreleaseaspxid=15028 Media Prima (2010) Sustainability Report Media Prima Berhad29 OSK (2011) Media Prima OSK30 Pocket-Lint (2011) Samsung Smart TV hits 2 million mark Retrieved from
httpwwwpocket-lintcomnews40593samsung-smart-tv-2-million31 PricewaterhouseCoopers (2011) Achieving corporate financial PwC32 PricewaterhouseCoopers (2007) Financial Reporting Standards (FRS) in Malaysia PricewaterhouseCoopers33 SKMM (MCMC) (2009) Advertising Development in Malaysia SKMM34 SKMM (MCMC) (2011) Content Development SKMM35 Techpinions (2011) Interactive TV Trends - How the TV experience is changing - Part II Retrieved from
httptechpinionscominteractive-tv-trends-E28093-how-the-tv-experience-is-changing-part-ii4066
References (3)
36 The Edge (2011) Media Prima best proxy to sector Retrieved from wwwtheedgemalaysiacom37 The Edge Malaysia (2011 September 26) Education the mother of all reforms Retrieved October 30 2011 from
httpwwwtheedgemalaysiacomin-the-financial-daily193478-education-the-mother-of-all-reformshtml38 The Star Online (2011) Main players in the competitive TV sector Retrieved from bizthestarcommynewsstoryasp
file=20111126business997401739 The Star Online (2011) Maxis ready to move up value Retrieved from
bizthestarcommynewsstoryaspfile=201111business7704581ampse40 The Star Online (2011) New players enter the TV Retrieved from
bizthestarcommynewsstoryaspfile=20111126business997300841 The Star Newspaper (December 1 2011) Capital TV to make its debut today42 The Star Online (January 1 2011) Maxis ready to move up value chain Retrieved December 3 2011
httpbizthestarcommynewsstoryaspfile=201111business7704581ampsec=business43 The Star Online (2011 April 21) Media Prima to invest more on local content Retrieved October 30 2011 from C
Usersa34ffzzDesktopMedia PrimaUsed articlesMedia Prima to invest more in local contentmht44 Time Warners (2010) Annual Report Time Warners45 WHAT HI FI (2011) Samsung aims for 50m TV sales worldwide in 2012 set to announce launch date for Google TV
product Retrieved from httpwwwwhathificomnewssamsung-aims-for-50m-tv-sales-worldwide-in-2012-set-to-announce-launch-date-for-google-tv-produ
46 Woroch G A (1996) Turning the Cables Elsevier47 Zanuddin H (2007) Political influence in Malaysia and Thailand media sector Jati Vol12
- MEdiA PRIMA
- Agenda
- Company Profile
- Media Primarsquos Commitment amp Direction moving forward
- Media Industry Business Model ndash Content Driven
- Our Tasks ndash How
- PEST Analysis
- Politics Legal Issues amp Impact
- Economic Issues and Impact
- Social Issues and Impact
- Social Issues and Impact
- Technology Issues and Impact
- In short
- Porterrsquos 5 Forces Analysis
- Porterrsquos Five Forces ndash Competitive Analysis
- Financials
- Media Prima Financial Highlights
- However in further analysis
- Value Chain Analysis
- Resource Based View
- In the context of the Content industry value chain Mapped again
- Appraising capabilities which drives profitability
- Mapping Media Prima revenue streams against the Diversification
- Slide 25
- Related Constrained Diversification
- Related Constrained Diversification (2)
- Slide 28
- Related Linked Diversification
- Slide 30
- Social Responsibility Analysis
- Social Responsibility
- Social Responsibility ndash cont
- Media Prima Acknowledges it various stakeholder via Stakeholder
- It has moved on to 2nd stage of CSR
- SWOT Analysis
- SWOT Analysis ndash Summary
- Media Primarsquos Current situation in summary
- Moving forward 2012 and beyond
- Recommended Destination and future growth of Media Prima
- How Moving from aggregator to content creator
- How Moving from aggregator to content creator (2)
- Creating a Content focus agency All these can be enable via
- Using financial view to free resources for content development
- By changing the business segment reporting it also affects the
- How Moving from aggregator to content creator (3)
- Technology ndash Enable Media Prima to leap into Interactive Conten
- It is not a Fad but a trend
- Slide 50
- Example of Smart TV
- This will ultimately lead Media Prima to reduce it dependence o
- NEW Revenue Streams for Media Prima
- How
- Building Talents in the long run
- Summary ndash Media Prima
- References
- References
- References (1)
- References (2)
- References (3)
-
Astro is the only direct challenger as it is the closest to an integrated media organisation
Power of Substitutes 1 Technology and Sharing of
screen ndash Moving away from TV to mobile content and social media decreases the share of attention
2 Self Generated content by Netizens ndash User Generated Content - youtube
Power of Suppliers 1 Content is king and that is what
drives viewership ndash and not the media organisation that aggregates it
2 Content lead experience is dependent on technological development
Threat of New Entrants 1 Introduction of new IPTV which
offers variety of channelsDETV and ABN
2 New entrants have infrastructure backing hence offering product bundling of triple play ie Unifi YTL Comms
Power of Consumers 1 Consumer Moving away from
Print TV and Radio - they are the ones that drive demand
2 Advertiser have a hard time reaching the fragmented audience (beyond traditional media)
Porterrsquos Five Forces ndash Competitive Analysis
Customers are dependant on content (Media Prima) to reach consumers
Competitive Rivalry
Source bizthestarcommynewsstoryaspfile=20111126business9974017
Nevertheless Media Prima is still in control as it complements their services by offering them content
But its audiences are fragmented across 150 channels versus ours which focus 4 stations
Content creators and aggregators need to mirror consumerrsquos media consumption trends
Can be mitigated by internalizing content development but Media Prima needs to keep its content up to date with technology development
Financials
Media Prima Financial Highlights
1327millionProfit After Tax and Minority Interest (ldquoPATAMIrdquo)September 2011 (9 Months)
in the corresponding period for 20101105 million
A healthy GROWTH
Source Media Prima Annual Report 2011
However in further analysisHowever the bulk of its revenue comes from advertising that is in turn dependent on the economic outlook the question arises as to whether Media Prima should diversify its income stream Especially when gt80 of Astrorsquos revenue is on subscription
Reduce Media Primarsquos dependence on advertising revenueas it highly fluctuates with the market conditions
Group
2010 2009
RMrsquo000 RMrsquo000
Advertising revenue 1237961 80 725857 98 Circulation revenue 290691 19 0 Sale of programmes videos cable and laser rights and media revenue 15408 1 11287 2 Fees from provision of production services and sponsorship 2583 0 6885 1 Fees from provision of procurement services Dividends from subsidiaries Dividends from an associate 1546643 100 744029 100
Source Media Prima Annual Report 2011
Value Chain Analysis
Resource Based View
The resource-based view is grounded in the perspective that a firm is a collection of unique resources and capabilities that provides the basis for its strategies and the primary source of its return
SupportActivities
Primary Activities
Strategy Development 4
Resource Identification 1Capabilities Determination 2Competitive advantage 3
Resource Gap Analysis 5
Source Porter Value Chain Robert M Grant
Process of CONTENT aggregation Process of CONTENT creation
In the context of the Content industry value chainMapped against Porterrsquos Value chain
Createbull Scriptwritersbull Actorsbull Animatorsbull Gamesbull developer
Publishbull Production housesbull TV Advert Film
Packagebull Media Primabull Astrobull RTMbull Maxisbull Digibull Celcom
DistributebullTelekombull MBNS (Measat)bull RTM
Content industry value chain
Porterrsquos Value Chain
Human Resource Management
Technological DevelopmentProcurement
Marketing amp Sales
Develop Talent Pool
Ensure Vibrant Content Industry
Technologycreates ubiquitous
Low Access Cost
To spur the industry forward
Strong talent develops Content development
demand for access
Strong content industry drives demand for Talent Drive demand for content
Services
Source SKMM Regulatory Compliance Course for Telcos amp Celcos
MARKETINGStrategies are focused on branding activities and marketing communications aggressive Aamp P and active participation in on-ground activities that promote brand awareness And Established Integrated marketing arm
TECHNOLOGY DEVELOPMENT Alt Media the digital arm successfully launched TonTon TV a cutting edge video portal that offers customization and interactivity of social networking Giving Media Prima an advantage of being able to direct advertisers to precise target groups
PROCUREMENT Stringent supplier selection in terms of 70 are local suppliers Sourcing of content which are relevant responsible engaging especially with the advent of new media
SERVICESMedia Prima fully owns Primeworks Studio helps maximize the economies of scale in content production whilst enhancing the quality of content of all television networks
HUMAN CAPITALPrioritize human capital development in news and editorial operation radio network artist and talent management etc Creating an in-house talent pool to develop content
Content Barriers to entry
ndash securing talents - Leadership position in development of local talent and content to leading the industry
Vertical bargaining power
DifferentiationAnd Competitive advantage
- Consumer insights - Integrated media organization
Activities Benefit
Competitiveness leading to Margins
Goal
Appraising capabilities which drives profitability
Source Media Prima Annual Report 2011
Mapping Media Prima revenue streams against the Diversification Map
HIGH
LOW
HIGHLOW
Shar
ing
Ope
ratio
nal R
elat
edne
ss B
etw
een
Busi
ness
Corporate Relatedness Transferring skills into business through corporate HQ
Related Constrained Diversification
Vertical Integration Market Power
Content Creation and Talent development Prima Works enables Media Prima to create localized content for the local market
Both operation and Corporate Relatedness (Rare Capability and can create Diseconomies of scale)
New Media is both an operation and corporate relatedness diversification as it require Media Prima to go beyond playing the role as aggregator but also content producer leveraging on its strength
Unrelated Diversification (Financial Economies)This area of diversification which is unrelated in operation and skills transfer Media Prima has not exploited
Related Linked Diversification (Economies of Scope)As newscontent are cross platforms and the business models are the same Media Prima was able to share similar content across platforms and acquire related companies
Opportunities - Create more segmented programmes and move into interactive content
OpportunitiesHowever more needs to be done in the new are with the advent of Interactive TV
Opportunities Although unrelated area often has high risk it is crucial at this point for Media Prima to extend into this area in smart partnerships with telecommunication companies ie Axiata TM
OpportunitiesMedia Prima has maximized its diversification strategy in this area BUT the market is yet to be ready amp there is a need to link both NSTP and Media Prima
CurrentPrimeworks Studios Sdn Bhd (owned by Media Prima) is Malaysias biggest production company producing TV content since 1984 and feature films since 1994 generating over 5000 hours of TV content and 10 movies annually
Related Constrained Diversification
ChallengesBut the reality is that it is not able to compete with the myriad of channels of its competitors which are dependent on overseas content
Opportunities However more needs to be doneas channels become more segmented-Procuring more content to compete on quantity - or it could change the content game and move into interactive content
Source Creation of An Integrated Media Group 2009 httpwwwmediaprimacommy
TV Newspaper
Radio
Outdoor
New Medi
a
4 3 3
1 2
gt150
17
2 1
gt14
3
22
22
YTL Comms
ABN 100
Ove
rvie
w o
f com
petit
ors
thei
r bus
ines
s po
rtfol
ios
Related Constrained Diversification
Media Company
Advertisers Corporations(Customers )
Viewers(Consumers)
Consumer Pay for Product
CONTENT
Advertiser payFor (Ad space) $$
1 httpwwwlongtailcomthe_long_tail200809the-three-kindshtml
$
Opportunities The potential here is also for Media Prima to drive content syndication ndash providing content to other media stations abroad
Media Prima is currently doing by syndicating content to ASTRO and Unifi
Competitors
Media Company
Viewers(Consumers)
CONTENT PRO
1 httpwwwlongtailcomthe_long_tail200809the-three-kindshtml
$
C
C
C FREE CONTENT FREE CONTENT
FREE CONTENT
Both operation and Corporate Relatedness
CurrentMedia Primarsquos intention to leverage on both its operations and Corporate relatedness to shift its revenue structure to be less dependent on advertising revenue and move toward subscriber revenue where a few subsidies everyone else via versioning ldquoprice discriminationrdquo
ChallengesIt has to some degree been successful to introduce this ndash via TonTon TV however the revenue from this segment has yet to be significant
To date there are 16 show packages and over 50 single episodes for viewers to purchase ndash which is limited
Opportunities However more needs or can be done in this new area with the advent of Interactive TV
Media Company
Advertisers Corporations(Customers )
Viewers(Consumers)
Consumer Pay for Product
FREE
CONTENT
Advertiser payFor (Ad space) $$
Source Website1 httpwwwlongtailcomthe_long_tail200809the-three-kindshtml2 Creation of An Integrated Media 2009 Grouphttpwwwmediaprimacommyinvestorcentercp2009NSTPGOpdf3 httpwwwtheedgemalaysiacomin-the-financial-daily164479-media-prima-best-proxy-to-sector-says-oskhtml 4 Media Prima net revenue grows to RM119b 2011 httpwwwbtimescommyCurrent_NewsBTIMESarticles20111118202427Articleindex_html
Related Linked Diversification
Current Media Prima has expanded across media with the idea in the hope of a) Leveraging on its expertise of
Advertisers subsiding viewers model b) Share back-office consolidation which
creates operations efficiencies in operation ie Editorial Talents
c) Cross marketing opportunities across platforms - Where Advertisers could purchase cross buy across platforms
Challenges Market ndash Not readyThe market is not ready for bundled and cross market offering According to Dato Amrin Awaluddin Group Managing Director of Media Prima no doubt there was head roads but more effort needs to be done to integrate the platforms better
Internally ndash Structure is not integrated In terms of unlocking NSTPs value he says it would be done in two phases `First is more short term like consolidating in terms of operations while the second stage will entail selling of products and cross-promoting our content which would be an ongoing revenue- generation exerciselsquo And he quoted Joran a property of Berita Harian (NST) ndash a nationwide fishing event being brought to TV3 as an example
Opportunities - The structure impeded cross platform and working in silo
does not help
- Hence there is a need to further shift paradigms via a structural change to free up resources to focus on content
- The market will not know what they want until we present them with the opportunity benefit
Social Responsibility Analysis
Social Responsibility
Media Primarsquos approach to Social Responsibility is based on the key triple bottom line ndash social environmental and economic It considers the socio-economic impact of its business activities in the aim to create value to its stakeholders via the 4 categories ie community workplace marketplace and environment
Community1EducationFocusing on education to raise awareness of the importance of education and increase the academic standards of underprivileged children and underperforming schools eg PINTAR Programme NST School Sponsorship Programme
2 HumanitarianRaise funds for humanitarian aid and provided updates on the local and world disaster crisis to the public and raised awareness of the funds eg Humanitarian Aid for Gaza Humanitarian Aid for Flood Victims in Pakistan
3 Other community programmesProduced outreach programmes to reflect and highlight local and community issues and to be the eyes and ears of the public and engage in public awareness through its businessesrsquo media resources and platforms in print interactive media and television eg Project Sunshine
Social Responsibility ndash cont
Environment - EfficiencyStrongly committed to being an environmentally friendly Company by using recycled paper especially in its newspapers business efficient usage of electricity in offices water management reducing amount of waste produced throughout its businesses and other environmental initiatives such as lsquosave our beachrsquo project and WWFrsquos Earth Hour
Marketplace ndash Responsible ContentFocusing on product responsibility in providing high quality products and is committed to establishing a horizontal specialisation system based on collaboration with stakeholders The production flow is illustrated in the diagram below
Workplace ndash Right CultureIt aims to create a workplace where its people have the opportunity to be the best they possibly can to have the right culture safe working environment and human capital development with fair processes
Media Prima Acknowledges it various stakeholder via Stakeholders Management
Media Prima is aware of the diversity of its stakeholders and the different goals and demand of its stakeholders
The Company conducts active engagement with its stakeholders to fully understand their needs and increase their trust in the Company through formal and informal mechanisms as follows
It has moved on to 2nd stage of CSR
1st Generation 2nd Generation 3rd Generation
Philanthropic short term risk management
Product Process innovation business and corporate governance model long term sustainability Strategic CSR
3rd Generation Multi- stakeholder standards and partnerships institutional building CR- Oriented advocacy and public policy
Opportunity
What is next for Media Prima to shape the industry
Creating content that generate advertising dollars amp donations of the poor social awareness
By leveraging on its content distribution capabilities
SWOT Analysis
SWOT Analysis ndash Summary
Strengths 1 Strong market share in TV segment2 Malaysiarsquos only integrated media
organization- have vertical and horizontal diversification advantage
3 Established value chains strength which complements the required core competencies
4 Have move across 3 revenue models
Weaknesses1 limited number of stations variety and choice
for consumer2 Despite diversification revenues still mainly
driven by advertisers and TV -gt cross platforms is needed
3 Financial segmentation may hinder potentials of the company
Opportunities 1 Broadband infrastructure ndash via HSBB2 Development of technology ndash creating
medias gadgets that increase digital interaction and content consumption
3 Consumers are willing to pay for content4 Possible deregulation of content ndash leveling
the playing field
Threats 1 2012 forecasting a financial slow down
affecting Ad Ex ndash hence revenue is reduced2 Increase competition New Entrants Pay TV
player amp continual competition from ASTRO3 Changing consumer habits towards media
consumption -gt moving away from traditional media ndash hence have to fight for consumerrsquos attention
Right Technology (Gadget and Infrastructure) at the Right time (deregulation) amp Right consumers (shift in media habits and willingness to pay for content ndash ASTRO as indicator)
Vertical Value Chain advantage to compete in content development
Media Primarsquos Current situation in summary
+VE
-VE Revenue dependent on advertising which is affected correlated to GDP
Resources organization structure holds back effectiveness of organization
Moving forward2012 and beyond
Recommended Destination and future growth of Media Prima
Revenue mainly from advertising
Revenue from advertising
Content SubscriptionBy viewers
Content driven Complementary Services for advertiser (Auxillary Services)
Media Prima
Media Prima
Content Syndicationto competitors
+
How Moving from aggregator to content creator
Content Focus Leveraging on content to Embark on Revenue shifts
Long term sustainable leadership
Restructuring to liberateresources for Content
Sustainable Talent development -
Partnership
Riding the Technology Wave
Short term (2012) Mid Term (by 2013-2015) Long term 2015 beyond
How Moving from aggregator to content creator
Content Focus Leveraging on content to Embark on Revenue shifts
Long term sustainable leadership
Restructuring to liberateresources for Content
Sustainable Talent development -
Partnership
Riding the Technology Wave
Short term (2012) Mid Term (by 2013-2015) Long term 2015 beyond
Creating a Content focus agency All these can be enable via the following means
Demand- The content creation race bull There is a need to free up empower human capital to create more content which are relevant
segmented engaging and entertaining
How does media prima refocus its resources into where it matters Instead of multiple teams doing the same thing ndash there is a challenge to create a lean and efficient organization
Challenges Freeing Resources
Instead of looking at a Media based financial segment reporting structurally force the teams to integrate by changing the dynamics of PampL
Next page
Solution Redefining Business Units Paradigms
Take a step up from producing beyond the current vernacular program to meet shifting consumer needs
Challenges ndash Lifestyle lead Variety
Creating Channel programs which are target segment focus based on lifestyles hellip
Acquisition of content as content regulations will be relaxed
Solution Target Segment focus
Using financial view to free resources for content developmentFinancial segment reporting may create a ldquosilordquo mentality ndash which encourages each head of business to protect their bottom line Hence a less effective in operations
Our recommendation is to expand content creation to cut across and shift paradigms to free up resources and focus on new revenue streams And create new content for different segment
Tele
visi
on N
etw
ork
Radi
o N
etw
ork
Out
door
Med
ia
Prin
t M
edia
Oth
er M
edia
Current Financial Segment Reporting
Tele
visi
on N
etw
ork
Radi
o N
etw
ork
Out
door
Med
ia
Prin
t M
edia
Oth
er M
edia
Production
Content
Subscription
Advertising
Recommended Segment Reporting
Lifestyle Segments
Lifestyle Segments
Lifestyle Segments
Lifestyle Segments
Lifestyle Segments
Lifestyle Segments
By changing the business segment reporting it also affects the company structure
The benefits - Flexibility and empowers knowledge
economy ndash talent content driven
- Builds at strong work culture which may be replicated in the region
- Expansion to embark on talent and content crowd sourcing - open innovation creation
Media Prima can take this opportunity to achieve SPECIALIZATION COORDINATION AND COOPERATION Currently team structure ndash of Integrated Marketing Division is created as a temporary solution hellip to enable integration It will move towards a network model to haste integration fast and response to technology and consumer needs
Subcription
Advertising
Production
TechnologyPartner
Content
How Moving from aggregator to content creator
Content Focus Leveraging on content to Embark on Revenue shifts
Long term sustainable leadership
Restructuring to liberateresources for Content
Sustainable Talent development -
Partnership
Riding the Technology Wave
Short term (2012) Mid Term (by 2013-2015) Long term 2015 beyond
Technology ndash Enable Media Prima to leap into Interactive Content
Interactive Content
UniFi Axiata
Media Prima
Electronics Manufacturer
Demand - A ready market bull There is a latent demand for content-gt consumers are
willing to Pay bull Technology has accustomed consumers to interacting
with contentbull Regulatory push to shift from analogue to digital by
2015
However unlike Media Primarsquos western counterparts ie Time Warner Communication Media Prima does not have the advantages of cable infrastructure
Challenges ndash Limitation
Media Prima could depend on existing suppliers of connectivity and technology- Telecommunications ie AXIATA and - Manufacturing companies ie Samsungto take the leap into interactive content Unifi TM
Solution ndash Smart Partnerships
Maximizing Unrelated Diversification
It is not a Fad but a trend
Smart TV is an inevitable trend says Baeguen Kang vice president of
research and development at South Koreas LG Electronics Co the worlds second-largest seller of TV sets by unit volume As people experienced smartphones and tablet PCs the larger screen on a TV is very attractive for apps and Web content
210 million TV sets sold world-wide had an Internet connection (2010)
21 50It will be the forecast in (2014)
Source Evan Ramstad (January 2011)A ldquoManufacturers Turn to Smart TV After 3-D Disappointsrdquo The Wall Street Journal online httponlinewsjcomarticleSB10001424052748704835504576059783074010902html
As technology develops Current cost is will drop exponentially reflecting the Moorersquos Law
Hence lowering the cost of access for interactive content
Example of Smart TV
Smart Hub It is a front facing interface just like a main menu
when consumers turn on their TV There are few utilities that consumers can choose to be entertained
Video ndash consumers can choose from array of video collections that required to be paid
Apps ndash an internet-enabled applications like You Tube Facebook Twitter Skype and others
Internet browsing ndash just like PC internet browsing
Music photo and TV watching
Smart ConnectivityWIFI enabled that allows consumers to connect to all mobile devices like smart phone tablet PC notebook and camera with Samsung Wireless Router called 1 foot This connectivity is being called ldquoAllSharerdquo by Samsung
httpotbresearchcomau200509report-1-industry-forum
MEDIA PRIMA IS CURRENTLY HERE
This will ultimately lead Media Prima to reduce it dependence on advertising revenue
Others ndash Utilising the SMART TV technology and Apps to create any existing Media Prima businesses
NEW Revenue Streams for Media Prima
To take advantage of SMART TV and collaborate with SMART TV manufacturers Media Prima can look into following utilities
Collaborate with manufacturers to allow consumers to browse and pay for Media Prima video collections
Selling local music for Malaysia market
Collaborate with local or international content developers to create Malaysia specific contents for paid subscription or free for common content to attract new consumers
How
Content Focus Leveraging on content to Embark on Revenue shifts
Long term sustainable leadership
Restructuring to liberateresources for Content
Sustainable Talent development -
Partnership
Riding the Technology Wave
Short term (2012) Mid Term (by 2013-2015) Long term 2015 beyond
Building Talents in the long run
Education Building on its strategic CSR ndash Media Prima could champion the
development of the content industry by partnering with local universities in the areas of technology media and communication
Crowd Sourcing To haste up the strategic CSR it too could embark on crowd
sourcing for content ndash via scripts and interactive content In which Media Prima could support a great idea and develop the ideas for monetization
This is a synergistic and natural development from the networks structure (open innovation)
Summary ndash Media Prima
Develop Talent Pool
Ensure Vibrant Content Industry
Technologycreates ubiquitous
Low Access Cost
To spur the industry forward
Strong talent develops Content development
demand for access
Strong content industry drives demand for Talent drives demand for content
Our recommendations are aligned to help spur the industry forwardhellip
Restructuring to liberateresources for Content
Sustainable Talent development -
Partnership
Riding the Technology Wave ndash Via Smart
Partnerships
References
References
1 Anon ldquoMedia Prima Berhad implements Accenture integrated broadcast systemrdquo Accenture Press Release httpnewsroomaccenturecomarticle_displaycfmarticle_id=5005 viewed 3 November 2011
2 Anon ldquoNew exciting and vibrant offerings from MPB television networks in 2010rdquo Media Prima Press Release httpwwwmediaprimacommypressreleasepressreleaseaspxid=150 viewed 3 November 2011
3 Anderson J ldquoResource-based competitiveness managerial implications of the resource-based viewrdquo Strategic Direction Vol26 No5 2010 pp1-2
4 Arman Arshad (2006) Size matters Retrieved December 2 2011 from asiaviewsorg httpwwwasiaviewsorgindexphpoption=com_contentampview=articleampid=2171headlinealias2171ampcatid=1headlinesampItemid=2
5 Asia Times (2007 November 29) Malaysian media giant grasps for Internet Retrieved November 3 2011 from httpwwwatimescomatimesSoutheast_AsiaIK29Ae02html
6 Barney JB amp Hesterly WS (2008) Strategic Management and Competitive Advantage The Five Forces Model of Environmental Threats pp39Prentice Hall
7 BBC (2011) BBC News product launches on connected TV Retrieved from bbccoukpressofficepressreleasesstories201106_june17newsshtml
8 Boston Consulting Group (2011) Lean Advantage in Media Boston Consulting Group
9 Boston Consulting Group (2011) Running Forward Walking Backward Boston Consulting Group
10 Business Times (2011) Media Prima net revenue grows to RM119b Kuala Lumpur New Straits Times
11 Business Times (2011) Media Prima on track to achie1048665ing 2011 target Retrieved from www1btimescomm1048668Current_NewsBTIMESarticlespimeArticle
References (1)
12 Business Times (2011) Media Prima Puncak Semangat in early talks Retrieved from httpwwwbtimescommyarticlespimmaArticle
13 Carl W Stern George Stalk Carl W Stern George Stalk Stern CW amp Stalk G (2011) Perspectives of Strategy from the Boston Consulting Group Retrieved December 3 2011 from Value Based Managementnet httpwwwvaluebasedmanagementnetmethods_bcgmatrixhtml
14 ecmlibra (2011) Adex momentum to taper off in 2012 ecmlibra
15 Gershon R A amp Ratnadeep S V (2004) Viacom Inc A Case Study in Transnational Media Management Journal of Media Business Studies 1 (1) 47-69
16 Grant RM ldquoThe resource-based theory of competitive advantage implications for strategy formulationrdquo California Management Review Vol 3 2011 httpwwwskynetie~karenArticlesGrant1_NBpdf viewed 15 November 2011
17 GreyReview (2011) TonTon Streaming Over 11 Million Video Hours A Month now with 16 millions registered users Retrieved from httpwwwgreyreviewcom20110731tonton-serving-over-1-1-million-video-hours-a-month-now-with-1-6-registered-users
18 Heavy Reading (2011) Telecom in TV Land A Roadmap to New Digital Media Ecosystem Retrieved from wwwheavyreadingcomdetailsaspsku_id=1773ampskuitem_itemid=1030
19 Hegedus N (2010) The Great Scare EBR 3 10-17
20 JohnsonGScholesK amp Whittington (2008) Exploring Corporate Strategy Competitive Forces ndash the Five Forces Framework pp 59-64 Prentice Hall
21 kinetic (2011) Moving World Asia Hong Kong
References (2)
22 Knowledgefaber (2009) Telcos Avatar - As Media Companies 20 Retrieved from httpknowledgefabercomindexphpoption=com_contentampview=articleampid=40telecom-and-media-convergenceampcatid=10telecomampItemid=42
23 Knowledgefaber (2011) Telcos Avatar - As Media Companies 20 Retrieved from httpknowledgefabercomindexphpoption=com_contentampview=articleampid=40
24 Malik O (2011) GIGAOM Retrieved from httpgigaomcom20110223old-media-is-being-unbundled-just-like-telecom-was
25 Maxis with TM Astro with TIME Best Strategy to IPTV Market Retrieved December 1 2011 httpbizthestarcommynewsstoryaspfile=201111business7704581ampsec=business
26 Media Prima (2010) Annual Report Media Prima Berhad27 Media Prima Berhad (2011) 11 Nov 2011 - New Exciting amp Vibrant Offerings From MPB Television Retrieved from
wwwmediaprimacommypressreleasepressreleaseaspxid=15028 Media Prima (2010) Sustainability Report Media Prima Berhad29 OSK (2011) Media Prima OSK30 Pocket-Lint (2011) Samsung Smart TV hits 2 million mark Retrieved from
httpwwwpocket-lintcomnews40593samsung-smart-tv-2-million31 PricewaterhouseCoopers (2011) Achieving corporate financial PwC32 PricewaterhouseCoopers (2007) Financial Reporting Standards (FRS) in Malaysia PricewaterhouseCoopers33 SKMM (MCMC) (2009) Advertising Development in Malaysia SKMM34 SKMM (MCMC) (2011) Content Development SKMM35 Techpinions (2011) Interactive TV Trends - How the TV experience is changing - Part II Retrieved from
httptechpinionscominteractive-tv-trends-E28093-how-the-tv-experience-is-changing-part-ii4066
References (3)
36 The Edge (2011) Media Prima best proxy to sector Retrieved from wwwtheedgemalaysiacom37 The Edge Malaysia (2011 September 26) Education the mother of all reforms Retrieved October 30 2011 from
httpwwwtheedgemalaysiacomin-the-financial-daily193478-education-the-mother-of-all-reformshtml38 The Star Online (2011) Main players in the competitive TV sector Retrieved from bizthestarcommynewsstoryasp
file=20111126business997401739 The Star Online (2011) Maxis ready to move up value Retrieved from
bizthestarcommynewsstoryaspfile=201111business7704581ampse40 The Star Online (2011) New players enter the TV Retrieved from
bizthestarcommynewsstoryaspfile=20111126business997300841 The Star Newspaper (December 1 2011) Capital TV to make its debut today42 The Star Online (January 1 2011) Maxis ready to move up value chain Retrieved December 3 2011
httpbizthestarcommynewsstoryaspfile=201111business7704581ampsec=business43 The Star Online (2011 April 21) Media Prima to invest more on local content Retrieved October 30 2011 from C
Usersa34ffzzDesktopMedia PrimaUsed articlesMedia Prima to invest more in local contentmht44 Time Warners (2010) Annual Report Time Warners45 WHAT HI FI (2011) Samsung aims for 50m TV sales worldwide in 2012 set to announce launch date for Google TV
product Retrieved from httpwwwwhathificomnewssamsung-aims-for-50m-tv-sales-worldwide-in-2012-set-to-announce-launch-date-for-google-tv-produ
46 Woroch G A (1996) Turning the Cables Elsevier47 Zanuddin H (2007) Political influence in Malaysia and Thailand media sector Jati Vol12
- MEdiA PRIMA
- Agenda
- Company Profile
- Media Primarsquos Commitment amp Direction moving forward
- Media Industry Business Model ndash Content Driven
- Our Tasks ndash How
- PEST Analysis
- Politics Legal Issues amp Impact
- Economic Issues and Impact
- Social Issues and Impact
- Social Issues and Impact
- Technology Issues and Impact
- In short
- Porterrsquos 5 Forces Analysis
- Porterrsquos Five Forces ndash Competitive Analysis
- Financials
- Media Prima Financial Highlights
- However in further analysis
- Value Chain Analysis
- Resource Based View
- In the context of the Content industry value chain Mapped again
- Appraising capabilities which drives profitability
- Mapping Media Prima revenue streams against the Diversification
- Slide 25
- Related Constrained Diversification
- Related Constrained Diversification (2)
- Slide 28
- Related Linked Diversification
- Slide 30
- Social Responsibility Analysis
- Social Responsibility
- Social Responsibility ndash cont
- Media Prima Acknowledges it various stakeholder via Stakeholder
- It has moved on to 2nd stage of CSR
- SWOT Analysis
- SWOT Analysis ndash Summary
- Media Primarsquos Current situation in summary
- Moving forward 2012 and beyond
- Recommended Destination and future growth of Media Prima
- How Moving from aggregator to content creator
- How Moving from aggregator to content creator (2)
- Creating a Content focus agency All these can be enable via
- Using financial view to free resources for content development
- By changing the business segment reporting it also affects the
- How Moving from aggregator to content creator (3)
- Technology ndash Enable Media Prima to leap into Interactive Conten
- It is not a Fad but a trend
- Slide 50
- Example of Smart TV
- This will ultimately lead Media Prima to reduce it dependence o
- NEW Revenue Streams for Media Prima
- How
- Building Talents in the long run
- Summary ndash Media Prima
- References
- References
- References (1)
- References (2)
- References (3)
-
Financials
Media Prima Financial Highlights
1327millionProfit After Tax and Minority Interest (ldquoPATAMIrdquo)September 2011 (9 Months)
in the corresponding period for 20101105 million
A healthy GROWTH
Source Media Prima Annual Report 2011
However in further analysisHowever the bulk of its revenue comes from advertising that is in turn dependent on the economic outlook the question arises as to whether Media Prima should diversify its income stream Especially when gt80 of Astrorsquos revenue is on subscription
Reduce Media Primarsquos dependence on advertising revenueas it highly fluctuates with the market conditions
Group
2010 2009
RMrsquo000 RMrsquo000
Advertising revenue 1237961 80 725857 98 Circulation revenue 290691 19 0 Sale of programmes videos cable and laser rights and media revenue 15408 1 11287 2 Fees from provision of production services and sponsorship 2583 0 6885 1 Fees from provision of procurement services Dividends from subsidiaries Dividends from an associate 1546643 100 744029 100
Source Media Prima Annual Report 2011
Value Chain Analysis
Resource Based View
The resource-based view is grounded in the perspective that a firm is a collection of unique resources and capabilities that provides the basis for its strategies and the primary source of its return
SupportActivities
Primary Activities
Strategy Development 4
Resource Identification 1Capabilities Determination 2Competitive advantage 3
Resource Gap Analysis 5
Source Porter Value Chain Robert M Grant
Process of CONTENT aggregation Process of CONTENT creation
In the context of the Content industry value chainMapped against Porterrsquos Value chain
Createbull Scriptwritersbull Actorsbull Animatorsbull Gamesbull developer
Publishbull Production housesbull TV Advert Film
Packagebull Media Primabull Astrobull RTMbull Maxisbull Digibull Celcom
DistributebullTelekombull MBNS (Measat)bull RTM
Content industry value chain
Porterrsquos Value Chain
Human Resource Management
Technological DevelopmentProcurement
Marketing amp Sales
Develop Talent Pool
Ensure Vibrant Content Industry
Technologycreates ubiquitous
Low Access Cost
To spur the industry forward
Strong talent develops Content development
demand for access
Strong content industry drives demand for Talent Drive demand for content
Services
Source SKMM Regulatory Compliance Course for Telcos amp Celcos
MARKETINGStrategies are focused on branding activities and marketing communications aggressive Aamp P and active participation in on-ground activities that promote brand awareness And Established Integrated marketing arm
TECHNOLOGY DEVELOPMENT Alt Media the digital arm successfully launched TonTon TV a cutting edge video portal that offers customization and interactivity of social networking Giving Media Prima an advantage of being able to direct advertisers to precise target groups
PROCUREMENT Stringent supplier selection in terms of 70 are local suppliers Sourcing of content which are relevant responsible engaging especially with the advent of new media
SERVICESMedia Prima fully owns Primeworks Studio helps maximize the economies of scale in content production whilst enhancing the quality of content of all television networks
HUMAN CAPITALPrioritize human capital development in news and editorial operation radio network artist and talent management etc Creating an in-house talent pool to develop content
Content Barriers to entry
ndash securing talents - Leadership position in development of local talent and content to leading the industry
Vertical bargaining power
DifferentiationAnd Competitive advantage
- Consumer insights - Integrated media organization
Activities Benefit
Competitiveness leading to Margins
Goal
Appraising capabilities which drives profitability
Source Media Prima Annual Report 2011
Mapping Media Prima revenue streams against the Diversification Map
HIGH
LOW
HIGHLOW
Shar
ing
Ope
ratio
nal R
elat
edne
ss B
etw
een
Busi
ness
Corporate Relatedness Transferring skills into business through corporate HQ
Related Constrained Diversification
Vertical Integration Market Power
Content Creation and Talent development Prima Works enables Media Prima to create localized content for the local market
Both operation and Corporate Relatedness (Rare Capability and can create Diseconomies of scale)
New Media is both an operation and corporate relatedness diversification as it require Media Prima to go beyond playing the role as aggregator but also content producer leveraging on its strength
Unrelated Diversification (Financial Economies)This area of diversification which is unrelated in operation and skills transfer Media Prima has not exploited
Related Linked Diversification (Economies of Scope)As newscontent are cross platforms and the business models are the same Media Prima was able to share similar content across platforms and acquire related companies
Opportunities - Create more segmented programmes and move into interactive content
OpportunitiesHowever more needs to be done in the new are with the advent of Interactive TV
Opportunities Although unrelated area often has high risk it is crucial at this point for Media Prima to extend into this area in smart partnerships with telecommunication companies ie Axiata TM
OpportunitiesMedia Prima has maximized its diversification strategy in this area BUT the market is yet to be ready amp there is a need to link both NSTP and Media Prima
CurrentPrimeworks Studios Sdn Bhd (owned by Media Prima) is Malaysias biggest production company producing TV content since 1984 and feature films since 1994 generating over 5000 hours of TV content and 10 movies annually
Related Constrained Diversification
ChallengesBut the reality is that it is not able to compete with the myriad of channels of its competitors which are dependent on overseas content
Opportunities However more needs to be doneas channels become more segmented-Procuring more content to compete on quantity - or it could change the content game and move into interactive content
Source Creation of An Integrated Media Group 2009 httpwwwmediaprimacommy
TV Newspaper
Radio
Outdoor
New Medi
a
4 3 3
1 2
gt150
17
2 1
gt14
3
22
22
YTL Comms
ABN 100
Ove
rvie
w o
f com
petit
ors
thei
r bus
ines
s po
rtfol
ios
Related Constrained Diversification
Media Company
Advertisers Corporations(Customers )
Viewers(Consumers)
Consumer Pay for Product
CONTENT
Advertiser payFor (Ad space) $$
1 httpwwwlongtailcomthe_long_tail200809the-three-kindshtml
$
Opportunities The potential here is also for Media Prima to drive content syndication ndash providing content to other media stations abroad
Media Prima is currently doing by syndicating content to ASTRO and Unifi
Competitors
Media Company
Viewers(Consumers)
CONTENT PRO
1 httpwwwlongtailcomthe_long_tail200809the-three-kindshtml
$
C
C
C FREE CONTENT FREE CONTENT
FREE CONTENT
Both operation and Corporate Relatedness
CurrentMedia Primarsquos intention to leverage on both its operations and Corporate relatedness to shift its revenue structure to be less dependent on advertising revenue and move toward subscriber revenue where a few subsidies everyone else via versioning ldquoprice discriminationrdquo
ChallengesIt has to some degree been successful to introduce this ndash via TonTon TV however the revenue from this segment has yet to be significant
To date there are 16 show packages and over 50 single episodes for viewers to purchase ndash which is limited
Opportunities However more needs or can be done in this new area with the advent of Interactive TV
Media Company
Advertisers Corporations(Customers )
Viewers(Consumers)
Consumer Pay for Product
FREE
CONTENT
Advertiser payFor (Ad space) $$
Source Website1 httpwwwlongtailcomthe_long_tail200809the-three-kindshtml2 Creation of An Integrated Media 2009 Grouphttpwwwmediaprimacommyinvestorcentercp2009NSTPGOpdf3 httpwwwtheedgemalaysiacomin-the-financial-daily164479-media-prima-best-proxy-to-sector-says-oskhtml 4 Media Prima net revenue grows to RM119b 2011 httpwwwbtimescommyCurrent_NewsBTIMESarticles20111118202427Articleindex_html
Related Linked Diversification
Current Media Prima has expanded across media with the idea in the hope of a) Leveraging on its expertise of
Advertisers subsiding viewers model b) Share back-office consolidation which
creates operations efficiencies in operation ie Editorial Talents
c) Cross marketing opportunities across platforms - Where Advertisers could purchase cross buy across platforms
Challenges Market ndash Not readyThe market is not ready for bundled and cross market offering According to Dato Amrin Awaluddin Group Managing Director of Media Prima no doubt there was head roads but more effort needs to be done to integrate the platforms better
Internally ndash Structure is not integrated In terms of unlocking NSTPs value he says it would be done in two phases `First is more short term like consolidating in terms of operations while the second stage will entail selling of products and cross-promoting our content which would be an ongoing revenue- generation exerciselsquo And he quoted Joran a property of Berita Harian (NST) ndash a nationwide fishing event being brought to TV3 as an example
Opportunities - The structure impeded cross platform and working in silo
does not help
- Hence there is a need to further shift paradigms via a structural change to free up resources to focus on content
- The market will not know what they want until we present them with the opportunity benefit
Social Responsibility Analysis
Social Responsibility
Media Primarsquos approach to Social Responsibility is based on the key triple bottom line ndash social environmental and economic It considers the socio-economic impact of its business activities in the aim to create value to its stakeholders via the 4 categories ie community workplace marketplace and environment
Community1EducationFocusing on education to raise awareness of the importance of education and increase the academic standards of underprivileged children and underperforming schools eg PINTAR Programme NST School Sponsorship Programme
2 HumanitarianRaise funds for humanitarian aid and provided updates on the local and world disaster crisis to the public and raised awareness of the funds eg Humanitarian Aid for Gaza Humanitarian Aid for Flood Victims in Pakistan
3 Other community programmesProduced outreach programmes to reflect and highlight local and community issues and to be the eyes and ears of the public and engage in public awareness through its businessesrsquo media resources and platforms in print interactive media and television eg Project Sunshine
Social Responsibility ndash cont
Environment - EfficiencyStrongly committed to being an environmentally friendly Company by using recycled paper especially in its newspapers business efficient usage of electricity in offices water management reducing amount of waste produced throughout its businesses and other environmental initiatives such as lsquosave our beachrsquo project and WWFrsquos Earth Hour
Marketplace ndash Responsible ContentFocusing on product responsibility in providing high quality products and is committed to establishing a horizontal specialisation system based on collaboration with stakeholders The production flow is illustrated in the diagram below
Workplace ndash Right CultureIt aims to create a workplace where its people have the opportunity to be the best they possibly can to have the right culture safe working environment and human capital development with fair processes
Media Prima Acknowledges it various stakeholder via Stakeholders Management
Media Prima is aware of the diversity of its stakeholders and the different goals and demand of its stakeholders
The Company conducts active engagement with its stakeholders to fully understand their needs and increase their trust in the Company through formal and informal mechanisms as follows
It has moved on to 2nd stage of CSR
1st Generation 2nd Generation 3rd Generation
Philanthropic short term risk management
Product Process innovation business and corporate governance model long term sustainability Strategic CSR
3rd Generation Multi- stakeholder standards and partnerships institutional building CR- Oriented advocacy and public policy
Opportunity
What is next for Media Prima to shape the industry
Creating content that generate advertising dollars amp donations of the poor social awareness
By leveraging on its content distribution capabilities
SWOT Analysis
SWOT Analysis ndash Summary
Strengths 1 Strong market share in TV segment2 Malaysiarsquos only integrated media
organization- have vertical and horizontal diversification advantage
3 Established value chains strength which complements the required core competencies
4 Have move across 3 revenue models
Weaknesses1 limited number of stations variety and choice
for consumer2 Despite diversification revenues still mainly
driven by advertisers and TV -gt cross platforms is needed
3 Financial segmentation may hinder potentials of the company
Opportunities 1 Broadband infrastructure ndash via HSBB2 Development of technology ndash creating
medias gadgets that increase digital interaction and content consumption
3 Consumers are willing to pay for content4 Possible deregulation of content ndash leveling
the playing field
Threats 1 2012 forecasting a financial slow down
affecting Ad Ex ndash hence revenue is reduced2 Increase competition New Entrants Pay TV
player amp continual competition from ASTRO3 Changing consumer habits towards media
consumption -gt moving away from traditional media ndash hence have to fight for consumerrsquos attention
Right Technology (Gadget and Infrastructure) at the Right time (deregulation) amp Right consumers (shift in media habits and willingness to pay for content ndash ASTRO as indicator)
Vertical Value Chain advantage to compete in content development
Media Primarsquos Current situation in summary
+VE
-VE Revenue dependent on advertising which is affected correlated to GDP
Resources organization structure holds back effectiveness of organization
Moving forward2012 and beyond
Recommended Destination and future growth of Media Prima
Revenue mainly from advertising
Revenue from advertising
Content SubscriptionBy viewers
Content driven Complementary Services for advertiser (Auxillary Services)
Media Prima
Media Prima
Content Syndicationto competitors
+
How Moving from aggregator to content creator
Content Focus Leveraging on content to Embark on Revenue shifts
Long term sustainable leadership
Restructuring to liberateresources for Content
Sustainable Talent development -
Partnership
Riding the Technology Wave
Short term (2012) Mid Term (by 2013-2015) Long term 2015 beyond
How Moving from aggregator to content creator
Content Focus Leveraging on content to Embark on Revenue shifts
Long term sustainable leadership
Restructuring to liberateresources for Content
Sustainable Talent development -
Partnership
Riding the Technology Wave
Short term (2012) Mid Term (by 2013-2015) Long term 2015 beyond
Creating a Content focus agency All these can be enable via the following means
Demand- The content creation race bull There is a need to free up empower human capital to create more content which are relevant
segmented engaging and entertaining
How does media prima refocus its resources into where it matters Instead of multiple teams doing the same thing ndash there is a challenge to create a lean and efficient organization
Challenges Freeing Resources
Instead of looking at a Media based financial segment reporting structurally force the teams to integrate by changing the dynamics of PampL
Next page
Solution Redefining Business Units Paradigms
Take a step up from producing beyond the current vernacular program to meet shifting consumer needs
Challenges ndash Lifestyle lead Variety
Creating Channel programs which are target segment focus based on lifestyles hellip
Acquisition of content as content regulations will be relaxed
Solution Target Segment focus
Using financial view to free resources for content developmentFinancial segment reporting may create a ldquosilordquo mentality ndash which encourages each head of business to protect their bottom line Hence a less effective in operations
Our recommendation is to expand content creation to cut across and shift paradigms to free up resources and focus on new revenue streams And create new content for different segment
Tele
visi
on N
etw
ork
Radi
o N
etw
ork
Out
door
Med
ia
Prin
t M
edia
Oth
er M
edia
Current Financial Segment Reporting
Tele
visi
on N
etw
ork
Radi
o N
etw
ork
Out
door
Med
ia
Prin
t M
edia
Oth
er M
edia
Production
Content
Subscription
Advertising
Recommended Segment Reporting
Lifestyle Segments
Lifestyle Segments
Lifestyle Segments
Lifestyle Segments
Lifestyle Segments
Lifestyle Segments
By changing the business segment reporting it also affects the company structure
The benefits - Flexibility and empowers knowledge
economy ndash talent content driven
- Builds at strong work culture which may be replicated in the region
- Expansion to embark on talent and content crowd sourcing - open innovation creation
Media Prima can take this opportunity to achieve SPECIALIZATION COORDINATION AND COOPERATION Currently team structure ndash of Integrated Marketing Division is created as a temporary solution hellip to enable integration It will move towards a network model to haste integration fast and response to technology and consumer needs
Subcription
Advertising
Production
TechnologyPartner
Content
How Moving from aggregator to content creator
Content Focus Leveraging on content to Embark on Revenue shifts
Long term sustainable leadership
Restructuring to liberateresources for Content
Sustainable Talent development -
Partnership
Riding the Technology Wave
Short term (2012) Mid Term (by 2013-2015) Long term 2015 beyond
Technology ndash Enable Media Prima to leap into Interactive Content
Interactive Content
UniFi Axiata
Media Prima
Electronics Manufacturer
Demand - A ready market bull There is a latent demand for content-gt consumers are
willing to Pay bull Technology has accustomed consumers to interacting
with contentbull Regulatory push to shift from analogue to digital by
2015
However unlike Media Primarsquos western counterparts ie Time Warner Communication Media Prima does not have the advantages of cable infrastructure
Challenges ndash Limitation
Media Prima could depend on existing suppliers of connectivity and technology- Telecommunications ie AXIATA and - Manufacturing companies ie Samsungto take the leap into interactive content Unifi TM
Solution ndash Smart Partnerships
Maximizing Unrelated Diversification
It is not a Fad but a trend
Smart TV is an inevitable trend says Baeguen Kang vice president of
research and development at South Koreas LG Electronics Co the worlds second-largest seller of TV sets by unit volume As people experienced smartphones and tablet PCs the larger screen on a TV is very attractive for apps and Web content
210 million TV sets sold world-wide had an Internet connection (2010)
21 50It will be the forecast in (2014)
Source Evan Ramstad (January 2011)A ldquoManufacturers Turn to Smart TV After 3-D Disappointsrdquo The Wall Street Journal online httponlinewsjcomarticleSB10001424052748704835504576059783074010902html
As technology develops Current cost is will drop exponentially reflecting the Moorersquos Law
Hence lowering the cost of access for interactive content
Example of Smart TV
Smart Hub It is a front facing interface just like a main menu
when consumers turn on their TV There are few utilities that consumers can choose to be entertained
Video ndash consumers can choose from array of video collections that required to be paid
Apps ndash an internet-enabled applications like You Tube Facebook Twitter Skype and others
Internet browsing ndash just like PC internet browsing
Music photo and TV watching
Smart ConnectivityWIFI enabled that allows consumers to connect to all mobile devices like smart phone tablet PC notebook and camera with Samsung Wireless Router called 1 foot This connectivity is being called ldquoAllSharerdquo by Samsung
httpotbresearchcomau200509report-1-industry-forum
MEDIA PRIMA IS CURRENTLY HERE
This will ultimately lead Media Prima to reduce it dependence on advertising revenue
Others ndash Utilising the SMART TV technology and Apps to create any existing Media Prima businesses
NEW Revenue Streams for Media Prima
To take advantage of SMART TV and collaborate with SMART TV manufacturers Media Prima can look into following utilities
Collaborate with manufacturers to allow consumers to browse and pay for Media Prima video collections
Selling local music for Malaysia market
Collaborate with local or international content developers to create Malaysia specific contents for paid subscription or free for common content to attract new consumers
How
Content Focus Leveraging on content to Embark on Revenue shifts
Long term sustainable leadership
Restructuring to liberateresources for Content
Sustainable Talent development -
Partnership
Riding the Technology Wave
Short term (2012) Mid Term (by 2013-2015) Long term 2015 beyond
Building Talents in the long run
Education Building on its strategic CSR ndash Media Prima could champion the
development of the content industry by partnering with local universities in the areas of technology media and communication
Crowd Sourcing To haste up the strategic CSR it too could embark on crowd
sourcing for content ndash via scripts and interactive content In which Media Prima could support a great idea and develop the ideas for monetization
This is a synergistic and natural development from the networks structure (open innovation)
Summary ndash Media Prima
Develop Talent Pool
Ensure Vibrant Content Industry
Technologycreates ubiquitous
Low Access Cost
To spur the industry forward
Strong talent develops Content development
demand for access
Strong content industry drives demand for Talent drives demand for content
Our recommendations are aligned to help spur the industry forwardhellip
Restructuring to liberateresources for Content
Sustainable Talent development -
Partnership
Riding the Technology Wave ndash Via Smart
Partnerships
References
References
1 Anon ldquoMedia Prima Berhad implements Accenture integrated broadcast systemrdquo Accenture Press Release httpnewsroomaccenturecomarticle_displaycfmarticle_id=5005 viewed 3 November 2011
2 Anon ldquoNew exciting and vibrant offerings from MPB television networks in 2010rdquo Media Prima Press Release httpwwwmediaprimacommypressreleasepressreleaseaspxid=150 viewed 3 November 2011
3 Anderson J ldquoResource-based competitiveness managerial implications of the resource-based viewrdquo Strategic Direction Vol26 No5 2010 pp1-2
4 Arman Arshad (2006) Size matters Retrieved December 2 2011 from asiaviewsorg httpwwwasiaviewsorgindexphpoption=com_contentampview=articleampid=2171headlinealias2171ampcatid=1headlinesampItemid=2
5 Asia Times (2007 November 29) Malaysian media giant grasps for Internet Retrieved November 3 2011 from httpwwwatimescomatimesSoutheast_AsiaIK29Ae02html
6 Barney JB amp Hesterly WS (2008) Strategic Management and Competitive Advantage The Five Forces Model of Environmental Threats pp39Prentice Hall
7 BBC (2011) BBC News product launches on connected TV Retrieved from bbccoukpressofficepressreleasesstories201106_june17newsshtml
8 Boston Consulting Group (2011) Lean Advantage in Media Boston Consulting Group
9 Boston Consulting Group (2011) Running Forward Walking Backward Boston Consulting Group
10 Business Times (2011) Media Prima net revenue grows to RM119b Kuala Lumpur New Straits Times
11 Business Times (2011) Media Prima on track to achie1048665ing 2011 target Retrieved from www1btimescomm1048668Current_NewsBTIMESarticlespimeArticle
References (1)
12 Business Times (2011) Media Prima Puncak Semangat in early talks Retrieved from httpwwwbtimescommyarticlespimmaArticle
13 Carl W Stern George Stalk Carl W Stern George Stalk Stern CW amp Stalk G (2011) Perspectives of Strategy from the Boston Consulting Group Retrieved December 3 2011 from Value Based Managementnet httpwwwvaluebasedmanagementnetmethods_bcgmatrixhtml
14 ecmlibra (2011) Adex momentum to taper off in 2012 ecmlibra
15 Gershon R A amp Ratnadeep S V (2004) Viacom Inc A Case Study in Transnational Media Management Journal of Media Business Studies 1 (1) 47-69
16 Grant RM ldquoThe resource-based theory of competitive advantage implications for strategy formulationrdquo California Management Review Vol 3 2011 httpwwwskynetie~karenArticlesGrant1_NBpdf viewed 15 November 2011
17 GreyReview (2011) TonTon Streaming Over 11 Million Video Hours A Month now with 16 millions registered users Retrieved from httpwwwgreyreviewcom20110731tonton-serving-over-1-1-million-video-hours-a-month-now-with-1-6-registered-users
18 Heavy Reading (2011) Telecom in TV Land A Roadmap to New Digital Media Ecosystem Retrieved from wwwheavyreadingcomdetailsaspsku_id=1773ampskuitem_itemid=1030
19 Hegedus N (2010) The Great Scare EBR 3 10-17
20 JohnsonGScholesK amp Whittington (2008) Exploring Corporate Strategy Competitive Forces ndash the Five Forces Framework pp 59-64 Prentice Hall
21 kinetic (2011) Moving World Asia Hong Kong
References (2)
22 Knowledgefaber (2009) Telcos Avatar - As Media Companies 20 Retrieved from httpknowledgefabercomindexphpoption=com_contentampview=articleampid=40telecom-and-media-convergenceampcatid=10telecomampItemid=42
23 Knowledgefaber (2011) Telcos Avatar - As Media Companies 20 Retrieved from httpknowledgefabercomindexphpoption=com_contentampview=articleampid=40
24 Malik O (2011) GIGAOM Retrieved from httpgigaomcom20110223old-media-is-being-unbundled-just-like-telecom-was
25 Maxis with TM Astro with TIME Best Strategy to IPTV Market Retrieved December 1 2011 httpbizthestarcommynewsstoryaspfile=201111business7704581ampsec=business
26 Media Prima (2010) Annual Report Media Prima Berhad27 Media Prima Berhad (2011) 11 Nov 2011 - New Exciting amp Vibrant Offerings From MPB Television Retrieved from
wwwmediaprimacommypressreleasepressreleaseaspxid=15028 Media Prima (2010) Sustainability Report Media Prima Berhad29 OSK (2011) Media Prima OSK30 Pocket-Lint (2011) Samsung Smart TV hits 2 million mark Retrieved from
httpwwwpocket-lintcomnews40593samsung-smart-tv-2-million31 PricewaterhouseCoopers (2011) Achieving corporate financial PwC32 PricewaterhouseCoopers (2007) Financial Reporting Standards (FRS) in Malaysia PricewaterhouseCoopers33 SKMM (MCMC) (2009) Advertising Development in Malaysia SKMM34 SKMM (MCMC) (2011) Content Development SKMM35 Techpinions (2011) Interactive TV Trends - How the TV experience is changing - Part II Retrieved from
httptechpinionscominteractive-tv-trends-E28093-how-the-tv-experience-is-changing-part-ii4066
References (3)
36 The Edge (2011) Media Prima best proxy to sector Retrieved from wwwtheedgemalaysiacom37 The Edge Malaysia (2011 September 26) Education the mother of all reforms Retrieved October 30 2011 from
httpwwwtheedgemalaysiacomin-the-financial-daily193478-education-the-mother-of-all-reformshtml38 The Star Online (2011) Main players in the competitive TV sector Retrieved from bizthestarcommynewsstoryasp
file=20111126business997401739 The Star Online (2011) Maxis ready to move up value Retrieved from
bizthestarcommynewsstoryaspfile=201111business7704581ampse40 The Star Online (2011) New players enter the TV Retrieved from
bizthestarcommynewsstoryaspfile=20111126business997300841 The Star Newspaper (December 1 2011) Capital TV to make its debut today42 The Star Online (January 1 2011) Maxis ready to move up value chain Retrieved December 3 2011
httpbizthestarcommynewsstoryaspfile=201111business7704581ampsec=business43 The Star Online (2011 April 21) Media Prima to invest more on local content Retrieved October 30 2011 from C
Usersa34ffzzDesktopMedia PrimaUsed articlesMedia Prima to invest more in local contentmht44 Time Warners (2010) Annual Report Time Warners45 WHAT HI FI (2011) Samsung aims for 50m TV sales worldwide in 2012 set to announce launch date for Google TV
product Retrieved from httpwwwwhathificomnewssamsung-aims-for-50m-tv-sales-worldwide-in-2012-set-to-announce-launch-date-for-google-tv-produ
46 Woroch G A (1996) Turning the Cables Elsevier47 Zanuddin H (2007) Political influence in Malaysia and Thailand media sector Jati Vol12
- MEdiA PRIMA
- Agenda
- Company Profile
- Media Primarsquos Commitment amp Direction moving forward
- Media Industry Business Model ndash Content Driven
- Our Tasks ndash How
- PEST Analysis
- Politics Legal Issues amp Impact
- Economic Issues and Impact
- Social Issues and Impact
- Social Issues and Impact
- Technology Issues and Impact
- In short
- Porterrsquos 5 Forces Analysis
- Porterrsquos Five Forces ndash Competitive Analysis
- Financials
- Media Prima Financial Highlights
- However in further analysis
- Value Chain Analysis
- Resource Based View
- In the context of the Content industry value chain Mapped again
- Appraising capabilities which drives profitability
- Mapping Media Prima revenue streams against the Diversification
- Slide 25
- Related Constrained Diversification
- Related Constrained Diversification (2)
- Slide 28
- Related Linked Diversification
- Slide 30
- Social Responsibility Analysis
- Social Responsibility
- Social Responsibility ndash cont
- Media Prima Acknowledges it various stakeholder via Stakeholder
- It has moved on to 2nd stage of CSR
- SWOT Analysis
- SWOT Analysis ndash Summary
- Media Primarsquos Current situation in summary
- Moving forward 2012 and beyond
- Recommended Destination and future growth of Media Prima
- How Moving from aggregator to content creator
- How Moving from aggregator to content creator (2)
- Creating a Content focus agency All these can be enable via
- Using financial view to free resources for content development
- By changing the business segment reporting it also affects the
- How Moving from aggregator to content creator (3)
- Technology ndash Enable Media Prima to leap into Interactive Conten
- It is not a Fad but a trend
- Slide 50
- Example of Smart TV
- This will ultimately lead Media Prima to reduce it dependence o
- NEW Revenue Streams for Media Prima
- How
- Building Talents in the long run
- Summary ndash Media Prima
- References
- References
- References (1)
- References (2)
- References (3)
-
Media Prima Financial Highlights
1327millionProfit After Tax and Minority Interest (ldquoPATAMIrdquo)September 2011 (9 Months)
in the corresponding period for 20101105 million
A healthy GROWTH
Source Media Prima Annual Report 2011
However in further analysisHowever the bulk of its revenue comes from advertising that is in turn dependent on the economic outlook the question arises as to whether Media Prima should diversify its income stream Especially when gt80 of Astrorsquos revenue is on subscription
Reduce Media Primarsquos dependence on advertising revenueas it highly fluctuates with the market conditions
Group
2010 2009
RMrsquo000 RMrsquo000
Advertising revenue 1237961 80 725857 98 Circulation revenue 290691 19 0 Sale of programmes videos cable and laser rights and media revenue 15408 1 11287 2 Fees from provision of production services and sponsorship 2583 0 6885 1 Fees from provision of procurement services Dividends from subsidiaries Dividends from an associate 1546643 100 744029 100
Source Media Prima Annual Report 2011
Value Chain Analysis
Resource Based View
The resource-based view is grounded in the perspective that a firm is a collection of unique resources and capabilities that provides the basis for its strategies and the primary source of its return
SupportActivities
Primary Activities
Strategy Development 4
Resource Identification 1Capabilities Determination 2Competitive advantage 3
Resource Gap Analysis 5
Source Porter Value Chain Robert M Grant
Process of CONTENT aggregation Process of CONTENT creation
In the context of the Content industry value chainMapped against Porterrsquos Value chain
Createbull Scriptwritersbull Actorsbull Animatorsbull Gamesbull developer
Publishbull Production housesbull TV Advert Film
Packagebull Media Primabull Astrobull RTMbull Maxisbull Digibull Celcom
DistributebullTelekombull MBNS (Measat)bull RTM
Content industry value chain
Porterrsquos Value Chain
Human Resource Management
Technological DevelopmentProcurement
Marketing amp Sales
Develop Talent Pool
Ensure Vibrant Content Industry
Technologycreates ubiquitous
Low Access Cost
To spur the industry forward
Strong talent develops Content development
demand for access
Strong content industry drives demand for Talent Drive demand for content
Services
Source SKMM Regulatory Compliance Course for Telcos amp Celcos
MARKETINGStrategies are focused on branding activities and marketing communications aggressive Aamp P and active participation in on-ground activities that promote brand awareness And Established Integrated marketing arm
TECHNOLOGY DEVELOPMENT Alt Media the digital arm successfully launched TonTon TV a cutting edge video portal that offers customization and interactivity of social networking Giving Media Prima an advantage of being able to direct advertisers to precise target groups
PROCUREMENT Stringent supplier selection in terms of 70 are local suppliers Sourcing of content which are relevant responsible engaging especially with the advent of new media
SERVICESMedia Prima fully owns Primeworks Studio helps maximize the economies of scale in content production whilst enhancing the quality of content of all television networks
HUMAN CAPITALPrioritize human capital development in news and editorial operation radio network artist and talent management etc Creating an in-house talent pool to develop content
Content Barriers to entry
ndash securing talents - Leadership position in development of local talent and content to leading the industry
Vertical bargaining power
DifferentiationAnd Competitive advantage
- Consumer insights - Integrated media organization
Activities Benefit
Competitiveness leading to Margins
Goal
Appraising capabilities which drives profitability
Source Media Prima Annual Report 2011
Mapping Media Prima revenue streams against the Diversification Map
HIGH
LOW
HIGHLOW
Shar
ing
Ope
ratio
nal R
elat
edne
ss B
etw
een
Busi
ness
Corporate Relatedness Transferring skills into business through corporate HQ
Related Constrained Diversification
Vertical Integration Market Power
Content Creation and Talent development Prima Works enables Media Prima to create localized content for the local market
Both operation and Corporate Relatedness (Rare Capability and can create Diseconomies of scale)
New Media is both an operation and corporate relatedness diversification as it require Media Prima to go beyond playing the role as aggregator but also content producer leveraging on its strength
Unrelated Diversification (Financial Economies)This area of diversification which is unrelated in operation and skills transfer Media Prima has not exploited
Related Linked Diversification (Economies of Scope)As newscontent are cross platforms and the business models are the same Media Prima was able to share similar content across platforms and acquire related companies
Opportunities - Create more segmented programmes and move into interactive content
OpportunitiesHowever more needs to be done in the new are with the advent of Interactive TV
Opportunities Although unrelated area often has high risk it is crucial at this point for Media Prima to extend into this area in smart partnerships with telecommunication companies ie Axiata TM
OpportunitiesMedia Prima has maximized its diversification strategy in this area BUT the market is yet to be ready amp there is a need to link both NSTP and Media Prima
CurrentPrimeworks Studios Sdn Bhd (owned by Media Prima) is Malaysias biggest production company producing TV content since 1984 and feature films since 1994 generating over 5000 hours of TV content and 10 movies annually
Related Constrained Diversification
ChallengesBut the reality is that it is not able to compete with the myriad of channels of its competitors which are dependent on overseas content
Opportunities However more needs to be doneas channels become more segmented-Procuring more content to compete on quantity - or it could change the content game and move into interactive content
Source Creation of An Integrated Media Group 2009 httpwwwmediaprimacommy
TV Newspaper
Radio
Outdoor
New Medi
a
4 3 3
1 2
gt150
17
2 1
gt14
3
22
22
YTL Comms
ABN 100
Ove
rvie
w o
f com
petit
ors
thei
r bus
ines
s po
rtfol
ios
Related Constrained Diversification
Media Company
Advertisers Corporations(Customers )
Viewers(Consumers)
Consumer Pay for Product
CONTENT
Advertiser payFor (Ad space) $$
1 httpwwwlongtailcomthe_long_tail200809the-three-kindshtml
$
Opportunities The potential here is also for Media Prima to drive content syndication ndash providing content to other media stations abroad
Media Prima is currently doing by syndicating content to ASTRO and Unifi
Competitors
Media Company
Viewers(Consumers)
CONTENT PRO
1 httpwwwlongtailcomthe_long_tail200809the-three-kindshtml
$
C
C
C FREE CONTENT FREE CONTENT
FREE CONTENT
Both operation and Corporate Relatedness
CurrentMedia Primarsquos intention to leverage on both its operations and Corporate relatedness to shift its revenue structure to be less dependent on advertising revenue and move toward subscriber revenue where a few subsidies everyone else via versioning ldquoprice discriminationrdquo
ChallengesIt has to some degree been successful to introduce this ndash via TonTon TV however the revenue from this segment has yet to be significant
To date there are 16 show packages and over 50 single episodes for viewers to purchase ndash which is limited
Opportunities However more needs or can be done in this new area with the advent of Interactive TV
Media Company
Advertisers Corporations(Customers )
Viewers(Consumers)
Consumer Pay for Product
FREE
CONTENT
Advertiser payFor (Ad space) $$
Source Website1 httpwwwlongtailcomthe_long_tail200809the-three-kindshtml2 Creation of An Integrated Media 2009 Grouphttpwwwmediaprimacommyinvestorcentercp2009NSTPGOpdf3 httpwwwtheedgemalaysiacomin-the-financial-daily164479-media-prima-best-proxy-to-sector-says-oskhtml 4 Media Prima net revenue grows to RM119b 2011 httpwwwbtimescommyCurrent_NewsBTIMESarticles20111118202427Articleindex_html
Related Linked Diversification
Current Media Prima has expanded across media with the idea in the hope of a) Leveraging on its expertise of
Advertisers subsiding viewers model b) Share back-office consolidation which
creates operations efficiencies in operation ie Editorial Talents
c) Cross marketing opportunities across platforms - Where Advertisers could purchase cross buy across platforms
Challenges Market ndash Not readyThe market is not ready for bundled and cross market offering According to Dato Amrin Awaluddin Group Managing Director of Media Prima no doubt there was head roads but more effort needs to be done to integrate the platforms better
Internally ndash Structure is not integrated In terms of unlocking NSTPs value he says it would be done in two phases `First is more short term like consolidating in terms of operations while the second stage will entail selling of products and cross-promoting our content which would be an ongoing revenue- generation exerciselsquo And he quoted Joran a property of Berita Harian (NST) ndash a nationwide fishing event being brought to TV3 as an example
Opportunities - The structure impeded cross platform and working in silo
does not help
- Hence there is a need to further shift paradigms via a structural change to free up resources to focus on content
- The market will not know what they want until we present them with the opportunity benefit
Social Responsibility Analysis
Social Responsibility
Media Primarsquos approach to Social Responsibility is based on the key triple bottom line ndash social environmental and economic It considers the socio-economic impact of its business activities in the aim to create value to its stakeholders via the 4 categories ie community workplace marketplace and environment
Community1EducationFocusing on education to raise awareness of the importance of education and increase the academic standards of underprivileged children and underperforming schools eg PINTAR Programme NST School Sponsorship Programme
2 HumanitarianRaise funds for humanitarian aid and provided updates on the local and world disaster crisis to the public and raised awareness of the funds eg Humanitarian Aid for Gaza Humanitarian Aid for Flood Victims in Pakistan
3 Other community programmesProduced outreach programmes to reflect and highlight local and community issues and to be the eyes and ears of the public and engage in public awareness through its businessesrsquo media resources and platforms in print interactive media and television eg Project Sunshine
Social Responsibility ndash cont
Environment - EfficiencyStrongly committed to being an environmentally friendly Company by using recycled paper especially in its newspapers business efficient usage of electricity in offices water management reducing amount of waste produced throughout its businesses and other environmental initiatives such as lsquosave our beachrsquo project and WWFrsquos Earth Hour
Marketplace ndash Responsible ContentFocusing on product responsibility in providing high quality products and is committed to establishing a horizontal specialisation system based on collaboration with stakeholders The production flow is illustrated in the diagram below
Workplace ndash Right CultureIt aims to create a workplace where its people have the opportunity to be the best they possibly can to have the right culture safe working environment and human capital development with fair processes
Media Prima Acknowledges it various stakeholder via Stakeholders Management
Media Prima is aware of the diversity of its stakeholders and the different goals and demand of its stakeholders
The Company conducts active engagement with its stakeholders to fully understand their needs and increase their trust in the Company through formal and informal mechanisms as follows
It has moved on to 2nd stage of CSR
1st Generation 2nd Generation 3rd Generation
Philanthropic short term risk management
Product Process innovation business and corporate governance model long term sustainability Strategic CSR
3rd Generation Multi- stakeholder standards and partnerships institutional building CR- Oriented advocacy and public policy
Opportunity
What is next for Media Prima to shape the industry
Creating content that generate advertising dollars amp donations of the poor social awareness
By leveraging on its content distribution capabilities
SWOT Analysis
SWOT Analysis ndash Summary
Strengths 1 Strong market share in TV segment2 Malaysiarsquos only integrated media
organization- have vertical and horizontal diversification advantage
3 Established value chains strength which complements the required core competencies
4 Have move across 3 revenue models
Weaknesses1 limited number of stations variety and choice
for consumer2 Despite diversification revenues still mainly
driven by advertisers and TV -gt cross platforms is needed
3 Financial segmentation may hinder potentials of the company
Opportunities 1 Broadband infrastructure ndash via HSBB2 Development of technology ndash creating
medias gadgets that increase digital interaction and content consumption
3 Consumers are willing to pay for content4 Possible deregulation of content ndash leveling
the playing field
Threats 1 2012 forecasting a financial slow down
affecting Ad Ex ndash hence revenue is reduced2 Increase competition New Entrants Pay TV
player amp continual competition from ASTRO3 Changing consumer habits towards media
consumption -gt moving away from traditional media ndash hence have to fight for consumerrsquos attention
Right Technology (Gadget and Infrastructure) at the Right time (deregulation) amp Right consumers (shift in media habits and willingness to pay for content ndash ASTRO as indicator)
Vertical Value Chain advantage to compete in content development
Media Primarsquos Current situation in summary
+VE
-VE Revenue dependent on advertising which is affected correlated to GDP
Resources organization structure holds back effectiveness of organization
Moving forward2012 and beyond
Recommended Destination and future growth of Media Prima
Revenue mainly from advertising
Revenue from advertising
Content SubscriptionBy viewers
Content driven Complementary Services for advertiser (Auxillary Services)
Media Prima
Media Prima
Content Syndicationto competitors
+
How Moving from aggregator to content creator
Content Focus Leveraging on content to Embark on Revenue shifts
Long term sustainable leadership
Restructuring to liberateresources for Content
Sustainable Talent development -
Partnership
Riding the Technology Wave
Short term (2012) Mid Term (by 2013-2015) Long term 2015 beyond
How Moving from aggregator to content creator
Content Focus Leveraging on content to Embark on Revenue shifts
Long term sustainable leadership
Restructuring to liberateresources for Content
Sustainable Talent development -
Partnership
Riding the Technology Wave
Short term (2012) Mid Term (by 2013-2015) Long term 2015 beyond
Creating a Content focus agency All these can be enable via the following means
Demand- The content creation race bull There is a need to free up empower human capital to create more content which are relevant
segmented engaging and entertaining
How does media prima refocus its resources into where it matters Instead of multiple teams doing the same thing ndash there is a challenge to create a lean and efficient organization
Challenges Freeing Resources
Instead of looking at a Media based financial segment reporting structurally force the teams to integrate by changing the dynamics of PampL
Next page
Solution Redefining Business Units Paradigms
Take a step up from producing beyond the current vernacular program to meet shifting consumer needs
Challenges ndash Lifestyle lead Variety
Creating Channel programs which are target segment focus based on lifestyles hellip
Acquisition of content as content regulations will be relaxed
Solution Target Segment focus
Using financial view to free resources for content developmentFinancial segment reporting may create a ldquosilordquo mentality ndash which encourages each head of business to protect their bottom line Hence a less effective in operations
Our recommendation is to expand content creation to cut across and shift paradigms to free up resources and focus on new revenue streams And create new content for different segment
Tele
visi
on N
etw
ork
Radi
o N
etw
ork
Out
door
Med
ia
Prin
t M
edia
Oth
er M
edia
Current Financial Segment Reporting
Tele
visi
on N
etw
ork
Radi
o N
etw
ork
Out
door
Med
ia
Prin
t M
edia
Oth
er M
edia
Production
Content
Subscription
Advertising
Recommended Segment Reporting
Lifestyle Segments
Lifestyle Segments
Lifestyle Segments
Lifestyle Segments
Lifestyle Segments
Lifestyle Segments
By changing the business segment reporting it also affects the company structure
The benefits - Flexibility and empowers knowledge
economy ndash talent content driven
- Builds at strong work culture which may be replicated in the region
- Expansion to embark on talent and content crowd sourcing - open innovation creation
Media Prima can take this opportunity to achieve SPECIALIZATION COORDINATION AND COOPERATION Currently team structure ndash of Integrated Marketing Division is created as a temporary solution hellip to enable integration It will move towards a network model to haste integration fast and response to technology and consumer needs
Subcription
Advertising
Production
TechnologyPartner
Content
How Moving from aggregator to content creator
Content Focus Leveraging on content to Embark on Revenue shifts
Long term sustainable leadership
Restructuring to liberateresources for Content
Sustainable Talent development -
Partnership
Riding the Technology Wave
Short term (2012) Mid Term (by 2013-2015) Long term 2015 beyond
Technology ndash Enable Media Prima to leap into Interactive Content
Interactive Content
UniFi Axiata
Media Prima
Electronics Manufacturer
Demand - A ready market bull There is a latent demand for content-gt consumers are
willing to Pay bull Technology has accustomed consumers to interacting
with contentbull Regulatory push to shift from analogue to digital by
2015
However unlike Media Primarsquos western counterparts ie Time Warner Communication Media Prima does not have the advantages of cable infrastructure
Challenges ndash Limitation
Media Prima could depend on existing suppliers of connectivity and technology- Telecommunications ie AXIATA and - Manufacturing companies ie Samsungto take the leap into interactive content Unifi TM
Solution ndash Smart Partnerships
Maximizing Unrelated Diversification
It is not a Fad but a trend
Smart TV is an inevitable trend says Baeguen Kang vice president of
research and development at South Koreas LG Electronics Co the worlds second-largest seller of TV sets by unit volume As people experienced smartphones and tablet PCs the larger screen on a TV is very attractive for apps and Web content
210 million TV sets sold world-wide had an Internet connection (2010)
21 50It will be the forecast in (2014)
Source Evan Ramstad (January 2011)A ldquoManufacturers Turn to Smart TV After 3-D Disappointsrdquo The Wall Street Journal online httponlinewsjcomarticleSB10001424052748704835504576059783074010902html
As technology develops Current cost is will drop exponentially reflecting the Moorersquos Law
Hence lowering the cost of access for interactive content
Example of Smart TV
Smart Hub It is a front facing interface just like a main menu
when consumers turn on their TV There are few utilities that consumers can choose to be entertained
Video ndash consumers can choose from array of video collections that required to be paid
Apps ndash an internet-enabled applications like You Tube Facebook Twitter Skype and others
Internet browsing ndash just like PC internet browsing
Music photo and TV watching
Smart ConnectivityWIFI enabled that allows consumers to connect to all mobile devices like smart phone tablet PC notebook and camera with Samsung Wireless Router called 1 foot This connectivity is being called ldquoAllSharerdquo by Samsung
httpotbresearchcomau200509report-1-industry-forum
MEDIA PRIMA IS CURRENTLY HERE
This will ultimately lead Media Prima to reduce it dependence on advertising revenue
Others ndash Utilising the SMART TV technology and Apps to create any existing Media Prima businesses
NEW Revenue Streams for Media Prima
To take advantage of SMART TV and collaborate with SMART TV manufacturers Media Prima can look into following utilities
Collaborate with manufacturers to allow consumers to browse and pay for Media Prima video collections
Selling local music for Malaysia market
Collaborate with local or international content developers to create Malaysia specific contents for paid subscription or free for common content to attract new consumers
How
Content Focus Leveraging on content to Embark on Revenue shifts
Long term sustainable leadership
Restructuring to liberateresources for Content
Sustainable Talent development -
Partnership
Riding the Technology Wave
Short term (2012) Mid Term (by 2013-2015) Long term 2015 beyond
Building Talents in the long run
Education Building on its strategic CSR ndash Media Prima could champion the
development of the content industry by partnering with local universities in the areas of technology media and communication
Crowd Sourcing To haste up the strategic CSR it too could embark on crowd
sourcing for content ndash via scripts and interactive content In which Media Prima could support a great idea and develop the ideas for monetization
This is a synergistic and natural development from the networks structure (open innovation)
Summary ndash Media Prima
Develop Talent Pool
Ensure Vibrant Content Industry
Technologycreates ubiquitous
Low Access Cost
To spur the industry forward
Strong talent develops Content development
demand for access
Strong content industry drives demand for Talent drives demand for content
Our recommendations are aligned to help spur the industry forwardhellip
Restructuring to liberateresources for Content
Sustainable Talent development -
Partnership
Riding the Technology Wave ndash Via Smart
Partnerships
References
References
1 Anon ldquoMedia Prima Berhad implements Accenture integrated broadcast systemrdquo Accenture Press Release httpnewsroomaccenturecomarticle_displaycfmarticle_id=5005 viewed 3 November 2011
2 Anon ldquoNew exciting and vibrant offerings from MPB television networks in 2010rdquo Media Prima Press Release httpwwwmediaprimacommypressreleasepressreleaseaspxid=150 viewed 3 November 2011
3 Anderson J ldquoResource-based competitiveness managerial implications of the resource-based viewrdquo Strategic Direction Vol26 No5 2010 pp1-2
4 Arman Arshad (2006) Size matters Retrieved December 2 2011 from asiaviewsorg httpwwwasiaviewsorgindexphpoption=com_contentampview=articleampid=2171headlinealias2171ampcatid=1headlinesampItemid=2
5 Asia Times (2007 November 29) Malaysian media giant grasps for Internet Retrieved November 3 2011 from httpwwwatimescomatimesSoutheast_AsiaIK29Ae02html
6 Barney JB amp Hesterly WS (2008) Strategic Management and Competitive Advantage The Five Forces Model of Environmental Threats pp39Prentice Hall
7 BBC (2011) BBC News product launches on connected TV Retrieved from bbccoukpressofficepressreleasesstories201106_june17newsshtml
8 Boston Consulting Group (2011) Lean Advantage in Media Boston Consulting Group
9 Boston Consulting Group (2011) Running Forward Walking Backward Boston Consulting Group
10 Business Times (2011) Media Prima net revenue grows to RM119b Kuala Lumpur New Straits Times
11 Business Times (2011) Media Prima on track to achie1048665ing 2011 target Retrieved from www1btimescomm1048668Current_NewsBTIMESarticlespimeArticle
References (1)
12 Business Times (2011) Media Prima Puncak Semangat in early talks Retrieved from httpwwwbtimescommyarticlespimmaArticle
13 Carl W Stern George Stalk Carl W Stern George Stalk Stern CW amp Stalk G (2011) Perspectives of Strategy from the Boston Consulting Group Retrieved December 3 2011 from Value Based Managementnet httpwwwvaluebasedmanagementnetmethods_bcgmatrixhtml
14 ecmlibra (2011) Adex momentum to taper off in 2012 ecmlibra
15 Gershon R A amp Ratnadeep S V (2004) Viacom Inc A Case Study in Transnational Media Management Journal of Media Business Studies 1 (1) 47-69
16 Grant RM ldquoThe resource-based theory of competitive advantage implications for strategy formulationrdquo California Management Review Vol 3 2011 httpwwwskynetie~karenArticlesGrant1_NBpdf viewed 15 November 2011
17 GreyReview (2011) TonTon Streaming Over 11 Million Video Hours A Month now with 16 millions registered users Retrieved from httpwwwgreyreviewcom20110731tonton-serving-over-1-1-million-video-hours-a-month-now-with-1-6-registered-users
18 Heavy Reading (2011) Telecom in TV Land A Roadmap to New Digital Media Ecosystem Retrieved from wwwheavyreadingcomdetailsaspsku_id=1773ampskuitem_itemid=1030
19 Hegedus N (2010) The Great Scare EBR 3 10-17
20 JohnsonGScholesK amp Whittington (2008) Exploring Corporate Strategy Competitive Forces ndash the Five Forces Framework pp 59-64 Prentice Hall
21 kinetic (2011) Moving World Asia Hong Kong
References (2)
22 Knowledgefaber (2009) Telcos Avatar - As Media Companies 20 Retrieved from httpknowledgefabercomindexphpoption=com_contentampview=articleampid=40telecom-and-media-convergenceampcatid=10telecomampItemid=42
23 Knowledgefaber (2011) Telcos Avatar - As Media Companies 20 Retrieved from httpknowledgefabercomindexphpoption=com_contentampview=articleampid=40
24 Malik O (2011) GIGAOM Retrieved from httpgigaomcom20110223old-media-is-being-unbundled-just-like-telecom-was
25 Maxis with TM Astro with TIME Best Strategy to IPTV Market Retrieved December 1 2011 httpbizthestarcommynewsstoryaspfile=201111business7704581ampsec=business
26 Media Prima (2010) Annual Report Media Prima Berhad27 Media Prima Berhad (2011) 11 Nov 2011 - New Exciting amp Vibrant Offerings From MPB Television Retrieved from
wwwmediaprimacommypressreleasepressreleaseaspxid=15028 Media Prima (2010) Sustainability Report Media Prima Berhad29 OSK (2011) Media Prima OSK30 Pocket-Lint (2011) Samsung Smart TV hits 2 million mark Retrieved from
httpwwwpocket-lintcomnews40593samsung-smart-tv-2-million31 PricewaterhouseCoopers (2011) Achieving corporate financial PwC32 PricewaterhouseCoopers (2007) Financial Reporting Standards (FRS) in Malaysia PricewaterhouseCoopers33 SKMM (MCMC) (2009) Advertising Development in Malaysia SKMM34 SKMM (MCMC) (2011) Content Development SKMM35 Techpinions (2011) Interactive TV Trends - How the TV experience is changing - Part II Retrieved from
httptechpinionscominteractive-tv-trends-E28093-how-the-tv-experience-is-changing-part-ii4066
References (3)
36 The Edge (2011) Media Prima best proxy to sector Retrieved from wwwtheedgemalaysiacom37 The Edge Malaysia (2011 September 26) Education the mother of all reforms Retrieved October 30 2011 from
httpwwwtheedgemalaysiacomin-the-financial-daily193478-education-the-mother-of-all-reformshtml38 The Star Online (2011) Main players in the competitive TV sector Retrieved from bizthestarcommynewsstoryasp
file=20111126business997401739 The Star Online (2011) Maxis ready to move up value Retrieved from
bizthestarcommynewsstoryaspfile=201111business7704581ampse40 The Star Online (2011) New players enter the TV Retrieved from
bizthestarcommynewsstoryaspfile=20111126business997300841 The Star Newspaper (December 1 2011) Capital TV to make its debut today42 The Star Online (January 1 2011) Maxis ready to move up value chain Retrieved December 3 2011
httpbizthestarcommynewsstoryaspfile=201111business7704581ampsec=business43 The Star Online (2011 April 21) Media Prima to invest more on local content Retrieved October 30 2011 from C
Usersa34ffzzDesktopMedia PrimaUsed articlesMedia Prima to invest more in local contentmht44 Time Warners (2010) Annual Report Time Warners45 WHAT HI FI (2011) Samsung aims for 50m TV sales worldwide in 2012 set to announce launch date for Google TV
product Retrieved from httpwwwwhathificomnewssamsung-aims-for-50m-tv-sales-worldwide-in-2012-set-to-announce-launch-date-for-google-tv-produ
46 Woroch G A (1996) Turning the Cables Elsevier47 Zanuddin H (2007) Political influence in Malaysia and Thailand media sector Jati Vol12
- MEdiA PRIMA
- Agenda
- Company Profile
- Media Primarsquos Commitment amp Direction moving forward
- Media Industry Business Model ndash Content Driven
- Our Tasks ndash How
- PEST Analysis
- Politics Legal Issues amp Impact
- Economic Issues and Impact
- Social Issues and Impact
- Social Issues and Impact
- Technology Issues and Impact
- In short
- Porterrsquos 5 Forces Analysis
- Porterrsquos Five Forces ndash Competitive Analysis
- Financials
- Media Prima Financial Highlights
- However in further analysis
- Value Chain Analysis
- Resource Based View
- In the context of the Content industry value chain Mapped again
- Appraising capabilities which drives profitability
- Mapping Media Prima revenue streams against the Diversification
- Slide 25
- Related Constrained Diversification
- Related Constrained Diversification (2)
- Slide 28
- Related Linked Diversification
- Slide 30
- Social Responsibility Analysis
- Social Responsibility
- Social Responsibility ndash cont
- Media Prima Acknowledges it various stakeholder via Stakeholder
- It has moved on to 2nd stage of CSR
- SWOT Analysis
- SWOT Analysis ndash Summary
- Media Primarsquos Current situation in summary
- Moving forward 2012 and beyond
- Recommended Destination and future growth of Media Prima
- How Moving from aggregator to content creator
- How Moving from aggregator to content creator (2)
- Creating a Content focus agency All these can be enable via
- Using financial view to free resources for content development
- By changing the business segment reporting it also affects the
- How Moving from aggregator to content creator (3)
- Technology ndash Enable Media Prima to leap into Interactive Conten
- It is not a Fad but a trend
- Slide 50
- Example of Smart TV
- This will ultimately lead Media Prima to reduce it dependence o
- NEW Revenue Streams for Media Prima
- How
- Building Talents in the long run
- Summary ndash Media Prima
- References
- References
- References (1)
- References (2)
- References (3)
-
However in further analysisHowever the bulk of its revenue comes from advertising that is in turn dependent on the economic outlook the question arises as to whether Media Prima should diversify its income stream Especially when gt80 of Astrorsquos revenue is on subscription
Reduce Media Primarsquos dependence on advertising revenueas it highly fluctuates with the market conditions
Group
2010 2009
RMrsquo000 RMrsquo000
Advertising revenue 1237961 80 725857 98 Circulation revenue 290691 19 0 Sale of programmes videos cable and laser rights and media revenue 15408 1 11287 2 Fees from provision of production services and sponsorship 2583 0 6885 1 Fees from provision of procurement services Dividends from subsidiaries Dividends from an associate 1546643 100 744029 100
Source Media Prima Annual Report 2011
Value Chain Analysis
Resource Based View
The resource-based view is grounded in the perspective that a firm is a collection of unique resources and capabilities that provides the basis for its strategies and the primary source of its return
SupportActivities
Primary Activities
Strategy Development 4
Resource Identification 1Capabilities Determination 2Competitive advantage 3
Resource Gap Analysis 5
Source Porter Value Chain Robert M Grant
Process of CONTENT aggregation Process of CONTENT creation
In the context of the Content industry value chainMapped against Porterrsquos Value chain
Createbull Scriptwritersbull Actorsbull Animatorsbull Gamesbull developer
Publishbull Production housesbull TV Advert Film
Packagebull Media Primabull Astrobull RTMbull Maxisbull Digibull Celcom
DistributebullTelekombull MBNS (Measat)bull RTM
Content industry value chain
Porterrsquos Value Chain
Human Resource Management
Technological DevelopmentProcurement
Marketing amp Sales
Develop Talent Pool
Ensure Vibrant Content Industry
Technologycreates ubiquitous
Low Access Cost
To spur the industry forward
Strong talent develops Content development
demand for access
Strong content industry drives demand for Talent Drive demand for content
Services
Source SKMM Regulatory Compliance Course for Telcos amp Celcos
MARKETINGStrategies are focused on branding activities and marketing communications aggressive Aamp P and active participation in on-ground activities that promote brand awareness And Established Integrated marketing arm
TECHNOLOGY DEVELOPMENT Alt Media the digital arm successfully launched TonTon TV a cutting edge video portal that offers customization and interactivity of social networking Giving Media Prima an advantage of being able to direct advertisers to precise target groups
PROCUREMENT Stringent supplier selection in terms of 70 are local suppliers Sourcing of content which are relevant responsible engaging especially with the advent of new media
SERVICESMedia Prima fully owns Primeworks Studio helps maximize the economies of scale in content production whilst enhancing the quality of content of all television networks
HUMAN CAPITALPrioritize human capital development in news and editorial operation radio network artist and talent management etc Creating an in-house talent pool to develop content
Content Barriers to entry
ndash securing talents - Leadership position in development of local talent and content to leading the industry
Vertical bargaining power
DifferentiationAnd Competitive advantage
- Consumer insights - Integrated media organization
Activities Benefit
Competitiveness leading to Margins
Goal
Appraising capabilities which drives profitability
Source Media Prima Annual Report 2011
Mapping Media Prima revenue streams against the Diversification Map
HIGH
LOW
HIGHLOW
Shar
ing
Ope
ratio
nal R
elat
edne
ss B
etw
een
Busi
ness
Corporate Relatedness Transferring skills into business through corporate HQ
Related Constrained Diversification
Vertical Integration Market Power
Content Creation and Talent development Prima Works enables Media Prima to create localized content for the local market
Both operation and Corporate Relatedness (Rare Capability and can create Diseconomies of scale)
New Media is both an operation and corporate relatedness diversification as it require Media Prima to go beyond playing the role as aggregator but also content producer leveraging on its strength
Unrelated Diversification (Financial Economies)This area of diversification which is unrelated in operation and skills transfer Media Prima has not exploited
Related Linked Diversification (Economies of Scope)As newscontent are cross platforms and the business models are the same Media Prima was able to share similar content across platforms and acquire related companies
Opportunities - Create more segmented programmes and move into interactive content
OpportunitiesHowever more needs to be done in the new are with the advent of Interactive TV
Opportunities Although unrelated area often has high risk it is crucial at this point for Media Prima to extend into this area in smart partnerships with telecommunication companies ie Axiata TM
OpportunitiesMedia Prima has maximized its diversification strategy in this area BUT the market is yet to be ready amp there is a need to link both NSTP and Media Prima
CurrentPrimeworks Studios Sdn Bhd (owned by Media Prima) is Malaysias biggest production company producing TV content since 1984 and feature films since 1994 generating over 5000 hours of TV content and 10 movies annually
Related Constrained Diversification
ChallengesBut the reality is that it is not able to compete with the myriad of channels of its competitors which are dependent on overseas content
Opportunities However more needs to be doneas channels become more segmented-Procuring more content to compete on quantity - or it could change the content game and move into interactive content
Source Creation of An Integrated Media Group 2009 httpwwwmediaprimacommy
TV Newspaper
Radio
Outdoor
New Medi
a
4 3 3
1 2
gt150
17
2 1
gt14
3
22
22
YTL Comms
ABN 100
Ove
rvie
w o
f com
petit
ors
thei
r bus
ines
s po
rtfol
ios
Related Constrained Diversification
Media Company
Advertisers Corporations(Customers )
Viewers(Consumers)
Consumer Pay for Product
CONTENT
Advertiser payFor (Ad space) $$
1 httpwwwlongtailcomthe_long_tail200809the-three-kindshtml
$
Opportunities The potential here is also for Media Prima to drive content syndication ndash providing content to other media stations abroad
Media Prima is currently doing by syndicating content to ASTRO and Unifi
Competitors
Media Company
Viewers(Consumers)
CONTENT PRO
1 httpwwwlongtailcomthe_long_tail200809the-three-kindshtml
$
C
C
C FREE CONTENT FREE CONTENT
FREE CONTENT
Both operation and Corporate Relatedness
CurrentMedia Primarsquos intention to leverage on both its operations and Corporate relatedness to shift its revenue structure to be less dependent on advertising revenue and move toward subscriber revenue where a few subsidies everyone else via versioning ldquoprice discriminationrdquo
ChallengesIt has to some degree been successful to introduce this ndash via TonTon TV however the revenue from this segment has yet to be significant
To date there are 16 show packages and over 50 single episodes for viewers to purchase ndash which is limited
Opportunities However more needs or can be done in this new area with the advent of Interactive TV
Media Company
Advertisers Corporations(Customers )
Viewers(Consumers)
Consumer Pay for Product
FREE
CONTENT
Advertiser payFor (Ad space) $$
Source Website1 httpwwwlongtailcomthe_long_tail200809the-three-kindshtml2 Creation of An Integrated Media 2009 Grouphttpwwwmediaprimacommyinvestorcentercp2009NSTPGOpdf3 httpwwwtheedgemalaysiacomin-the-financial-daily164479-media-prima-best-proxy-to-sector-says-oskhtml 4 Media Prima net revenue grows to RM119b 2011 httpwwwbtimescommyCurrent_NewsBTIMESarticles20111118202427Articleindex_html
Related Linked Diversification
Current Media Prima has expanded across media with the idea in the hope of a) Leveraging on its expertise of
Advertisers subsiding viewers model b) Share back-office consolidation which
creates operations efficiencies in operation ie Editorial Talents
c) Cross marketing opportunities across platforms - Where Advertisers could purchase cross buy across platforms
Challenges Market ndash Not readyThe market is not ready for bundled and cross market offering According to Dato Amrin Awaluddin Group Managing Director of Media Prima no doubt there was head roads but more effort needs to be done to integrate the platforms better
Internally ndash Structure is not integrated In terms of unlocking NSTPs value he says it would be done in two phases `First is more short term like consolidating in terms of operations while the second stage will entail selling of products and cross-promoting our content which would be an ongoing revenue- generation exerciselsquo And he quoted Joran a property of Berita Harian (NST) ndash a nationwide fishing event being brought to TV3 as an example
Opportunities - The structure impeded cross platform and working in silo
does not help
- Hence there is a need to further shift paradigms via a structural change to free up resources to focus on content
- The market will not know what they want until we present them with the opportunity benefit
Social Responsibility Analysis
Social Responsibility
Media Primarsquos approach to Social Responsibility is based on the key triple bottom line ndash social environmental and economic It considers the socio-economic impact of its business activities in the aim to create value to its stakeholders via the 4 categories ie community workplace marketplace and environment
Community1EducationFocusing on education to raise awareness of the importance of education and increase the academic standards of underprivileged children and underperforming schools eg PINTAR Programme NST School Sponsorship Programme
2 HumanitarianRaise funds for humanitarian aid and provided updates on the local and world disaster crisis to the public and raised awareness of the funds eg Humanitarian Aid for Gaza Humanitarian Aid for Flood Victims in Pakistan
3 Other community programmesProduced outreach programmes to reflect and highlight local and community issues and to be the eyes and ears of the public and engage in public awareness through its businessesrsquo media resources and platforms in print interactive media and television eg Project Sunshine
Social Responsibility ndash cont
Environment - EfficiencyStrongly committed to being an environmentally friendly Company by using recycled paper especially in its newspapers business efficient usage of electricity in offices water management reducing amount of waste produced throughout its businesses and other environmental initiatives such as lsquosave our beachrsquo project and WWFrsquos Earth Hour
Marketplace ndash Responsible ContentFocusing on product responsibility in providing high quality products and is committed to establishing a horizontal specialisation system based on collaboration with stakeholders The production flow is illustrated in the diagram below
Workplace ndash Right CultureIt aims to create a workplace where its people have the opportunity to be the best they possibly can to have the right culture safe working environment and human capital development with fair processes
Media Prima Acknowledges it various stakeholder via Stakeholders Management
Media Prima is aware of the diversity of its stakeholders and the different goals and demand of its stakeholders
The Company conducts active engagement with its stakeholders to fully understand their needs and increase their trust in the Company through formal and informal mechanisms as follows
It has moved on to 2nd stage of CSR
1st Generation 2nd Generation 3rd Generation
Philanthropic short term risk management
Product Process innovation business and corporate governance model long term sustainability Strategic CSR
3rd Generation Multi- stakeholder standards and partnerships institutional building CR- Oriented advocacy and public policy
Opportunity
What is next for Media Prima to shape the industry
Creating content that generate advertising dollars amp donations of the poor social awareness
By leveraging on its content distribution capabilities
SWOT Analysis
SWOT Analysis ndash Summary
Strengths 1 Strong market share in TV segment2 Malaysiarsquos only integrated media
organization- have vertical and horizontal diversification advantage
3 Established value chains strength which complements the required core competencies
4 Have move across 3 revenue models
Weaknesses1 limited number of stations variety and choice
for consumer2 Despite diversification revenues still mainly
driven by advertisers and TV -gt cross platforms is needed
3 Financial segmentation may hinder potentials of the company
Opportunities 1 Broadband infrastructure ndash via HSBB2 Development of technology ndash creating
medias gadgets that increase digital interaction and content consumption
3 Consumers are willing to pay for content4 Possible deregulation of content ndash leveling
the playing field
Threats 1 2012 forecasting a financial slow down
affecting Ad Ex ndash hence revenue is reduced2 Increase competition New Entrants Pay TV
player amp continual competition from ASTRO3 Changing consumer habits towards media
consumption -gt moving away from traditional media ndash hence have to fight for consumerrsquos attention
Right Technology (Gadget and Infrastructure) at the Right time (deregulation) amp Right consumers (shift in media habits and willingness to pay for content ndash ASTRO as indicator)
Vertical Value Chain advantage to compete in content development
Media Primarsquos Current situation in summary
+VE
-VE Revenue dependent on advertising which is affected correlated to GDP
Resources organization structure holds back effectiveness of organization
Moving forward2012 and beyond
Recommended Destination and future growth of Media Prima
Revenue mainly from advertising
Revenue from advertising
Content SubscriptionBy viewers
Content driven Complementary Services for advertiser (Auxillary Services)
Media Prima
Media Prima
Content Syndicationto competitors
+
How Moving from aggregator to content creator
Content Focus Leveraging on content to Embark on Revenue shifts
Long term sustainable leadership
Restructuring to liberateresources for Content
Sustainable Talent development -
Partnership
Riding the Technology Wave
Short term (2012) Mid Term (by 2013-2015) Long term 2015 beyond
How Moving from aggregator to content creator
Content Focus Leveraging on content to Embark on Revenue shifts
Long term sustainable leadership
Restructuring to liberateresources for Content
Sustainable Talent development -
Partnership
Riding the Technology Wave
Short term (2012) Mid Term (by 2013-2015) Long term 2015 beyond
Creating a Content focus agency All these can be enable via the following means
Demand- The content creation race bull There is a need to free up empower human capital to create more content which are relevant
segmented engaging and entertaining
How does media prima refocus its resources into where it matters Instead of multiple teams doing the same thing ndash there is a challenge to create a lean and efficient organization
Challenges Freeing Resources
Instead of looking at a Media based financial segment reporting structurally force the teams to integrate by changing the dynamics of PampL
Next page
Solution Redefining Business Units Paradigms
Take a step up from producing beyond the current vernacular program to meet shifting consumer needs
Challenges ndash Lifestyle lead Variety
Creating Channel programs which are target segment focus based on lifestyles hellip
Acquisition of content as content regulations will be relaxed
Solution Target Segment focus
Using financial view to free resources for content developmentFinancial segment reporting may create a ldquosilordquo mentality ndash which encourages each head of business to protect their bottom line Hence a less effective in operations
Our recommendation is to expand content creation to cut across and shift paradigms to free up resources and focus on new revenue streams And create new content for different segment
Tele
visi
on N
etw
ork
Radi
o N
etw
ork
Out
door
Med
ia
Prin
t M
edia
Oth
er M
edia
Current Financial Segment Reporting
Tele
visi
on N
etw
ork
Radi
o N
etw
ork
Out
door
Med
ia
Prin
t M
edia
Oth
er M
edia
Production
Content
Subscription
Advertising
Recommended Segment Reporting
Lifestyle Segments
Lifestyle Segments
Lifestyle Segments
Lifestyle Segments
Lifestyle Segments
Lifestyle Segments
By changing the business segment reporting it also affects the company structure
The benefits - Flexibility and empowers knowledge
economy ndash talent content driven
- Builds at strong work culture which may be replicated in the region
- Expansion to embark on talent and content crowd sourcing - open innovation creation
Media Prima can take this opportunity to achieve SPECIALIZATION COORDINATION AND COOPERATION Currently team structure ndash of Integrated Marketing Division is created as a temporary solution hellip to enable integration It will move towards a network model to haste integration fast and response to technology and consumer needs
Subcription
Advertising
Production
TechnologyPartner
Content
How Moving from aggregator to content creator
Content Focus Leveraging on content to Embark on Revenue shifts
Long term sustainable leadership
Restructuring to liberateresources for Content
Sustainable Talent development -
Partnership
Riding the Technology Wave
Short term (2012) Mid Term (by 2013-2015) Long term 2015 beyond
Technology ndash Enable Media Prima to leap into Interactive Content
Interactive Content
UniFi Axiata
Media Prima
Electronics Manufacturer
Demand - A ready market bull There is a latent demand for content-gt consumers are
willing to Pay bull Technology has accustomed consumers to interacting
with contentbull Regulatory push to shift from analogue to digital by
2015
However unlike Media Primarsquos western counterparts ie Time Warner Communication Media Prima does not have the advantages of cable infrastructure
Challenges ndash Limitation
Media Prima could depend on existing suppliers of connectivity and technology- Telecommunications ie AXIATA and - Manufacturing companies ie Samsungto take the leap into interactive content Unifi TM
Solution ndash Smart Partnerships
Maximizing Unrelated Diversification
It is not a Fad but a trend
Smart TV is an inevitable trend says Baeguen Kang vice president of
research and development at South Koreas LG Electronics Co the worlds second-largest seller of TV sets by unit volume As people experienced smartphones and tablet PCs the larger screen on a TV is very attractive for apps and Web content
210 million TV sets sold world-wide had an Internet connection (2010)
21 50It will be the forecast in (2014)
Source Evan Ramstad (January 2011)A ldquoManufacturers Turn to Smart TV After 3-D Disappointsrdquo The Wall Street Journal online httponlinewsjcomarticleSB10001424052748704835504576059783074010902html
As technology develops Current cost is will drop exponentially reflecting the Moorersquos Law
Hence lowering the cost of access for interactive content
Example of Smart TV
Smart Hub It is a front facing interface just like a main menu
when consumers turn on their TV There are few utilities that consumers can choose to be entertained
Video ndash consumers can choose from array of video collections that required to be paid
Apps ndash an internet-enabled applications like You Tube Facebook Twitter Skype and others
Internet browsing ndash just like PC internet browsing
Music photo and TV watching
Smart ConnectivityWIFI enabled that allows consumers to connect to all mobile devices like smart phone tablet PC notebook and camera with Samsung Wireless Router called 1 foot This connectivity is being called ldquoAllSharerdquo by Samsung
httpotbresearchcomau200509report-1-industry-forum
MEDIA PRIMA IS CURRENTLY HERE
This will ultimately lead Media Prima to reduce it dependence on advertising revenue
Others ndash Utilising the SMART TV technology and Apps to create any existing Media Prima businesses
NEW Revenue Streams for Media Prima
To take advantage of SMART TV and collaborate with SMART TV manufacturers Media Prima can look into following utilities
Collaborate with manufacturers to allow consumers to browse and pay for Media Prima video collections
Selling local music for Malaysia market
Collaborate with local or international content developers to create Malaysia specific contents for paid subscription or free for common content to attract new consumers
How
Content Focus Leveraging on content to Embark on Revenue shifts
Long term sustainable leadership
Restructuring to liberateresources for Content
Sustainable Talent development -
Partnership
Riding the Technology Wave
Short term (2012) Mid Term (by 2013-2015) Long term 2015 beyond
Building Talents in the long run
Education Building on its strategic CSR ndash Media Prima could champion the
development of the content industry by partnering with local universities in the areas of technology media and communication
Crowd Sourcing To haste up the strategic CSR it too could embark on crowd
sourcing for content ndash via scripts and interactive content In which Media Prima could support a great idea and develop the ideas for monetization
This is a synergistic and natural development from the networks structure (open innovation)
Summary ndash Media Prima
Develop Talent Pool
Ensure Vibrant Content Industry
Technologycreates ubiquitous
Low Access Cost
To spur the industry forward
Strong talent develops Content development
demand for access
Strong content industry drives demand for Talent drives demand for content
Our recommendations are aligned to help spur the industry forwardhellip
Restructuring to liberateresources for Content
Sustainable Talent development -
Partnership
Riding the Technology Wave ndash Via Smart
Partnerships
References
References
1 Anon ldquoMedia Prima Berhad implements Accenture integrated broadcast systemrdquo Accenture Press Release httpnewsroomaccenturecomarticle_displaycfmarticle_id=5005 viewed 3 November 2011
2 Anon ldquoNew exciting and vibrant offerings from MPB television networks in 2010rdquo Media Prima Press Release httpwwwmediaprimacommypressreleasepressreleaseaspxid=150 viewed 3 November 2011
3 Anderson J ldquoResource-based competitiveness managerial implications of the resource-based viewrdquo Strategic Direction Vol26 No5 2010 pp1-2
4 Arman Arshad (2006) Size matters Retrieved December 2 2011 from asiaviewsorg httpwwwasiaviewsorgindexphpoption=com_contentampview=articleampid=2171headlinealias2171ampcatid=1headlinesampItemid=2
5 Asia Times (2007 November 29) Malaysian media giant grasps for Internet Retrieved November 3 2011 from httpwwwatimescomatimesSoutheast_AsiaIK29Ae02html
6 Barney JB amp Hesterly WS (2008) Strategic Management and Competitive Advantage The Five Forces Model of Environmental Threats pp39Prentice Hall
7 BBC (2011) BBC News product launches on connected TV Retrieved from bbccoukpressofficepressreleasesstories201106_june17newsshtml
8 Boston Consulting Group (2011) Lean Advantage in Media Boston Consulting Group
9 Boston Consulting Group (2011) Running Forward Walking Backward Boston Consulting Group
10 Business Times (2011) Media Prima net revenue grows to RM119b Kuala Lumpur New Straits Times
11 Business Times (2011) Media Prima on track to achie1048665ing 2011 target Retrieved from www1btimescomm1048668Current_NewsBTIMESarticlespimeArticle
References (1)
12 Business Times (2011) Media Prima Puncak Semangat in early talks Retrieved from httpwwwbtimescommyarticlespimmaArticle
13 Carl W Stern George Stalk Carl W Stern George Stalk Stern CW amp Stalk G (2011) Perspectives of Strategy from the Boston Consulting Group Retrieved December 3 2011 from Value Based Managementnet httpwwwvaluebasedmanagementnetmethods_bcgmatrixhtml
14 ecmlibra (2011) Adex momentum to taper off in 2012 ecmlibra
15 Gershon R A amp Ratnadeep S V (2004) Viacom Inc A Case Study in Transnational Media Management Journal of Media Business Studies 1 (1) 47-69
16 Grant RM ldquoThe resource-based theory of competitive advantage implications for strategy formulationrdquo California Management Review Vol 3 2011 httpwwwskynetie~karenArticlesGrant1_NBpdf viewed 15 November 2011
17 GreyReview (2011) TonTon Streaming Over 11 Million Video Hours A Month now with 16 millions registered users Retrieved from httpwwwgreyreviewcom20110731tonton-serving-over-1-1-million-video-hours-a-month-now-with-1-6-registered-users
18 Heavy Reading (2011) Telecom in TV Land A Roadmap to New Digital Media Ecosystem Retrieved from wwwheavyreadingcomdetailsaspsku_id=1773ampskuitem_itemid=1030
19 Hegedus N (2010) The Great Scare EBR 3 10-17
20 JohnsonGScholesK amp Whittington (2008) Exploring Corporate Strategy Competitive Forces ndash the Five Forces Framework pp 59-64 Prentice Hall
21 kinetic (2011) Moving World Asia Hong Kong
References (2)
22 Knowledgefaber (2009) Telcos Avatar - As Media Companies 20 Retrieved from httpknowledgefabercomindexphpoption=com_contentampview=articleampid=40telecom-and-media-convergenceampcatid=10telecomampItemid=42
23 Knowledgefaber (2011) Telcos Avatar - As Media Companies 20 Retrieved from httpknowledgefabercomindexphpoption=com_contentampview=articleampid=40
24 Malik O (2011) GIGAOM Retrieved from httpgigaomcom20110223old-media-is-being-unbundled-just-like-telecom-was
25 Maxis with TM Astro with TIME Best Strategy to IPTV Market Retrieved December 1 2011 httpbizthestarcommynewsstoryaspfile=201111business7704581ampsec=business
26 Media Prima (2010) Annual Report Media Prima Berhad27 Media Prima Berhad (2011) 11 Nov 2011 - New Exciting amp Vibrant Offerings From MPB Television Retrieved from
wwwmediaprimacommypressreleasepressreleaseaspxid=15028 Media Prima (2010) Sustainability Report Media Prima Berhad29 OSK (2011) Media Prima OSK30 Pocket-Lint (2011) Samsung Smart TV hits 2 million mark Retrieved from
httpwwwpocket-lintcomnews40593samsung-smart-tv-2-million31 PricewaterhouseCoopers (2011) Achieving corporate financial PwC32 PricewaterhouseCoopers (2007) Financial Reporting Standards (FRS) in Malaysia PricewaterhouseCoopers33 SKMM (MCMC) (2009) Advertising Development in Malaysia SKMM34 SKMM (MCMC) (2011) Content Development SKMM35 Techpinions (2011) Interactive TV Trends - How the TV experience is changing - Part II Retrieved from
httptechpinionscominteractive-tv-trends-E28093-how-the-tv-experience-is-changing-part-ii4066
References (3)
36 The Edge (2011) Media Prima best proxy to sector Retrieved from wwwtheedgemalaysiacom37 The Edge Malaysia (2011 September 26) Education the mother of all reforms Retrieved October 30 2011 from
httpwwwtheedgemalaysiacomin-the-financial-daily193478-education-the-mother-of-all-reformshtml38 The Star Online (2011) Main players in the competitive TV sector Retrieved from bizthestarcommynewsstoryasp
file=20111126business997401739 The Star Online (2011) Maxis ready to move up value Retrieved from
bizthestarcommynewsstoryaspfile=201111business7704581ampse40 The Star Online (2011) New players enter the TV Retrieved from
bizthestarcommynewsstoryaspfile=20111126business997300841 The Star Newspaper (December 1 2011) Capital TV to make its debut today42 The Star Online (January 1 2011) Maxis ready to move up value chain Retrieved December 3 2011
httpbizthestarcommynewsstoryaspfile=201111business7704581ampsec=business43 The Star Online (2011 April 21) Media Prima to invest more on local content Retrieved October 30 2011 from C
Usersa34ffzzDesktopMedia PrimaUsed articlesMedia Prima to invest more in local contentmht44 Time Warners (2010) Annual Report Time Warners45 WHAT HI FI (2011) Samsung aims for 50m TV sales worldwide in 2012 set to announce launch date for Google TV
product Retrieved from httpwwwwhathificomnewssamsung-aims-for-50m-tv-sales-worldwide-in-2012-set-to-announce-launch-date-for-google-tv-produ
46 Woroch G A (1996) Turning the Cables Elsevier47 Zanuddin H (2007) Political influence in Malaysia and Thailand media sector Jati Vol12
- MEdiA PRIMA
- Agenda
- Company Profile
- Media Primarsquos Commitment amp Direction moving forward
- Media Industry Business Model ndash Content Driven
- Our Tasks ndash How
- PEST Analysis
- Politics Legal Issues amp Impact
- Economic Issues and Impact
- Social Issues and Impact
- Social Issues and Impact
- Technology Issues and Impact
- In short
- Porterrsquos 5 Forces Analysis
- Porterrsquos Five Forces ndash Competitive Analysis
- Financials
- Media Prima Financial Highlights
- However in further analysis
- Value Chain Analysis
- Resource Based View
- In the context of the Content industry value chain Mapped again
- Appraising capabilities which drives profitability
- Mapping Media Prima revenue streams against the Diversification
- Slide 25
- Related Constrained Diversification
- Related Constrained Diversification (2)
- Slide 28
- Related Linked Diversification
- Slide 30
- Social Responsibility Analysis
- Social Responsibility
- Social Responsibility ndash cont
- Media Prima Acknowledges it various stakeholder via Stakeholder
- It has moved on to 2nd stage of CSR
- SWOT Analysis
- SWOT Analysis ndash Summary
- Media Primarsquos Current situation in summary
- Moving forward 2012 and beyond
- Recommended Destination and future growth of Media Prima
- How Moving from aggregator to content creator
- How Moving from aggregator to content creator (2)
- Creating a Content focus agency All these can be enable via
- Using financial view to free resources for content development
- By changing the business segment reporting it also affects the
- How Moving from aggregator to content creator (3)
- Technology ndash Enable Media Prima to leap into Interactive Conten
- It is not a Fad but a trend
- Slide 50
- Example of Smart TV
- This will ultimately lead Media Prima to reduce it dependence o
- NEW Revenue Streams for Media Prima
- How
- Building Talents in the long run
- Summary ndash Media Prima
- References
- References
- References (1)
- References (2)
- References (3)
-
Value Chain Analysis
Resource Based View
The resource-based view is grounded in the perspective that a firm is a collection of unique resources and capabilities that provides the basis for its strategies and the primary source of its return
SupportActivities
Primary Activities
Strategy Development 4
Resource Identification 1Capabilities Determination 2Competitive advantage 3
Resource Gap Analysis 5
Source Porter Value Chain Robert M Grant
Process of CONTENT aggregation Process of CONTENT creation
In the context of the Content industry value chainMapped against Porterrsquos Value chain
Createbull Scriptwritersbull Actorsbull Animatorsbull Gamesbull developer
Publishbull Production housesbull TV Advert Film
Packagebull Media Primabull Astrobull RTMbull Maxisbull Digibull Celcom
DistributebullTelekombull MBNS (Measat)bull RTM
Content industry value chain
Porterrsquos Value Chain
Human Resource Management
Technological DevelopmentProcurement
Marketing amp Sales
Develop Talent Pool
Ensure Vibrant Content Industry
Technologycreates ubiquitous
Low Access Cost
To spur the industry forward
Strong talent develops Content development
demand for access
Strong content industry drives demand for Talent Drive demand for content
Services
Source SKMM Regulatory Compliance Course for Telcos amp Celcos
MARKETINGStrategies are focused on branding activities and marketing communications aggressive Aamp P and active participation in on-ground activities that promote brand awareness And Established Integrated marketing arm
TECHNOLOGY DEVELOPMENT Alt Media the digital arm successfully launched TonTon TV a cutting edge video portal that offers customization and interactivity of social networking Giving Media Prima an advantage of being able to direct advertisers to precise target groups
PROCUREMENT Stringent supplier selection in terms of 70 are local suppliers Sourcing of content which are relevant responsible engaging especially with the advent of new media
SERVICESMedia Prima fully owns Primeworks Studio helps maximize the economies of scale in content production whilst enhancing the quality of content of all television networks
HUMAN CAPITALPrioritize human capital development in news and editorial operation radio network artist and talent management etc Creating an in-house talent pool to develop content
Content Barriers to entry
ndash securing talents - Leadership position in development of local talent and content to leading the industry
Vertical bargaining power
DifferentiationAnd Competitive advantage
- Consumer insights - Integrated media organization
Activities Benefit
Competitiveness leading to Margins
Goal
Appraising capabilities which drives profitability
Source Media Prima Annual Report 2011
Mapping Media Prima revenue streams against the Diversification Map
HIGH
LOW
HIGHLOW
Shar
ing
Ope
ratio
nal R
elat
edne
ss B
etw
een
Busi
ness
Corporate Relatedness Transferring skills into business through corporate HQ
Related Constrained Diversification
Vertical Integration Market Power
Content Creation and Talent development Prima Works enables Media Prima to create localized content for the local market
Both operation and Corporate Relatedness (Rare Capability and can create Diseconomies of scale)
New Media is both an operation and corporate relatedness diversification as it require Media Prima to go beyond playing the role as aggregator but also content producer leveraging on its strength
Unrelated Diversification (Financial Economies)This area of diversification which is unrelated in operation and skills transfer Media Prima has not exploited
Related Linked Diversification (Economies of Scope)As newscontent are cross platforms and the business models are the same Media Prima was able to share similar content across platforms and acquire related companies
Opportunities - Create more segmented programmes and move into interactive content
OpportunitiesHowever more needs to be done in the new are with the advent of Interactive TV
Opportunities Although unrelated area often has high risk it is crucial at this point for Media Prima to extend into this area in smart partnerships with telecommunication companies ie Axiata TM
OpportunitiesMedia Prima has maximized its diversification strategy in this area BUT the market is yet to be ready amp there is a need to link both NSTP and Media Prima
CurrentPrimeworks Studios Sdn Bhd (owned by Media Prima) is Malaysias biggest production company producing TV content since 1984 and feature films since 1994 generating over 5000 hours of TV content and 10 movies annually
Related Constrained Diversification
ChallengesBut the reality is that it is not able to compete with the myriad of channels of its competitors which are dependent on overseas content
Opportunities However more needs to be doneas channels become more segmented-Procuring more content to compete on quantity - or it could change the content game and move into interactive content
Source Creation of An Integrated Media Group 2009 httpwwwmediaprimacommy
TV Newspaper
Radio
Outdoor
New Medi
a
4 3 3
1 2
gt150
17
2 1
gt14
3
22
22
YTL Comms
ABN 100
Ove
rvie
w o
f com
petit
ors
thei
r bus
ines
s po
rtfol
ios
Related Constrained Diversification
Media Company
Advertisers Corporations(Customers )
Viewers(Consumers)
Consumer Pay for Product
CONTENT
Advertiser payFor (Ad space) $$
1 httpwwwlongtailcomthe_long_tail200809the-three-kindshtml
$
Opportunities The potential here is also for Media Prima to drive content syndication ndash providing content to other media stations abroad
Media Prima is currently doing by syndicating content to ASTRO and Unifi
Competitors
Media Company
Viewers(Consumers)
CONTENT PRO
1 httpwwwlongtailcomthe_long_tail200809the-three-kindshtml
$
C
C
C FREE CONTENT FREE CONTENT
FREE CONTENT
Both operation and Corporate Relatedness
CurrentMedia Primarsquos intention to leverage on both its operations and Corporate relatedness to shift its revenue structure to be less dependent on advertising revenue and move toward subscriber revenue where a few subsidies everyone else via versioning ldquoprice discriminationrdquo
ChallengesIt has to some degree been successful to introduce this ndash via TonTon TV however the revenue from this segment has yet to be significant
To date there are 16 show packages and over 50 single episodes for viewers to purchase ndash which is limited
Opportunities However more needs or can be done in this new area with the advent of Interactive TV
Media Company
Advertisers Corporations(Customers )
Viewers(Consumers)
Consumer Pay for Product
FREE
CONTENT
Advertiser payFor (Ad space) $$
Source Website1 httpwwwlongtailcomthe_long_tail200809the-three-kindshtml2 Creation of An Integrated Media 2009 Grouphttpwwwmediaprimacommyinvestorcentercp2009NSTPGOpdf3 httpwwwtheedgemalaysiacomin-the-financial-daily164479-media-prima-best-proxy-to-sector-says-oskhtml 4 Media Prima net revenue grows to RM119b 2011 httpwwwbtimescommyCurrent_NewsBTIMESarticles20111118202427Articleindex_html
Related Linked Diversification
Current Media Prima has expanded across media with the idea in the hope of a) Leveraging on its expertise of
Advertisers subsiding viewers model b) Share back-office consolidation which
creates operations efficiencies in operation ie Editorial Talents
c) Cross marketing opportunities across platforms - Where Advertisers could purchase cross buy across platforms
Challenges Market ndash Not readyThe market is not ready for bundled and cross market offering According to Dato Amrin Awaluddin Group Managing Director of Media Prima no doubt there was head roads but more effort needs to be done to integrate the platforms better
Internally ndash Structure is not integrated In terms of unlocking NSTPs value he says it would be done in two phases `First is more short term like consolidating in terms of operations while the second stage will entail selling of products and cross-promoting our content which would be an ongoing revenue- generation exerciselsquo And he quoted Joran a property of Berita Harian (NST) ndash a nationwide fishing event being brought to TV3 as an example
Opportunities - The structure impeded cross platform and working in silo
does not help
- Hence there is a need to further shift paradigms via a structural change to free up resources to focus on content
- The market will not know what they want until we present them with the opportunity benefit
Social Responsibility Analysis
Social Responsibility
Media Primarsquos approach to Social Responsibility is based on the key triple bottom line ndash social environmental and economic It considers the socio-economic impact of its business activities in the aim to create value to its stakeholders via the 4 categories ie community workplace marketplace and environment
Community1EducationFocusing on education to raise awareness of the importance of education and increase the academic standards of underprivileged children and underperforming schools eg PINTAR Programme NST School Sponsorship Programme
2 HumanitarianRaise funds for humanitarian aid and provided updates on the local and world disaster crisis to the public and raised awareness of the funds eg Humanitarian Aid for Gaza Humanitarian Aid for Flood Victims in Pakistan
3 Other community programmesProduced outreach programmes to reflect and highlight local and community issues and to be the eyes and ears of the public and engage in public awareness through its businessesrsquo media resources and platforms in print interactive media and television eg Project Sunshine
Social Responsibility ndash cont
Environment - EfficiencyStrongly committed to being an environmentally friendly Company by using recycled paper especially in its newspapers business efficient usage of electricity in offices water management reducing amount of waste produced throughout its businesses and other environmental initiatives such as lsquosave our beachrsquo project and WWFrsquos Earth Hour
Marketplace ndash Responsible ContentFocusing on product responsibility in providing high quality products and is committed to establishing a horizontal specialisation system based on collaboration with stakeholders The production flow is illustrated in the diagram below
Workplace ndash Right CultureIt aims to create a workplace where its people have the opportunity to be the best they possibly can to have the right culture safe working environment and human capital development with fair processes
Media Prima Acknowledges it various stakeholder via Stakeholders Management
Media Prima is aware of the diversity of its stakeholders and the different goals and demand of its stakeholders
The Company conducts active engagement with its stakeholders to fully understand their needs and increase their trust in the Company through formal and informal mechanisms as follows
It has moved on to 2nd stage of CSR
1st Generation 2nd Generation 3rd Generation
Philanthropic short term risk management
Product Process innovation business and corporate governance model long term sustainability Strategic CSR
3rd Generation Multi- stakeholder standards and partnerships institutional building CR- Oriented advocacy and public policy
Opportunity
What is next for Media Prima to shape the industry
Creating content that generate advertising dollars amp donations of the poor social awareness
By leveraging on its content distribution capabilities
SWOT Analysis
SWOT Analysis ndash Summary
Strengths 1 Strong market share in TV segment2 Malaysiarsquos only integrated media
organization- have vertical and horizontal diversification advantage
3 Established value chains strength which complements the required core competencies
4 Have move across 3 revenue models
Weaknesses1 limited number of stations variety and choice
for consumer2 Despite diversification revenues still mainly
driven by advertisers and TV -gt cross platforms is needed
3 Financial segmentation may hinder potentials of the company
Opportunities 1 Broadband infrastructure ndash via HSBB2 Development of technology ndash creating
medias gadgets that increase digital interaction and content consumption
3 Consumers are willing to pay for content4 Possible deregulation of content ndash leveling
the playing field
Threats 1 2012 forecasting a financial slow down
affecting Ad Ex ndash hence revenue is reduced2 Increase competition New Entrants Pay TV
player amp continual competition from ASTRO3 Changing consumer habits towards media
consumption -gt moving away from traditional media ndash hence have to fight for consumerrsquos attention
Right Technology (Gadget and Infrastructure) at the Right time (deregulation) amp Right consumers (shift in media habits and willingness to pay for content ndash ASTRO as indicator)
Vertical Value Chain advantage to compete in content development
Media Primarsquos Current situation in summary
+VE
-VE Revenue dependent on advertising which is affected correlated to GDP
Resources organization structure holds back effectiveness of organization
Moving forward2012 and beyond
Recommended Destination and future growth of Media Prima
Revenue mainly from advertising
Revenue from advertising
Content SubscriptionBy viewers
Content driven Complementary Services for advertiser (Auxillary Services)
Media Prima
Media Prima
Content Syndicationto competitors
+
How Moving from aggregator to content creator
Content Focus Leveraging on content to Embark on Revenue shifts
Long term sustainable leadership
Restructuring to liberateresources for Content
Sustainable Talent development -
Partnership
Riding the Technology Wave
Short term (2012) Mid Term (by 2013-2015) Long term 2015 beyond
How Moving from aggregator to content creator
Content Focus Leveraging on content to Embark on Revenue shifts
Long term sustainable leadership
Restructuring to liberateresources for Content
Sustainable Talent development -
Partnership
Riding the Technology Wave
Short term (2012) Mid Term (by 2013-2015) Long term 2015 beyond
Creating a Content focus agency All these can be enable via the following means
Demand- The content creation race bull There is a need to free up empower human capital to create more content which are relevant
segmented engaging and entertaining
How does media prima refocus its resources into where it matters Instead of multiple teams doing the same thing ndash there is a challenge to create a lean and efficient organization
Challenges Freeing Resources
Instead of looking at a Media based financial segment reporting structurally force the teams to integrate by changing the dynamics of PampL
Next page
Solution Redefining Business Units Paradigms
Take a step up from producing beyond the current vernacular program to meet shifting consumer needs
Challenges ndash Lifestyle lead Variety
Creating Channel programs which are target segment focus based on lifestyles hellip
Acquisition of content as content regulations will be relaxed
Solution Target Segment focus
Using financial view to free resources for content developmentFinancial segment reporting may create a ldquosilordquo mentality ndash which encourages each head of business to protect their bottom line Hence a less effective in operations
Our recommendation is to expand content creation to cut across and shift paradigms to free up resources and focus on new revenue streams And create new content for different segment
Tele
visi
on N
etw
ork
Radi
o N
etw
ork
Out
door
Med
ia
Prin
t M
edia
Oth
er M
edia
Current Financial Segment Reporting
Tele
visi
on N
etw
ork
Radi
o N
etw
ork
Out
door
Med
ia
Prin
t M
edia
Oth
er M
edia
Production
Content
Subscription
Advertising
Recommended Segment Reporting
Lifestyle Segments
Lifestyle Segments
Lifestyle Segments
Lifestyle Segments
Lifestyle Segments
Lifestyle Segments
By changing the business segment reporting it also affects the company structure
The benefits - Flexibility and empowers knowledge
economy ndash talent content driven
- Builds at strong work culture which may be replicated in the region
- Expansion to embark on talent and content crowd sourcing - open innovation creation
Media Prima can take this opportunity to achieve SPECIALIZATION COORDINATION AND COOPERATION Currently team structure ndash of Integrated Marketing Division is created as a temporary solution hellip to enable integration It will move towards a network model to haste integration fast and response to technology and consumer needs
Subcription
Advertising
Production
TechnologyPartner
Content
How Moving from aggregator to content creator
Content Focus Leveraging on content to Embark on Revenue shifts
Long term sustainable leadership
Restructuring to liberateresources for Content
Sustainable Talent development -
Partnership
Riding the Technology Wave
Short term (2012) Mid Term (by 2013-2015) Long term 2015 beyond
Technology ndash Enable Media Prima to leap into Interactive Content
Interactive Content
UniFi Axiata
Media Prima
Electronics Manufacturer
Demand - A ready market bull There is a latent demand for content-gt consumers are
willing to Pay bull Technology has accustomed consumers to interacting
with contentbull Regulatory push to shift from analogue to digital by
2015
However unlike Media Primarsquos western counterparts ie Time Warner Communication Media Prima does not have the advantages of cable infrastructure
Challenges ndash Limitation
Media Prima could depend on existing suppliers of connectivity and technology- Telecommunications ie AXIATA and - Manufacturing companies ie Samsungto take the leap into interactive content Unifi TM
Solution ndash Smart Partnerships
Maximizing Unrelated Diversification
It is not a Fad but a trend
Smart TV is an inevitable trend says Baeguen Kang vice president of
research and development at South Koreas LG Electronics Co the worlds second-largest seller of TV sets by unit volume As people experienced smartphones and tablet PCs the larger screen on a TV is very attractive for apps and Web content
210 million TV sets sold world-wide had an Internet connection (2010)
21 50It will be the forecast in (2014)
Source Evan Ramstad (January 2011)A ldquoManufacturers Turn to Smart TV After 3-D Disappointsrdquo The Wall Street Journal online httponlinewsjcomarticleSB10001424052748704835504576059783074010902html
As technology develops Current cost is will drop exponentially reflecting the Moorersquos Law
Hence lowering the cost of access for interactive content
Example of Smart TV
Smart Hub It is a front facing interface just like a main menu
when consumers turn on their TV There are few utilities that consumers can choose to be entertained
Video ndash consumers can choose from array of video collections that required to be paid
Apps ndash an internet-enabled applications like You Tube Facebook Twitter Skype and others
Internet browsing ndash just like PC internet browsing
Music photo and TV watching
Smart ConnectivityWIFI enabled that allows consumers to connect to all mobile devices like smart phone tablet PC notebook and camera with Samsung Wireless Router called 1 foot This connectivity is being called ldquoAllSharerdquo by Samsung
httpotbresearchcomau200509report-1-industry-forum
MEDIA PRIMA IS CURRENTLY HERE
This will ultimately lead Media Prima to reduce it dependence on advertising revenue
Others ndash Utilising the SMART TV technology and Apps to create any existing Media Prima businesses
NEW Revenue Streams for Media Prima
To take advantage of SMART TV and collaborate with SMART TV manufacturers Media Prima can look into following utilities
Collaborate with manufacturers to allow consumers to browse and pay for Media Prima video collections
Selling local music for Malaysia market
Collaborate with local or international content developers to create Malaysia specific contents for paid subscription or free for common content to attract new consumers
How
Content Focus Leveraging on content to Embark on Revenue shifts
Long term sustainable leadership
Restructuring to liberateresources for Content
Sustainable Talent development -
Partnership
Riding the Technology Wave
Short term (2012) Mid Term (by 2013-2015) Long term 2015 beyond
Building Talents in the long run
Education Building on its strategic CSR ndash Media Prima could champion the
development of the content industry by partnering with local universities in the areas of technology media and communication
Crowd Sourcing To haste up the strategic CSR it too could embark on crowd
sourcing for content ndash via scripts and interactive content In which Media Prima could support a great idea and develop the ideas for monetization
This is a synergistic and natural development from the networks structure (open innovation)
Summary ndash Media Prima
Develop Talent Pool
Ensure Vibrant Content Industry
Technologycreates ubiquitous
Low Access Cost
To spur the industry forward
Strong talent develops Content development
demand for access
Strong content industry drives demand for Talent drives demand for content
Our recommendations are aligned to help spur the industry forwardhellip
Restructuring to liberateresources for Content
Sustainable Talent development -
Partnership
Riding the Technology Wave ndash Via Smart
Partnerships
References
References
1 Anon ldquoMedia Prima Berhad implements Accenture integrated broadcast systemrdquo Accenture Press Release httpnewsroomaccenturecomarticle_displaycfmarticle_id=5005 viewed 3 November 2011
2 Anon ldquoNew exciting and vibrant offerings from MPB television networks in 2010rdquo Media Prima Press Release httpwwwmediaprimacommypressreleasepressreleaseaspxid=150 viewed 3 November 2011
3 Anderson J ldquoResource-based competitiveness managerial implications of the resource-based viewrdquo Strategic Direction Vol26 No5 2010 pp1-2
4 Arman Arshad (2006) Size matters Retrieved December 2 2011 from asiaviewsorg httpwwwasiaviewsorgindexphpoption=com_contentampview=articleampid=2171headlinealias2171ampcatid=1headlinesampItemid=2
5 Asia Times (2007 November 29) Malaysian media giant grasps for Internet Retrieved November 3 2011 from httpwwwatimescomatimesSoutheast_AsiaIK29Ae02html
6 Barney JB amp Hesterly WS (2008) Strategic Management and Competitive Advantage The Five Forces Model of Environmental Threats pp39Prentice Hall
7 BBC (2011) BBC News product launches on connected TV Retrieved from bbccoukpressofficepressreleasesstories201106_june17newsshtml
8 Boston Consulting Group (2011) Lean Advantage in Media Boston Consulting Group
9 Boston Consulting Group (2011) Running Forward Walking Backward Boston Consulting Group
10 Business Times (2011) Media Prima net revenue grows to RM119b Kuala Lumpur New Straits Times
11 Business Times (2011) Media Prima on track to achie1048665ing 2011 target Retrieved from www1btimescomm1048668Current_NewsBTIMESarticlespimeArticle
References (1)
12 Business Times (2011) Media Prima Puncak Semangat in early talks Retrieved from httpwwwbtimescommyarticlespimmaArticle
13 Carl W Stern George Stalk Carl W Stern George Stalk Stern CW amp Stalk G (2011) Perspectives of Strategy from the Boston Consulting Group Retrieved December 3 2011 from Value Based Managementnet httpwwwvaluebasedmanagementnetmethods_bcgmatrixhtml
14 ecmlibra (2011) Adex momentum to taper off in 2012 ecmlibra
15 Gershon R A amp Ratnadeep S V (2004) Viacom Inc A Case Study in Transnational Media Management Journal of Media Business Studies 1 (1) 47-69
16 Grant RM ldquoThe resource-based theory of competitive advantage implications for strategy formulationrdquo California Management Review Vol 3 2011 httpwwwskynetie~karenArticlesGrant1_NBpdf viewed 15 November 2011
17 GreyReview (2011) TonTon Streaming Over 11 Million Video Hours A Month now with 16 millions registered users Retrieved from httpwwwgreyreviewcom20110731tonton-serving-over-1-1-million-video-hours-a-month-now-with-1-6-registered-users
18 Heavy Reading (2011) Telecom in TV Land A Roadmap to New Digital Media Ecosystem Retrieved from wwwheavyreadingcomdetailsaspsku_id=1773ampskuitem_itemid=1030
19 Hegedus N (2010) The Great Scare EBR 3 10-17
20 JohnsonGScholesK amp Whittington (2008) Exploring Corporate Strategy Competitive Forces ndash the Five Forces Framework pp 59-64 Prentice Hall
21 kinetic (2011) Moving World Asia Hong Kong
References (2)
22 Knowledgefaber (2009) Telcos Avatar - As Media Companies 20 Retrieved from httpknowledgefabercomindexphpoption=com_contentampview=articleampid=40telecom-and-media-convergenceampcatid=10telecomampItemid=42
23 Knowledgefaber (2011) Telcos Avatar - As Media Companies 20 Retrieved from httpknowledgefabercomindexphpoption=com_contentampview=articleampid=40
24 Malik O (2011) GIGAOM Retrieved from httpgigaomcom20110223old-media-is-being-unbundled-just-like-telecom-was
25 Maxis with TM Astro with TIME Best Strategy to IPTV Market Retrieved December 1 2011 httpbizthestarcommynewsstoryaspfile=201111business7704581ampsec=business
26 Media Prima (2010) Annual Report Media Prima Berhad27 Media Prima Berhad (2011) 11 Nov 2011 - New Exciting amp Vibrant Offerings From MPB Television Retrieved from
wwwmediaprimacommypressreleasepressreleaseaspxid=15028 Media Prima (2010) Sustainability Report Media Prima Berhad29 OSK (2011) Media Prima OSK30 Pocket-Lint (2011) Samsung Smart TV hits 2 million mark Retrieved from
httpwwwpocket-lintcomnews40593samsung-smart-tv-2-million31 PricewaterhouseCoopers (2011) Achieving corporate financial PwC32 PricewaterhouseCoopers (2007) Financial Reporting Standards (FRS) in Malaysia PricewaterhouseCoopers33 SKMM (MCMC) (2009) Advertising Development in Malaysia SKMM34 SKMM (MCMC) (2011) Content Development SKMM35 Techpinions (2011) Interactive TV Trends - How the TV experience is changing - Part II Retrieved from
httptechpinionscominteractive-tv-trends-E28093-how-the-tv-experience-is-changing-part-ii4066
References (3)
36 The Edge (2011) Media Prima best proxy to sector Retrieved from wwwtheedgemalaysiacom37 The Edge Malaysia (2011 September 26) Education the mother of all reforms Retrieved October 30 2011 from
httpwwwtheedgemalaysiacomin-the-financial-daily193478-education-the-mother-of-all-reformshtml38 The Star Online (2011) Main players in the competitive TV sector Retrieved from bizthestarcommynewsstoryasp
file=20111126business997401739 The Star Online (2011) Maxis ready to move up value Retrieved from
bizthestarcommynewsstoryaspfile=201111business7704581ampse40 The Star Online (2011) New players enter the TV Retrieved from
bizthestarcommynewsstoryaspfile=20111126business997300841 The Star Newspaper (December 1 2011) Capital TV to make its debut today42 The Star Online (January 1 2011) Maxis ready to move up value chain Retrieved December 3 2011
httpbizthestarcommynewsstoryaspfile=201111business7704581ampsec=business43 The Star Online (2011 April 21) Media Prima to invest more on local content Retrieved October 30 2011 from C
Usersa34ffzzDesktopMedia PrimaUsed articlesMedia Prima to invest more in local contentmht44 Time Warners (2010) Annual Report Time Warners45 WHAT HI FI (2011) Samsung aims for 50m TV sales worldwide in 2012 set to announce launch date for Google TV
product Retrieved from httpwwwwhathificomnewssamsung-aims-for-50m-tv-sales-worldwide-in-2012-set-to-announce-launch-date-for-google-tv-produ
46 Woroch G A (1996) Turning the Cables Elsevier47 Zanuddin H (2007) Political influence in Malaysia and Thailand media sector Jati Vol12
- MEdiA PRIMA
- Agenda
- Company Profile
- Media Primarsquos Commitment amp Direction moving forward
- Media Industry Business Model ndash Content Driven
- Our Tasks ndash How
- PEST Analysis
- Politics Legal Issues amp Impact
- Economic Issues and Impact
- Social Issues and Impact
- Social Issues and Impact
- Technology Issues and Impact
- In short
- Porterrsquos 5 Forces Analysis
- Porterrsquos Five Forces ndash Competitive Analysis
- Financials
- Media Prima Financial Highlights
- However in further analysis
- Value Chain Analysis
- Resource Based View
- In the context of the Content industry value chain Mapped again
- Appraising capabilities which drives profitability
- Mapping Media Prima revenue streams against the Diversification
- Slide 25
- Related Constrained Diversification
- Related Constrained Diversification (2)
- Slide 28
- Related Linked Diversification
- Slide 30
- Social Responsibility Analysis
- Social Responsibility
- Social Responsibility ndash cont
- Media Prima Acknowledges it various stakeholder via Stakeholder
- It has moved on to 2nd stage of CSR
- SWOT Analysis
- SWOT Analysis ndash Summary
- Media Primarsquos Current situation in summary
- Moving forward 2012 and beyond
- Recommended Destination and future growth of Media Prima
- How Moving from aggregator to content creator
- How Moving from aggregator to content creator (2)
- Creating a Content focus agency All these can be enable via
- Using financial view to free resources for content development
- By changing the business segment reporting it also affects the
- How Moving from aggregator to content creator (3)
- Technology ndash Enable Media Prima to leap into Interactive Conten
- It is not a Fad but a trend
- Slide 50
- Example of Smart TV
- This will ultimately lead Media Prima to reduce it dependence o
- NEW Revenue Streams for Media Prima
- How
- Building Talents in the long run
- Summary ndash Media Prima
- References
- References
- References (1)
- References (2)
- References (3)
-
Resource Based View
The resource-based view is grounded in the perspective that a firm is a collection of unique resources and capabilities that provides the basis for its strategies and the primary source of its return
SupportActivities
Primary Activities
Strategy Development 4
Resource Identification 1Capabilities Determination 2Competitive advantage 3
Resource Gap Analysis 5
Source Porter Value Chain Robert M Grant
Process of CONTENT aggregation Process of CONTENT creation
In the context of the Content industry value chainMapped against Porterrsquos Value chain
Createbull Scriptwritersbull Actorsbull Animatorsbull Gamesbull developer
Publishbull Production housesbull TV Advert Film
Packagebull Media Primabull Astrobull RTMbull Maxisbull Digibull Celcom
DistributebullTelekombull MBNS (Measat)bull RTM
Content industry value chain
Porterrsquos Value Chain
Human Resource Management
Technological DevelopmentProcurement
Marketing amp Sales
Develop Talent Pool
Ensure Vibrant Content Industry
Technologycreates ubiquitous
Low Access Cost
To spur the industry forward
Strong talent develops Content development
demand for access
Strong content industry drives demand for Talent Drive demand for content
Services
Source SKMM Regulatory Compliance Course for Telcos amp Celcos
MARKETINGStrategies are focused on branding activities and marketing communications aggressive Aamp P and active participation in on-ground activities that promote brand awareness And Established Integrated marketing arm
TECHNOLOGY DEVELOPMENT Alt Media the digital arm successfully launched TonTon TV a cutting edge video portal that offers customization and interactivity of social networking Giving Media Prima an advantage of being able to direct advertisers to precise target groups
PROCUREMENT Stringent supplier selection in terms of 70 are local suppliers Sourcing of content which are relevant responsible engaging especially with the advent of new media
SERVICESMedia Prima fully owns Primeworks Studio helps maximize the economies of scale in content production whilst enhancing the quality of content of all television networks
HUMAN CAPITALPrioritize human capital development in news and editorial operation radio network artist and talent management etc Creating an in-house talent pool to develop content
Content Barriers to entry
ndash securing talents - Leadership position in development of local talent and content to leading the industry
Vertical bargaining power
DifferentiationAnd Competitive advantage
- Consumer insights - Integrated media organization
Activities Benefit
Competitiveness leading to Margins
Goal
Appraising capabilities which drives profitability
Source Media Prima Annual Report 2011
Mapping Media Prima revenue streams against the Diversification Map
HIGH
LOW
HIGHLOW
Shar
ing
Ope
ratio
nal R
elat
edne
ss B
etw
een
Busi
ness
Corporate Relatedness Transferring skills into business through corporate HQ
Related Constrained Diversification
Vertical Integration Market Power
Content Creation and Talent development Prima Works enables Media Prima to create localized content for the local market
Both operation and Corporate Relatedness (Rare Capability and can create Diseconomies of scale)
New Media is both an operation and corporate relatedness diversification as it require Media Prima to go beyond playing the role as aggregator but also content producer leveraging on its strength
Unrelated Diversification (Financial Economies)This area of diversification which is unrelated in operation and skills transfer Media Prima has not exploited
Related Linked Diversification (Economies of Scope)As newscontent are cross platforms and the business models are the same Media Prima was able to share similar content across platforms and acquire related companies
Opportunities - Create more segmented programmes and move into interactive content
OpportunitiesHowever more needs to be done in the new are with the advent of Interactive TV
Opportunities Although unrelated area often has high risk it is crucial at this point for Media Prima to extend into this area in smart partnerships with telecommunication companies ie Axiata TM
OpportunitiesMedia Prima has maximized its diversification strategy in this area BUT the market is yet to be ready amp there is a need to link both NSTP and Media Prima
CurrentPrimeworks Studios Sdn Bhd (owned by Media Prima) is Malaysias biggest production company producing TV content since 1984 and feature films since 1994 generating over 5000 hours of TV content and 10 movies annually
Related Constrained Diversification
ChallengesBut the reality is that it is not able to compete with the myriad of channels of its competitors which are dependent on overseas content
Opportunities However more needs to be doneas channels become more segmented-Procuring more content to compete on quantity - or it could change the content game and move into interactive content
Source Creation of An Integrated Media Group 2009 httpwwwmediaprimacommy
TV Newspaper
Radio
Outdoor
New Medi
a
4 3 3
1 2
gt150
17
2 1
gt14
3
22
22
YTL Comms
ABN 100
Ove
rvie
w o
f com
petit
ors
thei
r bus
ines
s po
rtfol
ios
Related Constrained Diversification
Media Company
Advertisers Corporations(Customers )
Viewers(Consumers)
Consumer Pay for Product
CONTENT
Advertiser payFor (Ad space) $$
1 httpwwwlongtailcomthe_long_tail200809the-three-kindshtml
$
Opportunities The potential here is also for Media Prima to drive content syndication ndash providing content to other media stations abroad
Media Prima is currently doing by syndicating content to ASTRO and Unifi
Competitors
Media Company
Viewers(Consumers)
CONTENT PRO
1 httpwwwlongtailcomthe_long_tail200809the-three-kindshtml
$
C
C
C FREE CONTENT FREE CONTENT
FREE CONTENT
Both operation and Corporate Relatedness
CurrentMedia Primarsquos intention to leverage on both its operations and Corporate relatedness to shift its revenue structure to be less dependent on advertising revenue and move toward subscriber revenue where a few subsidies everyone else via versioning ldquoprice discriminationrdquo
ChallengesIt has to some degree been successful to introduce this ndash via TonTon TV however the revenue from this segment has yet to be significant
To date there are 16 show packages and over 50 single episodes for viewers to purchase ndash which is limited
Opportunities However more needs or can be done in this new area with the advent of Interactive TV
Media Company
Advertisers Corporations(Customers )
Viewers(Consumers)
Consumer Pay for Product
FREE
CONTENT
Advertiser payFor (Ad space) $$
Source Website1 httpwwwlongtailcomthe_long_tail200809the-three-kindshtml2 Creation of An Integrated Media 2009 Grouphttpwwwmediaprimacommyinvestorcentercp2009NSTPGOpdf3 httpwwwtheedgemalaysiacomin-the-financial-daily164479-media-prima-best-proxy-to-sector-says-oskhtml 4 Media Prima net revenue grows to RM119b 2011 httpwwwbtimescommyCurrent_NewsBTIMESarticles20111118202427Articleindex_html
Related Linked Diversification
Current Media Prima has expanded across media with the idea in the hope of a) Leveraging on its expertise of
Advertisers subsiding viewers model b) Share back-office consolidation which
creates operations efficiencies in operation ie Editorial Talents
c) Cross marketing opportunities across platforms - Where Advertisers could purchase cross buy across platforms
Challenges Market ndash Not readyThe market is not ready for bundled and cross market offering According to Dato Amrin Awaluddin Group Managing Director of Media Prima no doubt there was head roads but more effort needs to be done to integrate the platforms better
Internally ndash Structure is not integrated In terms of unlocking NSTPs value he says it would be done in two phases `First is more short term like consolidating in terms of operations while the second stage will entail selling of products and cross-promoting our content which would be an ongoing revenue- generation exerciselsquo And he quoted Joran a property of Berita Harian (NST) ndash a nationwide fishing event being brought to TV3 as an example
Opportunities - The structure impeded cross platform and working in silo
does not help
- Hence there is a need to further shift paradigms via a structural change to free up resources to focus on content
- The market will not know what they want until we present them with the opportunity benefit
Social Responsibility Analysis
Social Responsibility
Media Primarsquos approach to Social Responsibility is based on the key triple bottom line ndash social environmental and economic It considers the socio-economic impact of its business activities in the aim to create value to its stakeholders via the 4 categories ie community workplace marketplace and environment
Community1EducationFocusing on education to raise awareness of the importance of education and increase the academic standards of underprivileged children and underperforming schools eg PINTAR Programme NST School Sponsorship Programme
2 HumanitarianRaise funds for humanitarian aid and provided updates on the local and world disaster crisis to the public and raised awareness of the funds eg Humanitarian Aid for Gaza Humanitarian Aid for Flood Victims in Pakistan
3 Other community programmesProduced outreach programmes to reflect and highlight local and community issues and to be the eyes and ears of the public and engage in public awareness through its businessesrsquo media resources and platforms in print interactive media and television eg Project Sunshine
Social Responsibility ndash cont
Environment - EfficiencyStrongly committed to being an environmentally friendly Company by using recycled paper especially in its newspapers business efficient usage of electricity in offices water management reducing amount of waste produced throughout its businesses and other environmental initiatives such as lsquosave our beachrsquo project and WWFrsquos Earth Hour
Marketplace ndash Responsible ContentFocusing on product responsibility in providing high quality products and is committed to establishing a horizontal specialisation system based on collaboration with stakeholders The production flow is illustrated in the diagram below
Workplace ndash Right CultureIt aims to create a workplace where its people have the opportunity to be the best they possibly can to have the right culture safe working environment and human capital development with fair processes
Media Prima Acknowledges it various stakeholder via Stakeholders Management
Media Prima is aware of the diversity of its stakeholders and the different goals and demand of its stakeholders
The Company conducts active engagement with its stakeholders to fully understand their needs and increase their trust in the Company through formal and informal mechanisms as follows
It has moved on to 2nd stage of CSR
1st Generation 2nd Generation 3rd Generation
Philanthropic short term risk management
Product Process innovation business and corporate governance model long term sustainability Strategic CSR
3rd Generation Multi- stakeholder standards and partnerships institutional building CR- Oriented advocacy and public policy
Opportunity
What is next for Media Prima to shape the industry
Creating content that generate advertising dollars amp donations of the poor social awareness
By leveraging on its content distribution capabilities
SWOT Analysis
SWOT Analysis ndash Summary
Strengths 1 Strong market share in TV segment2 Malaysiarsquos only integrated media
organization- have vertical and horizontal diversification advantage
3 Established value chains strength which complements the required core competencies
4 Have move across 3 revenue models
Weaknesses1 limited number of stations variety and choice
for consumer2 Despite diversification revenues still mainly
driven by advertisers and TV -gt cross platforms is needed
3 Financial segmentation may hinder potentials of the company
Opportunities 1 Broadband infrastructure ndash via HSBB2 Development of technology ndash creating
medias gadgets that increase digital interaction and content consumption
3 Consumers are willing to pay for content4 Possible deregulation of content ndash leveling
the playing field
Threats 1 2012 forecasting a financial slow down
affecting Ad Ex ndash hence revenue is reduced2 Increase competition New Entrants Pay TV
player amp continual competition from ASTRO3 Changing consumer habits towards media
consumption -gt moving away from traditional media ndash hence have to fight for consumerrsquos attention
Right Technology (Gadget and Infrastructure) at the Right time (deregulation) amp Right consumers (shift in media habits and willingness to pay for content ndash ASTRO as indicator)
Vertical Value Chain advantage to compete in content development
Media Primarsquos Current situation in summary
+VE
-VE Revenue dependent on advertising which is affected correlated to GDP
Resources organization structure holds back effectiveness of organization
Moving forward2012 and beyond
Recommended Destination and future growth of Media Prima
Revenue mainly from advertising
Revenue from advertising
Content SubscriptionBy viewers
Content driven Complementary Services for advertiser (Auxillary Services)
Media Prima
Media Prima
Content Syndicationto competitors
+
How Moving from aggregator to content creator
Content Focus Leveraging on content to Embark on Revenue shifts
Long term sustainable leadership
Restructuring to liberateresources for Content
Sustainable Talent development -
Partnership
Riding the Technology Wave
Short term (2012) Mid Term (by 2013-2015) Long term 2015 beyond
How Moving from aggregator to content creator
Content Focus Leveraging on content to Embark on Revenue shifts
Long term sustainable leadership
Restructuring to liberateresources for Content
Sustainable Talent development -
Partnership
Riding the Technology Wave
Short term (2012) Mid Term (by 2013-2015) Long term 2015 beyond
Creating a Content focus agency All these can be enable via the following means
Demand- The content creation race bull There is a need to free up empower human capital to create more content which are relevant
segmented engaging and entertaining
How does media prima refocus its resources into where it matters Instead of multiple teams doing the same thing ndash there is a challenge to create a lean and efficient organization
Challenges Freeing Resources
Instead of looking at a Media based financial segment reporting structurally force the teams to integrate by changing the dynamics of PampL
Next page
Solution Redefining Business Units Paradigms
Take a step up from producing beyond the current vernacular program to meet shifting consumer needs
Challenges ndash Lifestyle lead Variety
Creating Channel programs which are target segment focus based on lifestyles hellip
Acquisition of content as content regulations will be relaxed
Solution Target Segment focus
Using financial view to free resources for content developmentFinancial segment reporting may create a ldquosilordquo mentality ndash which encourages each head of business to protect their bottom line Hence a less effective in operations
Our recommendation is to expand content creation to cut across and shift paradigms to free up resources and focus on new revenue streams And create new content for different segment
Tele
visi
on N
etw
ork
Radi
o N
etw
ork
Out
door
Med
ia
Prin
t M
edia
Oth
er M
edia
Current Financial Segment Reporting
Tele
visi
on N
etw
ork
Radi
o N
etw
ork
Out
door
Med
ia
Prin
t M
edia
Oth
er M
edia
Production
Content
Subscription
Advertising
Recommended Segment Reporting
Lifestyle Segments
Lifestyle Segments
Lifestyle Segments
Lifestyle Segments
Lifestyle Segments
Lifestyle Segments
By changing the business segment reporting it also affects the company structure
The benefits - Flexibility and empowers knowledge
economy ndash talent content driven
- Builds at strong work culture which may be replicated in the region
- Expansion to embark on talent and content crowd sourcing - open innovation creation
Media Prima can take this opportunity to achieve SPECIALIZATION COORDINATION AND COOPERATION Currently team structure ndash of Integrated Marketing Division is created as a temporary solution hellip to enable integration It will move towards a network model to haste integration fast and response to technology and consumer needs
Subcription
Advertising
Production
TechnologyPartner
Content
How Moving from aggregator to content creator
Content Focus Leveraging on content to Embark on Revenue shifts
Long term sustainable leadership
Restructuring to liberateresources for Content
Sustainable Talent development -
Partnership
Riding the Technology Wave
Short term (2012) Mid Term (by 2013-2015) Long term 2015 beyond
Technology ndash Enable Media Prima to leap into Interactive Content
Interactive Content
UniFi Axiata
Media Prima
Electronics Manufacturer
Demand - A ready market bull There is a latent demand for content-gt consumers are
willing to Pay bull Technology has accustomed consumers to interacting
with contentbull Regulatory push to shift from analogue to digital by
2015
However unlike Media Primarsquos western counterparts ie Time Warner Communication Media Prima does not have the advantages of cable infrastructure
Challenges ndash Limitation
Media Prima could depend on existing suppliers of connectivity and technology- Telecommunications ie AXIATA and - Manufacturing companies ie Samsungto take the leap into interactive content Unifi TM
Solution ndash Smart Partnerships
Maximizing Unrelated Diversification
It is not a Fad but a trend
Smart TV is an inevitable trend says Baeguen Kang vice president of
research and development at South Koreas LG Electronics Co the worlds second-largest seller of TV sets by unit volume As people experienced smartphones and tablet PCs the larger screen on a TV is very attractive for apps and Web content
210 million TV sets sold world-wide had an Internet connection (2010)
21 50It will be the forecast in (2014)
Source Evan Ramstad (January 2011)A ldquoManufacturers Turn to Smart TV After 3-D Disappointsrdquo The Wall Street Journal online httponlinewsjcomarticleSB10001424052748704835504576059783074010902html
As technology develops Current cost is will drop exponentially reflecting the Moorersquos Law
Hence lowering the cost of access for interactive content
Example of Smart TV
Smart Hub It is a front facing interface just like a main menu
when consumers turn on their TV There are few utilities that consumers can choose to be entertained
Video ndash consumers can choose from array of video collections that required to be paid
Apps ndash an internet-enabled applications like You Tube Facebook Twitter Skype and others
Internet browsing ndash just like PC internet browsing
Music photo and TV watching
Smart ConnectivityWIFI enabled that allows consumers to connect to all mobile devices like smart phone tablet PC notebook and camera with Samsung Wireless Router called 1 foot This connectivity is being called ldquoAllSharerdquo by Samsung
httpotbresearchcomau200509report-1-industry-forum
MEDIA PRIMA IS CURRENTLY HERE
This will ultimately lead Media Prima to reduce it dependence on advertising revenue
Others ndash Utilising the SMART TV technology and Apps to create any existing Media Prima businesses
NEW Revenue Streams for Media Prima
To take advantage of SMART TV and collaborate with SMART TV manufacturers Media Prima can look into following utilities
Collaborate with manufacturers to allow consumers to browse and pay for Media Prima video collections
Selling local music for Malaysia market
Collaborate with local or international content developers to create Malaysia specific contents for paid subscription or free for common content to attract new consumers
How
Content Focus Leveraging on content to Embark on Revenue shifts
Long term sustainable leadership
Restructuring to liberateresources for Content
Sustainable Talent development -
Partnership
Riding the Technology Wave
Short term (2012) Mid Term (by 2013-2015) Long term 2015 beyond
Building Talents in the long run
Education Building on its strategic CSR ndash Media Prima could champion the
development of the content industry by partnering with local universities in the areas of technology media and communication
Crowd Sourcing To haste up the strategic CSR it too could embark on crowd
sourcing for content ndash via scripts and interactive content In which Media Prima could support a great idea and develop the ideas for monetization
This is a synergistic and natural development from the networks structure (open innovation)
Summary ndash Media Prima
Develop Talent Pool
Ensure Vibrant Content Industry
Technologycreates ubiquitous
Low Access Cost
To spur the industry forward
Strong talent develops Content development
demand for access
Strong content industry drives demand for Talent drives demand for content
Our recommendations are aligned to help spur the industry forwardhellip
Restructuring to liberateresources for Content
Sustainable Talent development -
Partnership
Riding the Technology Wave ndash Via Smart
Partnerships
References
References
1 Anon ldquoMedia Prima Berhad implements Accenture integrated broadcast systemrdquo Accenture Press Release httpnewsroomaccenturecomarticle_displaycfmarticle_id=5005 viewed 3 November 2011
2 Anon ldquoNew exciting and vibrant offerings from MPB television networks in 2010rdquo Media Prima Press Release httpwwwmediaprimacommypressreleasepressreleaseaspxid=150 viewed 3 November 2011
3 Anderson J ldquoResource-based competitiveness managerial implications of the resource-based viewrdquo Strategic Direction Vol26 No5 2010 pp1-2
4 Arman Arshad (2006) Size matters Retrieved December 2 2011 from asiaviewsorg httpwwwasiaviewsorgindexphpoption=com_contentampview=articleampid=2171headlinealias2171ampcatid=1headlinesampItemid=2
5 Asia Times (2007 November 29) Malaysian media giant grasps for Internet Retrieved November 3 2011 from httpwwwatimescomatimesSoutheast_AsiaIK29Ae02html
6 Barney JB amp Hesterly WS (2008) Strategic Management and Competitive Advantage The Five Forces Model of Environmental Threats pp39Prentice Hall
7 BBC (2011) BBC News product launches on connected TV Retrieved from bbccoukpressofficepressreleasesstories201106_june17newsshtml
8 Boston Consulting Group (2011) Lean Advantage in Media Boston Consulting Group
9 Boston Consulting Group (2011) Running Forward Walking Backward Boston Consulting Group
10 Business Times (2011) Media Prima net revenue grows to RM119b Kuala Lumpur New Straits Times
11 Business Times (2011) Media Prima on track to achie1048665ing 2011 target Retrieved from www1btimescomm1048668Current_NewsBTIMESarticlespimeArticle
References (1)
12 Business Times (2011) Media Prima Puncak Semangat in early talks Retrieved from httpwwwbtimescommyarticlespimmaArticle
13 Carl W Stern George Stalk Carl W Stern George Stalk Stern CW amp Stalk G (2011) Perspectives of Strategy from the Boston Consulting Group Retrieved December 3 2011 from Value Based Managementnet httpwwwvaluebasedmanagementnetmethods_bcgmatrixhtml
14 ecmlibra (2011) Adex momentum to taper off in 2012 ecmlibra
15 Gershon R A amp Ratnadeep S V (2004) Viacom Inc A Case Study in Transnational Media Management Journal of Media Business Studies 1 (1) 47-69
16 Grant RM ldquoThe resource-based theory of competitive advantage implications for strategy formulationrdquo California Management Review Vol 3 2011 httpwwwskynetie~karenArticlesGrant1_NBpdf viewed 15 November 2011
17 GreyReview (2011) TonTon Streaming Over 11 Million Video Hours A Month now with 16 millions registered users Retrieved from httpwwwgreyreviewcom20110731tonton-serving-over-1-1-million-video-hours-a-month-now-with-1-6-registered-users
18 Heavy Reading (2011) Telecom in TV Land A Roadmap to New Digital Media Ecosystem Retrieved from wwwheavyreadingcomdetailsaspsku_id=1773ampskuitem_itemid=1030
19 Hegedus N (2010) The Great Scare EBR 3 10-17
20 JohnsonGScholesK amp Whittington (2008) Exploring Corporate Strategy Competitive Forces ndash the Five Forces Framework pp 59-64 Prentice Hall
21 kinetic (2011) Moving World Asia Hong Kong
References (2)
22 Knowledgefaber (2009) Telcos Avatar - As Media Companies 20 Retrieved from httpknowledgefabercomindexphpoption=com_contentampview=articleampid=40telecom-and-media-convergenceampcatid=10telecomampItemid=42
23 Knowledgefaber (2011) Telcos Avatar - As Media Companies 20 Retrieved from httpknowledgefabercomindexphpoption=com_contentampview=articleampid=40
24 Malik O (2011) GIGAOM Retrieved from httpgigaomcom20110223old-media-is-being-unbundled-just-like-telecom-was
25 Maxis with TM Astro with TIME Best Strategy to IPTV Market Retrieved December 1 2011 httpbizthestarcommynewsstoryaspfile=201111business7704581ampsec=business
26 Media Prima (2010) Annual Report Media Prima Berhad27 Media Prima Berhad (2011) 11 Nov 2011 - New Exciting amp Vibrant Offerings From MPB Television Retrieved from
wwwmediaprimacommypressreleasepressreleaseaspxid=15028 Media Prima (2010) Sustainability Report Media Prima Berhad29 OSK (2011) Media Prima OSK30 Pocket-Lint (2011) Samsung Smart TV hits 2 million mark Retrieved from
httpwwwpocket-lintcomnews40593samsung-smart-tv-2-million31 PricewaterhouseCoopers (2011) Achieving corporate financial PwC32 PricewaterhouseCoopers (2007) Financial Reporting Standards (FRS) in Malaysia PricewaterhouseCoopers33 SKMM (MCMC) (2009) Advertising Development in Malaysia SKMM34 SKMM (MCMC) (2011) Content Development SKMM35 Techpinions (2011) Interactive TV Trends - How the TV experience is changing - Part II Retrieved from
httptechpinionscominteractive-tv-trends-E28093-how-the-tv-experience-is-changing-part-ii4066
References (3)
36 The Edge (2011) Media Prima best proxy to sector Retrieved from wwwtheedgemalaysiacom37 The Edge Malaysia (2011 September 26) Education the mother of all reforms Retrieved October 30 2011 from
httpwwwtheedgemalaysiacomin-the-financial-daily193478-education-the-mother-of-all-reformshtml38 The Star Online (2011) Main players in the competitive TV sector Retrieved from bizthestarcommynewsstoryasp
file=20111126business997401739 The Star Online (2011) Maxis ready to move up value Retrieved from
bizthestarcommynewsstoryaspfile=201111business7704581ampse40 The Star Online (2011) New players enter the TV Retrieved from
bizthestarcommynewsstoryaspfile=20111126business997300841 The Star Newspaper (December 1 2011) Capital TV to make its debut today42 The Star Online (January 1 2011) Maxis ready to move up value chain Retrieved December 3 2011
httpbizthestarcommynewsstoryaspfile=201111business7704581ampsec=business43 The Star Online (2011 April 21) Media Prima to invest more on local content Retrieved October 30 2011 from C
Usersa34ffzzDesktopMedia PrimaUsed articlesMedia Prima to invest more in local contentmht44 Time Warners (2010) Annual Report Time Warners45 WHAT HI FI (2011) Samsung aims for 50m TV sales worldwide in 2012 set to announce launch date for Google TV
product Retrieved from httpwwwwhathificomnewssamsung-aims-for-50m-tv-sales-worldwide-in-2012-set-to-announce-launch-date-for-google-tv-produ
46 Woroch G A (1996) Turning the Cables Elsevier47 Zanuddin H (2007) Political influence in Malaysia and Thailand media sector Jati Vol12
- MEdiA PRIMA
- Agenda
- Company Profile
- Media Primarsquos Commitment amp Direction moving forward
- Media Industry Business Model ndash Content Driven
- Our Tasks ndash How
- PEST Analysis
- Politics Legal Issues amp Impact
- Economic Issues and Impact
- Social Issues and Impact
- Social Issues and Impact
- Technology Issues and Impact
- In short
- Porterrsquos 5 Forces Analysis
- Porterrsquos Five Forces ndash Competitive Analysis
- Financials
- Media Prima Financial Highlights
- However in further analysis
- Value Chain Analysis
- Resource Based View
- In the context of the Content industry value chain Mapped again
- Appraising capabilities which drives profitability
- Mapping Media Prima revenue streams against the Diversification
- Slide 25
- Related Constrained Diversification
- Related Constrained Diversification (2)
- Slide 28
- Related Linked Diversification
- Slide 30
- Social Responsibility Analysis
- Social Responsibility
- Social Responsibility ndash cont
- Media Prima Acknowledges it various stakeholder via Stakeholder
- It has moved on to 2nd stage of CSR
- SWOT Analysis
- SWOT Analysis ndash Summary
- Media Primarsquos Current situation in summary
- Moving forward 2012 and beyond
- Recommended Destination and future growth of Media Prima
- How Moving from aggregator to content creator
- How Moving from aggregator to content creator (2)
- Creating a Content focus agency All these can be enable via
- Using financial view to free resources for content development
- By changing the business segment reporting it also affects the
- How Moving from aggregator to content creator (3)
- Technology ndash Enable Media Prima to leap into Interactive Conten
- It is not a Fad but a trend
- Slide 50
- Example of Smart TV
- This will ultimately lead Media Prima to reduce it dependence o
- NEW Revenue Streams for Media Prima
- How
- Building Talents in the long run
- Summary ndash Media Prima
- References
- References
- References (1)
- References (2)
- References (3)
-
Process of CONTENT aggregation Process of CONTENT creation
In the context of the Content industry value chainMapped against Porterrsquos Value chain
Createbull Scriptwritersbull Actorsbull Animatorsbull Gamesbull developer
Publishbull Production housesbull TV Advert Film
Packagebull Media Primabull Astrobull RTMbull Maxisbull Digibull Celcom
DistributebullTelekombull MBNS (Measat)bull RTM
Content industry value chain
Porterrsquos Value Chain
Human Resource Management
Technological DevelopmentProcurement
Marketing amp Sales
Develop Talent Pool
Ensure Vibrant Content Industry
Technologycreates ubiquitous
Low Access Cost
To spur the industry forward
Strong talent develops Content development
demand for access
Strong content industry drives demand for Talent Drive demand for content
Services
Source SKMM Regulatory Compliance Course for Telcos amp Celcos
MARKETINGStrategies are focused on branding activities and marketing communications aggressive Aamp P and active participation in on-ground activities that promote brand awareness And Established Integrated marketing arm
TECHNOLOGY DEVELOPMENT Alt Media the digital arm successfully launched TonTon TV a cutting edge video portal that offers customization and interactivity of social networking Giving Media Prima an advantage of being able to direct advertisers to precise target groups
PROCUREMENT Stringent supplier selection in terms of 70 are local suppliers Sourcing of content which are relevant responsible engaging especially with the advent of new media
SERVICESMedia Prima fully owns Primeworks Studio helps maximize the economies of scale in content production whilst enhancing the quality of content of all television networks
HUMAN CAPITALPrioritize human capital development in news and editorial operation radio network artist and talent management etc Creating an in-house talent pool to develop content
Content Barriers to entry
ndash securing talents - Leadership position in development of local talent and content to leading the industry
Vertical bargaining power
DifferentiationAnd Competitive advantage
- Consumer insights - Integrated media organization
Activities Benefit
Competitiveness leading to Margins
Goal
Appraising capabilities which drives profitability
Source Media Prima Annual Report 2011
Mapping Media Prima revenue streams against the Diversification Map
HIGH
LOW
HIGHLOW
Shar
ing
Ope
ratio
nal R
elat
edne
ss B
etw
een
Busi
ness
Corporate Relatedness Transferring skills into business through corporate HQ
Related Constrained Diversification
Vertical Integration Market Power
Content Creation and Talent development Prima Works enables Media Prima to create localized content for the local market
Both operation and Corporate Relatedness (Rare Capability and can create Diseconomies of scale)
New Media is both an operation and corporate relatedness diversification as it require Media Prima to go beyond playing the role as aggregator but also content producer leveraging on its strength
Unrelated Diversification (Financial Economies)This area of diversification which is unrelated in operation and skills transfer Media Prima has not exploited
Related Linked Diversification (Economies of Scope)As newscontent are cross platforms and the business models are the same Media Prima was able to share similar content across platforms and acquire related companies
Opportunities - Create more segmented programmes and move into interactive content
OpportunitiesHowever more needs to be done in the new are with the advent of Interactive TV
Opportunities Although unrelated area often has high risk it is crucial at this point for Media Prima to extend into this area in smart partnerships with telecommunication companies ie Axiata TM
OpportunitiesMedia Prima has maximized its diversification strategy in this area BUT the market is yet to be ready amp there is a need to link both NSTP and Media Prima
CurrentPrimeworks Studios Sdn Bhd (owned by Media Prima) is Malaysias biggest production company producing TV content since 1984 and feature films since 1994 generating over 5000 hours of TV content and 10 movies annually
Related Constrained Diversification
ChallengesBut the reality is that it is not able to compete with the myriad of channels of its competitors which are dependent on overseas content
Opportunities However more needs to be doneas channels become more segmented-Procuring more content to compete on quantity - or it could change the content game and move into interactive content
Source Creation of An Integrated Media Group 2009 httpwwwmediaprimacommy
TV Newspaper
Radio
Outdoor
New Medi
a
4 3 3
1 2
gt150
17
2 1
gt14
3
22
22
YTL Comms
ABN 100
Ove
rvie
w o
f com
petit
ors
thei
r bus
ines
s po
rtfol
ios
Related Constrained Diversification
Media Company
Advertisers Corporations(Customers )
Viewers(Consumers)
Consumer Pay for Product
CONTENT
Advertiser payFor (Ad space) $$
1 httpwwwlongtailcomthe_long_tail200809the-three-kindshtml
$
Opportunities The potential here is also for Media Prima to drive content syndication ndash providing content to other media stations abroad
Media Prima is currently doing by syndicating content to ASTRO and Unifi
Competitors
Media Company
Viewers(Consumers)
CONTENT PRO
1 httpwwwlongtailcomthe_long_tail200809the-three-kindshtml
$
C
C
C FREE CONTENT FREE CONTENT
FREE CONTENT
Both operation and Corporate Relatedness
CurrentMedia Primarsquos intention to leverage on both its operations and Corporate relatedness to shift its revenue structure to be less dependent on advertising revenue and move toward subscriber revenue where a few subsidies everyone else via versioning ldquoprice discriminationrdquo
ChallengesIt has to some degree been successful to introduce this ndash via TonTon TV however the revenue from this segment has yet to be significant
To date there are 16 show packages and over 50 single episodes for viewers to purchase ndash which is limited
Opportunities However more needs or can be done in this new area with the advent of Interactive TV
Media Company
Advertisers Corporations(Customers )
Viewers(Consumers)
Consumer Pay for Product
FREE
CONTENT
Advertiser payFor (Ad space) $$
Source Website1 httpwwwlongtailcomthe_long_tail200809the-three-kindshtml2 Creation of An Integrated Media 2009 Grouphttpwwwmediaprimacommyinvestorcentercp2009NSTPGOpdf3 httpwwwtheedgemalaysiacomin-the-financial-daily164479-media-prima-best-proxy-to-sector-says-oskhtml 4 Media Prima net revenue grows to RM119b 2011 httpwwwbtimescommyCurrent_NewsBTIMESarticles20111118202427Articleindex_html
Related Linked Diversification
Current Media Prima has expanded across media with the idea in the hope of a) Leveraging on its expertise of
Advertisers subsiding viewers model b) Share back-office consolidation which
creates operations efficiencies in operation ie Editorial Talents
c) Cross marketing opportunities across platforms - Where Advertisers could purchase cross buy across platforms
Challenges Market ndash Not readyThe market is not ready for bundled and cross market offering According to Dato Amrin Awaluddin Group Managing Director of Media Prima no doubt there was head roads but more effort needs to be done to integrate the platforms better
Internally ndash Structure is not integrated In terms of unlocking NSTPs value he says it would be done in two phases `First is more short term like consolidating in terms of operations while the second stage will entail selling of products and cross-promoting our content which would be an ongoing revenue- generation exerciselsquo And he quoted Joran a property of Berita Harian (NST) ndash a nationwide fishing event being brought to TV3 as an example
Opportunities - The structure impeded cross platform and working in silo
does not help
- Hence there is a need to further shift paradigms via a structural change to free up resources to focus on content
- The market will not know what they want until we present them with the opportunity benefit
Social Responsibility Analysis
Social Responsibility
Media Primarsquos approach to Social Responsibility is based on the key triple bottom line ndash social environmental and economic It considers the socio-economic impact of its business activities in the aim to create value to its stakeholders via the 4 categories ie community workplace marketplace and environment
Community1EducationFocusing on education to raise awareness of the importance of education and increase the academic standards of underprivileged children and underperforming schools eg PINTAR Programme NST School Sponsorship Programme
2 HumanitarianRaise funds for humanitarian aid and provided updates on the local and world disaster crisis to the public and raised awareness of the funds eg Humanitarian Aid for Gaza Humanitarian Aid for Flood Victims in Pakistan
3 Other community programmesProduced outreach programmes to reflect and highlight local and community issues and to be the eyes and ears of the public and engage in public awareness through its businessesrsquo media resources and platforms in print interactive media and television eg Project Sunshine
Social Responsibility ndash cont
Environment - EfficiencyStrongly committed to being an environmentally friendly Company by using recycled paper especially in its newspapers business efficient usage of electricity in offices water management reducing amount of waste produced throughout its businesses and other environmental initiatives such as lsquosave our beachrsquo project and WWFrsquos Earth Hour
Marketplace ndash Responsible ContentFocusing on product responsibility in providing high quality products and is committed to establishing a horizontal specialisation system based on collaboration with stakeholders The production flow is illustrated in the diagram below
Workplace ndash Right CultureIt aims to create a workplace where its people have the opportunity to be the best they possibly can to have the right culture safe working environment and human capital development with fair processes
Media Prima Acknowledges it various stakeholder via Stakeholders Management
Media Prima is aware of the diversity of its stakeholders and the different goals and demand of its stakeholders
The Company conducts active engagement with its stakeholders to fully understand their needs and increase their trust in the Company through formal and informal mechanisms as follows
It has moved on to 2nd stage of CSR
1st Generation 2nd Generation 3rd Generation
Philanthropic short term risk management
Product Process innovation business and corporate governance model long term sustainability Strategic CSR
3rd Generation Multi- stakeholder standards and partnerships institutional building CR- Oriented advocacy and public policy
Opportunity
What is next for Media Prima to shape the industry
Creating content that generate advertising dollars amp donations of the poor social awareness
By leveraging on its content distribution capabilities
SWOT Analysis
SWOT Analysis ndash Summary
Strengths 1 Strong market share in TV segment2 Malaysiarsquos only integrated media
organization- have vertical and horizontal diversification advantage
3 Established value chains strength which complements the required core competencies
4 Have move across 3 revenue models
Weaknesses1 limited number of stations variety and choice
for consumer2 Despite diversification revenues still mainly
driven by advertisers and TV -gt cross platforms is needed
3 Financial segmentation may hinder potentials of the company
Opportunities 1 Broadband infrastructure ndash via HSBB2 Development of technology ndash creating
medias gadgets that increase digital interaction and content consumption
3 Consumers are willing to pay for content4 Possible deregulation of content ndash leveling
the playing field
Threats 1 2012 forecasting a financial slow down
affecting Ad Ex ndash hence revenue is reduced2 Increase competition New Entrants Pay TV
player amp continual competition from ASTRO3 Changing consumer habits towards media
consumption -gt moving away from traditional media ndash hence have to fight for consumerrsquos attention
Right Technology (Gadget and Infrastructure) at the Right time (deregulation) amp Right consumers (shift in media habits and willingness to pay for content ndash ASTRO as indicator)
Vertical Value Chain advantage to compete in content development
Media Primarsquos Current situation in summary
+VE
-VE Revenue dependent on advertising which is affected correlated to GDP
Resources organization structure holds back effectiveness of organization
Moving forward2012 and beyond
Recommended Destination and future growth of Media Prima
Revenue mainly from advertising
Revenue from advertising
Content SubscriptionBy viewers
Content driven Complementary Services for advertiser (Auxillary Services)
Media Prima
Media Prima
Content Syndicationto competitors
+
How Moving from aggregator to content creator
Content Focus Leveraging on content to Embark on Revenue shifts
Long term sustainable leadership
Restructuring to liberateresources for Content
Sustainable Talent development -
Partnership
Riding the Technology Wave
Short term (2012) Mid Term (by 2013-2015) Long term 2015 beyond
How Moving from aggregator to content creator
Content Focus Leveraging on content to Embark on Revenue shifts
Long term sustainable leadership
Restructuring to liberateresources for Content
Sustainable Talent development -
Partnership
Riding the Technology Wave
Short term (2012) Mid Term (by 2013-2015) Long term 2015 beyond
Creating a Content focus agency All these can be enable via the following means
Demand- The content creation race bull There is a need to free up empower human capital to create more content which are relevant
segmented engaging and entertaining
How does media prima refocus its resources into where it matters Instead of multiple teams doing the same thing ndash there is a challenge to create a lean and efficient organization
Challenges Freeing Resources
Instead of looking at a Media based financial segment reporting structurally force the teams to integrate by changing the dynamics of PampL
Next page
Solution Redefining Business Units Paradigms
Take a step up from producing beyond the current vernacular program to meet shifting consumer needs
Challenges ndash Lifestyle lead Variety
Creating Channel programs which are target segment focus based on lifestyles hellip
Acquisition of content as content regulations will be relaxed
Solution Target Segment focus
Using financial view to free resources for content developmentFinancial segment reporting may create a ldquosilordquo mentality ndash which encourages each head of business to protect their bottom line Hence a less effective in operations
Our recommendation is to expand content creation to cut across and shift paradigms to free up resources and focus on new revenue streams And create new content for different segment
Tele
visi
on N
etw
ork
Radi
o N
etw
ork
Out
door
Med
ia
Prin
t M
edia
Oth
er M
edia
Current Financial Segment Reporting
Tele
visi
on N
etw
ork
Radi
o N
etw
ork
Out
door
Med
ia
Prin
t M
edia
Oth
er M
edia
Production
Content
Subscription
Advertising
Recommended Segment Reporting
Lifestyle Segments
Lifestyle Segments
Lifestyle Segments
Lifestyle Segments
Lifestyle Segments
Lifestyle Segments
By changing the business segment reporting it also affects the company structure
The benefits - Flexibility and empowers knowledge
economy ndash talent content driven
- Builds at strong work culture which may be replicated in the region
- Expansion to embark on talent and content crowd sourcing - open innovation creation
Media Prima can take this opportunity to achieve SPECIALIZATION COORDINATION AND COOPERATION Currently team structure ndash of Integrated Marketing Division is created as a temporary solution hellip to enable integration It will move towards a network model to haste integration fast and response to technology and consumer needs
Subcription
Advertising
Production
TechnologyPartner
Content
How Moving from aggregator to content creator
Content Focus Leveraging on content to Embark on Revenue shifts
Long term sustainable leadership
Restructuring to liberateresources for Content
Sustainable Talent development -
Partnership
Riding the Technology Wave
Short term (2012) Mid Term (by 2013-2015) Long term 2015 beyond
Technology ndash Enable Media Prima to leap into Interactive Content
Interactive Content
UniFi Axiata
Media Prima
Electronics Manufacturer
Demand - A ready market bull There is a latent demand for content-gt consumers are
willing to Pay bull Technology has accustomed consumers to interacting
with contentbull Regulatory push to shift from analogue to digital by
2015
However unlike Media Primarsquos western counterparts ie Time Warner Communication Media Prima does not have the advantages of cable infrastructure
Challenges ndash Limitation
Media Prima could depend on existing suppliers of connectivity and technology- Telecommunications ie AXIATA and - Manufacturing companies ie Samsungto take the leap into interactive content Unifi TM
Solution ndash Smart Partnerships
Maximizing Unrelated Diversification
It is not a Fad but a trend
Smart TV is an inevitable trend says Baeguen Kang vice president of
research and development at South Koreas LG Electronics Co the worlds second-largest seller of TV sets by unit volume As people experienced smartphones and tablet PCs the larger screen on a TV is very attractive for apps and Web content
210 million TV sets sold world-wide had an Internet connection (2010)
21 50It will be the forecast in (2014)
Source Evan Ramstad (January 2011)A ldquoManufacturers Turn to Smart TV After 3-D Disappointsrdquo The Wall Street Journal online httponlinewsjcomarticleSB10001424052748704835504576059783074010902html
As technology develops Current cost is will drop exponentially reflecting the Moorersquos Law
Hence lowering the cost of access for interactive content
Example of Smart TV
Smart Hub It is a front facing interface just like a main menu
when consumers turn on their TV There are few utilities that consumers can choose to be entertained
Video ndash consumers can choose from array of video collections that required to be paid
Apps ndash an internet-enabled applications like You Tube Facebook Twitter Skype and others
Internet browsing ndash just like PC internet browsing
Music photo and TV watching
Smart ConnectivityWIFI enabled that allows consumers to connect to all mobile devices like smart phone tablet PC notebook and camera with Samsung Wireless Router called 1 foot This connectivity is being called ldquoAllSharerdquo by Samsung
httpotbresearchcomau200509report-1-industry-forum
MEDIA PRIMA IS CURRENTLY HERE
This will ultimately lead Media Prima to reduce it dependence on advertising revenue
Others ndash Utilising the SMART TV technology and Apps to create any existing Media Prima businesses
NEW Revenue Streams for Media Prima
To take advantage of SMART TV and collaborate with SMART TV manufacturers Media Prima can look into following utilities
Collaborate with manufacturers to allow consumers to browse and pay for Media Prima video collections
Selling local music for Malaysia market
Collaborate with local or international content developers to create Malaysia specific contents for paid subscription or free for common content to attract new consumers
How
Content Focus Leveraging on content to Embark on Revenue shifts
Long term sustainable leadership
Restructuring to liberateresources for Content
Sustainable Talent development -
Partnership
Riding the Technology Wave
Short term (2012) Mid Term (by 2013-2015) Long term 2015 beyond
Building Talents in the long run
Education Building on its strategic CSR ndash Media Prima could champion the
development of the content industry by partnering with local universities in the areas of technology media and communication
Crowd Sourcing To haste up the strategic CSR it too could embark on crowd
sourcing for content ndash via scripts and interactive content In which Media Prima could support a great idea and develop the ideas for monetization
This is a synergistic and natural development from the networks structure (open innovation)
Summary ndash Media Prima
Develop Talent Pool
Ensure Vibrant Content Industry
Technologycreates ubiquitous
Low Access Cost
To spur the industry forward
Strong talent develops Content development
demand for access
Strong content industry drives demand for Talent drives demand for content
Our recommendations are aligned to help spur the industry forwardhellip
Restructuring to liberateresources for Content
Sustainable Talent development -
Partnership
Riding the Technology Wave ndash Via Smart
Partnerships
References
References
1 Anon ldquoMedia Prima Berhad implements Accenture integrated broadcast systemrdquo Accenture Press Release httpnewsroomaccenturecomarticle_displaycfmarticle_id=5005 viewed 3 November 2011
2 Anon ldquoNew exciting and vibrant offerings from MPB television networks in 2010rdquo Media Prima Press Release httpwwwmediaprimacommypressreleasepressreleaseaspxid=150 viewed 3 November 2011
3 Anderson J ldquoResource-based competitiveness managerial implications of the resource-based viewrdquo Strategic Direction Vol26 No5 2010 pp1-2
4 Arman Arshad (2006) Size matters Retrieved December 2 2011 from asiaviewsorg httpwwwasiaviewsorgindexphpoption=com_contentampview=articleampid=2171headlinealias2171ampcatid=1headlinesampItemid=2
5 Asia Times (2007 November 29) Malaysian media giant grasps for Internet Retrieved November 3 2011 from httpwwwatimescomatimesSoutheast_AsiaIK29Ae02html
6 Barney JB amp Hesterly WS (2008) Strategic Management and Competitive Advantage The Five Forces Model of Environmental Threats pp39Prentice Hall
7 BBC (2011) BBC News product launches on connected TV Retrieved from bbccoukpressofficepressreleasesstories201106_june17newsshtml
8 Boston Consulting Group (2011) Lean Advantage in Media Boston Consulting Group
9 Boston Consulting Group (2011) Running Forward Walking Backward Boston Consulting Group
10 Business Times (2011) Media Prima net revenue grows to RM119b Kuala Lumpur New Straits Times
11 Business Times (2011) Media Prima on track to achie1048665ing 2011 target Retrieved from www1btimescomm1048668Current_NewsBTIMESarticlespimeArticle
References (1)
12 Business Times (2011) Media Prima Puncak Semangat in early talks Retrieved from httpwwwbtimescommyarticlespimmaArticle
13 Carl W Stern George Stalk Carl W Stern George Stalk Stern CW amp Stalk G (2011) Perspectives of Strategy from the Boston Consulting Group Retrieved December 3 2011 from Value Based Managementnet httpwwwvaluebasedmanagementnetmethods_bcgmatrixhtml
14 ecmlibra (2011) Adex momentum to taper off in 2012 ecmlibra
15 Gershon R A amp Ratnadeep S V (2004) Viacom Inc A Case Study in Transnational Media Management Journal of Media Business Studies 1 (1) 47-69
16 Grant RM ldquoThe resource-based theory of competitive advantage implications for strategy formulationrdquo California Management Review Vol 3 2011 httpwwwskynetie~karenArticlesGrant1_NBpdf viewed 15 November 2011
17 GreyReview (2011) TonTon Streaming Over 11 Million Video Hours A Month now with 16 millions registered users Retrieved from httpwwwgreyreviewcom20110731tonton-serving-over-1-1-million-video-hours-a-month-now-with-1-6-registered-users
18 Heavy Reading (2011) Telecom in TV Land A Roadmap to New Digital Media Ecosystem Retrieved from wwwheavyreadingcomdetailsaspsku_id=1773ampskuitem_itemid=1030
19 Hegedus N (2010) The Great Scare EBR 3 10-17
20 JohnsonGScholesK amp Whittington (2008) Exploring Corporate Strategy Competitive Forces ndash the Five Forces Framework pp 59-64 Prentice Hall
21 kinetic (2011) Moving World Asia Hong Kong
References (2)
22 Knowledgefaber (2009) Telcos Avatar - As Media Companies 20 Retrieved from httpknowledgefabercomindexphpoption=com_contentampview=articleampid=40telecom-and-media-convergenceampcatid=10telecomampItemid=42
23 Knowledgefaber (2011) Telcos Avatar - As Media Companies 20 Retrieved from httpknowledgefabercomindexphpoption=com_contentampview=articleampid=40
24 Malik O (2011) GIGAOM Retrieved from httpgigaomcom20110223old-media-is-being-unbundled-just-like-telecom-was
25 Maxis with TM Astro with TIME Best Strategy to IPTV Market Retrieved December 1 2011 httpbizthestarcommynewsstoryaspfile=201111business7704581ampsec=business
26 Media Prima (2010) Annual Report Media Prima Berhad27 Media Prima Berhad (2011) 11 Nov 2011 - New Exciting amp Vibrant Offerings From MPB Television Retrieved from
wwwmediaprimacommypressreleasepressreleaseaspxid=15028 Media Prima (2010) Sustainability Report Media Prima Berhad29 OSK (2011) Media Prima OSK30 Pocket-Lint (2011) Samsung Smart TV hits 2 million mark Retrieved from
httpwwwpocket-lintcomnews40593samsung-smart-tv-2-million31 PricewaterhouseCoopers (2011) Achieving corporate financial PwC32 PricewaterhouseCoopers (2007) Financial Reporting Standards (FRS) in Malaysia PricewaterhouseCoopers33 SKMM (MCMC) (2009) Advertising Development in Malaysia SKMM34 SKMM (MCMC) (2011) Content Development SKMM35 Techpinions (2011) Interactive TV Trends - How the TV experience is changing - Part II Retrieved from
httptechpinionscominteractive-tv-trends-E28093-how-the-tv-experience-is-changing-part-ii4066
References (3)
36 The Edge (2011) Media Prima best proxy to sector Retrieved from wwwtheedgemalaysiacom37 The Edge Malaysia (2011 September 26) Education the mother of all reforms Retrieved October 30 2011 from
httpwwwtheedgemalaysiacomin-the-financial-daily193478-education-the-mother-of-all-reformshtml38 The Star Online (2011) Main players in the competitive TV sector Retrieved from bizthestarcommynewsstoryasp
file=20111126business997401739 The Star Online (2011) Maxis ready to move up value Retrieved from
bizthestarcommynewsstoryaspfile=201111business7704581ampse40 The Star Online (2011) New players enter the TV Retrieved from
bizthestarcommynewsstoryaspfile=20111126business997300841 The Star Newspaper (December 1 2011) Capital TV to make its debut today42 The Star Online (January 1 2011) Maxis ready to move up value chain Retrieved December 3 2011
httpbizthestarcommynewsstoryaspfile=201111business7704581ampsec=business43 The Star Online (2011 April 21) Media Prima to invest more on local content Retrieved October 30 2011 from C
Usersa34ffzzDesktopMedia PrimaUsed articlesMedia Prima to invest more in local contentmht44 Time Warners (2010) Annual Report Time Warners45 WHAT HI FI (2011) Samsung aims for 50m TV sales worldwide in 2012 set to announce launch date for Google TV
product Retrieved from httpwwwwhathificomnewssamsung-aims-for-50m-tv-sales-worldwide-in-2012-set-to-announce-launch-date-for-google-tv-produ
46 Woroch G A (1996) Turning the Cables Elsevier47 Zanuddin H (2007) Political influence in Malaysia and Thailand media sector Jati Vol12
- MEdiA PRIMA
- Agenda
- Company Profile
- Media Primarsquos Commitment amp Direction moving forward
- Media Industry Business Model ndash Content Driven
- Our Tasks ndash How
- PEST Analysis
- Politics Legal Issues amp Impact
- Economic Issues and Impact
- Social Issues and Impact
- Social Issues and Impact
- Technology Issues and Impact
- In short
- Porterrsquos 5 Forces Analysis
- Porterrsquos Five Forces ndash Competitive Analysis
- Financials
- Media Prima Financial Highlights
- However in further analysis
- Value Chain Analysis
- Resource Based View
- In the context of the Content industry value chain Mapped again
- Appraising capabilities which drives profitability
- Mapping Media Prima revenue streams against the Diversification
- Slide 25
- Related Constrained Diversification
- Related Constrained Diversification (2)
- Slide 28
- Related Linked Diversification
- Slide 30
- Social Responsibility Analysis
- Social Responsibility
- Social Responsibility ndash cont
- Media Prima Acknowledges it various stakeholder via Stakeholder
- It has moved on to 2nd stage of CSR
- SWOT Analysis
- SWOT Analysis ndash Summary
- Media Primarsquos Current situation in summary
- Moving forward 2012 and beyond
- Recommended Destination and future growth of Media Prima
- How Moving from aggregator to content creator
- How Moving from aggregator to content creator (2)
- Creating a Content focus agency All these can be enable via
- Using financial view to free resources for content development
- By changing the business segment reporting it also affects the
- How Moving from aggregator to content creator (3)
- Technology ndash Enable Media Prima to leap into Interactive Conten
- It is not a Fad but a trend
- Slide 50
- Example of Smart TV
- This will ultimately lead Media Prima to reduce it dependence o
- NEW Revenue Streams for Media Prima
- How
- Building Talents in the long run
- Summary ndash Media Prima
- References
- References
- References (1)
- References (2)
- References (3)
-
MARKETINGStrategies are focused on branding activities and marketing communications aggressive Aamp P and active participation in on-ground activities that promote brand awareness And Established Integrated marketing arm
TECHNOLOGY DEVELOPMENT Alt Media the digital arm successfully launched TonTon TV a cutting edge video portal that offers customization and interactivity of social networking Giving Media Prima an advantage of being able to direct advertisers to precise target groups
PROCUREMENT Stringent supplier selection in terms of 70 are local suppliers Sourcing of content which are relevant responsible engaging especially with the advent of new media
SERVICESMedia Prima fully owns Primeworks Studio helps maximize the economies of scale in content production whilst enhancing the quality of content of all television networks
HUMAN CAPITALPrioritize human capital development in news and editorial operation radio network artist and talent management etc Creating an in-house talent pool to develop content
Content Barriers to entry
ndash securing talents - Leadership position in development of local talent and content to leading the industry
Vertical bargaining power
DifferentiationAnd Competitive advantage
- Consumer insights - Integrated media organization
Activities Benefit
Competitiveness leading to Margins
Goal
Appraising capabilities which drives profitability
Source Media Prima Annual Report 2011
Mapping Media Prima revenue streams against the Diversification Map
HIGH
LOW
HIGHLOW
Shar
ing
Ope
ratio
nal R
elat
edne
ss B
etw
een
Busi
ness
Corporate Relatedness Transferring skills into business through corporate HQ
Related Constrained Diversification
Vertical Integration Market Power
Content Creation and Talent development Prima Works enables Media Prima to create localized content for the local market
Both operation and Corporate Relatedness (Rare Capability and can create Diseconomies of scale)
New Media is both an operation and corporate relatedness diversification as it require Media Prima to go beyond playing the role as aggregator but also content producer leveraging on its strength
Unrelated Diversification (Financial Economies)This area of diversification which is unrelated in operation and skills transfer Media Prima has not exploited
Related Linked Diversification (Economies of Scope)As newscontent are cross platforms and the business models are the same Media Prima was able to share similar content across platforms and acquire related companies
Opportunities - Create more segmented programmes and move into interactive content
OpportunitiesHowever more needs to be done in the new are with the advent of Interactive TV
Opportunities Although unrelated area often has high risk it is crucial at this point for Media Prima to extend into this area in smart partnerships with telecommunication companies ie Axiata TM
OpportunitiesMedia Prima has maximized its diversification strategy in this area BUT the market is yet to be ready amp there is a need to link both NSTP and Media Prima
CurrentPrimeworks Studios Sdn Bhd (owned by Media Prima) is Malaysias biggest production company producing TV content since 1984 and feature films since 1994 generating over 5000 hours of TV content and 10 movies annually
Related Constrained Diversification
ChallengesBut the reality is that it is not able to compete with the myriad of channels of its competitors which are dependent on overseas content
Opportunities However more needs to be doneas channels become more segmented-Procuring more content to compete on quantity - or it could change the content game and move into interactive content
Source Creation of An Integrated Media Group 2009 httpwwwmediaprimacommy
TV Newspaper
Radio
Outdoor
New Medi
a
4 3 3
1 2
gt150
17
2 1
gt14
3
22
22
YTL Comms
ABN 100
Ove
rvie
w o
f com
petit
ors
thei
r bus
ines
s po
rtfol
ios
Related Constrained Diversification
Media Company
Advertisers Corporations(Customers )
Viewers(Consumers)
Consumer Pay for Product
CONTENT
Advertiser payFor (Ad space) $$
1 httpwwwlongtailcomthe_long_tail200809the-three-kindshtml
$
Opportunities The potential here is also for Media Prima to drive content syndication ndash providing content to other media stations abroad
Media Prima is currently doing by syndicating content to ASTRO and Unifi
Competitors
Media Company
Viewers(Consumers)
CONTENT PRO
1 httpwwwlongtailcomthe_long_tail200809the-three-kindshtml
$
C
C
C FREE CONTENT FREE CONTENT
FREE CONTENT
Both operation and Corporate Relatedness
CurrentMedia Primarsquos intention to leverage on both its operations and Corporate relatedness to shift its revenue structure to be less dependent on advertising revenue and move toward subscriber revenue where a few subsidies everyone else via versioning ldquoprice discriminationrdquo
ChallengesIt has to some degree been successful to introduce this ndash via TonTon TV however the revenue from this segment has yet to be significant
To date there are 16 show packages and over 50 single episodes for viewers to purchase ndash which is limited
Opportunities However more needs or can be done in this new area with the advent of Interactive TV
Media Company
Advertisers Corporations(Customers )
Viewers(Consumers)
Consumer Pay for Product
FREE
CONTENT
Advertiser payFor (Ad space) $$
Source Website1 httpwwwlongtailcomthe_long_tail200809the-three-kindshtml2 Creation of An Integrated Media 2009 Grouphttpwwwmediaprimacommyinvestorcentercp2009NSTPGOpdf3 httpwwwtheedgemalaysiacomin-the-financial-daily164479-media-prima-best-proxy-to-sector-says-oskhtml 4 Media Prima net revenue grows to RM119b 2011 httpwwwbtimescommyCurrent_NewsBTIMESarticles20111118202427Articleindex_html
Related Linked Diversification
Current Media Prima has expanded across media with the idea in the hope of a) Leveraging on its expertise of
Advertisers subsiding viewers model b) Share back-office consolidation which
creates operations efficiencies in operation ie Editorial Talents
c) Cross marketing opportunities across platforms - Where Advertisers could purchase cross buy across platforms
Challenges Market ndash Not readyThe market is not ready for bundled and cross market offering According to Dato Amrin Awaluddin Group Managing Director of Media Prima no doubt there was head roads but more effort needs to be done to integrate the platforms better
Internally ndash Structure is not integrated In terms of unlocking NSTPs value he says it would be done in two phases `First is more short term like consolidating in terms of operations while the second stage will entail selling of products and cross-promoting our content which would be an ongoing revenue- generation exerciselsquo And he quoted Joran a property of Berita Harian (NST) ndash a nationwide fishing event being brought to TV3 as an example
Opportunities - The structure impeded cross platform and working in silo
does not help
- Hence there is a need to further shift paradigms via a structural change to free up resources to focus on content
- The market will not know what they want until we present them with the opportunity benefit
Social Responsibility Analysis
Social Responsibility
Media Primarsquos approach to Social Responsibility is based on the key triple bottom line ndash social environmental and economic It considers the socio-economic impact of its business activities in the aim to create value to its stakeholders via the 4 categories ie community workplace marketplace and environment
Community1EducationFocusing on education to raise awareness of the importance of education and increase the academic standards of underprivileged children and underperforming schools eg PINTAR Programme NST School Sponsorship Programme
2 HumanitarianRaise funds for humanitarian aid and provided updates on the local and world disaster crisis to the public and raised awareness of the funds eg Humanitarian Aid for Gaza Humanitarian Aid for Flood Victims in Pakistan
3 Other community programmesProduced outreach programmes to reflect and highlight local and community issues and to be the eyes and ears of the public and engage in public awareness through its businessesrsquo media resources and platforms in print interactive media and television eg Project Sunshine
Social Responsibility ndash cont
Environment - EfficiencyStrongly committed to being an environmentally friendly Company by using recycled paper especially in its newspapers business efficient usage of electricity in offices water management reducing amount of waste produced throughout its businesses and other environmental initiatives such as lsquosave our beachrsquo project and WWFrsquos Earth Hour
Marketplace ndash Responsible ContentFocusing on product responsibility in providing high quality products and is committed to establishing a horizontal specialisation system based on collaboration with stakeholders The production flow is illustrated in the diagram below
Workplace ndash Right CultureIt aims to create a workplace where its people have the opportunity to be the best they possibly can to have the right culture safe working environment and human capital development with fair processes
Media Prima Acknowledges it various stakeholder via Stakeholders Management
Media Prima is aware of the diversity of its stakeholders and the different goals and demand of its stakeholders
The Company conducts active engagement with its stakeholders to fully understand their needs and increase their trust in the Company through formal and informal mechanisms as follows
It has moved on to 2nd stage of CSR
1st Generation 2nd Generation 3rd Generation
Philanthropic short term risk management
Product Process innovation business and corporate governance model long term sustainability Strategic CSR
3rd Generation Multi- stakeholder standards and partnerships institutional building CR- Oriented advocacy and public policy
Opportunity
What is next for Media Prima to shape the industry
Creating content that generate advertising dollars amp donations of the poor social awareness
By leveraging on its content distribution capabilities
SWOT Analysis
SWOT Analysis ndash Summary
Strengths 1 Strong market share in TV segment2 Malaysiarsquos only integrated media
organization- have vertical and horizontal diversification advantage
3 Established value chains strength which complements the required core competencies
4 Have move across 3 revenue models
Weaknesses1 limited number of stations variety and choice
for consumer2 Despite diversification revenues still mainly
driven by advertisers and TV -gt cross platforms is needed
3 Financial segmentation may hinder potentials of the company
Opportunities 1 Broadband infrastructure ndash via HSBB2 Development of technology ndash creating
medias gadgets that increase digital interaction and content consumption
3 Consumers are willing to pay for content4 Possible deregulation of content ndash leveling
the playing field
Threats 1 2012 forecasting a financial slow down
affecting Ad Ex ndash hence revenue is reduced2 Increase competition New Entrants Pay TV
player amp continual competition from ASTRO3 Changing consumer habits towards media
consumption -gt moving away from traditional media ndash hence have to fight for consumerrsquos attention
Right Technology (Gadget and Infrastructure) at the Right time (deregulation) amp Right consumers (shift in media habits and willingness to pay for content ndash ASTRO as indicator)
Vertical Value Chain advantage to compete in content development
Media Primarsquos Current situation in summary
+VE
-VE Revenue dependent on advertising which is affected correlated to GDP
Resources organization structure holds back effectiveness of organization
Moving forward2012 and beyond
Recommended Destination and future growth of Media Prima
Revenue mainly from advertising
Revenue from advertising
Content SubscriptionBy viewers
Content driven Complementary Services for advertiser (Auxillary Services)
Media Prima
Media Prima
Content Syndicationto competitors
+
How Moving from aggregator to content creator
Content Focus Leveraging on content to Embark on Revenue shifts
Long term sustainable leadership
Restructuring to liberateresources for Content
Sustainable Talent development -
Partnership
Riding the Technology Wave
Short term (2012) Mid Term (by 2013-2015) Long term 2015 beyond
How Moving from aggregator to content creator
Content Focus Leveraging on content to Embark on Revenue shifts
Long term sustainable leadership
Restructuring to liberateresources for Content
Sustainable Talent development -
Partnership
Riding the Technology Wave
Short term (2012) Mid Term (by 2013-2015) Long term 2015 beyond
Creating a Content focus agency All these can be enable via the following means
Demand- The content creation race bull There is a need to free up empower human capital to create more content which are relevant
segmented engaging and entertaining
How does media prima refocus its resources into where it matters Instead of multiple teams doing the same thing ndash there is a challenge to create a lean and efficient organization
Challenges Freeing Resources
Instead of looking at a Media based financial segment reporting structurally force the teams to integrate by changing the dynamics of PampL
Next page
Solution Redefining Business Units Paradigms
Take a step up from producing beyond the current vernacular program to meet shifting consumer needs
Challenges ndash Lifestyle lead Variety
Creating Channel programs which are target segment focus based on lifestyles hellip
Acquisition of content as content regulations will be relaxed
Solution Target Segment focus
Using financial view to free resources for content developmentFinancial segment reporting may create a ldquosilordquo mentality ndash which encourages each head of business to protect their bottom line Hence a less effective in operations
Our recommendation is to expand content creation to cut across and shift paradigms to free up resources and focus on new revenue streams And create new content for different segment
Tele
visi
on N
etw
ork
Radi
o N
etw
ork
Out
door
Med
ia
Prin
t M
edia
Oth
er M
edia
Current Financial Segment Reporting
Tele
visi
on N
etw
ork
Radi
o N
etw
ork
Out
door
Med
ia
Prin
t M
edia
Oth
er M
edia
Production
Content
Subscription
Advertising
Recommended Segment Reporting
Lifestyle Segments
Lifestyle Segments
Lifestyle Segments
Lifestyle Segments
Lifestyle Segments
Lifestyle Segments
By changing the business segment reporting it also affects the company structure
The benefits - Flexibility and empowers knowledge
economy ndash talent content driven
- Builds at strong work culture which may be replicated in the region
- Expansion to embark on talent and content crowd sourcing - open innovation creation
Media Prima can take this opportunity to achieve SPECIALIZATION COORDINATION AND COOPERATION Currently team structure ndash of Integrated Marketing Division is created as a temporary solution hellip to enable integration It will move towards a network model to haste integration fast and response to technology and consumer needs
Subcription
Advertising
Production
TechnologyPartner
Content
How Moving from aggregator to content creator
Content Focus Leveraging on content to Embark on Revenue shifts
Long term sustainable leadership
Restructuring to liberateresources for Content
Sustainable Talent development -
Partnership
Riding the Technology Wave
Short term (2012) Mid Term (by 2013-2015) Long term 2015 beyond
Technology ndash Enable Media Prima to leap into Interactive Content
Interactive Content
UniFi Axiata
Media Prima
Electronics Manufacturer
Demand - A ready market bull There is a latent demand for content-gt consumers are
willing to Pay bull Technology has accustomed consumers to interacting
with contentbull Regulatory push to shift from analogue to digital by
2015
However unlike Media Primarsquos western counterparts ie Time Warner Communication Media Prima does not have the advantages of cable infrastructure
Challenges ndash Limitation
Media Prima could depend on existing suppliers of connectivity and technology- Telecommunications ie AXIATA and - Manufacturing companies ie Samsungto take the leap into interactive content Unifi TM
Solution ndash Smart Partnerships
Maximizing Unrelated Diversification
It is not a Fad but a trend
Smart TV is an inevitable trend says Baeguen Kang vice president of
research and development at South Koreas LG Electronics Co the worlds second-largest seller of TV sets by unit volume As people experienced smartphones and tablet PCs the larger screen on a TV is very attractive for apps and Web content
210 million TV sets sold world-wide had an Internet connection (2010)
21 50It will be the forecast in (2014)
Source Evan Ramstad (January 2011)A ldquoManufacturers Turn to Smart TV After 3-D Disappointsrdquo The Wall Street Journal online httponlinewsjcomarticleSB10001424052748704835504576059783074010902html
As technology develops Current cost is will drop exponentially reflecting the Moorersquos Law
Hence lowering the cost of access for interactive content
Example of Smart TV
Smart Hub It is a front facing interface just like a main menu
when consumers turn on their TV There are few utilities that consumers can choose to be entertained
Video ndash consumers can choose from array of video collections that required to be paid
Apps ndash an internet-enabled applications like You Tube Facebook Twitter Skype and others
Internet browsing ndash just like PC internet browsing
Music photo and TV watching
Smart ConnectivityWIFI enabled that allows consumers to connect to all mobile devices like smart phone tablet PC notebook and camera with Samsung Wireless Router called 1 foot This connectivity is being called ldquoAllSharerdquo by Samsung
httpotbresearchcomau200509report-1-industry-forum
MEDIA PRIMA IS CURRENTLY HERE
This will ultimately lead Media Prima to reduce it dependence on advertising revenue
Others ndash Utilising the SMART TV technology and Apps to create any existing Media Prima businesses
NEW Revenue Streams for Media Prima
To take advantage of SMART TV and collaborate with SMART TV manufacturers Media Prima can look into following utilities
Collaborate with manufacturers to allow consumers to browse and pay for Media Prima video collections
Selling local music for Malaysia market
Collaborate with local or international content developers to create Malaysia specific contents for paid subscription or free for common content to attract new consumers
How
Content Focus Leveraging on content to Embark on Revenue shifts
Long term sustainable leadership
Restructuring to liberateresources for Content
Sustainable Talent development -
Partnership
Riding the Technology Wave
Short term (2012) Mid Term (by 2013-2015) Long term 2015 beyond
Building Talents in the long run
Education Building on its strategic CSR ndash Media Prima could champion the
development of the content industry by partnering with local universities in the areas of technology media and communication
Crowd Sourcing To haste up the strategic CSR it too could embark on crowd
sourcing for content ndash via scripts and interactive content In which Media Prima could support a great idea and develop the ideas for monetization
This is a synergistic and natural development from the networks structure (open innovation)
Summary ndash Media Prima
Develop Talent Pool
Ensure Vibrant Content Industry
Technologycreates ubiquitous
Low Access Cost
To spur the industry forward
Strong talent develops Content development
demand for access
Strong content industry drives demand for Talent drives demand for content
Our recommendations are aligned to help spur the industry forwardhellip
Restructuring to liberateresources for Content
Sustainable Talent development -
Partnership
Riding the Technology Wave ndash Via Smart
Partnerships
References
References
1 Anon ldquoMedia Prima Berhad implements Accenture integrated broadcast systemrdquo Accenture Press Release httpnewsroomaccenturecomarticle_displaycfmarticle_id=5005 viewed 3 November 2011
2 Anon ldquoNew exciting and vibrant offerings from MPB television networks in 2010rdquo Media Prima Press Release httpwwwmediaprimacommypressreleasepressreleaseaspxid=150 viewed 3 November 2011
3 Anderson J ldquoResource-based competitiveness managerial implications of the resource-based viewrdquo Strategic Direction Vol26 No5 2010 pp1-2
4 Arman Arshad (2006) Size matters Retrieved December 2 2011 from asiaviewsorg httpwwwasiaviewsorgindexphpoption=com_contentampview=articleampid=2171headlinealias2171ampcatid=1headlinesampItemid=2
5 Asia Times (2007 November 29) Malaysian media giant grasps for Internet Retrieved November 3 2011 from httpwwwatimescomatimesSoutheast_AsiaIK29Ae02html
6 Barney JB amp Hesterly WS (2008) Strategic Management and Competitive Advantage The Five Forces Model of Environmental Threats pp39Prentice Hall
7 BBC (2011) BBC News product launches on connected TV Retrieved from bbccoukpressofficepressreleasesstories201106_june17newsshtml
8 Boston Consulting Group (2011) Lean Advantage in Media Boston Consulting Group
9 Boston Consulting Group (2011) Running Forward Walking Backward Boston Consulting Group
10 Business Times (2011) Media Prima net revenue grows to RM119b Kuala Lumpur New Straits Times
11 Business Times (2011) Media Prima on track to achie1048665ing 2011 target Retrieved from www1btimescomm1048668Current_NewsBTIMESarticlespimeArticle
References (1)
12 Business Times (2011) Media Prima Puncak Semangat in early talks Retrieved from httpwwwbtimescommyarticlespimmaArticle
13 Carl W Stern George Stalk Carl W Stern George Stalk Stern CW amp Stalk G (2011) Perspectives of Strategy from the Boston Consulting Group Retrieved December 3 2011 from Value Based Managementnet httpwwwvaluebasedmanagementnetmethods_bcgmatrixhtml
14 ecmlibra (2011) Adex momentum to taper off in 2012 ecmlibra
15 Gershon R A amp Ratnadeep S V (2004) Viacom Inc A Case Study in Transnational Media Management Journal of Media Business Studies 1 (1) 47-69
16 Grant RM ldquoThe resource-based theory of competitive advantage implications for strategy formulationrdquo California Management Review Vol 3 2011 httpwwwskynetie~karenArticlesGrant1_NBpdf viewed 15 November 2011
17 GreyReview (2011) TonTon Streaming Over 11 Million Video Hours A Month now with 16 millions registered users Retrieved from httpwwwgreyreviewcom20110731tonton-serving-over-1-1-million-video-hours-a-month-now-with-1-6-registered-users
18 Heavy Reading (2011) Telecom in TV Land A Roadmap to New Digital Media Ecosystem Retrieved from wwwheavyreadingcomdetailsaspsku_id=1773ampskuitem_itemid=1030
19 Hegedus N (2010) The Great Scare EBR 3 10-17
20 JohnsonGScholesK amp Whittington (2008) Exploring Corporate Strategy Competitive Forces ndash the Five Forces Framework pp 59-64 Prentice Hall
21 kinetic (2011) Moving World Asia Hong Kong
References (2)
22 Knowledgefaber (2009) Telcos Avatar - As Media Companies 20 Retrieved from httpknowledgefabercomindexphpoption=com_contentampview=articleampid=40telecom-and-media-convergenceampcatid=10telecomampItemid=42
23 Knowledgefaber (2011) Telcos Avatar - As Media Companies 20 Retrieved from httpknowledgefabercomindexphpoption=com_contentampview=articleampid=40
24 Malik O (2011) GIGAOM Retrieved from httpgigaomcom20110223old-media-is-being-unbundled-just-like-telecom-was
25 Maxis with TM Astro with TIME Best Strategy to IPTV Market Retrieved December 1 2011 httpbizthestarcommynewsstoryaspfile=201111business7704581ampsec=business
26 Media Prima (2010) Annual Report Media Prima Berhad27 Media Prima Berhad (2011) 11 Nov 2011 - New Exciting amp Vibrant Offerings From MPB Television Retrieved from
wwwmediaprimacommypressreleasepressreleaseaspxid=15028 Media Prima (2010) Sustainability Report Media Prima Berhad29 OSK (2011) Media Prima OSK30 Pocket-Lint (2011) Samsung Smart TV hits 2 million mark Retrieved from
httpwwwpocket-lintcomnews40593samsung-smart-tv-2-million31 PricewaterhouseCoopers (2011) Achieving corporate financial PwC32 PricewaterhouseCoopers (2007) Financial Reporting Standards (FRS) in Malaysia PricewaterhouseCoopers33 SKMM (MCMC) (2009) Advertising Development in Malaysia SKMM34 SKMM (MCMC) (2011) Content Development SKMM35 Techpinions (2011) Interactive TV Trends - How the TV experience is changing - Part II Retrieved from
httptechpinionscominteractive-tv-trends-E28093-how-the-tv-experience-is-changing-part-ii4066
References (3)
36 The Edge (2011) Media Prima best proxy to sector Retrieved from wwwtheedgemalaysiacom37 The Edge Malaysia (2011 September 26) Education the mother of all reforms Retrieved October 30 2011 from
httpwwwtheedgemalaysiacomin-the-financial-daily193478-education-the-mother-of-all-reformshtml38 The Star Online (2011) Main players in the competitive TV sector Retrieved from bizthestarcommynewsstoryasp
file=20111126business997401739 The Star Online (2011) Maxis ready to move up value Retrieved from
bizthestarcommynewsstoryaspfile=201111business7704581ampse40 The Star Online (2011) New players enter the TV Retrieved from
bizthestarcommynewsstoryaspfile=20111126business997300841 The Star Newspaper (December 1 2011) Capital TV to make its debut today42 The Star Online (January 1 2011) Maxis ready to move up value chain Retrieved December 3 2011
httpbizthestarcommynewsstoryaspfile=201111business7704581ampsec=business43 The Star Online (2011 April 21) Media Prima to invest more on local content Retrieved October 30 2011 from C
Usersa34ffzzDesktopMedia PrimaUsed articlesMedia Prima to invest more in local contentmht44 Time Warners (2010) Annual Report Time Warners45 WHAT HI FI (2011) Samsung aims for 50m TV sales worldwide in 2012 set to announce launch date for Google TV
product Retrieved from httpwwwwhathificomnewssamsung-aims-for-50m-tv-sales-worldwide-in-2012-set-to-announce-launch-date-for-google-tv-produ
46 Woroch G A (1996) Turning the Cables Elsevier47 Zanuddin H (2007) Political influence in Malaysia and Thailand media sector Jati Vol12
- MEdiA PRIMA
- Agenda
- Company Profile
- Media Primarsquos Commitment amp Direction moving forward
- Media Industry Business Model ndash Content Driven
- Our Tasks ndash How
- PEST Analysis
- Politics Legal Issues amp Impact
- Economic Issues and Impact
- Social Issues and Impact
- Social Issues and Impact
- Technology Issues and Impact
- In short
- Porterrsquos 5 Forces Analysis
- Porterrsquos Five Forces ndash Competitive Analysis
- Financials
- Media Prima Financial Highlights
- However in further analysis
- Value Chain Analysis
- Resource Based View
- In the context of the Content industry value chain Mapped again
- Appraising capabilities which drives profitability
- Mapping Media Prima revenue streams against the Diversification
- Slide 25
- Related Constrained Diversification
- Related Constrained Diversification (2)
- Slide 28
- Related Linked Diversification
- Slide 30
- Social Responsibility Analysis
- Social Responsibility
- Social Responsibility ndash cont
- Media Prima Acknowledges it various stakeholder via Stakeholder
- It has moved on to 2nd stage of CSR
- SWOT Analysis
- SWOT Analysis ndash Summary
- Media Primarsquos Current situation in summary
- Moving forward 2012 and beyond
- Recommended Destination and future growth of Media Prima
- How Moving from aggregator to content creator
- How Moving from aggregator to content creator (2)
- Creating a Content focus agency All these can be enable via
- Using financial view to free resources for content development
- By changing the business segment reporting it also affects the
- How Moving from aggregator to content creator (3)
- Technology ndash Enable Media Prima to leap into Interactive Conten
- It is not a Fad but a trend
- Slide 50
- Example of Smart TV
- This will ultimately lead Media Prima to reduce it dependence o
- NEW Revenue Streams for Media Prima
- How
- Building Talents in the long run
- Summary ndash Media Prima
- References
- References
- References (1)
- References (2)
- References (3)
-
Mapping Media Prima revenue streams against the Diversification Map
HIGH
LOW
HIGHLOW
Shar
ing
Ope
ratio
nal R
elat
edne
ss B
etw
een
Busi
ness
Corporate Relatedness Transferring skills into business through corporate HQ
Related Constrained Diversification
Vertical Integration Market Power
Content Creation and Talent development Prima Works enables Media Prima to create localized content for the local market
Both operation and Corporate Relatedness (Rare Capability and can create Diseconomies of scale)
New Media is both an operation and corporate relatedness diversification as it require Media Prima to go beyond playing the role as aggregator but also content producer leveraging on its strength
Unrelated Diversification (Financial Economies)This area of diversification which is unrelated in operation and skills transfer Media Prima has not exploited
Related Linked Diversification (Economies of Scope)As newscontent are cross platforms and the business models are the same Media Prima was able to share similar content across platforms and acquire related companies
Opportunities - Create more segmented programmes and move into interactive content
OpportunitiesHowever more needs to be done in the new are with the advent of Interactive TV
Opportunities Although unrelated area often has high risk it is crucial at this point for Media Prima to extend into this area in smart partnerships with telecommunication companies ie Axiata TM
OpportunitiesMedia Prima has maximized its diversification strategy in this area BUT the market is yet to be ready amp there is a need to link both NSTP and Media Prima
CurrentPrimeworks Studios Sdn Bhd (owned by Media Prima) is Malaysias biggest production company producing TV content since 1984 and feature films since 1994 generating over 5000 hours of TV content and 10 movies annually
Related Constrained Diversification
ChallengesBut the reality is that it is not able to compete with the myriad of channels of its competitors which are dependent on overseas content
Opportunities However more needs to be doneas channels become more segmented-Procuring more content to compete on quantity - or it could change the content game and move into interactive content
Source Creation of An Integrated Media Group 2009 httpwwwmediaprimacommy
TV Newspaper
Radio
Outdoor
New Medi
a
4 3 3
1 2
gt150
17
2 1
gt14
3
22
22
YTL Comms
ABN 100
Ove
rvie
w o
f com
petit
ors
thei
r bus
ines
s po
rtfol
ios
Related Constrained Diversification
Media Company
Advertisers Corporations(Customers )
Viewers(Consumers)
Consumer Pay for Product
CONTENT
Advertiser payFor (Ad space) $$
1 httpwwwlongtailcomthe_long_tail200809the-three-kindshtml
$
Opportunities The potential here is also for Media Prima to drive content syndication ndash providing content to other media stations abroad
Media Prima is currently doing by syndicating content to ASTRO and Unifi
Competitors
Media Company
Viewers(Consumers)
CONTENT PRO
1 httpwwwlongtailcomthe_long_tail200809the-three-kindshtml
$
C
C
C FREE CONTENT FREE CONTENT
FREE CONTENT
Both operation and Corporate Relatedness
CurrentMedia Primarsquos intention to leverage on both its operations and Corporate relatedness to shift its revenue structure to be less dependent on advertising revenue and move toward subscriber revenue where a few subsidies everyone else via versioning ldquoprice discriminationrdquo
ChallengesIt has to some degree been successful to introduce this ndash via TonTon TV however the revenue from this segment has yet to be significant
To date there are 16 show packages and over 50 single episodes for viewers to purchase ndash which is limited
Opportunities However more needs or can be done in this new area with the advent of Interactive TV
Media Company
Advertisers Corporations(Customers )
Viewers(Consumers)
Consumer Pay for Product
FREE
CONTENT
Advertiser payFor (Ad space) $$
Source Website1 httpwwwlongtailcomthe_long_tail200809the-three-kindshtml2 Creation of An Integrated Media 2009 Grouphttpwwwmediaprimacommyinvestorcentercp2009NSTPGOpdf3 httpwwwtheedgemalaysiacomin-the-financial-daily164479-media-prima-best-proxy-to-sector-says-oskhtml 4 Media Prima net revenue grows to RM119b 2011 httpwwwbtimescommyCurrent_NewsBTIMESarticles20111118202427Articleindex_html
Related Linked Diversification
Current Media Prima has expanded across media with the idea in the hope of a) Leveraging on its expertise of
Advertisers subsiding viewers model b) Share back-office consolidation which
creates operations efficiencies in operation ie Editorial Talents
c) Cross marketing opportunities across platforms - Where Advertisers could purchase cross buy across platforms
Challenges Market ndash Not readyThe market is not ready for bundled and cross market offering According to Dato Amrin Awaluddin Group Managing Director of Media Prima no doubt there was head roads but more effort needs to be done to integrate the platforms better
Internally ndash Structure is not integrated In terms of unlocking NSTPs value he says it would be done in two phases `First is more short term like consolidating in terms of operations while the second stage will entail selling of products and cross-promoting our content which would be an ongoing revenue- generation exerciselsquo And he quoted Joran a property of Berita Harian (NST) ndash a nationwide fishing event being brought to TV3 as an example
Opportunities - The structure impeded cross platform and working in silo
does not help
- Hence there is a need to further shift paradigms via a structural change to free up resources to focus on content
- The market will not know what they want until we present them with the opportunity benefit
Social Responsibility Analysis
Social Responsibility
Media Primarsquos approach to Social Responsibility is based on the key triple bottom line ndash social environmental and economic It considers the socio-economic impact of its business activities in the aim to create value to its stakeholders via the 4 categories ie community workplace marketplace and environment
Community1EducationFocusing on education to raise awareness of the importance of education and increase the academic standards of underprivileged children and underperforming schools eg PINTAR Programme NST School Sponsorship Programme
2 HumanitarianRaise funds for humanitarian aid and provided updates on the local and world disaster crisis to the public and raised awareness of the funds eg Humanitarian Aid for Gaza Humanitarian Aid for Flood Victims in Pakistan
3 Other community programmesProduced outreach programmes to reflect and highlight local and community issues and to be the eyes and ears of the public and engage in public awareness through its businessesrsquo media resources and platforms in print interactive media and television eg Project Sunshine
Social Responsibility ndash cont
Environment - EfficiencyStrongly committed to being an environmentally friendly Company by using recycled paper especially in its newspapers business efficient usage of electricity in offices water management reducing amount of waste produced throughout its businesses and other environmental initiatives such as lsquosave our beachrsquo project and WWFrsquos Earth Hour
Marketplace ndash Responsible ContentFocusing on product responsibility in providing high quality products and is committed to establishing a horizontal specialisation system based on collaboration with stakeholders The production flow is illustrated in the diagram below
Workplace ndash Right CultureIt aims to create a workplace where its people have the opportunity to be the best they possibly can to have the right culture safe working environment and human capital development with fair processes
Media Prima Acknowledges it various stakeholder via Stakeholders Management
Media Prima is aware of the diversity of its stakeholders and the different goals and demand of its stakeholders
The Company conducts active engagement with its stakeholders to fully understand their needs and increase their trust in the Company through formal and informal mechanisms as follows
It has moved on to 2nd stage of CSR
1st Generation 2nd Generation 3rd Generation
Philanthropic short term risk management
Product Process innovation business and corporate governance model long term sustainability Strategic CSR
3rd Generation Multi- stakeholder standards and partnerships institutional building CR- Oriented advocacy and public policy
Opportunity
What is next for Media Prima to shape the industry
Creating content that generate advertising dollars amp donations of the poor social awareness
By leveraging on its content distribution capabilities
SWOT Analysis
SWOT Analysis ndash Summary
Strengths 1 Strong market share in TV segment2 Malaysiarsquos only integrated media
organization- have vertical and horizontal diversification advantage
3 Established value chains strength which complements the required core competencies
4 Have move across 3 revenue models
Weaknesses1 limited number of stations variety and choice
for consumer2 Despite diversification revenues still mainly
driven by advertisers and TV -gt cross platforms is needed
3 Financial segmentation may hinder potentials of the company
Opportunities 1 Broadband infrastructure ndash via HSBB2 Development of technology ndash creating
medias gadgets that increase digital interaction and content consumption
3 Consumers are willing to pay for content4 Possible deregulation of content ndash leveling
the playing field
Threats 1 2012 forecasting a financial slow down
affecting Ad Ex ndash hence revenue is reduced2 Increase competition New Entrants Pay TV
player amp continual competition from ASTRO3 Changing consumer habits towards media
consumption -gt moving away from traditional media ndash hence have to fight for consumerrsquos attention
Right Technology (Gadget and Infrastructure) at the Right time (deregulation) amp Right consumers (shift in media habits and willingness to pay for content ndash ASTRO as indicator)
Vertical Value Chain advantage to compete in content development
Media Primarsquos Current situation in summary
+VE
-VE Revenue dependent on advertising which is affected correlated to GDP
Resources organization structure holds back effectiveness of organization
Moving forward2012 and beyond
Recommended Destination and future growth of Media Prima
Revenue mainly from advertising
Revenue from advertising
Content SubscriptionBy viewers
Content driven Complementary Services for advertiser (Auxillary Services)
Media Prima
Media Prima
Content Syndicationto competitors
+
How Moving from aggregator to content creator
Content Focus Leveraging on content to Embark on Revenue shifts
Long term sustainable leadership
Restructuring to liberateresources for Content
Sustainable Talent development -
Partnership
Riding the Technology Wave
Short term (2012) Mid Term (by 2013-2015) Long term 2015 beyond
How Moving from aggregator to content creator
Content Focus Leveraging on content to Embark on Revenue shifts
Long term sustainable leadership
Restructuring to liberateresources for Content
Sustainable Talent development -
Partnership
Riding the Technology Wave
Short term (2012) Mid Term (by 2013-2015) Long term 2015 beyond
Creating a Content focus agency All these can be enable via the following means
Demand- The content creation race bull There is a need to free up empower human capital to create more content which are relevant
segmented engaging and entertaining
How does media prima refocus its resources into where it matters Instead of multiple teams doing the same thing ndash there is a challenge to create a lean and efficient organization
Challenges Freeing Resources
Instead of looking at a Media based financial segment reporting structurally force the teams to integrate by changing the dynamics of PampL
Next page
Solution Redefining Business Units Paradigms
Take a step up from producing beyond the current vernacular program to meet shifting consumer needs
Challenges ndash Lifestyle lead Variety
Creating Channel programs which are target segment focus based on lifestyles hellip
Acquisition of content as content regulations will be relaxed
Solution Target Segment focus
Using financial view to free resources for content developmentFinancial segment reporting may create a ldquosilordquo mentality ndash which encourages each head of business to protect their bottom line Hence a less effective in operations
Our recommendation is to expand content creation to cut across and shift paradigms to free up resources and focus on new revenue streams And create new content for different segment
Tele
visi
on N
etw
ork
Radi
o N
etw
ork
Out
door
Med
ia
Prin
t M
edia
Oth
er M
edia
Current Financial Segment Reporting
Tele
visi
on N
etw
ork
Radi
o N
etw
ork
Out
door
Med
ia
Prin
t M
edia
Oth
er M
edia
Production
Content
Subscription
Advertising
Recommended Segment Reporting
Lifestyle Segments
Lifestyle Segments
Lifestyle Segments
Lifestyle Segments
Lifestyle Segments
Lifestyle Segments
By changing the business segment reporting it also affects the company structure
The benefits - Flexibility and empowers knowledge
economy ndash talent content driven
- Builds at strong work culture which may be replicated in the region
- Expansion to embark on talent and content crowd sourcing - open innovation creation
Media Prima can take this opportunity to achieve SPECIALIZATION COORDINATION AND COOPERATION Currently team structure ndash of Integrated Marketing Division is created as a temporary solution hellip to enable integration It will move towards a network model to haste integration fast and response to technology and consumer needs
Subcription
Advertising
Production
TechnologyPartner
Content
How Moving from aggregator to content creator
Content Focus Leveraging on content to Embark on Revenue shifts
Long term sustainable leadership
Restructuring to liberateresources for Content
Sustainable Talent development -
Partnership
Riding the Technology Wave
Short term (2012) Mid Term (by 2013-2015) Long term 2015 beyond
Technology ndash Enable Media Prima to leap into Interactive Content
Interactive Content
UniFi Axiata
Media Prima
Electronics Manufacturer
Demand - A ready market bull There is a latent demand for content-gt consumers are
willing to Pay bull Technology has accustomed consumers to interacting
with contentbull Regulatory push to shift from analogue to digital by
2015
However unlike Media Primarsquos western counterparts ie Time Warner Communication Media Prima does not have the advantages of cable infrastructure
Challenges ndash Limitation
Media Prima could depend on existing suppliers of connectivity and technology- Telecommunications ie AXIATA and - Manufacturing companies ie Samsungto take the leap into interactive content Unifi TM
Solution ndash Smart Partnerships
Maximizing Unrelated Diversification
It is not a Fad but a trend
Smart TV is an inevitable trend says Baeguen Kang vice president of
research and development at South Koreas LG Electronics Co the worlds second-largest seller of TV sets by unit volume As people experienced smartphones and tablet PCs the larger screen on a TV is very attractive for apps and Web content
210 million TV sets sold world-wide had an Internet connection (2010)
21 50It will be the forecast in (2014)
Source Evan Ramstad (January 2011)A ldquoManufacturers Turn to Smart TV After 3-D Disappointsrdquo The Wall Street Journal online httponlinewsjcomarticleSB10001424052748704835504576059783074010902html
As technology develops Current cost is will drop exponentially reflecting the Moorersquos Law
Hence lowering the cost of access for interactive content
Example of Smart TV
Smart Hub It is a front facing interface just like a main menu
when consumers turn on their TV There are few utilities that consumers can choose to be entertained
Video ndash consumers can choose from array of video collections that required to be paid
Apps ndash an internet-enabled applications like You Tube Facebook Twitter Skype and others
Internet browsing ndash just like PC internet browsing
Music photo and TV watching
Smart ConnectivityWIFI enabled that allows consumers to connect to all mobile devices like smart phone tablet PC notebook and camera with Samsung Wireless Router called 1 foot This connectivity is being called ldquoAllSharerdquo by Samsung
httpotbresearchcomau200509report-1-industry-forum
MEDIA PRIMA IS CURRENTLY HERE
This will ultimately lead Media Prima to reduce it dependence on advertising revenue
Others ndash Utilising the SMART TV technology and Apps to create any existing Media Prima businesses
NEW Revenue Streams for Media Prima
To take advantage of SMART TV and collaborate with SMART TV manufacturers Media Prima can look into following utilities
Collaborate with manufacturers to allow consumers to browse and pay for Media Prima video collections
Selling local music for Malaysia market
Collaborate with local or international content developers to create Malaysia specific contents for paid subscription or free for common content to attract new consumers
How
Content Focus Leveraging on content to Embark on Revenue shifts
Long term sustainable leadership
Restructuring to liberateresources for Content
Sustainable Talent development -
Partnership
Riding the Technology Wave
Short term (2012) Mid Term (by 2013-2015) Long term 2015 beyond
Building Talents in the long run
Education Building on its strategic CSR ndash Media Prima could champion the
development of the content industry by partnering with local universities in the areas of technology media and communication
Crowd Sourcing To haste up the strategic CSR it too could embark on crowd
sourcing for content ndash via scripts and interactive content In which Media Prima could support a great idea and develop the ideas for monetization
This is a synergistic and natural development from the networks structure (open innovation)
Summary ndash Media Prima
Develop Talent Pool
Ensure Vibrant Content Industry
Technologycreates ubiquitous
Low Access Cost
To spur the industry forward
Strong talent develops Content development
demand for access
Strong content industry drives demand for Talent drives demand for content
Our recommendations are aligned to help spur the industry forwardhellip
Restructuring to liberateresources for Content
Sustainable Talent development -
Partnership
Riding the Technology Wave ndash Via Smart
Partnerships
References
References
1 Anon ldquoMedia Prima Berhad implements Accenture integrated broadcast systemrdquo Accenture Press Release httpnewsroomaccenturecomarticle_displaycfmarticle_id=5005 viewed 3 November 2011
2 Anon ldquoNew exciting and vibrant offerings from MPB television networks in 2010rdquo Media Prima Press Release httpwwwmediaprimacommypressreleasepressreleaseaspxid=150 viewed 3 November 2011
3 Anderson J ldquoResource-based competitiveness managerial implications of the resource-based viewrdquo Strategic Direction Vol26 No5 2010 pp1-2
4 Arman Arshad (2006) Size matters Retrieved December 2 2011 from asiaviewsorg httpwwwasiaviewsorgindexphpoption=com_contentampview=articleampid=2171headlinealias2171ampcatid=1headlinesampItemid=2
5 Asia Times (2007 November 29) Malaysian media giant grasps for Internet Retrieved November 3 2011 from httpwwwatimescomatimesSoutheast_AsiaIK29Ae02html
6 Barney JB amp Hesterly WS (2008) Strategic Management and Competitive Advantage The Five Forces Model of Environmental Threats pp39Prentice Hall
7 BBC (2011) BBC News product launches on connected TV Retrieved from bbccoukpressofficepressreleasesstories201106_june17newsshtml
8 Boston Consulting Group (2011) Lean Advantage in Media Boston Consulting Group
9 Boston Consulting Group (2011) Running Forward Walking Backward Boston Consulting Group
10 Business Times (2011) Media Prima net revenue grows to RM119b Kuala Lumpur New Straits Times
11 Business Times (2011) Media Prima on track to achie1048665ing 2011 target Retrieved from www1btimescomm1048668Current_NewsBTIMESarticlespimeArticle
References (1)
12 Business Times (2011) Media Prima Puncak Semangat in early talks Retrieved from httpwwwbtimescommyarticlespimmaArticle
13 Carl W Stern George Stalk Carl W Stern George Stalk Stern CW amp Stalk G (2011) Perspectives of Strategy from the Boston Consulting Group Retrieved December 3 2011 from Value Based Managementnet httpwwwvaluebasedmanagementnetmethods_bcgmatrixhtml
14 ecmlibra (2011) Adex momentum to taper off in 2012 ecmlibra
15 Gershon R A amp Ratnadeep S V (2004) Viacom Inc A Case Study in Transnational Media Management Journal of Media Business Studies 1 (1) 47-69
16 Grant RM ldquoThe resource-based theory of competitive advantage implications for strategy formulationrdquo California Management Review Vol 3 2011 httpwwwskynetie~karenArticlesGrant1_NBpdf viewed 15 November 2011
17 GreyReview (2011) TonTon Streaming Over 11 Million Video Hours A Month now with 16 millions registered users Retrieved from httpwwwgreyreviewcom20110731tonton-serving-over-1-1-million-video-hours-a-month-now-with-1-6-registered-users
18 Heavy Reading (2011) Telecom in TV Land A Roadmap to New Digital Media Ecosystem Retrieved from wwwheavyreadingcomdetailsaspsku_id=1773ampskuitem_itemid=1030
19 Hegedus N (2010) The Great Scare EBR 3 10-17
20 JohnsonGScholesK amp Whittington (2008) Exploring Corporate Strategy Competitive Forces ndash the Five Forces Framework pp 59-64 Prentice Hall
21 kinetic (2011) Moving World Asia Hong Kong
References (2)
22 Knowledgefaber (2009) Telcos Avatar - As Media Companies 20 Retrieved from httpknowledgefabercomindexphpoption=com_contentampview=articleampid=40telecom-and-media-convergenceampcatid=10telecomampItemid=42
23 Knowledgefaber (2011) Telcos Avatar - As Media Companies 20 Retrieved from httpknowledgefabercomindexphpoption=com_contentampview=articleampid=40
24 Malik O (2011) GIGAOM Retrieved from httpgigaomcom20110223old-media-is-being-unbundled-just-like-telecom-was
25 Maxis with TM Astro with TIME Best Strategy to IPTV Market Retrieved December 1 2011 httpbizthestarcommynewsstoryaspfile=201111business7704581ampsec=business
26 Media Prima (2010) Annual Report Media Prima Berhad27 Media Prima Berhad (2011) 11 Nov 2011 - New Exciting amp Vibrant Offerings From MPB Television Retrieved from
wwwmediaprimacommypressreleasepressreleaseaspxid=15028 Media Prima (2010) Sustainability Report Media Prima Berhad29 OSK (2011) Media Prima OSK30 Pocket-Lint (2011) Samsung Smart TV hits 2 million mark Retrieved from
httpwwwpocket-lintcomnews40593samsung-smart-tv-2-million31 PricewaterhouseCoopers (2011) Achieving corporate financial PwC32 PricewaterhouseCoopers (2007) Financial Reporting Standards (FRS) in Malaysia PricewaterhouseCoopers33 SKMM (MCMC) (2009) Advertising Development in Malaysia SKMM34 SKMM (MCMC) (2011) Content Development SKMM35 Techpinions (2011) Interactive TV Trends - How the TV experience is changing - Part II Retrieved from
httptechpinionscominteractive-tv-trends-E28093-how-the-tv-experience-is-changing-part-ii4066
References (3)
36 The Edge (2011) Media Prima best proxy to sector Retrieved from wwwtheedgemalaysiacom37 The Edge Malaysia (2011 September 26) Education the mother of all reforms Retrieved October 30 2011 from
httpwwwtheedgemalaysiacomin-the-financial-daily193478-education-the-mother-of-all-reformshtml38 The Star Online (2011) Main players in the competitive TV sector Retrieved from bizthestarcommynewsstoryasp
file=20111126business997401739 The Star Online (2011) Maxis ready to move up value Retrieved from
bizthestarcommynewsstoryaspfile=201111business7704581ampse40 The Star Online (2011) New players enter the TV Retrieved from
bizthestarcommynewsstoryaspfile=20111126business997300841 The Star Newspaper (December 1 2011) Capital TV to make its debut today42 The Star Online (January 1 2011) Maxis ready to move up value chain Retrieved December 3 2011
httpbizthestarcommynewsstoryaspfile=201111business7704581ampsec=business43 The Star Online (2011 April 21) Media Prima to invest more on local content Retrieved October 30 2011 from C
Usersa34ffzzDesktopMedia PrimaUsed articlesMedia Prima to invest more in local contentmht44 Time Warners (2010) Annual Report Time Warners45 WHAT HI FI (2011) Samsung aims for 50m TV sales worldwide in 2012 set to announce launch date for Google TV
product Retrieved from httpwwwwhathificomnewssamsung-aims-for-50m-tv-sales-worldwide-in-2012-set-to-announce-launch-date-for-google-tv-produ
46 Woroch G A (1996) Turning the Cables Elsevier47 Zanuddin H (2007) Political influence in Malaysia and Thailand media sector Jati Vol12
- MEdiA PRIMA
- Agenda
- Company Profile
- Media Primarsquos Commitment amp Direction moving forward
- Media Industry Business Model ndash Content Driven
- Our Tasks ndash How
- PEST Analysis
- Politics Legal Issues amp Impact
- Economic Issues and Impact
- Social Issues and Impact
- Social Issues and Impact
- Technology Issues and Impact
- In short
- Porterrsquos 5 Forces Analysis
- Porterrsquos Five Forces ndash Competitive Analysis
- Financials
- Media Prima Financial Highlights
- However in further analysis
- Value Chain Analysis
- Resource Based View
- In the context of the Content industry value chain Mapped again
- Appraising capabilities which drives profitability
- Mapping Media Prima revenue streams against the Diversification
- Slide 25
- Related Constrained Diversification
- Related Constrained Diversification (2)
- Slide 28
- Related Linked Diversification
- Slide 30
- Social Responsibility Analysis
- Social Responsibility
- Social Responsibility ndash cont
- Media Prima Acknowledges it various stakeholder via Stakeholder
- It has moved on to 2nd stage of CSR
- SWOT Analysis
- SWOT Analysis ndash Summary
- Media Primarsquos Current situation in summary
- Moving forward 2012 and beyond
- Recommended Destination and future growth of Media Prima
- How Moving from aggregator to content creator
- How Moving from aggregator to content creator (2)
- Creating a Content focus agency All these can be enable via
- Using financial view to free resources for content development
- By changing the business segment reporting it also affects the
- How Moving from aggregator to content creator (3)
- Technology ndash Enable Media Prima to leap into Interactive Conten
- It is not a Fad but a trend
- Slide 50
- Example of Smart TV
- This will ultimately lead Media Prima to reduce it dependence o
- NEW Revenue Streams for Media Prima
- How
- Building Talents in the long run
- Summary ndash Media Prima
- References
- References
- References (1)
- References (2)
- References (3)
-
HIGH
LOW
HIGHLOW
Shar
ing
Ope
ratio
nal R
elat
edne
ss B
etw
een
Busi
ness
Corporate Relatedness Transferring skills into business through corporate HQ
Related Constrained Diversification
Vertical Integration Market Power
Content Creation and Talent development Prima Works enables Media Prima to create localized content for the local market
Both operation and Corporate Relatedness (Rare Capability and can create Diseconomies of scale)
New Media is both an operation and corporate relatedness diversification as it require Media Prima to go beyond playing the role as aggregator but also content producer leveraging on its strength
Unrelated Diversification (Financial Economies)This area of diversification which is unrelated in operation and skills transfer Media Prima has not exploited
Related Linked Diversification (Economies of Scope)As newscontent are cross platforms and the business models are the same Media Prima was able to share similar content across platforms and acquire related companies
Opportunities - Create more segmented programmes and move into interactive content
OpportunitiesHowever more needs to be done in the new are with the advent of Interactive TV
Opportunities Although unrelated area often has high risk it is crucial at this point for Media Prima to extend into this area in smart partnerships with telecommunication companies ie Axiata TM
OpportunitiesMedia Prima has maximized its diversification strategy in this area BUT the market is yet to be ready amp there is a need to link both NSTP and Media Prima
CurrentPrimeworks Studios Sdn Bhd (owned by Media Prima) is Malaysias biggest production company producing TV content since 1984 and feature films since 1994 generating over 5000 hours of TV content and 10 movies annually
Related Constrained Diversification
ChallengesBut the reality is that it is not able to compete with the myriad of channels of its competitors which are dependent on overseas content
Opportunities However more needs to be doneas channels become more segmented-Procuring more content to compete on quantity - or it could change the content game and move into interactive content
Source Creation of An Integrated Media Group 2009 httpwwwmediaprimacommy
TV Newspaper
Radio
Outdoor
New Medi
a
4 3 3
1 2
gt150
17
2 1
gt14
3
22
22
YTL Comms
ABN 100
Ove
rvie
w o
f com
petit
ors
thei
r bus
ines
s po
rtfol
ios
Related Constrained Diversification
Media Company
Advertisers Corporations(Customers )
Viewers(Consumers)
Consumer Pay for Product
CONTENT
Advertiser payFor (Ad space) $$
1 httpwwwlongtailcomthe_long_tail200809the-three-kindshtml
$
Opportunities The potential here is also for Media Prima to drive content syndication ndash providing content to other media stations abroad
Media Prima is currently doing by syndicating content to ASTRO and Unifi
Competitors
Media Company
Viewers(Consumers)
CONTENT PRO
1 httpwwwlongtailcomthe_long_tail200809the-three-kindshtml
$
C
C
C FREE CONTENT FREE CONTENT
FREE CONTENT
Both operation and Corporate Relatedness
CurrentMedia Primarsquos intention to leverage on both its operations and Corporate relatedness to shift its revenue structure to be less dependent on advertising revenue and move toward subscriber revenue where a few subsidies everyone else via versioning ldquoprice discriminationrdquo
ChallengesIt has to some degree been successful to introduce this ndash via TonTon TV however the revenue from this segment has yet to be significant
To date there are 16 show packages and over 50 single episodes for viewers to purchase ndash which is limited
Opportunities However more needs or can be done in this new area with the advent of Interactive TV
Media Company
Advertisers Corporations(Customers )
Viewers(Consumers)
Consumer Pay for Product
FREE
CONTENT
Advertiser payFor (Ad space) $$
Source Website1 httpwwwlongtailcomthe_long_tail200809the-three-kindshtml2 Creation of An Integrated Media 2009 Grouphttpwwwmediaprimacommyinvestorcentercp2009NSTPGOpdf3 httpwwwtheedgemalaysiacomin-the-financial-daily164479-media-prima-best-proxy-to-sector-says-oskhtml 4 Media Prima net revenue grows to RM119b 2011 httpwwwbtimescommyCurrent_NewsBTIMESarticles20111118202427Articleindex_html
Related Linked Diversification
Current Media Prima has expanded across media with the idea in the hope of a) Leveraging on its expertise of
Advertisers subsiding viewers model b) Share back-office consolidation which
creates operations efficiencies in operation ie Editorial Talents
c) Cross marketing opportunities across platforms - Where Advertisers could purchase cross buy across platforms
Challenges Market ndash Not readyThe market is not ready for bundled and cross market offering According to Dato Amrin Awaluddin Group Managing Director of Media Prima no doubt there was head roads but more effort needs to be done to integrate the platforms better
Internally ndash Structure is not integrated In terms of unlocking NSTPs value he says it would be done in two phases `First is more short term like consolidating in terms of operations while the second stage will entail selling of products and cross-promoting our content which would be an ongoing revenue- generation exerciselsquo And he quoted Joran a property of Berita Harian (NST) ndash a nationwide fishing event being brought to TV3 as an example
Opportunities - The structure impeded cross platform and working in silo
does not help
- Hence there is a need to further shift paradigms via a structural change to free up resources to focus on content
- The market will not know what they want until we present them with the opportunity benefit
Social Responsibility Analysis
Social Responsibility
Media Primarsquos approach to Social Responsibility is based on the key triple bottom line ndash social environmental and economic It considers the socio-economic impact of its business activities in the aim to create value to its stakeholders via the 4 categories ie community workplace marketplace and environment
Community1EducationFocusing on education to raise awareness of the importance of education and increase the academic standards of underprivileged children and underperforming schools eg PINTAR Programme NST School Sponsorship Programme
2 HumanitarianRaise funds for humanitarian aid and provided updates on the local and world disaster crisis to the public and raised awareness of the funds eg Humanitarian Aid for Gaza Humanitarian Aid for Flood Victims in Pakistan
3 Other community programmesProduced outreach programmes to reflect and highlight local and community issues and to be the eyes and ears of the public and engage in public awareness through its businessesrsquo media resources and platforms in print interactive media and television eg Project Sunshine
Social Responsibility ndash cont
Environment - EfficiencyStrongly committed to being an environmentally friendly Company by using recycled paper especially in its newspapers business efficient usage of electricity in offices water management reducing amount of waste produced throughout its businesses and other environmental initiatives such as lsquosave our beachrsquo project and WWFrsquos Earth Hour
Marketplace ndash Responsible ContentFocusing on product responsibility in providing high quality products and is committed to establishing a horizontal specialisation system based on collaboration with stakeholders The production flow is illustrated in the diagram below
Workplace ndash Right CultureIt aims to create a workplace where its people have the opportunity to be the best they possibly can to have the right culture safe working environment and human capital development with fair processes
Media Prima Acknowledges it various stakeholder via Stakeholders Management
Media Prima is aware of the diversity of its stakeholders and the different goals and demand of its stakeholders
The Company conducts active engagement with its stakeholders to fully understand their needs and increase their trust in the Company through formal and informal mechanisms as follows
It has moved on to 2nd stage of CSR
1st Generation 2nd Generation 3rd Generation
Philanthropic short term risk management
Product Process innovation business and corporate governance model long term sustainability Strategic CSR
3rd Generation Multi- stakeholder standards and partnerships institutional building CR- Oriented advocacy and public policy
Opportunity
What is next for Media Prima to shape the industry
Creating content that generate advertising dollars amp donations of the poor social awareness
By leveraging on its content distribution capabilities
SWOT Analysis
SWOT Analysis ndash Summary
Strengths 1 Strong market share in TV segment2 Malaysiarsquos only integrated media
organization- have vertical and horizontal diversification advantage
3 Established value chains strength which complements the required core competencies
4 Have move across 3 revenue models
Weaknesses1 limited number of stations variety and choice
for consumer2 Despite diversification revenues still mainly
driven by advertisers and TV -gt cross platforms is needed
3 Financial segmentation may hinder potentials of the company
Opportunities 1 Broadband infrastructure ndash via HSBB2 Development of technology ndash creating
medias gadgets that increase digital interaction and content consumption
3 Consumers are willing to pay for content4 Possible deregulation of content ndash leveling
the playing field
Threats 1 2012 forecasting a financial slow down
affecting Ad Ex ndash hence revenue is reduced2 Increase competition New Entrants Pay TV
player amp continual competition from ASTRO3 Changing consumer habits towards media
consumption -gt moving away from traditional media ndash hence have to fight for consumerrsquos attention
Right Technology (Gadget and Infrastructure) at the Right time (deregulation) amp Right consumers (shift in media habits and willingness to pay for content ndash ASTRO as indicator)
Vertical Value Chain advantage to compete in content development
Media Primarsquos Current situation in summary
+VE
-VE Revenue dependent on advertising which is affected correlated to GDP
Resources organization structure holds back effectiveness of organization
Moving forward2012 and beyond
Recommended Destination and future growth of Media Prima
Revenue mainly from advertising
Revenue from advertising
Content SubscriptionBy viewers
Content driven Complementary Services for advertiser (Auxillary Services)
Media Prima
Media Prima
Content Syndicationto competitors
+
How Moving from aggregator to content creator
Content Focus Leveraging on content to Embark on Revenue shifts
Long term sustainable leadership
Restructuring to liberateresources for Content
Sustainable Talent development -
Partnership
Riding the Technology Wave
Short term (2012) Mid Term (by 2013-2015) Long term 2015 beyond
How Moving from aggregator to content creator
Content Focus Leveraging on content to Embark on Revenue shifts
Long term sustainable leadership
Restructuring to liberateresources for Content
Sustainable Talent development -
Partnership
Riding the Technology Wave
Short term (2012) Mid Term (by 2013-2015) Long term 2015 beyond
Creating a Content focus agency All these can be enable via the following means
Demand- The content creation race bull There is a need to free up empower human capital to create more content which are relevant
segmented engaging and entertaining
How does media prima refocus its resources into where it matters Instead of multiple teams doing the same thing ndash there is a challenge to create a lean and efficient organization
Challenges Freeing Resources
Instead of looking at a Media based financial segment reporting structurally force the teams to integrate by changing the dynamics of PampL
Next page
Solution Redefining Business Units Paradigms
Take a step up from producing beyond the current vernacular program to meet shifting consumer needs
Challenges ndash Lifestyle lead Variety
Creating Channel programs which are target segment focus based on lifestyles hellip
Acquisition of content as content regulations will be relaxed
Solution Target Segment focus
Using financial view to free resources for content developmentFinancial segment reporting may create a ldquosilordquo mentality ndash which encourages each head of business to protect their bottom line Hence a less effective in operations
Our recommendation is to expand content creation to cut across and shift paradigms to free up resources and focus on new revenue streams And create new content for different segment
Tele
visi
on N
etw
ork
Radi
o N
etw
ork
Out
door
Med
ia
Prin
t M
edia
Oth
er M
edia
Current Financial Segment Reporting
Tele
visi
on N
etw
ork
Radi
o N
etw
ork
Out
door
Med
ia
Prin
t M
edia
Oth
er M
edia
Production
Content
Subscription
Advertising
Recommended Segment Reporting
Lifestyle Segments
Lifestyle Segments
Lifestyle Segments
Lifestyle Segments
Lifestyle Segments
Lifestyle Segments
By changing the business segment reporting it also affects the company structure
The benefits - Flexibility and empowers knowledge
economy ndash talent content driven
- Builds at strong work culture which may be replicated in the region
- Expansion to embark on talent and content crowd sourcing - open innovation creation
Media Prima can take this opportunity to achieve SPECIALIZATION COORDINATION AND COOPERATION Currently team structure ndash of Integrated Marketing Division is created as a temporary solution hellip to enable integration It will move towards a network model to haste integration fast and response to technology and consumer needs
Subcription
Advertising
Production
TechnologyPartner
Content
How Moving from aggregator to content creator
Content Focus Leveraging on content to Embark on Revenue shifts
Long term sustainable leadership
Restructuring to liberateresources for Content
Sustainable Talent development -
Partnership
Riding the Technology Wave
Short term (2012) Mid Term (by 2013-2015) Long term 2015 beyond
Technology ndash Enable Media Prima to leap into Interactive Content
Interactive Content
UniFi Axiata
Media Prima
Electronics Manufacturer
Demand - A ready market bull There is a latent demand for content-gt consumers are
willing to Pay bull Technology has accustomed consumers to interacting
with contentbull Regulatory push to shift from analogue to digital by
2015
However unlike Media Primarsquos western counterparts ie Time Warner Communication Media Prima does not have the advantages of cable infrastructure
Challenges ndash Limitation
Media Prima could depend on existing suppliers of connectivity and technology- Telecommunications ie AXIATA and - Manufacturing companies ie Samsungto take the leap into interactive content Unifi TM
Solution ndash Smart Partnerships
Maximizing Unrelated Diversification
It is not a Fad but a trend
Smart TV is an inevitable trend says Baeguen Kang vice president of
research and development at South Koreas LG Electronics Co the worlds second-largest seller of TV sets by unit volume As people experienced smartphones and tablet PCs the larger screen on a TV is very attractive for apps and Web content
210 million TV sets sold world-wide had an Internet connection (2010)
21 50It will be the forecast in (2014)
Source Evan Ramstad (January 2011)A ldquoManufacturers Turn to Smart TV After 3-D Disappointsrdquo The Wall Street Journal online httponlinewsjcomarticleSB10001424052748704835504576059783074010902html
As technology develops Current cost is will drop exponentially reflecting the Moorersquos Law
Hence lowering the cost of access for interactive content
Example of Smart TV
Smart Hub It is a front facing interface just like a main menu
when consumers turn on their TV There are few utilities that consumers can choose to be entertained
Video ndash consumers can choose from array of video collections that required to be paid
Apps ndash an internet-enabled applications like You Tube Facebook Twitter Skype and others
Internet browsing ndash just like PC internet browsing
Music photo and TV watching
Smart ConnectivityWIFI enabled that allows consumers to connect to all mobile devices like smart phone tablet PC notebook and camera with Samsung Wireless Router called 1 foot This connectivity is being called ldquoAllSharerdquo by Samsung
httpotbresearchcomau200509report-1-industry-forum
MEDIA PRIMA IS CURRENTLY HERE
This will ultimately lead Media Prima to reduce it dependence on advertising revenue
Others ndash Utilising the SMART TV technology and Apps to create any existing Media Prima businesses
NEW Revenue Streams for Media Prima
To take advantage of SMART TV and collaborate with SMART TV manufacturers Media Prima can look into following utilities
Collaborate with manufacturers to allow consumers to browse and pay for Media Prima video collections
Selling local music for Malaysia market
Collaborate with local or international content developers to create Malaysia specific contents for paid subscription or free for common content to attract new consumers
How
Content Focus Leveraging on content to Embark on Revenue shifts
Long term sustainable leadership
Restructuring to liberateresources for Content
Sustainable Talent development -
Partnership
Riding the Technology Wave
Short term (2012) Mid Term (by 2013-2015) Long term 2015 beyond
Building Talents in the long run
Education Building on its strategic CSR ndash Media Prima could champion the
development of the content industry by partnering with local universities in the areas of technology media and communication
Crowd Sourcing To haste up the strategic CSR it too could embark on crowd
sourcing for content ndash via scripts and interactive content In which Media Prima could support a great idea and develop the ideas for monetization
This is a synergistic and natural development from the networks structure (open innovation)
Summary ndash Media Prima
Develop Talent Pool
Ensure Vibrant Content Industry
Technologycreates ubiquitous
Low Access Cost
To spur the industry forward
Strong talent develops Content development
demand for access
Strong content industry drives demand for Talent drives demand for content
Our recommendations are aligned to help spur the industry forwardhellip
Restructuring to liberateresources for Content
Sustainable Talent development -
Partnership
Riding the Technology Wave ndash Via Smart
Partnerships
References
References
1 Anon ldquoMedia Prima Berhad implements Accenture integrated broadcast systemrdquo Accenture Press Release httpnewsroomaccenturecomarticle_displaycfmarticle_id=5005 viewed 3 November 2011
2 Anon ldquoNew exciting and vibrant offerings from MPB television networks in 2010rdquo Media Prima Press Release httpwwwmediaprimacommypressreleasepressreleaseaspxid=150 viewed 3 November 2011
3 Anderson J ldquoResource-based competitiveness managerial implications of the resource-based viewrdquo Strategic Direction Vol26 No5 2010 pp1-2
4 Arman Arshad (2006) Size matters Retrieved December 2 2011 from asiaviewsorg httpwwwasiaviewsorgindexphpoption=com_contentampview=articleampid=2171headlinealias2171ampcatid=1headlinesampItemid=2
5 Asia Times (2007 November 29) Malaysian media giant grasps for Internet Retrieved November 3 2011 from httpwwwatimescomatimesSoutheast_AsiaIK29Ae02html
6 Barney JB amp Hesterly WS (2008) Strategic Management and Competitive Advantage The Five Forces Model of Environmental Threats pp39Prentice Hall
7 BBC (2011) BBC News product launches on connected TV Retrieved from bbccoukpressofficepressreleasesstories201106_june17newsshtml
8 Boston Consulting Group (2011) Lean Advantage in Media Boston Consulting Group
9 Boston Consulting Group (2011) Running Forward Walking Backward Boston Consulting Group
10 Business Times (2011) Media Prima net revenue grows to RM119b Kuala Lumpur New Straits Times
11 Business Times (2011) Media Prima on track to achie1048665ing 2011 target Retrieved from www1btimescomm1048668Current_NewsBTIMESarticlespimeArticle
References (1)
12 Business Times (2011) Media Prima Puncak Semangat in early talks Retrieved from httpwwwbtimescommyarticlespimmaArticle
13 Carl W Stern George Stalk Carl W Stern George Stalk Stern CW amp Stalk G (2011) Perspectives of Strategy from the Boston Consulting Group Retrieved December 3 2011 from Value Based Managementnet httpwwwvaluebasedmanagementnetmethods_bcgmatrixhtml
14 ecmlibra (2011) Adex momentum to taper off in 2012 ecmlibra
15 Gershon R A amp Ratnadeep S V (2004) Viacom Inc A Case Study in Transnational Media Management Journal of Media Business Studies 1 (1) 47-69
16 Grant RM ldquoThe resource-based theory of competitive advantage implications for strategy formulationrdquo California Management Review Vol 3 2011 httpwwwskynetie~karenArticlesGrant1_NBpdf viewed 15 November 2011
17 GreyReview (2011) TonTon Streaming Over 11 Million Video Hours A Month now with 16 millions registered users Retrieved from httpwwwgreyreviewcom20110731tonton-serving-over-1-1-million-video-hours-a-month-now-with-1-6-registered-users
18 Heavy Reading (2011) Telecom in TV Land A Roadmap to New Digital Media Ecosystem Retrieved from wwwheavyreadingcomdetailsaspsku_id=1773ampskuitem_itemid=1030
19 Hegedus N (2010) The Great Scare EBR 3 10-17
20 JohnsonGScholesK amp Whittington (2008) Exploring Corporate Strategy Competitive Forces ndash the Five Forces Framework pp 59-64 Prentice Hall
21 kinetic (2011) Moving World Asia Hong Kong
References (2)
22 Knowledgefaber (2009) Telcos Avatar - As Media Companies 20 Retrieved from httpknowledgefabercomindexphpoption=com_contentampview=articleampid=40telecom-and-media-convergenceampcatid=10telecomampItemid=42
23 Knowledgefaber (2011) Telcos Avatar - As Media Companies 20 Retrieved from httpknowledgefabercomindexphpoption=com_contentampview=articleampid=40
24 Malik O (2011) GIGAOM Retrieved from httpgigaomcom20110223old-media-is-being-unbundled-just-like-telecom-was
25 Maxis with TM Astro with TIME Best Strategy to IPTV Market Retrieved December 1 2011 httpbizthestarcommynewsstoryaspfile=201111business7704581ampsec=business
26 Media Prima (2010) Annual Report Media Prima Berhad27 Media Prima Berhad (2011) 11 Nov 2011 - New Exciting amp Vibrant Offerings From MPB Television Retrieved from
wwwmediaprimacommypressreleasepressreleaseaspxid=15028 Media Prima (2010) Sustainability Report Media Prima Berhad29 OSK (2011) Media Prima OSK30 Pocket-Lint (2011) Samsung Smart TV hits 2 million mark Retrieved from
httpwwwpocket-lintcomnews40593samsung-smart-tv-2-million31 PricewaterhouseCoopers (2011) Achieving corporate financial PwC32 PricewaterhouseCoopers (2007) Financial Reporting Standards (FRS) in Malaysia PricewaterhouseCoopers33 SKMM (MCMC) (2009) Advertising Development in Malaysia SKMM34 SKMM (MCMC) (2011) Content Development SKMM35 Techpinions (2011) Interactive TV Trends - How the TV experience is changing - Part II Retrieved from
httptechpinionscominteractive-tv-trends-E28093-how-the-tv-experience-is-changing-part-ii4066
References (3)
36 The Edge (2011) Media Prima best proxy to sector Retrieved from wwwtheedgemalaysiacom37 The Edge Malaysia (2011 September 26) Education the mother of all reforms Retrieved October 30 2011 from
httpwwwtheedgemalaysiacomin-the-financial-daily193478-education-the-mother-of-all-reformshtml38 The Star Online (2011) Main players in the competitive TV sector Retrieved from bizthestarcommynewsstoryasp
file=20111126business997401739 The Star Online (2011) Maxis ready to move up value Retrieved from
bizthestarcommynewsstoryaspfile=201111business7704581ampse40 The Star Online (2011) New players enter the TV Retrieved from
bizthestarcommynewsstoryaspfile=20111126business997300841 The Star Newspaper (December 1 2011) Capital TV to make its debut today42 The Star Online (January 1 2011) Maxis ready to move up value chain Retrieved December 3 2011
httpbizthestarcommynewsstoryaspfile=201111business7704581ampsec=business43 The Star Online (2011 April 21) Media Prima to invest more on local content Retrieved October 30 2011 from C
Usersa34ffzzDesktopMedia PrimaUsed articlesMedia Prima to invest more in local contentmht44 Time Warners (2010) Annual Report Time Warners45 WHAT HI FI (2011) Samsung aims for 50m TV sales worldwide in 2012 set to announce launch date for Google TV
product Retrieved from httpwwwwhathificomnewssamsung-aims-for-50m-tv-sales-worldwide-in-2012-set-to-announce-launch-date-for-google-tv-produ
46 Woroch G A (1996) Turning the Cables Elsevier47 Zanuddin H (2007) Political influence in Malaysia and Thailand media sector Jati Vol12
- MEdiA PRIMA
- Agenda
- Company Profile
- Media Primarsquos Commitment amp Direction moving forward
- Media Industry Business Model ndash Content Driven
- Our Tasks ndash How
- PEST Analysis
- Politics Legal Issues amp Impact
- Economic Issues and Impact
- Social Issues and Impact
- Social Issues and Impact
- Technology Issues and Impact
- In short
- Porterrsquos 5 Forces Analysis
- Porterrsquos Five Forces ndash Competitive Analysis
- Financials
- Media Prima Financial Highlights
- However in further analysis
- Value Chain Analysis
- Resource Based View
- In the context of the Content industry value chain Mapped again
- Appraising capabilities which drives profitability
- Mapping Media Prima revenue streams against the Diversification
- Slide 25
- Related Constrained Diversification
- Related Constrained Diversification (2)
- Slide 28
- Related Linked Diversification
- Slide 30
- Social Responsibility Analysis
- Social Responsibility
- Social Responsibility ndash cont
- Media Prima Acknowledges it various stakeholder via Stakeholder
- It has moved on to 2nd stage of CSR
- SWOT Analysis
- SWOT Analysis ndash Summary
- Media Primarsquos Current situation in summary
- Moving forward 2012 and beyond
- Recommended Destination and future growth of Media Prima
- How Moving from aggregator to content creator
- How Moving from aggregator to content creator (2)
- Creating a Content focus agency All these can be enable via
- Using financial view to free resources for content development
- By changing the business segment reporting it also affects the
- How Moving from aggregator to content creator (3)
- Technology ndash Enable Media Prima to leap into Interactive Conten
- It is not a Fad but a trend
- Slide 50
- Example of Smart TV
- This will ultimately lead Media Prima to reduce it dependence o
- NEW Revenue Streams for Media Prima
- How
- Building Talents in the long run
- Summary ndash Media Prima
- References
- References
- References (1)
- References (2)
- References (3)
-
CurrentPrimeworks Studios Sdn Bhd (owned by Media Prima) is Malaysias biggest production company producing TV content since 1984 and feature films since 1994 generating over 5000 hours of TV content and 10 movies annually
Related Constrained Diversification
ChallengesBut the reality is that it is not able to compete with the myriad of channels of its competitors which are dependent on overseas content
Opportunities However more needs to be doneas channels become more segmented-Procuring more content to compete on quantity - or it could change the content game and move into interactive content
Source Creation of An Integrated Media Group 2009 httpwwwmediaprimacommy
TV Newspaper
Radio
Outdoor
New Medi
a
4 3 3
1 2
gt150
17
2 1
gt14
3
22
22
YTL Comms
ABN 100
Ove
rvie
w o
f com
petit
ors
thei
r bus
ines
s po
rtfol
ios
Related Constrained Diversification
Media Company
Advertisers Corporations(Customers )
Viewers(Consumers)
Consumer Pay for Product
CONTENT
Advertiser payFor (Ad space) $$
1 httpwwwlongtailcomthe_long_tail200809the-three-kindshtml
$
Opportunities The potential here is also for Media Prima to drive content syndication ndash providing content to other media stations abroad
Media Prima is currently doing by syndicating content to ASTRO and Unifi
Competitors
Media Company
Viewers(Consumers)
CONTENT PRO
1 httpwwwlongtailcomthe_long_tail200809the-three-kindshtml
$
C
C
C FREE CONTENT FREE CONTENT
FREE CONTENT
Both operation and Corporate Relatedness
CurrentMedia Primarsquos intention to leverage on both its operations and Corporate relatedness to shift its revenue structure to be less dependent on advertising revenue and move toward subscriber revenue where a few subsidies everyone else via versioning ldquoprice discriminationrdquo
ChallengesIt has to some degree been successful to introduce this ndash via TonTon TV however the revenue from this segment has yet to be significant
To date there are 16 show packages and over 50 single episodes for viewers to purchase ndash which is limited
Opportunities However more needs or can be done in this new area with the advent of Interactive TV
Media Company
Advertisers Corporations(Customers )
Viewers(Consumers)
Consumer Pay for Product
FREE
CONTENT
Advertiser payFor (Ad space) $$
Source Website1 httpwwwlongtailcomthe_long_tail200809the-three-kindshtml2 Creation of An Integrated Media 2009 Grouphttpwwwmediaprimacommyinvestorcentercp2009NSTPGOpdf3 httpwwwtheedgemalaysiacomin-the-financial-daily164479-media-prima-best-proxy-to-sector-says-oskhtml 4 Media Prima net revenue grows to RM119b 2011 httpwwwbtimescommyCurrent_NewsBTIMESarticles20111118202427Articleindex_html
Related Linked Diversification
Current Media Prima has expanded across media with the idea in the hope of a) Leveraging on its expertise of
Advertisers subsiding viewers model b) Share back-office consolidation which
creates operations efficiencies in operation ie Editorial Talents
c) Cross marketing opportunities across platforms - Where Advertisers could purchase cross buy across platforms
Challenges Market ndash Not readyThe market is not ready for bundled and cross market offering According to Dato Amrin Awaluddin Group Managing Director of Media Prima no doubt there was head roads but more effort needs to be done to integrate the platforms better
Internally ndash Structure is not integrated In terms of unlocking NSTPs value he says it would be done in two phases `First is more short term like consolidating in terms of operations while the second stage will entail selling of products and cross-promoting our content which would be an ongoing revenue- generation exerciselsquo And he quoted Joran a property of Berita Harian (NST) ndash a nationwide fishing event being brought to TV3 as an example
Opportunities - The structure impeded cross platform and working in silo
does not help
- Hence there is a need to further shift paradigms via a structural change to free up resources to focus on content
- The market will not know what they want until we present them with the opportunity benefit
Social Responsibility Analysis
Social Responsibility
Media Primarsquos approach to Social Responsibility is based on the key triple bottom line ndash social environmental and economic It considers the socio-economic impact of its business activities in the aim to create value to its stakeholders via the 4 categories ie community workplace marketplace and environment
Community1EducationFocusing on education to raise awareness of the importance of education and increase the academic standards of underprivileged children and underperforming schools eg PINTAR Programme NST School Sponsorship Programme
2 HumanitarianRaise funds for humanitarian aid and provided updates on the local and world disaster crisis to the public and raised awareness of the funds eg Humanitarian Aid for Gaza Humanitarian Aid for Flood Victims in Pakistan
3 Other community programmesProduced outreach programmes to reflect and highlight local and community issues and to be the eyes and ears of the public and engage in public awareness through its businessesrsquo media resources and platforms in print interactive media and television eg Project Sunshine
Social Responsibility ndash cont
Environment - EfficiencyStrongly committed to being an environmentally friendly Company by using recycled paper especially in its newspapers business efficient usage of electricity in offices water management reducing amount of waste produced throughout its businesses and other environmental initiatives such as lsquosave our beachrsquo project and WWFrsquos Earth Hour
Marketplace ndash Responsible ContentFocusing on product responsibility in providing high quality products and is committed to establishing a horizontal specialisation system based on collaboration with stakeholders The production flow is illustrated in the diagram below
Workplace ndash Right CultureIt aims to create a workplace where its people have the opportunity to be the best they possibly can to have the right culture safe working environment and human capital development with fair processes
Media Prima Acknowledges it various stakeholder via Stakeholders Management
Media Prima is aware of the diversity of its stakeholders and the different goals and demand of its stakeholders
The Company conducts active engagement with its stakeholders to fully understand their needs and increase their trust in the Company through formal and informal mechanisms as follows
It has moved on to 2nd stage of CSR
1st Generation 2nd Generation 3rd Generation
Philanthropic short term risk management
Product Process innovation business and corporate governance model long term sustainability Strategic CSR
3rd Generation Multi- stakeholder standards and partnerships institutional building CR- Oriented advocacy and public policy
Opportunity
What is next for Media Prima to shape the industry
Creating content that generate advertising dollars amp donations of the poor social awareness
By leveraging on its content distribution capabilities
SWOT Analysis
SWOT Analysis ndash Summary
Strengths 1 Strong market share in TV segment2 Malaysiarsquos only integrated media
organization- have vertical and horizontal diversification advantage
3 Established value chains strength which complements the required core competencies
4 Have move across 3 revenue models
Weaknesses1 limited number of stations variety and choice
for consumer2 Despite diversification revenues still mainly
driven by advertisers and TV -gt cross platforms is needed
3 Financial segmentation may hinder potentials of the company
Opportunities 1 Broadband infrastructure ndash via HSBB2 Development of technology ndash creating
medias gadgets that increase digital interaction and content consumption
3 Consumers are willing to pay for content4 Possible deregulation of content ndash leveling
the playing field
Threats 1 2012 forecasting a financial slow down
affecting Ad Ex ndash hence revenue is reduced2 Increase competition New Entrants Pay TV
player amp continual competition from ASTRO3 Changing consumer habits towards media
consumption -gt moving away from traditional media ndash hence have to fight for consumerrsquos attention
Right Technology (Gadget and Infrastructure) at the Right time (deregulation) amp Right consumers (shift in media habits and willingness to pay for content ndash ASTRO as indicator)
Vertical Value Chain advantage to compete in content development
Media Primarsquos Current situation in summary
+VE
-VE Revenue dependent on advertising which is affected correlated to GDP
Resources organization structure holds back effectiveness of organization
Moving forward2012 and beyond
Recommended Destination and future growth of Media Prima
Revenue mainly from advertising
Revenue from advertising
Content SubscriptionBy viewers
Content driven Complementary Services for advertiser (Auxillary Services)
Media Prima
Media Prima
Content Syndicationto competitors
+
How Moving from aggregator to content creator
Content Focus Leveraging on content to Embark on Revenue shifts
Long term sustainable leadership
Restructuring to liberateresources for Content
Sustainable Talent development -
Partnership
Riding the Technology Wave
Short term (2012) Mid Term (by 2013-2015) Long term 2015 beyond
How Moving from aggregator to content creator
Content Focus Leveraging on content to Embark on Revenue shifts
Long term sustainable leadership
Restructuring to liberateresources for Content
Sustainable Talent development -
Partnership
Riding the Technology Wave
Short term (2012) Mid Term (by 2013-2015) Long term 2015 beyond
Creating a Content focus agency All these can be enable via the following means
Demand- The content creation race bull There is a need to free up empower human capital to create more content which are relevant
segmented engaging and entertaining
How does media prima refocus its resources into where it matters Instead of multiple teams doing the same thing ndash there is a challenge to create a lean and efficient organization
Challenges Freeing Resources
Instead of looking at a Media based financial segment reporting structurally force the teams to integrate by changing the dynamics of PampL
Next page
Solution Redefining Business Units Paradigms
Take a step up from producing beyond the current vernacular program to meet shifting consumer needs
Challenges ndash Lifestyle lead Variety
Creating Channel programs which are target segment focus based on lifestyles hellip
Acquisition of content as content regulations will be relaxed
Solution Target Segment focus
Using financial view to free resources for content developmentFinancial segment reporting may create a ldquosilordquo mentality ndash which encourages each head of business to protect their bottom line Hence a less effective in operations
Our recommendation is to expand content creation to cut across and shift paradigms to free up resources and focus on new revenue streams And create new content for different segment
Tele
visi
on N
etw
ork
Radi
o N
etw
ork
Out
door
Med
ia
Prin
t M
edia
Oth
er M
edia
Current Financial Segment Reporting
Tele
visi
on N
etw
ork
Radi
o N
etw
ork
Out
door
Med
ia
Prin
t M
edia
Oth
er M
edia
Production
Content
Subscription
Advertising
Recommended Segment Reporting
Lifestyle Segments
Lifestyle Segments
Lifestyle Segments
Lifestyle Segments
Lifestyle Segments
Lifestyle Segments
By changing the business segment reporting it also affects the company structure
The benefits - Flexibility and empowers knowledge
economy ndash talent content driven
- Builds at strong work culture which may be replicated in the region
- Expansion to embark on talent and content crowd sourcing - open innovation creation
Media Prima can take this opportunity to achieve SPECIALIZATION COORDINATION AND COOPERATION Currently team structure ndash of Integrated Marketing Division is created as a temporary solution hellip to enable integration It will move towards a network model to haste integration fast and response to technology and consumer needs
Subcription
Advertising
Production
TechnologyPartner
Content
How Moving from aggregator to content creator
Content Focus Leveraging on content to Embark on Revenue shifts
Long term sustainable leadership
Restructuring to liberateresources for Content
Sustainable Talent development -
Partnership
Riding the Technology Wave
Short term (2012) Mid Term (by 2013-2015) Long term 2015 beyond
Technology ndash Enable Media Prima to leap into Interactive Content
Interactive Content
UniFi Axiata
Media Prima
Electronics Manufacturer
Demand - A ready market bull There is a latent demand for content-gt consumers are
willing to Pay bull Technology has accustomed consumers to interacting
with contentbull Regulatory push to shift from analogue to digital by
2015
However unlike Media Primarsquos western counterparts ie Time Warner Communication Media Prima does not have the advantages of cable infrastructure
Challenges ndash Limitation
Media Prima could depend on existing suppliers of connectivity and technology- Telecommunications ie AXIATA and - Manufacturing companies ie Samsungto take the leap into interactive content Unifi TM
Solution ndash Smart Partnerships
Maximizing Unrelated Diversification
It is not a Fad but a trend
Smart TV is an inevitable trend says Baeguen Kang vice president of
research and development at South Koreas LG Electronics Co the worlds second-largest seller of TV sets by unit volume As people experienced smartphones and tablet PCs the larger screen on a TV is very attractive for apps and Web content
210 million TV sets sold world-wide had an Internet connection (2010)
21 50It will be the forecast in (2014)
Source Evan Ramstad (January 2011)A ldquoManufacturers Turn to Smart TV After 3-D Disappointsrdquo The Wall Street Journal online httponlinewsjcomarticleSB10001424052748704835504576059783074010902html
As technology develops Current cost is will drop exponentially reflecting the Moorersquos Law
Hence lowering the cost of access for interactive content
Example of Smart TV
Smart Hub It is a front facing interface just like a main menu
when consumers turn on their TV There are few utilities that consumers can choose to be entertained
Video ndash consumers can choose from array of video collections that required to be paid
Apps ndash an internet-enabled applications like You Tube Facebook Twitter Skype and others
Internet browsing ndash just like PC internet browsing
Music photo and TV watching
Smart ConnectivityWIFI enabled that allows consumers to connect to all mobile devices like smart phone tablet PC notebook and camera with Samsung Wireless Router called 1 foot This connectivity is being called ldquoAllSharerdquo by Samsung
httpotbresearchcomau200509report-1-industry-forum
MEDIA PRIMA IS CURRENTLY HERE
This will ultimately lead Media Prima to reduce it dependence on advertising revenue
Others ndash Utilising the SMART TV technology and Apps to create any existing Media Prima businesses
NEW Revenue Streams for Media Prima
To take advantage of SMART TV and collaborate with SMART TV manufacturers Media Prima can look into following utilities
Collaborate with manufacturers to allow consumers to browse and pay for Media Prima video collections
Selling local music for Malaysia market
Collaborate with local or international content developers to create Malaysia specific contents for paid subscription or free for common content to attract new consumers
How
Content Focus Leveraging on content to Embark on Revenue shifts
Long term sustainable leadership
Restructuring to liberateresources for Content
Sustainable Talent development -
Partnership
Riding the Technology Wave
Short term (2012) Mid Term (by 2013-2015) Long term 2015 beyond
Building Talents in the long run
Education Building on its strategic CSR ndash Media Prima could champion the
development of the content industry by partnering with local universities in the areas of technology media and communication
Crowd Sourcing To haste up the strategic CSR it too could embark on crowd
sourcing for content ndash via scripts and interactive content In which Media Prima could support a great idea and develop the ideas for monetization
This is a synergistic and natural development from the networks structure (open innovation)
Summary ndash Media Prima
Develop Talent Pool
Ensure Vibrant Content Industry
Technologycreates ubiquitous
Low Access Cost
To spur the industry forward
Strong talent develops Content development
demand for access
Strong content industry drives demand for Talent drives demand for content
Our recommendations are aligned to help spur the industry forwardhellip
Restructuring to liberateresources for Content
Sustainable Talent development -
Partnership
Riding the Technology Wave ndash Via Smart
Partnerships
References
References
1 Anon ldquoMedia Prima Berhad implements Accenture integrated broadcast systemrdquo Accenture Press Release httpnewsroomaccenturecomarticle_displaycfmarticle_id=5005 viewed 3 November 2011
2 Anon ldquoNew exciting and vibrant offerings from MPB television networks in 2010rdquo Media Prima Press Release httpwwwmediaprimacommypressreleasepressreleaseaspxid=150 viewed 3 November 2011
3 Anderson J ldquoResource-based competitiveness managerial implications of the resource-based viewrdquo Strategic Direction Vol26 No5 2010 pp1-2
4 Arman Arshad (2006) Size matters Retrieved December 2 2011 from asiaviewsorg httpwwwasiaviewsorgindexphpoption=com_contentampview=articleampid=2171headlinealias2171ampcatid=1headlinesampItemid=2
5 Asia Times (2007 November 29) Malaysian media giant grasps for Internet Retrieved November 3 2011 from httpwwwatimescomatimesSoutheast_AsiaIK29Ae02html
6 Barney JB amp Hesterly WS (2008) Strategic Management and Competitive Advantage The Five Forces Model of Environmental Threats pp39Prentice Hall
7 BBC (2011) BBC News product launches on connected TV Retrieved from bbccoukpressofficepressreleasesstories201106_june17newsshtml
8 Boston Consulting Group (2011) Lean Advantage in Media Boston Consulting Group
9 Boston Consulting Group (2011) Running Forward Walking Backward Boston Consulting Group
10 Business Times (2011) Media Prima net revenue grows to RM119b Kuala Lumpur New Straits Times
11 Business Times (2011) Media Prima on track to achie1048665ing 2011 target Retrieved from www1btimescomm1048668Current_NewsBTIMESarticlespimeArticle
References (1)
12 Business Times (2011) Media Prima Puncak Semangat in early talks Retrieved from httpwwwbtimescommyarticlespimmaArticle
13 Carl W Stern George Stalk Carl W Stern George Stalk Stern CW amp Stalk G (2011) Perspectives of Strategy from the Boston Consulting Group Retrieved December 3 2011 from Value Based Managementnet httpwwwvaluebasedmanagementnetmethods_bcgmatrixhtml
14 ecmlibra (2011) Adex momentum to taper off in 2012 ecmlibra
15 Gershon R A amp Ratnadeep S V (2004) Viacom Inc A Case Study in Transnational Media Management Journal of Media Business Studies 1 (1) 47-69
16 Grant RM ldquoThe resource-based theory of competitive advantage implications for strategy formulationrdquo California Management Review Vol 3 2011 httpwwwskynetie~karenArticlesGrant1_NBpdf viewed 15 November 2011
17 GreyReview (2011) TonTon Streaming Over 11 Million Video Hours A Month now with 16 millions registered users Retrieved from httpwwwgreyreviewcom20110731tonton-serving-over-1-1-million-video-hours-a-month-now-with-1-6-registered-users
18 Heavy Reading (2011) Telecom in TV Land A Roadmap to New Digital Media Ecosystem Retrieved from wwwheavyreadingcomdetailsaspsku_id=1773ampskuitem_itemid=1030
19 Hegedus N (2010) The Great Scare EBR 3 10-17
20 JohnsonGScholesK amp Whittington (2008) Exploring Corporate Strategy Competitive Forces ndash the Five Forces Framework pp 59-64 Prentice Hall
21 kinetic (2011) Moving World Asia Hong Kong
References (2)
22 Knowledgefaber (2009) Telcos Avatar - As Media Companies 20 Retrieved from httpknowledgefabercomindexphpoption=com_contentampview=articleampid=40telecom-and-media-convergenceampcatid=10telecomampItemid=42
23 Knowledgefaber (2011) Telcos Avatar - As Media Companies 20 Retrieved from httpknowledgefabercomindexphpoption=com_contentampview=articleampid=40
24 Malik O (2011) GIGAOM Retrieved from httpgigaomcom20110223old-media-is-being-unbundled-just-like-telecom-was
25 Maxis with TM Astro with TIME Best Strategy to IPTV Market Retrieved December 1 2011 httpbizthestarcommynewsstoryaspfile=201111business7704581ampsec=business
26 Media Prima (2010) Annual Report Media Prima Berhad27 Media Prima Berhad (2011) 11 Nov 2011 - New Exciting amp Vibrant Offerings From MPB Television Retrieved from
wwwmediaprimacommypressreleasepressreleaseaspxid=15028 Media Prima (2010) Sustainability Report Media Prima Berhad29 OSK (2011) Media Prima OSK30 Pocket-Lint (2011) Samsung Smart TV hits 2 million mark Retrieved from
httpwwwpocket-lintcomnews40593samsung-smart-tv-2-million31 PricewaterhouseCoopers (2011) Achieving corporate financial PwC32 PricewaterhouseCoopers (2007) Financial Reporting Standards (FRS) in Malaysia PricewaterhouseCoopers33 SKMM (MCMC) (2009) Advertising Development in Malaysia SKMM34 SKMM (MCMC) (2011) Content Development SKMM35 Techpinions (2011) Interactive TV Trends - How the TV experience is changing - Part II Retrieved from
httptechpinionscominteractive-tv-trends-E28093-how-the-tv-experience-is-changing-part-ii4066
References (3)
36 The Edge (2011) Media Prima best proxy to sector Retrieved from wwwtheedgemalaysiacom37 The Edge Malaysia (2011 September 26) Education the mother of all reforms Retrieved October 30 2011 from
httpwwwtheedgemalaysiacomin-the-financial-daily193478-education-the-mother-of-all-reformshtml38 The Star Online (2011) Main players in the competitive TV sector Retrieved from bizthestarcommynewsstoryasp
file=20111126business997401739 The Star Online (2011) Maxis ready to move up value Retrieved from
bizthestarcommynewsstoryaspfile=201111business7704581ampse40 The Star Online (2011) New players enter the TV Retrieved from
bizthestarcommynewsstoryaspfile=20111126business997300841 The Star Newspaper (December 1 2011) Capital TV to make its debut today42 The Star Online (January 1 2011) Maxis ready to move up value chain Retrieved December 3 2011
httpbizthestarcommynewsstoryaspfile=201111business7704581ampsec=business43 The Star Online (2011 April 21) Media Prima to invest more on local content Retrieved October 30 2011 from C
Usersa34ffzzDesktopMedia PrimaUsed articlesMedia Prima to invest more in local contentmht44 Time Warners (2010) Annual Report Time Warners45 WHAT HI FI (2011) Samsung aims for 50m TV sales worldwide in 2012 set to announce launch date for Google TV
product Retrieved from httpwwwwhathificomnewssamsung-aims-for-50m-tv-sales-worldwide-in-2012-set-to-announce-launch-date-for-google-tv-produ
46 Woroch G A (1996) Turning the Cables Elsevier47 Zanuddin H (2007) Political influence in Malaysia and Thailand media sector Jati Vol12
- MEdiA PRIMA
- Agenda
- Company Profile
- Media Primarsquos Commitment amp Direction moving forward
- Media Industry Business Model ndash Content Driven
- Our Tasks ndash How
- PEST Analysis
- Politics Legal Issues amp Impact
- Economic Issues and Impact
- Social Issues and Impact
- Social Issues and Impact
- Technology Issues and Impact
- In short
- Porterrsquos 5 Forces Analysis
- Porterrsquos Five Forces ndash Competitive Analysis
- Financials
- Media Prima Financial Highlights
- However in further analysis
- Value Chain Analysis
- Resource Based View
- In the context of the Content industry value chain Mapped again
- Appraising capabilities which drives profitability
- Mapping Media Prima revenue streams against the Diversification
- Slide 25
- Related Constrained Diversification
- Related Constrained Diversification (2)
- Slide 28
- Related Linked Diversification
- Slide 30
- Social Responsibility Analysis
- Social Responsibility
- Social Responsibility ndash cont
- Media Prima Acknowledges it various stakeholder via Stakeholder
- It has moved on to 2nd stage of CSR
- SWOT Analysis
- SWOT Analysis ndash Summary
- Media Primarsquos Current situation in summary
- Moving forward 2012 and beyond
- Recommended Destination and future growth of Media Prima
- How Moving from aggregator to content creator
- How Moving from aggregator to content creator (2)
- Creating a Content focus agency All these can be enable via
- Using financial view to free resources for content development
- By changing the business segment reporting it also affects the
- How Moving from aggregator to content creator (3)
- Technology ndash Enable Media Prima to leap into Interactive Conten
- It is not a Fad but a trend
- Slide 50
- Example of Smart TV
- This will ultimately lead Media Prima to reduce it dependence o
- NEW Revenue Streams for Media Prima
- How
- Building Talents in the long run
- Summary ndash Media Prima
- References
- References
- References (1)
- References (2)
- References (3)
-
Related Constrained Diversification
Media Company
Advertisers Corporations(Customers )
Viewers(Consumers)
Consumer Pay for Product
CONTENT
Advertiser payFor (Ad space) $$
1 httpwwwlongtailcomthe_long_tail200809the-three-kindshtml
$
Opportunities The potential here is also for Media Prima to drive content syndication ndash providing content to other media stations abroad
Media Prima is currently doing by syndicating content to ASTRO and Unifi
Competitors
Media Company
Viewers(Consumers)
CONTENT PRO
1 httpwwwlongtailcomthe_long_tail200809the-three-kindshtml
$
C
C
C FREE CONTENT FREE CONTENT
FREE CONTENT
Both operation and Corporate Relatedness
CurrentMedia Primarsquos intention to leverage on both its operations and Corporate relatedness to shift its revenue structure to be less dependent on advertising revenue and move toward subscriber revenue where a few subsidies everyone else via versioning ldquoprice discriminationrdquo
ChallengesIt has to some degree been successful to introduce this ndash via TonTon TV however the revenue from this segment has yet to be significant
To date there are 16 show packages and over 50 single episodes for viewers to purchase ndash which is limited
Opportunities However more needs or can be done in this new area with the advent of Interactive TV
Media Company
Advertisers Corporations(Customers )
Viewers(Consumers)
Consumer Pay for Product
FREE
CONTENT
Advertiser payFor (Ad space) $$
Source Website1 httpwwwlongtailcomthe_long_tail200809the-three-kindshtml2 Creation of An Integrated Media 2009 Grouphttpwwwmediaprimacommyinvestorcentercp2009NSTPGOpdf3 httpwwwtheedgemalaysiacomin-the-financial-daily164479-media-prima-best-proxy-to-sector-says-oskhtml 4 Media Prima net revenue grows to RM119b 2011 httpwwwbtimescommyCurrent_NewsBTIMESarticles20111118202427Articleindex_html
Related Linked Diversification
Current Media Prima has expanded across media with the idea in the hope of a) Leveraging on its expertise of
Advertisers subsiding viewers model b) Share back-office consolidation which
creates operations efficiencies in operation ie Editorial Talents
c) Cross marketing opportunities across platforms - Where Advertisers could purchase cross buy across platforms
Challenges Market ndash Not readyThe market is not ready for bundled and cross market offering According to Dato Amrin Awaluddin Group Managing Director of Media Prima no doubt there was head roads but more effort needs to be done to integrate the platforms better
Internally ndash Structure is not integrated In terms of unlocking NSTPs value he says it would be done in two phases `First is more short term like consolidating in terms of operations while the second stage will entail selling of products and cross-promoting our content which would be an ongoing revenue- generation exerciselsquo And he quoted Joran a property of Berita Harian (NST) ndash a nationwide fishing event being brought to TV3 as an example
Opportunities - The structure impeded cross platform and working in silo
does not help
- Hence there is a need to further shift paradigms via a structural change to free up resources to focus on content
- The market will not know what they want until we present them with the opportunity benefit
Social Responsibility Analysis
Social Responsibility
Media Primarsquos approach to Social Responsibility is based on the key triple bottom line ndash social environmental and economic It considers the socio-economic impact of its business activities in the aim to create value to its stakeholders via the 4 categories ie community workplace marketplace and environment
Community1EducationFocusing on education to raise awareness of the importance of education and increase the academic standards of underprivileged children and underperforming schools eg PINTAR Programme NST School Sponsorship Programme
2 HumanitarianRaise funds for humanitarian aid and provided updates on the local and world disaster crisis to the public and raised awareness of the funds eg Humanitarian Aid for Gaza Humanitarian Aid for Flood Victims in Pakistan
3 Other community programmesProduced outreach programmes to reflect and highlight local and community issues and to be the eyes and ears of the public and engage in public awareness through its businessesrsquo media resources and platforms in print interactive media and television eg Project Sunshine
Social Responsibility ndash cont
Environment - EfficiencyStrongly committed to being an environmentally friendly Company by using recycled paper especially in its newspapers business efficient usage of electricity in offices water management reducing amount of waste produced throughout its businesses and other environmental initiatives such as lsquosave our beachrsquo project and WWFrsquos Earth Hour
Marketplace ndash Responsible ContentFocusing on product responsibility in providing high quality products and is committed to establishing a horizontal specialisation system based on collaboration with stakeholders The production flow is illustrated in the diagram below
Workplace ndash Right CultureIt aims to create a workplace where its people have the opportunity to be the best they possibly can to have the right culture safe working environment and human capital development with fair processes
Media Prima Acknowledges it various stakeholder via Stakeholders Management
Media Prima is aware of the diversity of its stakeholders and the different goals and demand of its stakeholders
The Company conducts active engagement with its stakeholders to fully understand their needs and increase their trust in the Company through formal and informal mechanisms as follows
It has moved on to 2nd stage of CSR
1st Generation 2nd Generation 3rd Generation
Philanthropic short term risk management
Product Process innovation business and corporate governance model long term sustainability Strategic CSR
3rd Generation Multi- stakeholder standards and partnerships institutional building CR- Oriented advocacy and public policy
Opportunity
What is next for Media Prima to shape the industry
Creating content that generate advertising dollars amp donations of the poor social awareness
By leveraging on its content distribution capabilities
SWOT Analysis
SWOT Analysis ndash Summary
Strengths 1 Strong market share in TV segment2 Malaysiarsquos only integrated media
organization- have vertical and horizontal diversification advantage
3 Established value chains strength which complements the required core competencies
4 Have move across 3 revenue models
Weaknesses1 limited number of stations variety and choice
for consumer2 Despite diversification revenues still mainly
driven by advertisers and TV -gt cross platforms is needed
3 Financial segmentation may hinder potentials of the company
Opportunities 1 Broadband infrastructure ndash via HSBB2 Development of technology ndash creating
medias gadgets that increase digital interaction and content consumption
3 Consumers are willing to pay for content4 Possible deregulation of content ndash leveling
the playing field
Threats 1 2012 forecasting a financial slow down
affecting Ad Ex ndash hence revenue is reduced2 Increase competition New Entrants Pay TV
player amp continual competition from ASTRO3 Changing consumer habits towards media
consumption -gt moving away from traditional media ndash hence have to fight for consumerrsquos attention
Right Technology (Gadget and Infrastructure) at the Right time (deregulation) amp Right consumers (shift in media habits and willingness to pay for content ndash ASTRO as indicator)
Vertical Value Chain advantage to compete in content development
Media Primarsquos Current situation in summary
+VE
-VE Revenue dependent on advertising which is affected correlated to GDP
Resources organization structure holds back effectiveness of organization
Moving forward2012 and beyond
Recommended Destination and future growth of Media Prima
Revenue mainly from advertising
Revenue from advertising
Content SubscriptionBy viewers
Content driven Complementary Services for advertiser (Auxillary Services)
Media Prima
Media Prima
Content Syndicationto competitors
+
How Moving from aggregator to content creator
Content Focus Leveraging on content to Embark on Revenue shifts
Long term sustainable leadership
Restructuring to liberateresources for Content
Sustainable Talent development -
Partnership
Riding the Technology Wave
Short term (2012) Mid Term (by 2013-2015) Long term 2015 beyond
How Moving from aggregator to content creator
Content Focus Leveraging on content to Embark on Revenue shifts
Long term sustainable leadership
Restructuring to liberateresources for Content
Sustainable Talent development -
Partnership
Riding the Technology Wave
Short term (2012) Mid Term (by 2013-2015) Long term 2015 beyond
Creating a Content focus agency All these can be enable via the following means
Demand- The content creation race bull There is a need to free up empower human capital to create more content which are relevant
segmented engaging and entertaining
How does media prima refocus its resources into where it matters Instead of multiple teams doing the same thing ndash there is a challenge to create a lean and efficient organization
Challenges Freeing Resources
Instead of looking at a Media based financial segment reporting structurally force the teams to integrate by changing the dynamics of PampL
Next page
Solution Redefining Business Units Paradigms
Take a step up from producing beyond the current vernacular program to meet shifting consumer needs
Challenges ndash Lifestyle lead Variety
Creating Channel programs which are target segment focus based on lifestyles hellip
Acquisition of content as content regulations will be relaxed
Solution Target Segment focus
Using financial view to free resources for content developmentFinancial segment reporting may create a ldquosilordquo mentality ndash which encourages each head of business to protect their bottom line Hence a less effective in operations
Our recommendation is to expand content creation to cut across and shift paradigms to free up resources and focus on new revenue streams And create new content for different segment
Tele
visi
on N
etw
ork
Radi
o N
etw
ork
Out
door
Med
ia
Prin
t M
edia
Oth
er M
edia
Current Financial Segment Reporting
Tele
visi
on N
etw
ork
Radi
o N
etw
ork
Out
door
Med
ia
Prin
t M
edia
Oth
er M
edia
Production
Content
Subscription
Advertising
Recommended Segment Reporting
Lifestyle Segments
Lifestyle Segments
Lifestyle Segments
Lifestyle Segments
Lifestyle Segments
Lifestyle Segments
By changing the business segment reporting it also affects the company structure
The benefits - Flexibility and empowers knowledge
economy ndash talent content driven
- Builds at strong work culture which may be replicated in the region
- Expansion to embark on talent and content crowd sourcing - open innovation creation
Media Prima can take this opportunity to achieve SPECIALIZATION COORDINATION AND COOPERATION Currently team structure ndash of Integrated Marketing Division is created as a temporary solution hellip to enable integration It will move towards a network model to haste integration fast and response to technology and consumer needs
Subcription
Advertising
Production
TechnologyPartner
Content
How Moving from aggregator to content creator
Content Focus Leveraging on content to Embark on Revenue shifts
Long term sustainable leadership
Restructuring to liberateresources for Content
Sustainable Talent development -
Partnership
Riding the Technology Wave
Short term (2012) Mid Term (by 2013-2015) Long term 2015 beyond
Technology ndash Enable Media Prima to leap into Interactive Content
Interactive Content
UniFi Axiata
Media Prima
Electronics Manufacturer
Demand - A ready market bull There is a latent demand for content-gt consumers are
willing to Pay bull Technology has accustomed consumers to interacting
with contentbull Regulatory push to shift from analogue to digital by
2015
However unlike Media Primarsquos western counterparts ie Time Warner Communication Media Prima does not have the advantages of cable infrastructure
Challenges ndash Limitation
Media Prima could depend on existing suppliers of connectivity and technology- Telecommunications ie AXIATA and - Manufacturing companies ie Samsungto take the leap into interactive content Unifi TM
Solution ndash Smart Partnerships
Maximizing Unrelated Diversification
It is not a Fad but a trend
Smart TV is an inevitable trend says Baeguen Kang vice president of
research and development at South Koreas LG Electronics Co the worlds second-largest seller of TV sets by unit volume As people experienced smartphones and tablet PCs the larger screen on a TV is very attractive for apps and Web content
210 million TV sets sold world-wide had an Internet connection (2010)
21 50It will be the forecast in (2014)
Source Evan Ramstad (January 2011)A ldquoManufacturers Turn to Smart TV After 3-D Disappointsrdquo The Wall Street Journal online httponlinewsjcomarticleSB10001424052748704835504576059783074010902html
As technology develops Current cost is will drop exponentially reflecting the Moorersquos Law
Hence lowering the cost of access for interactive content
Example of Smart TV
Smart Hub It is a front facing interface just like a main menu
when consumers turn on their TV There are few utilities that consumers can choose to be entertained
Video ndash consumers can choose from array of video collections that required to be paid
Apps ndash an internet-enabled applications like You Tube Facebook Twitter Skype and others
Internet browsing ndash just like PC internet browsing
Music photo and TV watching
Smart ConnectivityWIFI enabled that allows consumers to connect to all mobile devices like smart phone tablet PC notebook and camera with Samsung Wireless Router called 1 foot This connectivity is being called ldquoAllSharerdquo by Samsung
httpotbresearchcomau200509report-1-industry-forum
MEDIA PRIMA IS CURRENTLY HERE
This will ultimately lead Media Prima to reduce it dependence on advertising revenue
Others ndash Utilising the SMART TV technology and Apps to create any existing Media Prima businesses
NEW Revenue Streams for Media Prima
To take advantage of SMART TV and collaborate with SMART TV manufacturers Media Prima can look into following utilities
Collaborate with manufacturers to allow consumers to browse and pay for Media Prima video collections
Selling local music for Malaysia market
Collaborate with local or international content developers to create Malaysia specific contents for paid subscription or free for common content to attract new consumers
How
Content Focus Leveraging on content to Embark on Revenue shifts
Long term sustainable leadership
Restructuring to liberateresources for Content
Sustainable Talent development -
Partnership
Riding the Technology Wave
Short term (2012) Mid Term (by 2013-2015) Long term 2015 beyond
Building Talents in the long run
Education Building on its strategic CSR ndash Media Prima could champion the
development of the content industry by partnering with local universities in the areas of technology media and communication
Crowd Sourcing To haste up the strategic CSR it too could embark on crowd
sourcing for content ndash via scripts and interactive content In which Media Prima could support a great idea and develop the ideas for monetization
This is a synergistic and natural development from the networks structure (open innovation)
Summary ndash Media Prima
Develop Talent Pool
Ensure Vibrant Content Industry
Technologycreates ubiquitous
Low Access Cost
To spur the industry forward
Strong talent develops Content development
demand for access
Strong content industry drives demand for Talent drives demand for content
Our recommendations are aligned to help spur the industry forwardhellip
Restructuring to liberateresources for Content
Sustainable Talent development -
Partnership
Riding the Technology Wave ndash Via Smart
Partnerships
References
References
1 Anon ldquoMedia Prima Berhad implements Accenture integrated broadcast systemrdquo Accenture Press Release httpnewsroomaccenturecomarticle_displaycfmarticle_id=5005 viewed 3 November 2011
2 Anon ldquoNew exciting and vibrant offerings from MPB television networks in 2010rdquo Media Prima Press Release httpwwwmediaprimacommypressreleasepressreleaseaspxid=150 viewed 3 November 2011
3 Anderson J ldquoResource-based competitiveness managerial implications of the resource-based viewrdquo Strategic Direction Vol26 No5 2010 pp1-2
4 Arman Arshad (2006) Size matters Retrieved December 2 2011 from asiaviewsorg httpwwwasiaviewsorgindexphpoption=com_contentampview=articleampid=2171headlinealias2171ampcatid=1headlinesampItemid=2
5 Asia Times (2007 November 29) Malaysian media giant grasps for Internet Retrieved November 3 2011 from httpwwwatimescomatimesSoutheast_AsiaIK29Ae02html
6 Barney JB amp Hesterly WS (2008) Strategic Management and Competitive Advantage The Five Forces Model of Environmental Threats pp39Prentice Hall
7 BBC (2011) BBC News product launches on connected TV Retrieved from bbccoukpressofficepressreleasesstories201106_june17newsshtml
8 Boston Consulting Group (2011) Lean Advantage in Media Boston Consulting Group
9 Boston Consulting Group (2011) Running Forward Walking Backward Boston Consulting Group
10 Business Times (2011) Media Prima net revenue grows to RM119b Kuala Lumpur New Straits Times
11 Business Times (2011) Media Prima on track to achie1048665ing 2011 target Retrieved from www1btimescomm1048668Current_NewsBTIMESarticlespimeArticle
References (1)
12 Business Times (2011) Media Prima Puncak Semangat in early talks Retrieved from httpwwwbtimescommyarticlespimmaArticle
13 Carl W Stern George Stalk Carl W Stern George Stalk Stern CW amp Stalk G (2011) Perspectives of Strategy from the Boston Consulting Group Retrieved December 3 2011 from Value Based Managementnet httpwwwvaluebasedmanagementnetmethods_bcgmatrixhtml
14 ecmlibra (2011) Adex momentum to taper off in 2012 ecmlibra
15 Gershon R A amp Ratnadeep S V (2004) Viacom Inc A Case Study in Transnational Media Management Journal of Media Business Studies 1 (1) 47-69
16 Grant RM ldquoThe resource-based theory of competitive advantage implications for strategy formulationrdquo California Management Review Vol 3 2011 httpwwwskynetie~karenArticlesGrant1_NBpdf viewed 15 November 2011
17 GreyReview (2011) TonTon Streaming Over 11 Million Video Hours A Month now with 16 millions registered users Retrieved from httpwwwgreyreviewcom20110731tonton-serving-over-1-1-million-video-hours-a-month-now-with-1-6-registered-users
18 Heavy Reading (2011) Telecom in TV Land A Roadmap to New Digital Media Ecosystem Retrieved from wwwheavyreadingcomdetailsaspsku_id=1773ampskuitem_itemid=1030
19 Hegedus N (2010) The Great Scare EBR 3 10-17
20 JohnsonGScholesK amp Whittington (2008) Exploring Corporate Strategy Competitive Forces ndash the Five Forces Framework pp 59-64 Prentice Hall
21 kinetic (2011) Moving World Asia Hong Kong
References (2)
22 Knowledgefaber (2009) Telcos Avatar - As Media Companies 20 Retrieved from httpknowledgefabercomindexphpoption=com_contentampview=articleampid=40telecom-and-media-convergenceampcatid=10telecomampItemid=42
23 Knowledgefaber (2011) Telcos Avatar - As Media Companies 20 Retrieved from httpknowledgefabercomindexphpoption=com_contentampview=articleampid=40
24 Malik O (2011) GIGAOM Retrieved from httpgigaomcom20110223old-media-is-being-unbundled-just-like-telecom-was
25 Maxis with TM Astro with TIME Best Strategy to IPTV Market Retrieved December 1 2011 httpbizthestarcommynewsstoryaspfile=201111business7704581ampsec=business
26 Media Prima (2010) Annual Report Media Prima Berhad27 Media Prima Berhad (2011) 11 Nov 2011 - New Exciting amp Vibrant Offerings From MPB Television Retrieved from
wwwmediaprimacommypressreleasepressreleaseaspxid=15028 Media Prima (2010) Sustainability Report Media Prima Berhad29 OSK (2011) Media Prima OSK30 Pocket-Lint (2011) Samsung Smart TV hits 2 million mark Retrieved from
httpwwwpocket-lintcomnews40593samsung-smart-tv-2-million31 PricewaterhouseCoopers (2011) Achieving corporate financial PwC32 PricewaterhouseCoopers (2007) Financial Reporting Standards (FRS) in Malaysia PricewaterhouseCoopers33 SKMM (MCMC) (2009) Advertising Development in Malaysia SKMM34 SKMM (MCMC) (2011) Content Development SKMM35 Techpinions (2011) Interactive TV Trends - How the TV experience is changing - Part II Retrieved from
httptechpinionscominteractive-tv-trends-E28093-how-the-tv-experience-is-changing-part-ii4066
References (3)
36 The Edge (2011) Media Prima best proxy to sector Retrieved from wwwtheedgemalaysiacom37 The Edge Malaysia (2011 September 26) Education the mother of all reforms Retrieved October 30 2011 from
httpwwwtheedgemalaysiacomin-the-financial-daily193478-education-the-mother-of-all-reformshtml38 The Star Online (2011) Main players in the competitive TV sector Retrieved from bizthestarcommynewsstoryasp
file=20111126business997401739 The Star Online (2011) Maxis ready to move up value Retrieved from
bizthestarcommynewsstoryaspfile=201111business7704581ampse40 The Star Online (2011) New players enter the TV Retrieved from
bizthestarcommynewsstoryaspfile=20111126business997300841 The Star Newspaper (December 1 2011) Capital TV to make its debut today42 The Star Online (January 1 2011) Maxis ready to move up value chain Retrieved December 3 2011
httpbizthestarcommynewsstoryaspfile=201111business7704581ampsec=business43 The Star Online (2011 April 21) Media Prima to invest more on local content Retrieved October 30 2011 from C
Usersa34ffzzDesktopMedia PrimaUsed articlesMedia Prima to invest more in local contentmht44 Time Warners (2010) Annual Report Time Warners45 WHAT HI FI (2011) Samsung aims for 50m TV sales worldwide in 2012 set to announce launch date for Google TV
product Retrieved from httpwwwwhathificomnewssamsung-aims-for-50m-tv-sales-worldwide-in-2012-set-to-announce-launch-date-for-google-tv-produ
46 Woroch G A (1996) Turning the Cables Elsevier47 Zanuddin H (2007) Political influence in Malaysia and Thailand media sector Jati Vol12
- MEdiA PRIMA
- Agenda
- Company Profile
- Media Primarsquos Commitment amp Direction moving forward
- Media Industry Business Model ndash Content Driven
- Our Tasks ndash How
- PEST Analysis
- Politics Legal Issues amp Impact
- Economic Issues and Impact
- Social Issues and Impact
- Social Issues and Impact
- Technology Issues and Impact
- In short
- Porterrsquos 5 Forces Analysis
- Porterrsquos Five Forces ndash Competitive Analysis
- Financials
- Media Prima Financial Highlights
- However in further analysis
- Value Chain Analysis
- Resource Based View
- In the context of the Content industry value chain Mapped again
- Appraising capabilities which drives profitability
- Mapping Media Prima revenue streams against the Diversification
- Slide 25
- Related Constrained Diversification
- Related Constrained Diversification (2)
- Slide 28
- Related Linked Diversification
- Slide 30
- Social Responsibility Analysis
- Social Responsibility
- Social Responsibility ndash cont
- Media Prima Acknowledges it various stakeholder via Stakeholder
- It has moved on to 2nd stage of CSR
- SWOT Analysis
- SWOT Analysis ndash Summary
- Media Primarsquos Current situation in summary
- Moving forward 2012 and beyond
- Recommended Destination and future growth of Media Prima
- How Moving from aggregator to content creator
- How Moving from aggregator to content creator (2)
- Creating a Content focus agency All these can be enable via
- Using financial view to free resources for content development
- By changing the business segment reporting it also affects the
- How Moving from aggregator to content creator (3)
- Technology ndash Enable Media Prima to leap into Interactive Conten
- It is not a Fad but a trend
- Slide 50
- Example of Smart TV
- This will ultimately lead Media Prima to reduce it dependence o
- NEW Revenue Streams for Media Prima
- How
- Building Talents in the long run
- Summary ndash Media Prima
- References
- References
- References (1)
- References (2)
- References (3)
-
Media Company
Viewers(Consumers)
CONTENT PRO
1 httpwwwlongtailcomthe_long_tail200809the-three-kindshtml
$
C
C
C FREE CONTENT FREE CONTENT
FREE CONTENT
Both operation and Corporate Relatedness
CurrentMedia Primarsquos intention to leverage on both its operations and Corporate relatedness to shift its revenue structure to be less dependent on advertising revenue and move toward subscriber revenue where a few subsidies everyone else via versioning ldquoprice discriminationrdquo
ChallengesIt has to some degree been successful to introduce this ndash via TonTon TV however the revenue from this segment has yet to be significant
To date there are 16 show packages and over 50 single episodes for viewers to purchase ndash which is limited
Opportunities However more needs or can be done in this new area with the advent of Interactive TV
Media Company
Advertisers Corporations(Customers )
Viewers(Consumers)
Consumer Pay for Product
FREE
CONTENT
Advertiser payFor (Ad space) $$
Source Website1 httpwwwlongtailcomthe_long_tail200809the-three-kindshtml2 Creation of An Integrated Media 2009 Grouphttpwwwmediaprimacommyinvestorcentercp2009NSTPGOpdf3 httpwwwtheedgemalaysiacomin-the-financial-daily164479-media-prima-best-proxy-to-sector-says-oskhtml 4 Media Prima net revenue grows to RM119b 2011 httpwwwbtimescommyCurrent_NewsBTIMESarticles20111118202427Articleindex_html
Related Linked Diversification
Current Media Prima has expanded across media with the idea in the hope of a) Leveraging on its expertise of
Advertisers subsiding viewers model b) Share back-office consolidation which
creates operations efficiencies in operation ie Editorial Talents
c) Cross marketing opportunities across platforms - Where Advertisers could purchase cross buy across platforms
Challenges Market ndash Not readyThe market is not ready for bundled and cross market offering According to Dato Amrin Awaluddin Group Managing Director of Media Prima no doubt there was head roads but more effort needs to be done to integrate the platforms better
Internally ndash Structure is not integrated In terms of unlocking NSTPs value he says it would be done in two phases `First is more short term like consolidating in terms of operations while the second stage will entail selling of products and cross-promoting our content which would be an ongoing revenue- generation exerciselsquo And he quoted Joran a property of Berita Harian (NST) ndash a nationwide fishing event being brought to TV3 as an example
Opportunities - The structure impeded cross platform and working in silo
does not help
- Hence there is a need to further shift paradigms via a structural change to free up resources to focus on content
- The market will not know what they want until we present them with the opportunity benefit
Social Responsibility Analysis
Social Responsibility
Media Primarsquos approach to Social Responsibility is based on the key triple bottom line ndash social environmental and economic It considers the socio-economic impact of its business activities in the aim to create value to its stakeholders via the 4 categories ie community workplace marketplace and environment
Community1EducationFocusing on education to raise awareness of the importance of education and increase the academic standards of underprivileged children and underperforming schools eg PINTAR Programme NST School Sponsorship Programme
2 HumanitarianRaise funds for humanitarian aid and provided updates on the local and world disaster crisis to the public and raised awareness of the funds eg Humanitarian Aid for Gaza Humanitarian Aid for Flood Victims in Pakistan
3 Other community programmesProduced outreach programmes to reflect and highlight local and community issues and to be the eyes and ears of the public and engage in public awareness through its businessesrsquo media resources and platforms in print interactive media and television eg Project Sunshine
Social Responsibility ndash cont
Environment - EfficiencyStrongly committed to being an environmentally friendly Company by using recycled paper especially in its newspapers business efficient usage of electricity in offices water management reducing amount of waste produced throughout its businesses and other environmental initiatives such as lsquosave our beachrsquo project and WWFrsquos Earth Hour
Marketplace ndash Responsible ContentFocusing on product responsibility in providing high quality products and is committed to establishing a horizontal specialisation system based on collaboration with stakeholders The production flow is illustrated in the diagram below
Workplace ndash Right CultureIt aims to create a workplace where its people have the opportunity to be the best they possibly can to have the right culture safe working environment and human capital development with fair processes
Media Prima Acknowledges it various stakeholder via Stakeholders Management
Media Prima is aware of the diversity of its stakeholders and the different goals and demand of its stakeholders
The Company conducts active engagement with its stakeholders to fully understand their needs and increase their trust in the Company through formal and informal mechanisms as follows
It has moved on to 2nd stage of CSR
1st Generation 2nd Generation 3rd Generation
Philanthropic short term risk management
Product Process innovation business and corporate governance model long term sustainability Strategic CSR
3rd Generation Multi- stakeholder standards and partnerships institutional building CR- Oriented advocacy and public policy
Opportunity
What is next for Media Prima to shape the industry
Creating content that generate advertising dollars amp donations of the poor social awareness
By leveraging on its content distribution capabilities
SWOT Analysis
SWOT Analysis ndash Summary
Strengths 1 Strong market share in TV segment2 Malaysiarsquos only integrated media
organization- have vertical and horizontal diversification advantage
3 Established value chains strength which complements the required core competencies
4 Have move across 3 revenue models
Weaknesses1 limited number of stations variety and choice
for consumer2 Despite diversification revenues still mainly
driven by advertisers and TV -gt cross platforms is needed
3 Financial segmentation may hinder potentials of the company
Opportunities 1 Broadband infrastructure ndash via HSBB2 Development of technology ndash creating
medias gadgets that increase digital interaction and content consumption
3 Consumers are willing to pay for content4 Possible deregulation of content ndash leveling
the playing field
Threats 1 2012 forecasting a financial slow down
affecting Ad Ex ndash hence revenue is reduced2 Increase competition New Entrants Pay TV
player amp continual competition from ASTRO3 Changing consumer habits towards media
consumption -gt moving away from traditional media ndash hence have to fight for consumerrsquos attention
Right Technology (Gadget and Infrastructure) at the Right time (deregulation) amp Right consumers (shift in media habits and willingness to pay for content ndash ASTRO as indicator)
Vertical Value Chain advantage to compete in content development
Media Primarsquos Current situation in summary
+VE
-VE Revenue dependent on advertising which is affected correlated to GDP
Resources organization structure holds back effectiveness of organization
Moving forward2012 and beyond
Recommended Destination and future growth of Media Prima
Revenue mainly from advertising
Revenue from advertising
Content SubscriptionBy viewers
Content driven Complementary Services for advertiser (Auxillary Services)
Media Prima
Media Prima
Content Syndicationto competitors
+
How Moving from aggregator to content creator
Content Focus Leveraging on content to Embark on Revenue shifts
Long term sustainable leadership
Restructuring to liberateresources for Content
Sustainable Talent development -
Partnership
Riding the Technology Wave
Short term (2012) Mid Term (by 2013-2015) Long term 2015 beyond
How Moving from aggregator to content creator
Content Focus Leveraging on content to Embark on Revenue shifts
Long term sustainable leadership
Restructuring to liberateresources for Content
Sustainable Talent development -
Partnership
Riding the Technology Wave
Short term (2012) Mid Term (by 2013-2015) Long term 2015 beyond
Creating a Content focus agency All these can be enable via the following means
Demand- The content creation race bull There is a need to free up empower human capital to create more content which are relevant
segmented engaging and entertaining
How does media prima refocus its resources into where it matters Instead of multiple teams doing the same thing ndash there is a challenge to create a lean and efficient organization
Challenges Freeing Resources
Instead of looking at a Media based financial segment reporting structurally force the teams to integrate by changing the dynamics of PampL
Next page
Solution Redefining Business Units Paradigms
Take a step up from producing beyond the current vernacular program to meet shifting consumer needs
Challenges ndash Lifestyle lead Variety
Creating Channel programs which are target segment focus based on lifestyles hellip
Acquisition of content as content regulations will be relaxed
Solution Target Segment focus
Using financial view to free resources for content developmentFinancial segment reporting may create a ldquosilordquo mentality ndash which encourages each head of business to protect their bottom line Hence a less effective in operations
Our recommendation is to expand content creation to cut across and shift paradigms to free up resources and focus on new revenue streams And create new content for different segment
Tele
visi
on N
etw
ork
Radi
o N
etw
ork
Out
door
Med
ia
Prin
t M
edia
Oth
er M
edia
Current Financial Segment Reporting
Tele
visi
on N
etw
ork
Radi
o N
etw
ork
Out
door
Med
ia
Prin
t M
edia
Oth
er M
edia
Production
Content
Subscription
Advertising
Recommended Segment Reporting
Lifestyle Segments
Lifestyle Segments
Lifestyle Segments
Lifestyle Segments
Lifestyle Segments
Lifestyle Segments
By changing the business segment reporting it also affects the company structure
The benefits - Flexibility and empowers knowledge
economy ndash talent content driven
- Builds at strong work culture which may be replicated in the region
- Expansion to embark on talent and content crowd sourcing - open innovation creation
Media Prima can take this opportunity to achieve SPECIALIZATION COORDINATION AND COOPERATION Currently team structure ndash of Integrated Marketing Division is created as a temporary solution hellip to enable integration It will move towards a network model to haste integration fast and response to technology and consumer needs
Subcription
Advertising
Production
TechnologyPartner
Content
How Moving from aggregator to content creator
Content Focus Leveraging on content to Embark on Revenue shifts
Long term sustainable leadership
Restructuring to liberateresources for Content
Sustainable Talent development -
Partnership
Riding the Technology Wave
Short term (2012) Mid Term (by 2013-2015) Long term 2015 beyond
Technology ndash Enable Media Prima to leap into Interactive Content
Interactive Content
UniFi Axiata
Media Prima
Electronics Manufacturer
Demand - A ready market bull There is a latent demand for content-gt consumers are
willing to Pay bull Technology has accustomed consumers to interacting
with contentbull Regulatory push to shift from analogue to digital by
2015
However unlike Media Primarsquos western counterparts ie Time Warner Communication Media Prima does not have the advantages of cable infrastructure
Challenges ndash Limitation
Media Prima could depend on existing suppliers of connectivity and technology- Telecommunications ie AXIATA and - Manufacturing companies ie Samsungto take the leap into interactive content Unifi TM
Solution ndash Smart Partnerships
Maximizing Unrelated Diversification
It is not a Fad but a trend
Smart TV is an inevitable trend says Baeguen Kang vice president of
research and development at South Koreas LG Electronics Co the worlds second-largest seller of TV sets by unit volume As people experienced smartphones and tablet PCs the larger screen on a TV is very attractive for apps and Web content
210 million TV sets sold world-wide had an Internet connection (2010)
21 50It will be the forecast in (2014)
Source Evan Ramstad (January 2011)A ldquoManufacturers Turn to Smart TV After 3-D Disappointsrdquo The Wall Street Journal online httponlinewsjcomarticleSB10001424052748704835504576059783074010902html
As technology develops Current cost is will drop exponentially reflecting the Moorersquos Law
Hence lowering the cost of access for interactive content
Example of Smart TV
Smart Hub It is a front facing interface just like a main menu
when consumers turn on their TV There are few utilities that consumers can choose to be entertained
Video ndash consumers can choose from array of video collections that required to be paid
Apps ndash an internet-enabled applications like You Tube Facebook Twitter Skype and others
Internet browsing ndash just like PC internet browsing
Music photo and TV watching
Smart ConnectivityWIFI enabled that allows consumers to connect to all mobile devices like smart phone tablet PC notebook and camera with Samsung Wireless Router called 1 foot This connectivity is being called ldquoAllSharerdquo by Samsung
httpotbresearchcomau200509report-1-industry-forum
MEDIA PRIMA IS CURRENTLY HERE
This will ultimately lead Media Prima to reduce it dependence on advertising revenue
Others ndash Utilising the SMART TV technology and Apps to create any existing Media Prima businesses
NEW Revenue Streams for Media Prima
To take advantage of SMART TV and collaborate with SMART TV manufacturers Media Prima can look into following utilities
Collaborate with manufacturers to allow consumers to browse and pay for Media Prima video collections
Selling local music for Malaysia market
Collaborate with local or international content developers to create Malaysia specific contents for paid subscription or free for common content to attract new consumers
How
Content Focus Leveraging on content to Embark on Revenue shifts
Long term sustainable leadership
Restructuring to liberateresources for Content
Sustainable Talent development -
Partnership
Riding the Technology Wave
Short term (2012) Mid Term (by 2013-2015) Long term 2015 beyond
Building Talents in the long run
Education Building on its strategic CSR ndash Media Prima could champion the
development of the content industry by partnering with local universities in the areas of technology media and communication
Crowd Sourcing To haste up the strategic CSR it too could embark on crowd
sourcing for content ndash via scripts and interactive content In which Media Prima could support a great idea and develop the ideas for monetization
This is a synergistic and natural development from the networks structure (open innovation)
Summary ndash Media Prima
Develop Talent Pool
Ensure Vibrant Content Industry
Technologycreates ubiquitous
Low Access Cost
To spur the industry forward
Strong talent develops Content development
demand for access
Strong content industry drives demand for Talent drives demand for content
Our recommendations are aligned to help spur the industry forwardhellip
Restructuring to liberateresources for Content
Sustainable Talent development -
Partnership
Riding the Technology Wave ndash Via Smart
Partnerships
References
References
1 Anon ldquoMedia Prima Berhad implements Accenture integrated broadcast systemrdquo Accenture Press Release httpnewsroomaccenturecomarticle_displaycfmarticle_id=5005 viewed 3 November 2011
2 Anon ldquoNew exciting and vibrant offerings from MPB television networks in 2010rdquo Media Prima Press Release httpwwwmediaprimacommypressreleasepressreleaseaspxid=150 viewed 3 November 2011
3 Anderson J ldquoResource-based competitiveness managerial implications of the resource-based viewrdquo Strategic Direction Vol26 No5 2010 pp1-2
4 Arman Arshad (2006) Size matters Retrieved December 2 2011 from asiaviewsorg httpwwwasiaviewsorgindexphpoption=com_contentampview=articleampid=2171headlinealias2171ampcatid=1headlinesampItemid=2
5 Asia Times (2007 November 29) Malaysian media giant grasps for Internet Retrieved November 3 2011 from httpwwwatimescomatimesSoutheast_AsiaIK29Ae02html
6 Barney JB amp Hesterly WS (2008) Strategic Management and Competitive Advantage The Five Forces Model of Environmental Threats pp39Prentice Hall
7 BBC (2011) BBC News product launches on connected TV Retrieved from bbccoukpressofficepressreleasesstories201106_june17newsshtml
8 Boston Consulting Group (2011) Lean Advantage in Media Boston Consulting Group
9 Boston Consulting Group (2011) Running Forward Walking Backward Boston Consulting Group
10 Business Times (2011) Media Prima net revenue grows to RM119b Kuala Lumpur New Straits Times
11 Business Times (2011) Media Prima on track to achie1048665ing 2011 target Retrieved from www1btimescomm1048668Current_NewsBTIMESarticlespimeArticle
References (1)
12 Business Times (2011) Media Prima Puncak Semangat in early talks Retrieved from httpwwwbtimescommyarticlespimmaArticle
13 Carl W Stern George Stalk Carl W Stern George Stalk Stern CW amp Stalk G (2011) Perspectives of Strategy from the Boston Consulting Group Retrieved December 3 2011 from Value Based Managementnet httpwwwvaluebasedmanagementnetmethods_bcgmatrixhtml
14 ecmlibra (2011) Adex momentum to taper off in 2012 ecmlibra
15 Gershon R A amp Ratnadeep S V (2004) Viacom Inc A Case Study in Transnational Media Management Journal of Media Business Studies 1 (1) 47-69
16 Grant RM ldquoThe resource-based theory of competitive advantage implications for strategy formulationrdquo California Management Review Vol 3 2011 httpwwwskynetie~karenArticlesGrant1_NBpdf viewed 15 November 2011
17 GreyReview (2011) TonTon Streaming Over 11 Million Video Hours A Month now with 16 millions registered users Retrieved from httpwwwgreyreviewcom20110731tonton-serving-over-1-1-million-video-hours-a-month-now-with-1-6-registered-users
18 Heavy Reading (2011) Telecom in TV Land A Roadmap to New Digital Media Ecosystem Retrieved from wwwheavyreadingcomdetailsaspsku_id=1773ampskuitem_itemid=1030
19 Hegedus N (2010) The Great Scare EBR 3 10-17
20 JohnsonGScholesK amp Whittington (2008) Exploring Corporate Strategy Competitive Forces ndash the Five Forces Framework pp 59-64 Prentice Hall
21 kinetic (2011) Moving World Asia Hong Kong
References (2)
22 Knowledgefaber (2009) Telcos Avatar - As Media Companies 20 Retrieved from httpknowledgefabercomindexphpoption=com_contentampview=articleampid=40telecom-and-media-convergenceampcatid=10telecomampItemid=42
23 Knowledgefaber (2011) Telcos Avatar - As Media Companies 20 Retrieved from httpknowledgefabercomindexphpoption=com_contentampview=articleampid=40
24 Malik O (2011) GIGAOM Retrieved from httpgigaomcom20110223old-media-is-being-unbundled-just-like-telecom-was
25 Maxis with TM Astro with TIME Best Strategy to IPTV Market Retrieved December 1 2011 httpbizthestarcommynewsstoryaspfile=201111business7704581ampsec=business
26 Media Prima (2010) Annual Report Media Prima Berhad27 Media Prima Berhad (2011) 11 Nov 2011 - New Exciting amp Vibrant Offerings From MPB Television Retrieved from
wwwmediaprimacommypressreleasepressreleaseaspxid=15028 Media Prima (2010) Sustainability Report Media Prima Berhad29 OSK (2011) Media Prima OSK30 Pocket-Lint (2011) Samsung Smart TV hits 2 million mark Retrieved from
httpwwwpocket-lintcomnews40593samsung-smart-tv-2-million31 PricewaterhouseCoopers (2011) Achieving corporate financial PwC32 PricewaterhouseCoopers (2007) Financial Reporting Standards (FRS) in Malaysia PricewaterhouseCoopers33 SKMM (MCMC) (2009) Advertising Development in Malaysia SKMM34 SKMM (MCMC) (2011) Content Development SKMM35 Techpinions (2011) Interactive TV Trends - How the TV experience is changing - Part II Retrieved from
httptechpinionscominteractive-tv-trends-E28093-how-the-tv-experience-is-changing-part-ii4066
References (3)
36 The Edge (2011) Media Prima best proxy to sector Retrieved from wwwtheedgemalaysiacom37 The Edge Malaysia (2011 September 26) Education the mother of all reforms Retrieved October 30 2011 from
httpwwwtheedgemalaysiacomin-the-financial-daily193478-education-the-mother-of-all-reformshtml38 The Star Online (2011) Main players in the competitive TV sector Retrieved from bizthestarcommynewsstoryasp
file=20111126business997401739 The Star Online (2011) Maxis ready to move up value Retrieved from
bizthestarcommynewsstoryaspfile=201111business7704581ampse40 The Star Online (2011) New players enter the TV Retrieved from
bizthestarcommynewsstoryaspfile=20111126business997300841 The Star Newspaper (December 1 2011) Capital TV to make its debut today42 The Star Online (January 1 2011) Maxis ready to move up value chain Retrieved December 3 2011
httpbizthestarcommynewsstoryaspfile=201111business7704581ampsec=business43 The Star Online (2011 April 21) Media Prima to invest more on local content Retrieved October 30 2011 from C
Usersa34ffzzDesktopMedia PrimaUsed articlesMedia Prima to invest more in local contentmht44 Time Warners (2010) Annual Report Time Warners45 WHAT HI FI (2011) Samsung aims for 50m TV sales worldwide in 2012 set to announce launch date for Google TV
product Retrieved from httpwwwwhathificomnewssamsung-aims-for-50m-tv-sales-worldwide-in-2012-set-to-announce-launch-date-for-google-tv-produ
46 Woroch G A (1996) Turning the Cables Elsevier47 Zanuddin H (2007) Political influence in Malaysia and Thailand media sector Jati Vol12
- MEdiA PRIMA
- Agenda
- Company Profile
- Media Primarsquos Commitment amp Direction moving forward
- Media Industry Business Model ndash Content Driven
- Our Tasks ndash How
- PEST Analysis
- Politics Legal Issues amp Impact
- Economic Issues and Impact
- Social Issues and Impact
- Social Issues and Impact
- Technology Issues and Impact
- In short
- Porterrsquos 5 Forces Analysis
- Porterrsquos Five Forces ndash Competitive Analysis
- Financials
- Media Prima Financial Highlights
- However in further analysis
- Value Chain Analysis
- Resource Based View
- In the context of the Content industry value chain Mapped again
- Appraising capabilities which drives profitability
- Mapping Media Prima revenue streams against the Diversification
- Slide 25
- Related Constrained Diversification
- Related Constrained Diversification (2)
- Slide 28
- Related Linked Diversification
- Slide 30
- Social Responsibility Analysis
- Social Responsibility
- Social Responsibility ndash cont
- Media Prima Acknowledges it various stakeholder via Stakeholder
- It has moved on to 2nd stage of CSR
- SWOT Analysis
- SWOT Analysis ndash Summary
- Media Primarsquos Current situation in summary
- Moving forward 2012 and beyond
- Recommended Destination and future growth of Media Prima
- How Moving from aggregator to content creator
- How Moving from aggregator to content creator (2)
- Creating a Content focus agency All these can be enable via
- Using financial view to free resources for content development
- By changing the business segment reporting it also affects the
- How Moving from aggregator to content creator (3)
- Technology ndash Enable Media Prima to leap into Interactive Conten
- It is not a Fad but a trend
- Slide 50
- Example of Smart TV
- This will ultimately lead Media Prima to reduce it dependence o
- NEW Revenue Streams for Media Prima
- How
- Building Talents in the long run
- Summary ndash Media Prima
- References
- References
- References (1)
- References (2)
- References (3)
-
Media Company
Advertisers Corporations(Customers )
Viewers(Consumers)
Consumer Pay for Product
FREE
CONTENT
Advertiser payFor (Ad space) $$
Source Website1 httpwwwlongtailcomthe_long_tail200809the-three-kindshtml2 Creation of An Integrated Media 2009 Grouphttpwwwmediaprimacommyinvestorcentercp2009NSTPGOpdf3 httpwwwtheedgemalaysiacomin-the-financial-daily164479-media-prima-best-proxy-to-sector-says-oskhtml 4 Media Prima net revenue grows to RM119b 2011 httpwwwbtimescommyCurrent_NewsBTIMESarticles20111118202427Articleindex_html
Related Linked Diversification
Current Media Prima has expanded across media with the idea in the hope of a) Leveraging on its expertise of
Advertisers subsiding viewers model b) Share back-office consolidation which
creates operations efficiencies in operation ie Editorial Talents
c) Cross marketing opportunities across platforms - Where Advertisers could purchase cross buy across platforms
Challenges Market ndash Not readyThe market is not ready for bundled and cross market offering According to Dato Amrin Awaluddin Group Managing Director of Media Prima no doubt there was head roads but more effort needs to be done to integrate the platforms better
Internally ndash Structure is not integrated In terms of unlocking NSTPs value he says it would be done in two phases `First is more short term like consolidating in terms of operations while the second stage will entail selling of products and cross-promoting our content which would be an ongoing revenue- generation exerciselsquo And he quoted Joran a property of Berita Harian (NST) ndash a nationwide fishing event being brought to TV3 as an example
Opportunities - The structure impeded cross platform and working in silo
does not help
- Hence there is a need to further shift paradigms via a structural change to free up resources to focus on content
- The market will not know what they want until we present them with the opportunity benefit
Social Responsibility Analysis
Social Responsibility
Media Primarsquos approach to Social Responsibility is based on the key triple bottom line ndash social environmental and economic It considers the socio-economic impact of its business activities in the aim to create value to its stakeholders via the 4 categories ie community workplace marketplace and environment
Community1EducationFocusing on education to raise awareness of the importance of education and increase the academic standards of underprivileged children and underperforming schools eg PINTAR Programme NST School Sponsorship Programme
2 HumanitarianRaise funds for humanitarian aid and provided updates on the local and world disaster crisis to the public and raised awareness of the funds eg Humanitarian Aid for Gaza Humanitarian Aid for Flood Victims in Pakistan
3 Other community programmesProduced outreach programmes to reflect and highlight local and community issues and to be the eyes and ears of the public and engage in public awareness through its businessesrsquo media resources and platforms in print interactive media and television eg Project Sunshine
Social Responsibility ndash cont
Environment - EfficiencyStrongly committed to being an environmentally friendly Company by using recycled paper especially in its newspapers business efficient usage of electricity in offices water management reducing amount of waste produced throughout its businesses and other environmental initiatives such as lsquosave our beachrsquo project and WWFrsquos Earth Hour
Marketplace ndash Responsible ContentFocusing on product responsibility in providing high quality products and is committed to establishing a horizontal specialisation system based on collaboration with stakeholders The production flow is illustrated in the diagram below
Workplace ndash Right CultureIt aims to create a workplace where its people have the opportunity to be the best they possibly can to have the right culture safe working environment and human capital development with fair processes
Media Prima Acknowledges it various stakeholder via Stakeholders Management
Media Prima is aware of the diversity of its stakeholders and the different goals and demand of its stakeholders
The Company conducts active engagement with its stakeholders to fully understand their needs and increase their trust in the Company through formal and informal mechanisms as follows
It has moved on to 2nd stage of CSR
1st Generation 2nd Generation 3rd Generation
Philanthropic short term risk management
Product Process innovation business and corporate governance model long term sustainability Strategic CSR
3rd Generation Multi- stakeholder standards and partnerships institutional building CR- Oriented advocacy and public policy
Opportunity
What is next for Media Prima to shape the industry
Creating content that generate advertising dollars amp donations of the poor social awareness
By leveraging on its content distribution capabilities
SWOT Analysis
SWOT Analysis ndash Summary
Strengths 1 Strong market share in TV segment2 Malaysiarsquos only integrated media
organization- have vertical and horizontal diversification advantage
3 Established value chains strength which complements the required core competencies
4 Have move across 3 revenue models
Weaknesses1 limited number of stations variety and choice
for consumer2 Despite diversification revenues still mainly
driven by advertisers and TV -gt cross platforms is needed
3 Financial segmentation may hinder potentials of the company
Opportunities 1 Broadband infrastructure ndash via HSBB2 Development of technology ndash creating
medias gadgets that increase digital interaction and content consumption
3 Consumers are willing to pay for content4 Possible deregulation of content ndash leveling
the playing field
Threats 1 2012 forecasting a financial slow down
affecting Ad Ex ndash hence revenue is reduced2 Increase competition New Entrants Pay TV
player amp continual competition from ASTRO3 Changing consumer habits towards media
consumption -gt moving away from traditional media ndash hence have to fight for consumerrsquos attention
Right Technology (Gadget and Infrastructure) at the Right time (deregulation) amp Right consumers (shift in media habits and willingness to pay for content ndash ASTRO as indicator)
Vertical Value Chain advantage to compete in content development
Media Primarsquos Current situation in summary
+VE
-VE Revenue dependent on advertising which is affected correlated to GDP
Resources organization structure holds back effectiveness of organization
Moving forward2012 and beyond
Recommended Destination and future growth of Media Prima
Revenue mainly from advertising
Revenue from advertising
Content SubscriptionBy viewers
Content driven Complementary Services for advertiser (Auxillary Services)
Media Prima
Media Prima
Content Syndicationto competitors
+
How Moving from aggregator to content creator
Content Focus Leveraging on content to Embark on Revenue shifts
Long term sustainable leadership
Restructuring to liberateresources for Content
Sustainable Talent development -
Partnership
Riding the Technology Wave
Short term (2012) Mid Term (by 2013-2015) Long term 2015 beyond
How Moving from aggregator to content creator
Content Focus Leveraging on content to Embark on Revenue shifts
Long term sustainable leadership
Restructuring to liberateresources for Content
Sustainable Talent development -
Partnership
Riding the Technology Wave
Short term (2012) Mid Term (by 2013-2015) Long term 2015 beyond
Creating a Content focus agency All these can be enable via the following means
Demand- The content creation race bull There is a need to free up empower human capital to create more content which are relevant
segmented engaging and entertaining
How does media prima refocus its resources into where it matters Instead of multiple teams doing the same thing ndash there is a challenge to create a lean and efficient organization
Challenges Freeing Resources
Instead of looking at a Media based financial segment reporting structurally force the teams to integrate by changing the dynamics of PampL
Next page
Solution Redefining Business Units Paradigms
Take a step up from producing beyond the current vernacular program to meet shifting consumer needs
Challenges ndash Lifestyle lead Variety
Creating Channel programs which are target segment focus based on lifestyles hellip
Acquisition of content as content regulations will be relaxed
Solution Target Segment focus
Using financial view to free resources for content developmentFinancial segment reporting may create a ldquosilordquo mentality ndash which encourages each head of business to protect their bottom line Hence a less effective in operations
Our recommendation is to expand content creation to cut across and shift paradigms to free up resources and focus on new revenue streams And create new content for different segment
Tele
visi
on N
etw
ork
Radi
o N
etw
ork
Out
door
Med
ia
Prin
t M
edia
Oth
er M
edia
Current Financial Segment Reporting
Tele
visi
on N
etw
ork
Radi
o N
etw
ork
Out
door
Med
ia
Prin
t M
edia
Oth
er M
edia
Production
Content
Subscription
Advertising
Recommended Segment Reporting
Lifestyle Segments
Lifestyle Segments
Lifestyle Segments
Lifestyle Segments
Lifestyle Segments
Lifestyle Segments
By changing the business segment reporting it also affects the company structure
The benefits - Flexibility and empowers knowledge
economy ndash talent content driven
- Builds at strong work culture which may be replicated in the region
- Expansion to embark on talent and content crowd sourcing - open innovation creation
Media Prima can take this opportunity to achieve SPECIALIZATION COORDINATION AND COOPERATION Currently team structure ndash of Integrated Marketing Division is created as a temporary solution hellip to enable integration It will move towards a network model to haste integration fast and response to technology and consumer needs
Subcription
Advertising
Production
TechnologyPartner
Content
How Moving from aggregator to content creator
Content Focus Leveraging on content to Embark on Revenue shifts
Long term sustainable leadership
Restructuring to liberateresources for Content
Sustainable Talent development -
Partnership
Riding the Technology Wave
Short term (2012) Mid Term (by 2013-2015) Long term 2015 beyond
Technology ndash Enable Media Prima to leap into Interactive Content
Interactive Content
UniFi Axiata
Media Prima
Electronics Manufacturer
Demand - A ready market bull There is a latent demand for content-gt consumers are
willing to Pay bull Technology has accustomed consumers to interacting
with contentbull Regulatory push to shift from analogue to digital by
2015
However unlike Media Primarsquos western counterparts ie Time Warner Communication Media Prima does not have the advantages of cable infrastructure
Challenges ndash Limitation
Media Prima could depend on existing suppliers of connectivity and technology- Telecommunications ie AXIATA and - Manufacturing companies ie Samsungto take the leap into interactive content Unifi TM
Solution ndash Smart Partnerships
Maximizing Unrelated Diversification
It is not a Fad but a trend
Smart TV is an inevitable trend says Baeguen Kang vice president of
research and development at South Koreas LG Electronics Co the worlds second-largest seller of TV sets by unit volume As people experienced smartphones and tablet PCs the larger screen on a TV is very attractive for apps and Web content
210 million TV sets sold world-wide had an Internet connection (2010)
21 50It will be the forecast in (2014)
Source Evan Ramstad (January 2011)A ldquoManufacturers Turn to Smart TV After 3-D Disappointsrdquo The Wall Street Journal online httponlinewsjcomarticleSB10001424052748704835504576059783074010902html
As technology develops Current cost is will drop exponentially reflecting the Moorersquos Law
Hence lowering the cost of access for interactive content
Example of Smart TV
Smart Hub It is a front facing interface just like a main menu
when consumers turn on their TV There are few utilities that consumers can choose to be entertained
Video ndash consumers can choose from array of video collections that required to be paid
Apps ndash an internet-enabled applications like You Tube Facebook Twitter Skype and others
Internet browsing ndash just like PC internet browsing
Music photo and TV watching
Smart ConnectivityWIFI enabled that allows consumers to connect to all mobile devices like smart phone tablet PC notebook and camera with Samsung Wireless Router called 1 foot This connectivity is being called ldquoAllSharerdquo by Samsung
httpotbresearchcomau200509report-1-industry-forum
MEDIA PRIMA IS CURRENTLY HERE
This will ultimately lead Media Prima to reduce it dependence on advertising revenue
Others ndash Utilising the SMART TV technology and Apps to create any existing Media Prima businesses
NEW Revenue Streams for Media Prima
To take advantage of SMART TV and collaborate with SMART TV manufacturers Media Prima can look into following utilities
Collaborate with manufacturers to allow consumers to browse and pay for Media Prima video collections
Selling local music for Malaysia market
Collaborate with local or international content developers to create Malaysia specific contents for paid subscription or free for common content to attract new consumers
How
Content Focus Leveraging on content to Embark on Revenue shifts
Long term sustainable leadership
Restructuring to liberateresources for Content
Sustainable Talent development -
Partnership
Riding the Technology Wave
Short term (2012) Mid Term (by 2013-2015) Long term 2015 beyond
Building Talents in the long run
Education Building on its strategic CSR ndash Media Prima could champion the
development of the content industry by partnering with local universities in the areas of technology media and communication
Crowd Sourcing To haste up the strategic CSR it too could embark on crowd
sourcing for content ndash via scripts and interactive content In which Media Prima could support a great idea and develop the ideas for monetization
This is a synergistic and natural development from the networks structure (open innovation)
Summary ndash Media Prima
Develop Talent Pool
Ensure Vibrant Content Industry
Technologycreates ubiquitous
Low Access Cost
To spur the industry forward
Strong talent develops Content development
demand for access
Strong content industry drives demand for Talent drives demand for content
Our recommendations are aligned to help spur the industry forwardhellip
Restructuring to liberateresources for Content
Sustainable Talent development -
Partnership
Riding the Technology Wave ndash Via Smart
Partnerships
References
References
1 Anon ldquoMedia Prima Berhad implements Accenture integrated broadcast systemrdquo Accenture Press Release httpnewsroomaccenturecomarticle_displaycfmarticle_id=5005 viewed 3 November 2011
2 Anon ldquoNew exciting and vibrant offerings from MPB television networks in 2010rdquo Media Prima Press Release httpwwwmediaprimacommypressreleasepressreleaseaspxid=150 viewed 3 November 2011
3 Anderson J ldquoResource-based competitiveness managerial implications of the resource-based viewrdquo Strategic Direction Vol26 No5 2010 pp1-2
4 Arman Arshad (2006) Size matters Retrieved December 2 2011 from asiaviewsorg httpwwwasiaviewsorgindexphpoption=com_contentampview=articleampid=2171headlinealias2171ampcatid=1headlinesampItemid=2
5 Asia Times (2007 November 29) Malaysian media giant grasps for Internet Retrieved November 3 2011 from httpwwwatimescomatimesSoutheast_AsiaIK29Ae02html
6 Barney JB amp Hesterly WS (2008) Strategic Management and Competitive Advantage The Five Forces Model of Environmental Threats pp39Prentice Hall
7 BBC (2011) BBC News product launches on connected TV Retrieved from bbccoukpressofficepressreleasesstories201106_june17newsshtml
8 Boston Consulting Group (2011) Lean Advantage in Media Boston Consulting Group
9 Boston Consulting Group (2011) Running Forward Walking Backward Boston Consulting Group
10 Business Times (2011) Media Prima net revenue grows to RM119b Kuala Lumpur New Straits Times
11 Business Times (2011) Media Prima on track to achie1048665ing 2011 target Retrieved from www1btimescomm1048668Current_NewsBTIMESarticlespimeArticle
References (1)
12 Business Times (2011) Media Prima Puncak Semangat in early talks Retrieved from httpwwwbtimescommyarticlespimmaArticle
13 Carl W Stern George Stalk Carl W Stern George Stalk Stern CW amp Stalk G (2011) Perspectives of Strategy from the Boston Consulting Group Retrieved December 3 2011 from Value Based Managementnet httpwwwvaluebasedmanagementnetmethods_bcgmatrixhtml
14 ecmlibra (2011) Adex momentum to taper off in 2012 ecmlibra
15 Gershon R A amp Ratnadeep S V (2004) Viacom Inc A Case Study in Transnational Media Management Journal of Media Business Studies 1 (1) 47-69
16 Grant RM ldquoThe resource-based theory of competitive advantage implications for strategy formulationrdquo California Management Review Vol 3 2011 httpwwwskynetie~karenArticlesGrant1_NBpdf viewed 15 November 2011
17 GreyReview (2011) TonTon Streaming Over 11 Million Video Hours A Month now with 16 millions registered users Retrieved from httpwwwgreyreviewcom20110731tonton-serving-over-1-1-million-video-hours-a-month-now-with-1-6-registered-users
18 Heavy Reading (2011) Telecom in TV Land A Roadmap to New Digital Media Ecosystem Retrieved from wwwheavyreadingcomdetailsaspsku_id=1773ampskuitem_itemid=1030
19 Hegedus N (2010) The Great Scare EBR 3 10-17
20 JohnsonGScholesK amp Whittington (2008) Exploring Corporate Strategy Competitive Forces ndash the Five Forces Framework pp 59-64 Prentice Hall
21 kinetic (2011) Moving World Asia Hong Kong
References (2)
22 Knowledgefaber (2009) Telcos Avatar - As Media Companies 20 Retrieved from httpknowledgefabercomindexphpoption=com_contentampview=articleampid=40telecom-and-media-convergenceampcatid=10telecomampItemid=42
23 Knowledgefaber (2011) Telcos Avatar - As Media Companies 20 Retrieved from httpknowledgefabercomindexphpoption=com_contentampview=articleampid=40
24 Malik O (2011) GIGAOM Retrieved from httpgigaomcom20110223old-media-is-being-unbundled-just-like-telecom-was
25 Maxis with TM Astro with TIME Best Strategy to IPTV Market Retrieved December 1 2011 httpbizthestarcommynewsstoryaspfile=201111business7704581ampsec=business
26 Media Prima (2010) Annual Report Media Prima Berhad27 Media Prima Berhad (2011) 11 Nov 2011 - New Exciting amp Vibrant Offerings From MPB Television Retrieved from
wwwmediaprimacommypressreleasepressreleaseaspxid=15028 Media Prima (2010) Sustainability Report Media Prima Berhad29 OSK (2011) Media Prima OSK30 Pocket-Lint (2011) Samsung Smart TV hits 2 million mark Retrieved from
httpwwwpocket-lintcomnews40593samsung-smart-tv-2-million31 PricewaterhouseCoopers (2011) Achieving corporate financial PwC32 PricewaterhouseCoopers (2007) Financial Reporting Standards (FRS) in Malaysia PricewaterhouseCoopers33 SKMM (MCMC) (2009) Advertising Development in Malaysia SKMM34 SKMM (MCMC) (2011) Content Development SKMM35 Techpinions (2011) Interactive TV Trends - How the TV experience is changing - Part II Retrieved from
httptechpinionscominteractive-tv-trends-E28093-how-the-tv-experience-is-changing-part-ii4066
References (3)
36 The Edge (2011) Media Prima best proxy to sector Retrieved from wwwtheedgemalaysiacom37 The Edge Malaysia (2011 September 26) Education the mother of all reforms Retrieved October 30 2011 from
httpwwwtheedgemalaysiacomin-the-financial-daily193478-education-the-mother-of-all-reformshtml38 The Star Online (2011) Main players in the competitive TV sector Retrieved from bizthestarcommynewsstoryasp
file=20111126business997401739 The Star Online (2011) Maxis ready to move up value Retrieved from
bizthestarcommynewsstoryaspfile=201111business7704581ampse40 The Star Online (2011) New players enter the TV Retrieved from
bizthestarcommynewsstoryaspfile=20111126business997300841 The Star Newspaper (December 1 2011) Capital TV to make its debut today42 The Star Online (January 1 2011) Maxis ready to move up value chain Retrieved December 3 2011
httpbizthestarcommynewsstoryaspfile=201111business7704581ampsec=business43 The Star Online (2011 April 21) Media Prima to invest more on local content Retrieved October 30 2011 from C
Usersa34ffzzDesktopMedia PrimaUsed articlesMedia Prima to invest more in local contentmht44 Time Warners (2010) Annual Report Time Warners45 WHAT HI FI (2011) Samsung aims for 50m TV sales worldwide in 2012 set to announce launch date for Google TV
product Retrieved from httpwwwwhathificomnewssamsung-aims-for-50m-tv-sales-worldwide-in-2012-set-to-announce-launch-date-for-google-tv-produ
46 Woroch G A (1996) Turning the Cables Elsevier47 Zanuddin H (2007) Political influence in Malaysia and Thailand media sector Jati Vol12
- MEdiA PRIMA
- Agenda
- Company Profile
- Media Primarsquos Commitment amp Direction moving forward
- Media Industry Business Model ndash Content Driven
- Our Tasks ndash How
- PEST Analysis
- Politics Legal Issues amp Impact
- Economic Issues and Impact
- Social Issues and Impact
- Social Issues and Impact
- Technology Issues and Impact
- In short
- Porterrsquos 5 Forces Analysis
- Porterrsquos Five Forces ndash Competitive Analysis
- Financials
- Media Prima Financial Highlights
- However in further analysis
- Value Chain Analysis
- Resource Based View
- In the context of the Content industry value chain Mapped again
- Appraising capabilities which drives profitability
- Mapping Media Prima revenue streams against the Diversification
- Slide 25
- Related Constrained Diversification
- Related Constrained Diversification (2)
- Slide 28
- Related Linked Diversification
- Slide 30
- Social Responsibility Analysis
- Social Responsibility
- Social Responsibility ndash cont
- Media Prima Acknowledges it various stakeholder via Stakeholder
- It has moved on to 2nd stage of CSR
- SWOT Analysis
- SWOT Analysis ndash Summary
- Media Primarsquos Current situation in summary
- Moving forward 2012 and beyond
- Recommended Destination and future growth of Media Prima
- How Moving from aggregator to content creator
- How Moving from aggregator to content creator (2)
- Creating a Content focus agency All these can be enable via
- Using financial view to free resources for content development
- By changing the business segment reporting it also affects the
- How Moving from aggregator to content creator (3)
- Technology ndash Enable Media Prima to leap into Interactive Conten
- It is not a Fad but a trend
- Slide 50
- Example of Smart TV
- This will ultimately lead Media Prima to reduce it dependence o
- NEW Revenue Streams for Media Prima
- How
- Building Talents in the long run
- Summary ndash Media Prima
- References
- References
- References (1)
- References (2)
- References (3)
-
Challenges Market ndash Not readyThe market is not ready for bundled and cross market offering According to Dato Amrin Awaluddin Group Managing Director of Media Prima no doubt there was head roads but more effort needs to be done to integrate the platforms better
Internally ndash Structure is not integrated In terms of unlocking NSTPs value he says it would be done in two phases `First is more short term like consolidating in terms of operations while the second stage will entail selling of products and cross-promoting our content which would be an ongoing revenue- generation exerciselsquo And he quoted Joran a property of Berita Harian (NST) ndash a nationwide fishing event being brought to TV3 as an example
Opportunities - The structure impeded cross platform and working in silo
does not help
- Hence there is a need to further shift paradigms via a structural change to free up resources to focus on content
- The market will not know what they want until we present them with the opportunity benefit
Social Responsibility Analysis
Social Responsibility
Media Primarsquos approach to Social Responsibility is based on the key triple bottom line ndash social environmental and economic It considers the socio-economic impact of its business activities in the aim to create value to its stakeholders via the 4 categories ie community workplace marketplace and environment
Community1EducationFocusing on education to raise awareness of the importance of education and increase the academic standards of underprivileged children and underperforming schools eg PINTAR Programme NST School Sponsorship Programme
2 HumanitarianRaise funds for humanitarian aid and provided updates on the local and world disaster crisis to the public and raised awareness of the funds eg Humanitarian Aid for Gaza Humanitarian Aid for Flood Victims in Pakistan
3 Other community programmesProduced outreach programmes to reflect and highlight local and community issues and to be the eyes and ears of the public and engage in public awareness through its businessesrsquo media resources and platforms in print interactive media and television eg Project Sunshine
Social Responsibility ndash cont
Environment - EfficiencyStrongly committed to being an environmentally friendly Company by using recycled paper especially in its newspapers business efficient usage of electricity in offices water management reducing amount of waste produced throughout its businesses and other environmental initiatives such as lsquosave our beachrsquo project and WWFrsquos Earth Hour
Marketplace ndash Responsible ContentFocusing on product responsibility in providing high quality products and is committed to establishing a horizontal specialisation system based on collaboration with stakeholders The production flow is illustrated in the diagram below
Workplace ndash Right CultureIt aims to create a workplace where its people have the opportunity to be the best they possibly can to have the right culture safe working environment and human capital development with fair processes
Media Prima Acknowledges it various stakeholder via Stakeholders Management
Media Prima is aware of the diversity of its stakeholders and the different goals and demand of its stakeholders
The Company conducts active engagement with its stakeholders to fully understand their needs and increase their trust in the Company through formal and informal mechanisms as follows
It has moved on to 2nd stage of CSR
1st Generation 2nd Generation 3rd Generation
Philanthropic short term risk management
Product Process innovation business and corporate governance model long term sustainability Strategic CSR
3rd Generation Multi- stakeholder standards and partnerships institutional building CR- Oriented advocacy and public policy
Opportunity
What is next for Media Prima to shape the industry
Creating content that generate advertising dollars amp donations of the poor social awareness
By leveraging on its content distribution capabilities
SWOT Analysis
SWOT Analysis ndash Summary
Strengths 1 Strong market share in TV segment2 Malaysiarsquos only integrated media
organization- have vertical and horizontal diversification advantage
3 Established value chains strength which complements the required core competencies
4 Have move across 3 revenue models
Weaknesses1 limited number of stations variety and choice
for consumer2 Despite diversification revenues still mainly
driven by advertisers and TV -gt cross platforms is needed
3 Financial segmentation may hinder potentials of the company
Opportunities 1 Broadband infrastructure ndash via HSBB2 Development of technology ndash creating
medias gadgets that increase digital interaction and content consumption
3 Consumers are willing to pay for content4 Possible deregulation of content ndash leveling
the playing field
Threats 1 2012 forecasting a financial slow down
affecting Ad Ex ndash hence revenue is reduced2 Increase competition New Entrants Pay TV
player amp continual competition from ASTRO3 Changing consumer habits towards media
consumption -gt moving away from traditional media ndash hence have to fight for consumerrsquos attention
Right Technology (Gadget and Infrastructure) at the Right time (deregulation) amp Right consumers (shift in media habits and willingness to pay for content ndash ASTRO as indicator)
Vertical Value Chain advantage to compete in content development
Media Primarsquos Current situation in summary
+VE
-VE Revenue dependent on advertising which is affected correlated to GDP
Resources organization structure holds back effectiveness of organization
Moving forward2012 and beyond
Recommended Destination and future growth of Media Prima
Revenue mainly from advertising
Revenue from advertising
Content SubscriptionBy viewers
Content driven Complementary Services for advertiser (Auxillary Services)
Media Prima
Media Prima
Content Syndicationto competitors
+
How Moving from aggregator to content creator
Content Focus Leveraging on content to Embark on Revenue shifts
Long term sustainable leadership
Restructuring to liberateresources for Content
Sustainable Talent development -
Partnership
Riding the Technology Wave
Short term (2012) Mid Term (by 2013-2015) Long term 2015 beyond
How Moving from aggregator to content creator
Content Focus Leveraging on content to Embark on Revenue shifts
Long term sustainable leadership
Restructuring to liberateresources for Content
Sustainable Talent development -
Partnership
Riding the Technology Wave
Short term (2012) Mid Term (by 2013-2015) Long term 2015 beyond
Creating a Content focus agency All these can be enable via the following means
Demand- The content creation race bull There is a need to free up empower human capital to create more content which are relevant
segmented engaging and entertaining
How does media prima refocus its resources into where it matters Instead of multiple teams doing the same thing ndash there is a challenge to create a lean and efficient organization
Challenges Freeing Resources
Instead of looking at a Media based financial segment reporting structurally force the teams to integrate by changing the dynamics of PampL
Next page
Solution Redefining Business Units Paradigms
Take a step up from producing beyond the current vernacular program to meet shifting consumer needs
Challenges ndash Lifestyle lead Variety
Creating Channel programs which are target segment focus based on lifestyles hellip
Acquisition of content as content regulations will be relaxed
Solution Target Segment focus
Using financial view to free resources for content developmentFinancial segment reporting may create a ldquosilordquo mentality ndash which encourages each head of business to protect their bottom line Hence a less effective in operations
Our recommendation is to expand content creation to cut across and shift paradigms to free up resources and focus on new revenue streams And create new content for different segment
Tele
visi
on N
etw
ork
Radi
o N
etw
ork
Out
door
Med
ia
Prin
t M
edia
Oth
er M
edia
Current Financial Segment Reporting
Tele
visi
on N
etw
ork
Radi
o N
etw
ork
Out
door
Med
ia
Prin
t M
edia
Oth
er M
edia
Production
Content
Subscription
Advertising
Recommended Segment Reporting
Lifestyle Segments
Lifestyle Segments
Lifestyle Segments
Lifestyle Segments
Lifestyle Segments
Lifestyle Segments
By changing the business segment reporting it also affects the company structure
The benefits - Flexibility and empowers knowledge
economy ndash talent content driven
- Builds at strong work culture which may be replicated in the region
- Expansion to embark on talent and content crowd sourcing - open innovation creation
Media Prima can take this opportunity to achieve SPECIALIZATION COORDINATION AND COOPERATION Currently team structure ndash of Integrated Marketing Division is created as a temporary solution hellip to enable integration It will move towards a network model to haste integration fast and response to technology and consumer needs
Subcription
Advertising
Production
TechnologyPartner
Content
How Moving from aggregator to content creator
Content Focus Leveraging on content to Embark on Revenue shifts
Long term sustainable leadership
Restructuring to liberateresources for Content
Sustainable Talent development -
Partnership
Riding the Technology Wave
Short term (2012) Mid Term (by 2013-2015) Long term 2015 beyond
Technology ndash Enable Media Prima to leap into Interactive Content
Interactive Content
UniFi Axiata
Media Prima
Electronics Manufacturer
Demand - A ready market bull There is a latent demand for content-gt consumers are
willing to Pay bull Technology has accustomed consumers to interacting
with contentbull Regulatory push to shift from analogue to digital by
2015
However unlike Media Primarsquos western counterparts ie Time Warner Communication Media Prima does not have the advantages of cable infrastructure
Challenges ndash Limitation
Media Prima could depend on existing suppliers of connectivity and technology- Telecommunications ie AXIATA and - Manufacturing companies ie Samsungto take the leap into interactive content Unifi TM
Solution ndash Smart Partnerships
Maximizing Unrelated Diversification
It is not a Fad but a trend
Smart TV is an inevitable trend says Baeguen Kang vice president of
research and development at South Koreas LG Electronics Co the worlds second-largest seller of TV sets by unit volume As people experienced smartphones and tablet PCs the larger screen on a TV is very attractive for apps and Web content
210 million TV sets sold world-wide had an Internet connection (2010)
21 50It will be the forecast in (2014)
Source Evan Ramstad (January 2011)A ldquoManufacturers Turn to Smart TV After 3-D Disappointsrdquo The Wall Street Journal online httponlinewsjcomarticleSB10001424052748704835504576059783074010902html
As technology develops Current cost is will drop exponentially reflecting the Moorersquos Law
Hence lowering the cost of access for interactive content
Example of Smart TV
Smart Hub It is a front facing interface just like a main menu
when consumers turn on their TV There are few utilities that consumers can choose to be entertained
Video ndash consumers can choose from array of video collections that required to be paid
Apps ndash an internet-enabled applications like You Tube Facebook Twitter Skype and others
Internet browsing ndash just like PC internet browsing
Music photo and TV watching
Smart ConnectivityWIFI enabled that allows consumers to connect to all mobile devices like smart phone tablet PC notebook and camera with Samsung Wireless Router called 1 foot This connectivity is being called ldquoAllSharerdquo by Samsung
httpotbresearchcomau200509report-1-industry-forum
MEDIA PRIMA IS CURRENTLY HERE
This will ultimately lead Media Prima to reduce it dependence on advertising revenue
Others ndash Utilising the SMART TV technology and Apps to create any existing Media Prima businesses
NEW Revenue Streams for Media Prima
To take advantage of SMART TV and collaborate with SMART TV manufacturers Media Prima can look into following utilities
Collaborate with manufacturers to allow consumers to browse and pay for Media Prima video collections
Selling local music for Malaysia market
Collaborate with local or international content developers to create Malaysia specific contents for paid subscription or free for common content to attract new consumers
How
Content Focus Leveraging on content to Embark on Revenue shifts
Long term sustainable leadership
Restructuring to liberateresources for Content
Sustainable Talent development -
Partnership
Riding the Technology Wave
Short term (2012) Mid Term (by 2013-2015) Long term 2015 beyond
Building Talents in the long run
Education Building on its strategic CSR ndash Media Prima could champion the
development of the content industry by partnering with local universities in the areas of technology media and communication
Crowd Sourcing To haste up the strategic CSR it too could embark on crowd
sourcing for content ndash via scripts and interactive content In which Media Prima could support a great idea and develop the ideas for monetization
This is a synergistic and natural development from the networks structure (open innovation)
Summary ndash Media Prima
Develop Talent Pool
Ensure Vibrant Content Industry
Technologycreates ubiquitous
Low Access Cost
To spur the industry forward
Strong talent develops Content development
demand for access
Strong content industry drives demand for Talent drives demand for content
Our recommendations are aligned to help spur the industry forwardhellip
Restructuring to liberateresources for Content
Sustainable Talent development -
Partnership
Riding the Technology Wave ndash Via Smart
Partnerships
References
References
1 Anon ldquoMedia Prima Berhad implements Accenture integrated broadcast systemrdquo Accenture Press Release httpnewsroomaccenturecomarticle_displaycfmarticle_id=5005 viewed 3 November 2011
2 Anon ldquoNew exciting and vibrant offerings from MPB television networks in 2010rdquo Media Prima Press Release httpwwwmediaprimacommypressreleasepressreleaseaspxid=150 viewed 3 November 2011
3 Anderson J ldquoResource-based competitiveness managerial implications of the resource-based viewrdquo Strategic Direction Vol26 No5 2010 pp1-2
4 Arman Arshad (2006) Size matters Retrieved December 2 2011 from asiaviewsorg httpwwwasiaviewsorgindexphpoption=com_contentampview=articleampid=2171headlinealias2171ampcatid=1headlinesampItemid=2
5 Asia Times (2007 November 29) Malaysian media giant grasps for Internet Retrieved November 3 2011 from httpwwwatimescomatimesSoutheast_AsiaIK29Ae02html
6 Barney JB amp Hesterly WS (2008) Strategic Management and Competitive Advantage The Five Forces Model of Environmental Threats pp39Prentice Hall
7 BBC (2011) BBC News product launches on connected TV Retrieved from bbccoukpressofficepressreleasesstories201106_june17newsshtml
8 Boston Consulting Group (2011) Lean Advantage in Media Boston Consulting Group
9 Boston Consulting Group (2011) Running Forward Walking Backward Boston Consulting Group
10 Business Times (2011) Media Prima net revenue grows to RM119b Kuala Lumpur New Straits Times
11 Business Times (2011) Media Prima on track to achie1048665ing 2011 target Retrieved from www1btimescomm1048668Current_NewsBTIMESarticlespimeArticle
References (1)
12 Business Times (2011) Media Prima Puncak Semangat in early talks Retrieved from httpwwwbtimescommyarticlespimmaArticle
13 Carl W Stern George Stalk Carl W Stern George Stalk Stern CW amp Stalk G (2011) Perspectives of Strategy from the Boston Consulting Group Retrieved December 3 2011 from Value Based Managementnet httpwwwvaluebasedmanagementnetmethods_bcgmatrixhtml
14 ecmlibra (2011) Adex momentum to taper off in 2012 ecmlibra
15 Gershon R A amp Ratnadeep S V (2004) Viacom Inc A Case Study in Transnational Media Management Journal of Media Business Studies 1 (1) 47-69
16 Grant RM ldquoThe resource-based theory of competitive advantage implications for strategy formulationrdquo California Management Review Vol 3 2011 httpwwwskynetie~karenArticlesGrant1_NBpdf viewed 15 November 2011
17 GreyReview (2011) TonTon Streaming Over 11 Million Video Hours A Month now with 16 millions registered users Retrieved from httpwwwgreyreviewcom20110731tonton-serving-over-1-1-million-video-hours-a-month-now-with-1-6-registered-users
18 Heavy Reading (2011) Telecom in TV Land A Roadmap to New Digital Media Ecosystem Retrieved from wwwheavyreadingcomdetailsaspsku_id=1773ampskuitem_itemid=1030
19 Hegedus N (2010) The Great Scare EBR 3 10-17
20 JohnsonGScholesK amp Whittington (2008) Exploring Corporate Strategy Competitive Forces ndash the Five Forces Framework pp 59-64 Prentice Hall
21 kinetic (2011) Moving World Asia Hong Kong
References (2)
22 Knowledgefaber (2009) Telcos Avatar - As Media Companies 20 Retrieved from httpknowledgefabercomindexphpoption=com_contentampview=articleampid=40telecom-and-media-convergenceampcatid=10telecomampItemid=42
23 Knowledgefaber (2011) Telcos Avatar - As Media Companies 20 Retrieved from httpknowledgefabercomindexphpoption=com_contentampview=articleampid=40
24 Malik O (2011) GIGAOM Retrieved from httpgigaomcom20110223old-media-is-being-unbundled-just-like-telecom-was
25 Maxis with TM Astro with TIME Best Strategy to IPTV Market Retrieved December 1 2011 httpbizthestarcommynewsstoryaspfile=201111business7704581ampsec=business
26 Media Prima (2010) Annual Report Media Prima Berhad27 Media Prima Berhad (2011) 11 Nov 2011 - New Exciting amp Vibrant Offerings From MPB Television Retrieved from
wwwmediaprimacommypressreleasepressreleaseaspxid=15028 Media Prima (2010) Sustainability Report Media Prima Berhad29 OSK (2011) Media Prima OSK30 Pocket-Lint (2011) Samsung Smart TV hits 2 million mark Retrieved from
httpwwwpocket-lintcomnews40593samsung-smart-tv-2-million31 PricewaterhouseCoopers (2011) Achieving corporate financial PwC32 PricewaterhouseCoopers (2007) Financial Reporting Standards (FRS) in Malaysia PricewaterhouseCoopers33 SKMM (MCMC) (2009) Advertising Development in Malaysia SKMM34 SKMM (MCMC) (2011) Content Development SKMM35 Techpinions (2011) Interactive TV Trends - How the TV experience is changing - Part II Retrieved from
httptechpinionscominteractive-tv-trends-E28093-how-the-tv-experience-is-changing-part-ii4066
References (3)
36 The Edge (2011) Media Prima best proxy to sector Retrieved from wwwtheedgemalaysiacom37 The Edge Malaysia (2011 September 26) Education the mother of all reforms Retrieved October 30 2011 from
httpwwwtheedgemalaysiacomin-the-financial-daily193478-education-the-mother-of-all-reformshtml38 The Star Online (2011) Main players in the competitive TV sector Retrieved from bizthestarcommynewsstoryasp
file=20111126business997401739 The Star Online (2011) Maxis ready to move up value Retrieved from
bizthestarcommynewsstoryaspfile=201111business7704581ampse40 The Star Online (2011) New players enter the TV Retrieved from
bizthestarcommynewsstoryaspfile=20111126business997300841 The Star Newspaper (December 1 2011) Capital TV to make its debut today42 The Star Online (January 1 2011) Maxis ready to move up value chain Retrieved December 3 2011
httpbizthestarcommynewsstoryaspfile=201111business7704581ampsec=business43 The Star Online (2011 April 21) Media Prima to invest more on local content Retrieved October 30 2011 from C
Usersa34ffzzDesktopMedia PrimaUsed articlesMedia Prima to invest more in local contentmht44 Time Warners (2010) Annual Report Time Warners45 WHAT HI FI (2011) Samsung aims for 50m TV sales worldwide in 2012 set to announce launch date for Google TV
product Retrieved from httpwwwwhathificomnewssamsung-aims-for-50m-tv-sales-worldwide-in-2012-set-to-announce-launch-date-for-google-tv-produ
46 Woroch G A (1996) Turning the Cables Elsevier47 Zanuddin H (2007) Political influence in Malaysia and Thailand media sector Jati Vol12
- MEdiA PRIMA
- Agenda
- Company Profile
- Media Primarsquos Commitment amp Direction moving forward
- Media Industry Business Model ndash Content Driven
- Our Tasks ndash How
- PEST Analysis
- Politics Legal Issues amp Impact
- Economic Issues and Impact
- Social Issues and Impact
- Social Issues and Impact
- Technology Issues and Impact
- In short
- Porterrsquos 5 Forces Analysis
- Porterrsquos Five Forces ndash Competitive Analysis
- Financials
- Media Prima Financial Highlights
- However in further analysis
- Value Chain Analysis
- Resource Based View
- In the context of the Content industry value chain Mapped again
- Appraising capabilities which drives profitability
- Mapping Media Prima revenue streams against the Diversification
- Slide 25
- Related Constrained Diversification
- Related Constrained Diversification (2)
- Slide 28
- Related Linked Diversification
- Slide 30
- Social Responsibility Analysis
- Social Responsibility
- Social Responsibility ndash cont
- Media Prima Acknowledges it various stakeholder via Stakeholder
- It has moved on to 2nd stage of CSR
- SWOT Analysis
- SWOT Analysis ndash Summary
- Media Primarsquos Current situation in summary
- Moving forward 2012 and beyond
- Recommended Destination and future growth of Media Prima
- How Moving from aggregator to content creator
- How Moving from aggregator to content creator (2)
- Creating a Content focus agency All these can be enable via
- Using financial view to free resources for content development
- By changing the business segment reporting it also affects the
- How Moving from aggregator to content creator (3)
- Technology ndash Enable Media Prima to leap into Interactive Conten
- It is not a Fad but a trend
- Slide 50
- Example of Smart TV
- This will ultimately lead Media Prima to reduce it dependence o
- NEW Revenue Streams for Media Prima
- How
- Building Talents in the long run
- Summary ndash Media Prima
- References
- References
- References (1)
- References (2)
- References (3)
-
Social Responsibility Analysis
Social Responsibility
Media Primarsquos approach to Social Responsibility is based on the key triple bottom line ndash social environmental and economic It considers the socio-economic impact of its business activities in the aim to create value to its stakeholders via the 4 categories ie community workplace marketplace and environment
Community1EducationFocusing on education to raise awareness of the importance of education and increase the academic standards of underprivileged children and underperforming schools eg PINTAR Programme NST School Sponsorship Programme
2 HumanitarianRaise funds for humanitarian aid and provided updates on the local and world disaster crisis to the public and raised awareness of the funds eg Humanitarian Aid for Gaza Humanitarian Aid for Flood Victims in Pakistan
3 Other community programmesProduced outreach programmes to reflect and highlight local and community issues and to be the eyes and ears of the public and engage in public awareness through its businessesrsquo media resources and platforms in print interactive media and television eg Project Sunshine
Social Responsibility ndash cont
Environment - EfficiencyStrongly committed to being an environmentally friendly Company by using recycled paper especially in its newspapers business efficient usage of electricity in offices water management reducing amount of waste produced throughout its businesses and other environmental initiatives such as lsquosave our beachrsquo project and WWFrsquos Earth Hour
Marketplace ndash Responsible ContentFocusing on product responsibility in providing high quality products and is committed to establishing a horizontal specialisation system based on collaboration with stakeholders The production flow is illustrated in the diagram below
Workplace ndash Right CultureIt aims to create a workplace where its people have the opportunity to be the best they possibly can to have the right culture safe working environment and human capital development with fair processes
Media Prima Acknowledges it various stakeholder via Stakeholders Management
Media Prima is aware of the diversity of its stakeholders and the different goals and demand of its stakeholders
The Company conducts active engagement with its stakeholders to fully understand their needs and increase their trust in the Company through formal and informal mechanisms as follows
It has moved on to 2nd stage of CSR
1st Generation 2nd Generation 3rd Generation
Philanthropic short term risk management
Product Process innovation business and corporate governance model long term sustainability Strategic CSR
3rd Generation Multi- stakeholder standards and partnerships institutional building CR- Oriented advocacy and public policy
Opportunity
What is next for Media Prima to shape the industry
Creating content that generate advertising dollars amp donations of the poor social awareness
By leveraging on its content distribution capabilities
SWOT Analysis
SWOT Analysis ndash Summary
Strengths 1 Strong market share in TV segment2 Malaysiarsquos only integrated media
organization- have vertical and horizontal diversification advantage
3 Established value chains strength which complements the required core competencies
4 Have move across 3 revenue models
Weaknesses1 limited number of stations variety and choice
for consumer2 Despite diversification revenues still mainly
driven by advertisers and TV -gt cross platforms is needed
3 Financial segmentation may hinder potentials of the company
Opportunities 1 Broadband infrastructure ndash via HSBB2 Development of technology ndash creating
medias gadgets that increase digital interaction and content consumption
3 Consumers are willing to pay for content4 Possible deregulation of content ndash leveling
the playing field
Threats 1 2012 forecasting a financial slow down
affecting Ad Ex ndash hence revenue is reduced2 Increase competition New Entrants Pay TV
player amp continual competition from ASTRO3 Changing consumer habits towards media
consumption -gt moving away from traditional media ndash hence have to fight for consumerrsquos attention
Right Technology (Gadget and Infrastructure) at the Right time (deregulation) amp Right consumers (shift in media habits and willingness to pay for content ndash ASTRO as indicator)
Vertical Value Chain advantage to compete in content development
Media Primarsquos Current situation in summary
+VE
-VE Revenue dependent on advertising which is affected correlated to GDP
Resources organization structure holds back effectiveness of organization
Moving forward2012 and beyond
Recommended Destination and future growth of Media Prima
Revenue mainly from advertising
Revenue from advertising
Content SubscriptionBy viewers
Content driven Complementary Services for advertiser (Auxillary Services)
Media Prima
Media Prima
Content Syndicationto competitors
+
How Moving from aggregator to content creator
Content Focus Leveraging on content to Embark on Revenue shifts
Long term sustainable leadership
Restructuring to liberateresources for Content
Sustainable Talent development -
Partnership
Riding the Technology Wave
Short term (2012) Mid Term (by 2013-2015) Long term 2015 beyond
How Moving from aggregator to content creator
Content Focus Leveraging on content to Embark on Revenue shifts
Long term sustainable leadership
Restructuring to liberateresources for Content
Sustainable Talent development -
Partnership
Riding the Technology Wave
Short term (2012) Mid Term (by 2013-2015) Long term 2015 beyond
Creating a Content focus agency All these can be enable via the following means
Demand- The content creation race bull There is a need to free up empower human capital to create more content which are relevant
segmented engaging and entertaining
How does media prima refocus its resources into where it matters Instead of multiple teams doing the same thing ndash there is a challenge to create a lean and efficient organization
Challenges Freeing Resources
Instead of looking at a Media based financial segment reporting structurally force the teams to integrate by changing the dynamics of PampL
Next page
Solution Redefining Business Units Paradigms
Take a step up from producing beyond the current vernacular program to meet shifting consumer needs
Challenges ndash Lifestyle lead Variety
Creating Channel programs which are target segment focus based on lifestyles hellip
Acquisition of content as content regulations will be relaxed
Solution Target Segment focus
Using financial view to free resources for content developmentFinancial segment reporting may create a ldquosilordquo mentality ndash which encourages each head of business to protect their bottom line Hence a less effective in operations
Our recommendation is to expand content creation to cut across and shift paradigms to free up resources and focus on new revenue streams And create new content for different segment
Tele
visi
on N
etw
ork
Radi
o N
etw
ork
Out
door
Med
ia
Prin
t M
edia
Oth
er M
edia
Current Financial Segment Reporting
Tele
visi
on N
etw
ork
Radi
o N
etw
ork
Out
door
Med
ia
Prin
t M
edia
Oth
er M
edia
Production
Content
Subscription
Advertising
Recommended Segment Reporting
Lifestyle Segments
Lifestyle Segments
Lifestyle Segments
Lifestyle Segments
Lifestyle Segments
Lifestyle Segments
By changing the business segment reporting it also affects the company structure
The benefits - Flexibility and empowers knowledge
economy ndash talent content driven
- Builds at strong work culture which may be replicated in the region
- Expansion to embark on talent and content crowd sourcing - open innovation creation
Media Prima can take this opportunity to achieve SPECIALIZATION COORDINATION AND COOPERATION Currently team structure ndash of Integrated Marketing Division is created as a temporary solution hellip to enable integration It will move towards a network model to haste integration fast and response to technology and consumer needs
Subcription
Advertising
Production
TechnologyPartner
Content
How Moving from aggregator to content creator
Content Focus Leveraging on content to Embark on Revenue shifts
Long term sustainable leadership
Restructuring to liberateresources for Content
Sustainable Talent development -
Partnership
Riding the Technology Wave
Short term (2012) Mid Term (by 2013-2015) Long term 2015 beyond
Technology ndash Enable Media Prima to leap into Interactive Content
Interactive Content
UniFi Axiata
Media Prima
Electronics Manufacturer
Demand - A ready market bull There is a latent demand for content-gt consumers are
willing to Pay bull Technology has accustomed consumers to interacting
with contentbull Regulatory push to shift from analogue to digital by
2015
However unlike Media Primarsquos western counterparts ie Time Warner Communication Media Prima does not have the advantages of cable infrastructure
Challenges ndash Limitation
Media Prima could depend on existing suppliers of connectivity and technology- Telecommunications ie AXIATA and - Manufacturing companies ie Samsungto take the leap into interactive content Unifi TM
Solution ndash Smart Partnerships
Maximizing Unrelated Diversification
It is not a Fad but a trend
Smart TV is an inevitable trend says Baeguen Kang vice president of
research and development at South Koreas LG Electronics Co the worlds second-largest seller of TV sets by unit volume As people experienced smartphones and tablet PCs the larger screen on a TV is very attractive for apps and Web content
210 million TV sets sold world-wide had an Internet connection (2010)
21 50It will be the forecast in (2014)
Source Evan Ramstad (January 2011)A ldquoManufacturers Turn to Smart TV After 3-D Disappointsrdquo The Wall Street Journal online httponlinewsjcomarticleSB10001424052748704835504576059783074010902html
As technology develops Current cost is will drop exponentially reflecting the Moorersquos Law
Hence lowering the cost of access for interactive content
Example of Smart TV
Smart Hub It is a front facing interface just like a main menu
when consumers turn on their TV There are few utilities that consumers can choose to be entertained
Video ndash consumers can choose from array of video collections that required to be paid
Apps ndash an internet-enabled applications like You Tube Facebook Twitter Skype and others
Internet browsing ndash just like PC internet browsing
Music photo and TV watching
Smart ConnectivityWIFI enabled that allows consumers to connect to all mobile devices like smart phone tablet PC notebook and camera with Samsung Wireless Router called 1 foot This connectivity is being called ldquoAllSharerdquo by Samsung
httpotbresearchcomau200509report-1-industry-forum
MEDIA PRIMA IS CURRENTLY HERE
This will ultimately lead Media Prima to reduce it dependence on advertising revenue
Others ndash Utilising the SMART TV technology and Apps to create any existing Media Prima businesses
NEW Revenue Streams for Media Prima
To take advantage of SMART TV and collaborate with SMART TV manufacturers Media Prima can look into following utilities
Collaborate with manufacturers to allow consumers to browse and pay for Media Prima video collections
Selling local music for Malaysia market
Collaborate with local or international content developers to create Malaysia specific contents for paid subscription or free for common content to attract new consumers
How
Content Focus Leveraging on content to Embark on Revenue shifts
Long term sustainable leadership
Restructuring to liberateresources for Content
Sustainable Talent development -
Partnership
Riding the Technology Wave
Short term (2012) Mid Term (by 2013-2015) Long term 2015 beyond
Building Talents in the long run
Education Building on its strategic CSR ndash Media Prima could champion the
development of the content industry by partnering with local universities in the areas of technology media and communication
Crowd Sourcing To haste up the strategic CSR it too could embark on crowd
sourcing for content ndash via scripts and interactive content In which Media Prima could support a great idea and develop the ideas for monetization
This is a synergistic and natural development from the networks structure (open innovation)
Summary ndash Media Prima
Develop Talent Pool
Ensure Vibrant Content Industry
Technologycreates ubiquitous
Low Access Cost
To spur the industry forward
Strong talent develops Content development
demand for access
Strong content industry drives demand for Talent drives demand for content
Our recommendations are aligned to help spur the industry forwardhellip
Restructuring to liberateresources for Content
Sustainable Talent development -
Partnership
Riding the Technology Wave ndash Via Smart
Partnerships
References
References
1 Anon ldquoMedia Prima Berhad implements Accenture integrated broadcast systemrdquo Accenture Press Release httpnewsroomaccenturecomarticle_displaycfmarticle_id=5005 viewed 3 November 2011
2 Anon ldquoNew exciting and vibrant offerings from MPB television networks in 2010rdquo Media Prima Press Release httpwwwmediaprimacommypressreleasepressreleaseaspxid=150 viewed 3 November 2011
3 Anderson J ldquoResource-based competitiveness managerial implications of the resource-based viewrdquo Strategic Direction Vol26 No5 2010 pp1-2
4 Arman Arshad (2006) Size matters Retrieved December 2 2011 from asiaviewsorg httpwwwasiaviewsorgindexphpoption=com_contentampview=articleampid=2171headlinealias2171ampcatid=1headlinesampItemid=2
5 Asia Times (2007 November 29) Malaysian media giant grasps for Internet Retrieved November 3 2011 from httpwwwatimescomatimesSoutheast_AsiaIK29Ae02html
6 Barney JB amp Hesterly WS (2008) Strategic Management and Competitive Advantage The Five Forces Model of Environmental Threats pp39Prentice Hall
7 BBC (2011) BBC News product launches on connected TV Retrieved from bbccoukpressofficepressreleasesstories201106_june17newsshtml
8 Boston Consulting Group (2011) Lean Advantage in Media Boston Consulting Group
9 Boston Consulting Group (2011) Running Forward Walking Backward Boston Consulting Group
10 Business Times (2011) Media Prima net revenue grows to RM119b Kuala Lumpur New Straits Times
11 Business Times (2011) Media Prima on track to achie1048665ing 2011 target Retrieved from www1btimescomm1048668Current_NewsBTIMESarticlespimeArticle
References (1)
12 Business Times (2011) Media Prima Puncak Semangat in early talks Retrieved from httpwwwbtimescommyarticlespimmaArticle
13 Carl W Stern George Stalk Carl W Stern George Stalk Stern CW amp Stalk G (2011) Perspectives of Strategy from the Boston Consulting Group Retrieved December 3 2011 from Value Based Managementnet httpwwwvaluebasedmanagementnetmethods_bcgmatrixhtml
14 ecmlibra (2011) Adex momentum to taper off in 2012 ecmlibra
15 Gershon R A amp Ratnadeep S V (2004) Viacom Inc A Case Study in Transnational Media Management Journal of Media Business Studies 1 (1) 47-69
16 Grant RM ldquoThe resource-based theory of competitive advantage implications for strategy formulationrdquo California Management Review Vol 3 2011 httpwwwskynetie~karenArticlesGrant1_NBpdf viewed 15 November 2011
17 GreyReview (2011) TonTon Streaming Over 11 Million Video Hours A Month now with 16 millions registered users Retrieved from httpwwwgreyreviewcom20110731tonton-serving-over-1-1-million-video-hours-a-month-now-with-1-6-registered-users
18 Heavy Reading (2011) Telecom in TV Land A Roadmap to New Digital Media Ecosystem Retrieved from wwwheavyreadingcomdetailsaspsku_id=1773ampskuitem_itemid=1030
19 Hegedus N (2010) The Great Scare EBR 3 10-17
20 JohnsonGScholesK amp Whittington (2008) Exploring Corporate Strategy Competitive Forces ndash the Five Forces Framework pp 59-64 Prentice Hall
21 kinetic (2011) Moving World Asia Hong Kong
References (2)
22 Knowledgefaber (2009) Telcos Avatar - As Media Companies 20 Retrieved from httpknowledgefabercomindexphpoption=com_contentampview=articleampid=40telecom-and-media-convergenceampcatid=10telecomampItemid=42
23 Knowledgefaber (2011) Telcos Avatar - As Media Companies 20 Retrieved from httpknowledgefabercomindexphpoption=com_contentampview=articleampid=40
24 Malik O (2011) GIGAOM Retrieved from httpgigaomcom20110223old-media-is-being-unbundled-just-like-telecom-was
25 Maxis with TM Astro with TIME Best Strategy to IPTV Market Retrieved December 1 2011 httpbizthestarcommynewsstoryaspfile=201111business7704581ampsec=business
26 Media Prima (2010) Annual Report Media Prima Berhad27 Media Prima Berhad (2011) 11 Nov 2011 - New Exciting amp Vibrant Offerings From MPB Television Retrieved from
wwwmediaprimacommypressreleasepressreleaseaspxid=15028 Media Prima (2010) Sustainability Report Media Prima Berhad29 OSK (2011) Media Prima OSK30 Pocket-Lint (2011) Samsung Smart TV hits 2 million mark Retrieved from
httpwwwpocket-lintcomnews40593samsung-smart-tv-2-million31 PricewaterhouseCoopers (2011) Achieving corporate financial PwC32 PricewaterhouseCoopers (2007) Financial Reporting Standards (FRS) in Malaysia PricewaterhouseCoopers33 SKMM (MCMC) (2009) Advertising Development in Malaysia SKMM34 SKMM (MCMC) (2011) Content Development SKMM35 Techpinions (2011) Interactive TV Trends - How the TV experience is changing - Part II Retrieved from
httptechpinionscominteractive-tv-trends-E28093-how-the-tv-experience-is-changing-part-ii4066
References (3)
36 The Edge (2011) Media Prima best proxy to sector Retrieved from wwwtheedgemalaysiacom37 The Edge Malaysia (2011 September 26) Education the mother of all reforms Retrieved October 30 2011 from
httpwwwtheedgemalaysiacomin-the-financial-daily193478-education-the-mother-of-all-reformshtml38 The Star Online (2011) Main players in the competitive TV sector Retrieved from bizthestarcommynewsstoryasp
file=20111126business997401739 The Star Online (2011) Maxis ready to move up value Retrieved from
bizthestarcommynewsstoryaspfile=201111business7704581ampse40 The Star Online (2011) New players enter the TV Retrieved from
bizthestarcommynewsstoryaspfile=20111126business997300841 The Star Newspaper (December 1 2011) Capital TV to make its debut today42 The Star Online (January 1 2011) Maxis ready to move up value chain Retrieved December 3 2011
httpbizthestarcommynewsstoryaspfile=201111business7704581ampsec=business43 The Star Online (2011 April 21) Media Prima to invest more on local content Retrieved October 30 2011 from C
Usersa34ffzzDesktopMedia PrimaUsed articlesMedia Prima to invest more in local contentmht44 Time Warners (2010) Annual Report Time Warners45 WHAT HI FI (2011) Samsung aims for 50m TV sales worldwide in 2012 set to announce launch date for Google TV
product Retrieved from httpwwwwhathificomnewssamsung-aims-for-50m-tv-sales-worldwide-in-2012-set-to-announce-launch-date-for-google-tv-produ
46 Woroch G A (1996) Turning the Cables Elsevier47 Zanuddin H (2007) Political influence in Malaysia and Thailand media sector Jati Vol12
- MEdiA PRIMA
- Agenda
- Company Profile
- Media Primarsquos Commitment amp Direction moving forward
- Media Industry Business Model ndash Content Driven
- Our Tasks ndash How
- PEST Analysis
- Politics Legal Issues amp Impact
- Economic Issues and Impact
- Social Issues and Impact
- Social Issues and Impact
- Technology Issues and Impact
- In short
- Porterrsquos 5 Forces Analysis
- Porterrsquos Five Forces ndash Competitive Analysis
- Financials
- Media Prima Financial Highlights
- However in further analysis
- Value Chain Analysis
- Resource Based View
- In the context of the Content industry value chain Mapped again
- Appraising capabilities which drives profitability
- Mapping Media Prima revenue streams against the Diversification
- Slide 25
- Related Constrained Diversification
- Related Constrained Diversification (2)
- Slide 28
- Related Linked Diversification
- Slide 30
- Social Responsibility Analysis
- Social Responsibility
- Social Responsibility ndash cont
- Media Prima Acknowledges it various stakeholder via Stakeholder
- It has moved on to 2nd stage of CSR
- SWOT Analysis
- SWOT Analysis ndash Summary
- Media Primarsquos Current situation in summary
- Moving forward 2012 and beyond
- Recommended Destination and future growth of Media Prima
- How Moving from aggregator to content creator
- How Moving from aggregator to content creator (2)
- Creating a Content focus agency All these can be enable via
- Using financial view to free resources for content development
- By changing the business segment reporting it also affects the
- How Moving from aggregator to content creator (3)
- Technology ndash Enable Media Prima to leap into Interactive Conten
- It is not a Fad but a trend
- Slide 50
- Example of Smart TV
- This will ultimately lead Media Prima to reduce it dependence o
- NEW Revenue Streams for Media Prima
- How
- Building Talents in the long run
- Summary ndash Media Prima
- References
- References
- References (1)
- References (2)
- References (3)
-
Social Responsibility
Media Primarsquos approach to Social Responsibility is based on the key triple bottom line ndash social environmental and economic It considers the socio-economic impact of its business activities in the aim to create value to its stakeholders via the 4 categories ie community workplace marketplace and environment
Community1EducationFocusing on education to raise awareness of the importance of education and increase the academic standards of underprivileged children and underperforming schools eg PINTAR Programme NST School Sponsorship Programme
2 HumanitarianRaise funds for humanitarian aid and provided updates on the local and world disaster crisis to the public and raised awareness of the funds eg Humanitarian Aid for Gaza Humanitarian Aid for Flood Victims in Pakistan
3 Other community programmesProduced outreach programmes to reflect and highlight local and community issues and to be the eyes and ears of the public and engage in public awareness through its businessesrsquo media resources and platforms in print interactive media and television eg Project Sunshine
Social Responsibility ndash cont
Environment - EfficiencyStrongly committed to being an environmentally friendly Company by using recycled paper especially in its newspapers business efficient usage of electricity in offices water management reducing amount of waste produced throughout its businesses and other environmental initiatives such as lsquosave our beachrsquo project and WWFrsquos Earth Hour
Marketplace ndash Responsible ContentFocusing on product responsibility in providing high quality products and is committed to establishing a horizontal specialisation system based on collaboration with stakeholders The production flow is illustrated in the diagram below
Workplace ndash Right CultureIt aims to create a workplace where its people have the opportunity to be the best they possibly can to have the right culture safe working environment and human capital development with fair processes
Media Prima Acknowledges it various stakeholder via Stakeholders Management
Media Prima is aware of the diversity of its stakeholders and the different goals and demand of its stakeholders
The Company conducts active engagement with its stakeholders to fully understand their needs and increase their trust in the Company through formal and informal mechanisms as follows
It has moved on to 2nd stage of CSR
1st Generation 2nd Generation 3rd Generation
Philanthropic short term risk management
Product Process innovation business and corporate governance model long term sustainability Strategic CSR
3rd Generation Multi- stakeholder standards and partnerships institutional building CR- Oriented advocacy and public policy
Opportunity
What is next for Media Prima to shape the industry
Creating content that generate advertising dollars amp donations of the poor social awareness
By leveraging on its content distribution capabilities
SWOT Analysis
SWOT Analysis ndash Summary
Strengths 1 Strong market share in TV segment2 Malaysiarsquos only integrated media
organization- have vertical and horizontal diversification advantage
3 Established value chains strength which complements the required core competencies
4 Have move across 3 revenue models
Weaknesses1 limited number of stations variety and choice
for consumer2 Despite diversification revenues still mainly
driven by advertisers and TV -gt cross platforms is needed
3 Financial segmentation may hinder potentials of the company
Opportunities 1 Broadband infrastructure ndash via HSBB2 Development of technology ndash creating
medias gadgets that increase digital interaction and content consumption
3 Consumers are willing to pay for content4 Possible deregulation of content ndash leveling
the playing field
Threats 1 2012 forecasting a financial slow down
affecting Ad Ex ndash hence revenue is reduced2 Increase competition New Entrants Pay TV
player amp continual competition from ASTRO3 Changing consumer habits towards media
consumption -gt moving away from traditional media ndash hence have to fight for consumerrsquos attention
Right Technology (Gadget and Infrastructure) at the Right time (deregulation) amp Right consumers (shift in media habits and willingness to pay for content ndash ASTRO as indicator)
Vertical Value Chain advantage to compete in content development
Media Primarsquos Current situation in summary
+VE
-VE Revenue dependent on advertising which is affected correlated to GDP
Resources organization structure holds back effectiveness of organization
Moving forward2012 and beyond
Recommended Destination and future growth of Media Prima
Revenue mainly from advertising
Revenue from advertising
Content SubscriptionBy viewers
Content driven Complementary Services for advertiser (Auxillary Services)
Media Prima
Media Prima
Content Syndicationto competitors
+
How Moving from aggregator to content creator
Content Focus Leveraging on content to Embark on Revenue shifts
Long term sustainable leadership
Restructuring to liberateresources for Content
Sustainable Talent development -
Partnership
Riding the Technology Wave
Short term (2012) Mid Term (by 2013-2015) Long term 2015 beyond
How Moving from aggregator to content creator
Content Focus Leveraging on content to Embark on Revenue shifts
Long term sustainable leadership
Restructuring to liberateresources for Content
Sustainable Talent development -
Partnership
Riding the Technology Wave
Short term (2012) Mid Term (by 2013-2015) Long term 2015 beyond
Creating a Content focus agency All these can be enable via the following means
Demand- The content creation race bull There is a need to free up empower human capital to create more content which are relevant
segmented engaging and entertaining
How does media prima refocus its resources into where it matters Instead of multiple teams doing the same thing ndash there is a challenge to create a lean and efficient organization
Challenges Freeing Resources
Instead of looking at a Media based financial segment reporting structurally force the teams to integrate by changing the dynamics of PampL
Next page
Solution Redefining Business Units Paradigms
Take a step up from producing beyond the current vernacular program to meet shifting consumer needs
Challenges ndash Lifestyle lead Variety
Creating Channel programs which are target segment focus based on lifestyles hellip
Acquisition of content as content regulations will be relaxed
Solution Target Segment focus
Using financial view to free resources for content developmentFinancial segment reporting may create a ldquosilordquo mentality ndash which encourages each head of business to protect their bottom line Hence a less effective in operations
Our recommendation is to expand content creation to cut across and shift paradigms to free up resources and focus on new revenue streams And create new content for different segment
Tele
visi
on N
etw
ork
Radi
o N
etw
ork
Out
door
Med
ia
Prin
t M
edia
Oth
er M
edia
Current Financial Segment Reporting
Tele
visi
on N
etw
ork
Radi
o N
etw
ork
Out
door
Med
ia
Prin
t M
edia
Oth
er M
edia
Production
Content
Subscription
Advertising
Recommended Segment Reporting
Lifestyle Segments
Lifestyle Segments
Lifestyle Segments
Lifestyle Segments
Lifestyle Segments
Lifestyle Segments
By changing the business segment reporting it also affects the company structure
The benefits - Flexibility and empowers knowledge
economy ndash talent content driven
- Builds at strong work culture which may be replicated in the region
- Expansion to embark on talent and content crowd sourcing - open innovation creation
Media Prima can take this opportunity to achieve SPECIALIZATION COORDINATION AND COOPERATION Currently team structure ndash of Integrated Marketing Division is created as a temporary solution hellip to enable integration It will move towards a network model to haste integration fast and response to technology and consumer needs
Subcription
Advertising
Production
TechnologyPartner
Content
How Moving from aggregator to content creator
Content Focus Leveraging on content to Embark on Revenue shifts
Long term sustainable leadership
Restructuring to liberateresources for Content
Sustainable Talent development -
Partnership
Riding the Technology Wave
Short term (2012) Mid Term (by 2013-2015) Long term 2015 beyond
Technology ndash Enable Media Prima to leap into Interactive Content
Interactive Content
UniFi Axiata
Media Prima
Electronics Manufacturer
Demand - A ready market bull There is a latent demand for content-gt consumers are
willing to Pay bull Technology has accustomed consumers to interacting
with contentbull Regulatory push to shift from analogue to digital by
2015
However unlike Media Primarsquos western counterparts ie Time Warner Communication Media Prima does not have the advantages of cable infrastructure
Challenges ndash Limitation
Media Prima could depend on existing suppliers of connectivity and technology- Telecommunications ie AXIATA and - Manufacturing companies ie Samsungto take the leap into interactive content Unifi TM
Solution ndash Smart Partnerships
Maximizing Unrelated Diversification
It is not a Fad but a trend
Smart TV is an inevitable trend says Baeguen Kang vice president of
research and development at South Koreas LG Electronics Co the worlds second-largest seller of TV sets by unit volume As people experienced smartphones and tablet PCs the larger screen on a TV is very attractive for apps and Web content
210 million TV sets sold world-wide had an Internet connection (2010)
21 50It will be the forecast in (2014)
Source Evan Ramstad (January 2011)A ldquoManufacturers Turn to Smart TV After 3-D Disappointsrdquo The Wall Street Journal online httponlinewsjcomarticleSB10001424052748704835504576059783074010902html
As technology develops Current cost is will drop exponentially reflecting the Moorersquos Law
Hence lowering the cost of access for interactive content
Example of Smart TV
Smart Hub It is a front facing interface just like a main menu
when consumers turn on their TV There are few utilities that consumers can choose to be entertained
Video ndash consumers can choose from array of video collections that required to be paid
Apps ndash an internet-enabled applications like You Tube Facebook Twitter Skype and others
Internet browsing ndash just like PC internet browsing
Music photo and TV watching
Smart ConnectivityWIFI enabled that allows consumers to connect to all mobile devices like smart phone tablet PC notebook and camera with Samsung Wireless Router called 1 foot This connectivity is being called ldquoAllSharerdquo by Samsung
httpotbresearchcomau200509report-1-industry-forum
MEDIA PRIMA IS CURRENTLY HERE
This will ultimately lead Media Prima to reduce it dependence on advertising revenue
Others ndash Utilising the SMART TV technology and Apps to create any existing Media Prima businesses
NEW Revenue Streams for Media Prima
To take advantage of SMART TV and collaborate with SMART TV manufacturers Media Prima can look into following utilities
Collaborate with manufacturers to allow consumers to browse and pay for Media Prima video collections
Selling local music for Malaysia market
Collaborate with local or international content developers to create Malaysia specific contents for paid subscription or free for common content to attract new consumers
How
Content Focus Leveraging on content to Embark on Revenue shifts
Long term sustainable leadership
Restructuring to liberateresources for Content
Sustainable Talent development -
Partnership
Riding the Technology Wave
Short term (2012) Mid Term (by 2013-2015) Long term 2015 beyond
Building Talents in the long run
Education Building on its strategic CSR ndash Media Prima could champion the
development of the content industry by partnering with local universities in the areas of technology media and communication
Crowd Sourcing To haste up the strategic CSR it too could embark on crowd
sourcing for content ndash via scripts and interactive content In which Media Prima could support a great idea and develop the ideas for monetization
This is a synergistic and natural development from the networks structure (open innovation)
Summary ndash Media Prima
Develop Talent Pool
Ensure Vibrant Content Industry
Technologycreates ubiquitous
Low Access Cost
To spur the industry forward
Strong talent develops Content development
demand for access
Strong content industry drives demand for Talent drives demand for content
Our recommendations are aligned to help spur the industry forwardhellip
Restructuring to liberateresources for Content
Sustainable Talent development -
Partnership
Riding the Technology Wave ndash Via Smart
Partnerships
References
References
1 Anon ldquoMedia Prima Berhad implements Accenture integrated broadcast systemrdquo Accenture Press Release httpnewsroomaccenturecomarticle_displaycfmarticle_id=5005 viewed 3 November 2011
2 Anon ldquoNew exciting and vibrant offerings from MPB television networks in 2010rdquo Media Prima Press Release httpwwwmediaprimacommypressreleasepressreleaseaspxid=150 viewed 3 November 2011
3 Anderson J ldquoResource-based competitiveness managerial implications of the resource-based viewrdquo Strategic Direction Vol26 No5 2010 pp1-2
4 Arman Arshad (2006) Size matters Retrieved December 2 2011 from asiaviewsorg httpwwwasiaviewsorgindexphpoption=com_contentampview=articleampid=2171headlinealias2171ampcatid=1headlinesampItemid=2
5 Asia Times (2007 November 29) Malaysian media giant grasps for Internet Retrieved November 3 2011 from httpwwwatimescomatimesSoutheast_AsiaIK29Ae02html
6 Barney JB amp Hesterly WS (2008) Strategic Management and Competitive Advantage The Five Forces Model of Environmental Threats pp39Prentice Hall
7 BBC (2011) BBC News product launches on connected TV Retrieved from bbccoukpressofficepressreleasesstories201106_june17newsshtml
8 Boston Consulting Group (2011) Lean Advantage in Media Boston Consulting Group
9 Boston Consulting Group (2011) Running Forward Walking Backward Boston Consulting Group
10 Business Times (2011) Media Prima net revenue grows to RM119b Kuala Lumpur New Straits Times
11 Business Times (2011) Media Prima on track to achie1048665ing 2011 target Retrieved from www1btimescomm1048668Current_NewsBTIMESarticlespimeArticle
References (1)
12 Business Times (2011) Media Prima Puncak Semangat in early talks Retrieved from httpwwwbtimescommyarticlespimmaArticle
13 Carl W Stern George Stalk Carl W Stern George Stalk Stern CW amp Stalk G (2011) Perspectives of Strategy from the Boston Consulting Group Retrieved December 3 2011 from Value Based Managementnet httpwwwvaluebasedmanagementnetmethods_bcgmatrixhtml
14 ecmlibra (2011) Adex momentum to taper off in 2012 ecmlibra
15 Gershon R A amp Ratnadeep S V (2004) Viacom Inc A Case Study in Transnational Media Management Journal of Media Business Studies 1 (1) 47-69
16 Grant RM ldquoThe resource-based theory of competitive advantage implications for strategy formulationrdquo California Management Review Vol 3 2011 httpwwwskynetie~karenArticlesGrant1_NBpdf viewed 15 November 2011
17 GreyReview (2011) TonTon Streaming Over 11 Million Video Hours A Month now with 16 millions registered users Retrieved from httpwwwgreyreviewcom20110731tonton-serving-over-1-1-million-video-hours-a-month-now-with-1-6-registered-users
18 Heavy Reading (2011) Telecom in TV Land A Roadmap to New Digital Media Ecosystem Retrieved from wwwheavyreadingcomdetailsaspsku_id=1773ampskuitem_itemid=1030
19 Hegedus N (2010) The Great Scare EBR 3 10-17
20 JohnsonGScholesK amp Whittington (2008) Exploring Corporate Strategy Competitive Forces ndash the Five Forces Framework pp 59-64 Prentice Hall
21 kinetic (2011) Moving World Asia Hong Kong
References (2)
22 Knowledgefaber (2009) Telcos Avatar - As Media Companies 20 Retrieved from httpknowledgefabercomindexphpoption=com_contentampview=articleampid=40telecom-and-media-convergenceampcatid=10telecomampItemid=42
23 Knowledgefaber (2011) Telcos Avatar - As Media Companies 20 Retrieved from httpknowledgefabercomindexphpoption=com_contentampview=articleampid=40
24 Malik O (2011) GIGAOM Retrieved from httpgigaomcom20110223old-media-is-being-unbundled-just-like-telecom-was
25 Maxis with TM Astro with TIME Best Strategy to IPTV Market Retrieved December 1 2011 httpbizthestarcommynewsstoryaspfile=201111business7704581ampsec=business
26 Media Prima (2010) Annual Report Media Prima Berhad27 Media Prima Berhad (2011) 11 Nov 2011 - New Exciting amp Vibrant Offerings From MPB Television Retrieved from
wwwmediaprimacommypressreleasepressreleaseaspxid=15028 Media Prima (2010) Sustainability Report Media Prima Berhad29 OSK (2011) Media Prima OSK30 Pocket-Lint (2011) Samsung Smart TV hits 2 million mark Retrieved from
httpwwwpocket-lintcomnews40593samsung-smart-tv-2-million31 PricewaterhouseCoopers (2011) Achieving corporate financial PwC32 PricewaterhouseCoopers (2007) Financial Reporting Standards (FRS) in Malaysia PricewaterhouseCoopers33 SKMM (MCMC) (2009) Advertising Development in Malaysia SKMM34 SKMM (MCMC) (2011) Content Development SKMM35 Techpinions (2011) Interactive TV Trends - How the TV experience is changing - Part II Retrieved from
httptechpinionscominteractive-tv-trends-E28093-how-the-tv-experience-is-changing-part-ii4066
References (3)
36 The Edge (2011) Media Prima best proxy to sector Retrieved from wwwtheedgemalaysiacom37 The Edge Malaysia (2011 September 26) Education the mother of all reforms Retrieved October 30 2011 from
httpwwwtheedgemalaysiacomin-the-financial-daily193478-education-the-mother-of-all-reformshtml38 The Star Online (2011) Main players in the competitive TV sector Retrieved from bizthestarcommynewsstoryasp
file=20111126business997401739 The Star Online (2011) Maxis ready to move up value Retrieved from
bizthestarcommynewsstoryaspfile=201111business7704581ampse40 The Star Online (2011) New players enter the TV Retrieved from
bizthestarcommynewsstoryaspfile=20111126business997300841 The Star Newspaper (December 1 2011) Capital TV to make its debut today42 The Star Online (January 1 2011) Maxis ready to move up value chain Retrieved December 3 2011
httpbizthestarcommynewsstoryaspfile=201111business7704581ampsec=business43 The Star Online (2011 April 21) Media Prima to invest more on local content Retrieved October 30 2011 from C
Usersa34ffzzDesktopMedia PrimaUsed articlesMedia Prima to invest more in local contentmht44 Time Warners (2010) Annual Report Time Warners45 WHAT HI FI (2011) Samsung aims for 50m TV sales worldwide in 2012 set to announce launch date for Google TV
product Retrieved from httpwwwwhathificomnewssamsung-aims-for-50m-tv-sales-worldwide-in-2012-set-to-announce-launch-date-for-google-tv-produ
46 Woroch G A (1996) Turning the Cables Elsevier47 Zanuddin H (2007) Political influence in Malaysia and Thailand media sector Jati Vol12
- MEdiA PRIMA
- Agenda
- Company Profile
- Media Primarsquos Commitment amp Direction moving forward
- Media Industry Business Model ndash Content Driven
- Our Tasks ndash How
- PEST Analysis
- Politics Legal Issues amp Impact
- Economic Issues and Impact
- Social Issues and Impact
- Social Issues and Impact
- Technology Issues and Impact
- In short
- Porterrsquos 5 Forces Analysis
- Porterrsquos Five Forces ndash Competitive Analysis
- Financials
- Media Prima Financial Highlights
- However in further analysis
- Value Chain Analysis
- Resource Based View
- In the context of the Content industry value chain Mapped again
- Appraising capabilities which drives profitability
- Mapping Media Prima revenue streams against the Diversification
- Slide 25
- Related Constrained Diversification
- Related Constrained Diversification (2)
- Slide 28
- Related Linked Diversification
- Slide 30
- Social Responsibility Analysis
- Social Responsibility
- Social Responsibility ndash cont
- Media Prima Acknowledges it various stakeholder via Stakeholder
- It has moved on to 2nd stage of CSR
- SWOT Analysis
- SWOT Analysis ndash Summary
- Media Primarsquos Current situation in summary
- Moving forward 2012 and beyond
- Recommended Destination and future growth of Media Prima
- How Moving from aggregator to content creator
- How Moving from aggregator to content creator (2)
- Creating a Content focus agency All these can be enable via
- Using financial view to free resources for content development
- By changing the business segment reporting it also affects the
- How Moving from aggregator to content creator (3)
- Technology ndash Enable Media Prima to leap into Interactive Conten
- It is not a Fad but a trend
- Slide 50
- Example of Smart TV
- This will ultimately lead Media Prima to reduce it dependence o
- NEW Revenue Streams for Media Prima
- How
- Building Talents in the long run
- Summary ndash Media Prima
- References
- References
- References (1)
- References (2)
- References (3)
-
Social Responsibility ndash cont
Environment - EfficiencyStrongly committed to being an environmentally friendly Company by using recycled paper especially in its newspapers business efficient usage of electricity in offices water management reducing amount of waste produced throughout its businesses and other environmental initiatives such as lsquosave our beachrsquo project and WWFrsquos Earth Hour
Marketplace ndash Responsible ContentFocusing on product responsibility in providing high quality products and is committed to establishing a horizontal specialisation system based on collaboration with stakeholders The production flow is illustrated in the diagram below
Workplace ndash Right CultureIt aims to create a workplace where its people have the opportunity to be the best they possibly can to have the right culture safe working environment and human capital development with fair processes
Media Prima Acknowledges it various stakeholder via Stakeholders Management
Media Prima is aware of the diversity of its stakeholders and the different goals and demand of its stakeholders
The Company conducts active engagement with its stakeholders to fully understand their needs and increase their trust in the Company through formal and informal mechanisms as follows
It has moved on to 2nd stage of CSR
1st Generation 2nd Generation 3rd Generation
Philanthropic short term risk management
Product Process innovation business and corporate governance model long term sustainability Strategic CSR
3rd Generation Multi- stakeholder standards and partnerships institutional building CR- Oriented advocacy and public policy
Opportunity
What is next for Media Prima to shape the industry
Creating content that generate advertising dollars amp donations of the poor social awareness
By leveraging on its content distribution capabilities
SWOT Analysis
SWOT Analysis ndash Summary
Strengths 1 Strong market share in TV segment2 Malaysiarsquos only integrated media
organization- have vertical and horizontal diversification advantage
3 Established value chains strength which complements the required core competencies
4 Have move across 3 revenue models
Weaknesses1 limited number of stations variety and choice
for consumer2 Despite diversification revenues still mainly
driven by advertisers and TV -gt cross platforms is needed
3 Financial segmentation may hinder potentials of the company
Opportunities 1 Broadband infrastructure ndash via HSBB2 Development of technology ndash creating
medias gadgets that increase digital interaction and content consumption
3 Consumers are willing to pay for content4 Possible deregulation of content ndash leveling
the playing field
Threats 1 2012 forecasting a financial slow down
affecting Ad Ex ndash hence revenue is reduced2 Increase competition New Entrants Pay TV
player amp continual competition from ASTRO3 Changing consumer habits towards media
consumption -gt moving away from traditional media ndash hence have to fight for consumerrsquos attention
Right Technology (Gadget and Infrastructure) at the Right time (deregulation) amp Right consumers (shift in media habits and willingness to pay for content ndash ASTRO as indicator)
Vertical Value Chain advantage to compete in content development
Media Primarsquos Current situation in summary
+VE
-VE Revenue dependent on advertising which is affected correlated to GDP
Resources organization structure holds back effectiveness of organization
Moving forward2012 and beyond
Recommended Destination and future growth of Media Prima
Revenue mainly from advertising
Revenue from advertising
Content SubscriptionBy viewers
Content driven Complementary Services for advertiser (Auxillary Services)
Media Prima
Media Prima
Content Syndicationto competitors
+
How Moving from aggregator to content creator
Content Focus Leveraging on content to Embark on Revenue shifts
Long term sustainable leadership
Restructuring to liberateresources for Content
Sustainable Talent development -
Partnership
Riding the Technology Wave
Short term (2012) Mid Term (by 2013-2015) Long term 2015 beyond
How Moving from aggregator to content creator
Content Focus Leveraging on content to Embark on Revenue shifts
Long term sustainable leadership
Restructuring to liberateresources for Content
Sustainable Talent development -
Partnership
Riding the Technology Wave
Short term (2012) Mid Term (by 2013-2015) Long term 2015 beyond
Creating a Content focus agency All these can be enable via the following means
Demand- The content creation race bull There is a need to free up empower human capital to create more content which are relevant
segmented engaging and entertaining
How does media prima refocus its resources into where it matters Instead of multiple teams doing the same thing ndash there is a challenge to create a lean and efficient organization
Challenges Freeing Resources
Instead of looking at a Media based financial segment reporting structurally force the teams to integrate by changing the dynamics of PampL
Next page
Solution Redefining Business Units Paradigms
Take a step up from producing beyond the current vernacular program to meet shifting consumer needs
Challenges ndash Lifestyle lead Variety
Creating Channel programs which are target segment focus based on lifestyles hellip
Acquisition of content as content regulations will be relaxed
Solution Target Segment focus
Using financial view to free resources for content developmentFinancial segment reporting may create a ldquosilordquo mentality ndash which encourages each head of business to protect their bottom line Hence a less effective in operations
Our recommendation is to expand content creation to cut across and shift paradigms to free up resources and focus on new revenue streams And create new content for different segment
Tele
visi
on N
etw
ork
Radi
o N
etw
ork
Out
door
Med
ia
Prin
t M
edia
Oth
er M
edia
Current Financial Segment Reporting
Tele
visi
on N
etw
ork
Radi
o N
etw
ork
Out
door
Med
ia
Prin
t M
edia
Oth
er M
edia
Production
Content
Subscription
Advertising
Recommended Segment Reporting
Lifestyle Segments
Lifestyle Segments
Lifestyle Segments
Lifestyle Segments
Lifestyle Segments
Lifestyle Segments
By changing the business segment reporting it also affects the company structure
The benefits - Flexibility and empowers knowledge
economy ndash talent content driven
- Builds at strong work culture which may be replicated in the region
- Expansion to embark on talent and content crowd sourcing - open innovation creation
Media Prima can take this opportunity to achieve SPECIALIZATION COORDINATION AND COOPERATION Currently team structure ndash of Integrated Marketing Division is created as a temporary solution hellip to enable integration It will move towards a network model to haste integration fast and response to technology and consumer needs
Subcription
Advertising
Production
TechnologyPartner
Content
How Moving from aggregator to content creator
Content Focus Leveraging on content to Embark on Revenue shifts
Long term sustainable leadership
Restructuring to liberateresources for Content
Sustainable Talent development -
Partnership
Riding the Technology Wave
Short term (2012) Mid Term (by 2013-2015) Long term 2015 beyond
Technology ndash Enable Media Prima to leap into Interactive Content
Interactive Content
UniFi Axiata
Media Prima
Electronics Manufacturer
Demand - A ready market bull There is a latent demand for content-gt consumers are
willing to Pay bull Technology has accustomed consumers to interacting
with contentbull Regulatory push to shift from analogue to digital by
2015
However unlike Media Primarsquos western counterparts ie Time Warner Communication Media Prima does not have the advantages of cable infrastructure
Challenges ndash Limitation
Media Prima could depend on existing suppliers of connectivity and technology- Telecommunications ie AXIATA and - Manufacturing companies ie Samsungto take the leap into interactive content Unifi TM
Solution ndash Smart Partnerships
Maximizing Unrelated Diversification
It is not a Fad but a trend
Smart TV is an inevitable trend says Baeguen Kang vice president of
research and development at South Koreas LG Electronics Co the worlds second-largest seller of TV sets by unit volume As people experienced smartphones and tablet PCs the larger screen on a TV is very attractive for apps and Web content
210 million TV sets sold world-wide had an Internet connection (2010)
21 50It will be the forecast in (2014)
Source Evan Ramstad (January 2011)A ldquoManufacturers Turn to Smart TV After 3-D Disappointsrdquo The Wall Street Journal online httponlinewsjcomarticleSB10001424052748704835504576059783074010902html
As technology develops Current cost is will drop exponentially reflecting the Moorersquos Law
Hence lowering the cost of access for interactive content
Example of Smart TV
Smart Hub It is a front facing interface just like a main menu
when consumers turn on their TV There are few utilities that consumers can choose to be entertained
Video ndash consumers can choose from array of video collections that required to be paid
Apps ndash an internet-enabled applications like You Tube Facebook Twitter Skype and others
Internet browsing ndash just like PC internet browsing
Music photo and TV watching
Smart ConnectivityWIFI enabled that allows consumers to connect to all mobile devices like smart phone tablet PC notebook and camera with Samsung Wireless Router called 1 foot This connectivity is being called ldquoAllSharerdquo by Samsung
httpotbresearchcomau200509report-1-industry-forum
MEDIA PRIMA IS CURRENTLY HERE
This will ultimately lead Media Prima to reduce it dependence on advertising revenue
Others ndash Utilising the SMART TV technology and Apps to create any existing Media Prima businesses
NEW Revenue Streams for Media Prima
To take advantage of SMART TV and collaborate with SMART TV manufacturers Media Prima can look into following utilities
Collaborate with manufacturers to allow consumers to browse and pay for Media Prima video collections
Selling local music for Malaysia market
Collaborate with local or international content developers to create Malaysia specific contents for paid subscription or free for common content to attract new consumers
How
Content Focus Leveraging on content to Embark on Revenue shifts
Long term sustainable leadership
Restructuring to liberateresources for Content
Sustainable Talent development -
Partnership
Riding the Technology Wave
Short term (2012) Mid Term (by 2013-2015) Long term 2015 beyond
Building Talents in the long run
Education Building on its strategic CSR ndash Media Prima could champion the
development of the content industry by partnering with local universities in the areas of technology media and communication
Crowd Sourcing To haste up the strategic CSR it too could embark on crowd
sourcing for content ndash via scripts and interactive content In which Media Prima could support a great idea and develop the ideas for monetization
This is a synergistic and natural development from the networks structure (open innovation)
Summary ndash Media Prima
Develop Talent Pool
Ensure Vibrant Content Industry
Technologycreates ubiquitous
Low Access Cost
To spur the industry forward
Strong talent develops Content development
demand for access
Strong content industry drives demand for Talent drives demand for content
Our recommendations are aligned to help spur the industry forwardhellip
Restructuring to liberateresources for Content
Sustainable Talent development -
Partnership
Riding the Technology Wave ndash Via Smart
Partnerships
References
References
1 Anon ldquoMedia Prima Berhad implements Accenture integrated broadcast systemrdquo Accenture Press Release httpnewsroomaccenturecomarticle_displaycfmarticle_id=5005 viewed 3 November 2011
2 Anon ldquoNew exciting and vibrant offerings from MPB television networks in 2010rdquo Media Prima Press Release httpwwwmediaprimacommypressreleasepressreleaseaspxid=150 viewed 3 November 2011
3 Anderson J ldquoResource-based competitiveness managerial implications of the resource-based viewrdquo Strategic Direction Vol26 No5 2010 pp1-2
4 Arman Arshad (2006) Size matters Retrieved December 2 2011 from asiaviewsorg httpwwwasiaviewsorgindexphpoption=com_contentampview=articleampid=2171headlinealias2171ampcatid=1headlinesampItemid=2
5 Asia Times (2007 November 29) Malaysian media giant grasps for Internet Retrieved November 3 2011 from httpwwwatimescomatimesSoutheast_AsiaIK29Ae02html
6 Barney JB amp Hesterly WS (2008) Strategic Management and Competitive Advantage The Five Forces Model of Environmental Threats pp39Prentice Hall
7 BBC (2011) BBC News product launches on connected TV Retrieved from bbccoukpressofficepressreleasesstories201106_june17newsshtml
8 Boston Consulting Group (2011) Lean Advantage in Media Boston Consulting Group
9 Boston Consulting Group (2011) Running Forward Walking Backward Boston Consulting Group
10 Business Times (2011) Media Prima net revenue grows to RM119b Kuala Lumpur New Straits Times
11 Business Times (2011) Media Prima on track to achie1048665ing 2011 target Retrieved from www1btimescomm1048668Current_NewsBTIMESarticlespimeArticle
References (1)
12 Business Times (2011) Media Prima Puncak Semangat in early talks Retrieved from httpwwwbtimescommyarticlespimmaArticle
13 Carl W Stern George Stalk Carl W Stern George Stalk Stern CW amp Stalk G (2011) Perspectives of Strategy from the Boston Consulting Group Retrieved December 3 2011 from Value Based Managementnet httpwwwvaluebasedmanagementnetmethods_bcgmatrixhtml
14 ecmlibra (2011) Adex momentum to taper off in 2012 ecmlibra
15 Gershon R A amp Ratnadeep S V (2004) Viacom Inc A Case Study in Transnational Media Management Journal of Media Business Studies 1 (1) 47-69
16 Grant RM ldquoThe resource-based theory of competitive advantage implications for strategy formulationrdquo California Management Review Vol 3 2011 httpwwwskynetie~karenArticlesGrant1_NBpdf viewed 15 November 2011
17 GreyReview (2011) TonTon Streaming Over 11 Million Video Hours A Month now with 16 millions registered users Retrieved from httpwwwgreyreviewcom20110731tonton-serving-over-1-1-million-video-hours-a-month-now-with-1-6-registered-users
18 Heavy Reading (2011) Telecom in TV Land A Roadmap to New Digital Media Ecosystem Retrieved from wwwheavyreadingcomdetailsaspsku_id=1773ampskuitem_itemid=1030
19 Hegedus N (2010) The Great Scare EBR 3 10-17
20 JohnsonGScholesK amp Whittington (2008) Exploring Corporate Strategy Competitive Forces ndash the Five Forces Framework pp 59-64 Prentice Hall
21 kinetic (2011) Moving World Asia Hong Kong
References (2)
22 Knowledgefaber (2009) Telcos Avatar - As Media Companies 20 Retrieved from httpknowledgefabercomindexphpoption=com_contentampview=articleampid=40telecom-and-media-convergenceampcatid=10telecomampItemid=42
23 Knowledgefaber (2011) Telcos Avatar - As Media Companies 20 Retrieved from httpknowledgefabercomindexphpoption=com_contentampview=articleampid=40
24 Malik O (2011) GIGAOM Retrieved from httpgigaomcom20110223old-media-is-being-unbundled-just-like-telecom-was
25 Maxis with TM Astro with TIME Best Strategy to IPTV Market Retrieved December 1 2011 httpbizthestarcommynewsstoryaspfile=201111business7704581ampsec=business
26 Media Prima (2010) Annual Report Media Prima Berhad27 Media Prima Berhad (2011) 11 Nov 2011 - New Exciting amp Vibrant Offerings From MPB Television Retrieved from
wwwmediaprimacommypressreleasepressreleaseaspxid=15028 Media Prima (2010) Sustainability Report Media Prima Berhad29 OSK (2011) Media Prima OSK30 Pocket-Lint (2011) Samsung Smart TV hits 2 million mark Retrieved from
httpwwwpocket-lintcomnews40593samsung-smart-tv-2-million31 PricewaterhouseCoopers (2011) Achieving corporate financial PwC32 PricewaterhouseCoopers (2007) Financial Reporting Standards (FRS) in Malaysia PricewaterhouseCoopers33 SKMM (MCMC) (2009) Advertising Development in Malaysia SKMM34 SKMM (MCMC) (2011) Content Development SKMM35 Techpinions (2011) Interactive TV Trends - How the TV experience is changing - Part II Retrieved from
httptechpinionscominteractive-tv-trends-E28093-how-the-tv-experience-is-changing-part-ii4066
References (3)
36 The Edge (2011) Media Prima best proxy to sector Retrieved from wwwtheedgemalaysiacom37 The Edge Malaysia (2011 September 26) Education the mother of all reforms Retrieved October 30 2011 from
httpwwwtheedgemalaysiacomin-the-financial-daily193478-education-the-mother-of-all-reformshtml38 The Star Online (2011) Main players in the competitive TV sector Retrieved from bizthestarcommynewsstoryasp
file=20111126business997401739 The Star Online (2011) Maxis ready to move up value Retrieved from
bizthestarcommynewsstoryaspfile=201111business7704581ampse40 The Star Online (2011) New players enter the TV Retrieved from
bizthestarcommynewsstoryaspfile=20111126business997300841 The Star Newspaper (December 1 2011) Capital TV to make its debut today42 The Star Online (January 1 2011) Maxis ready to move up value chain Retrieved December 3 2011
httpbizthestarcommynewsstoryaspfile=201111business7704581ampsec=business43 The Star Online (2011 April 21) Media Prima to invest more on local content Retrieved October 30 2011 from C
Usersa34ffzzDesktopMedia PrimaUsed articlesMedia Prima to invest more in local contentmht44 Time Warners (2010) Annual Report Time Warners45 WHAT HI FI (2011) Samsung aims for 50m TV sales worldwide in 2012 set to announce launch date for Google TV
product Retrieved from httpwwwwhathificomnewssamsung-aims-for-50m-tv-sales-worldwide-in-2012-set-to-announce-launch-date-for-google-tv-produ
46 Woroch G A (1996) Turning the Cables Elsevier47 Zanuddin H (2007) Political influence in Malaysia and Thailand media sector Jati Vol12
- MEdiA PRIMA
- Agenda
- Company Profile
- Media Primarsquos Commitment amp Direction moving forward
- Media Industry Business Model ndash Content Driven
- Our Tasks ndash How
- PEST Analysis
- Politics Legal Issues amp Impact
- Economic Issues and Impact
- Social Issues and Impact
- Social Issues and Impact
- Technology Issues and Impact
- In short
- Porterrsquos 5 Forces Analysis
- Porterrsquos Five Forces ndash Competitive Analysis
- Financials
- Media Prima Financial Highlights
- However in further analysis
- Value Chain Analysis
- Resource Based View
- In the context of the Content industry value chain Mapped again
- Appraising capabilities which drives profitability
- Mapping Media Prima revenue streams against the Diversification
- Slide 25
- Related Constrained Diversification
- Related Constrained Diversification (2)
- Slide 28
- Related Linked Diversification
- Slide 30
- Social Responsibility Analysis
- Social Responsibility
- Social Responsibility ndash cont
- Media Prima Acknowledges it various stakeholder via Stakeholder
- It has moved on to 2nd stage of CSR
- SWOT Analysis
- SWOT Analysis ndash Summary
- Media Primarsquos Current situation in summary
- Moving forward 2012 and beyond
- Recommended Destination and future growth of Media Prima
- How Moving from aggregator to content creator
- How Moving from aggregator to content creator (2)
- Creating a Content focus agency All these can be enable via
- Using financial view to free resources for content development
- By changing the business segment reporting it also affects the
- How Moving from aggregator to content creator (3)
- Technology ndash Enable Media Prima to leap into Interactive Conten
- It is not a Fad but a trend
- Slide 50
- Example of Smart TV
- This will ultimately lead Media Prima to reduce it dependence o
- NEW Revenue Streams for Media Prima
- How
- Building Talents in the long run
- Summary ndash Media Prima
- References
- References
- References (1)
- References (2)
- References (3)
-
Media Prima Acknowledges it various stakeholder via Stakeholders Management
Media Prima is aware of the diversity of its stakeholders and the different goals and demand of its stakeholders
The Company conducts active engagement with its stakeholders to fully understand their needs and increase their trust in the Company through formal and informal mechanisms as follows
It has moved on to 2nd stage of CSR
1st Generation 2nd Generation 3rd Generation
Philanthropic short term risk management
Product Process innovation business and corporate governance model long term sustainability Strategic CSR
3rd Generation Multi- stakeholder standards and partnerships institutional building CR- Oriented advocacy and public policy
Opportunity
What is next for Media Prima to shape the industry
Creating content that generate advertising dollars amp donations of the poor social awareness
By leveraging on its content distribution capabilities
SWOT Analysis
SWOT Analysis ndash Summary
Strengths 1 Strong market share in TV segment2 Malaysiarsquos only integrated media
organization- have vertical and horizontal diversification advantage
3 Established value chains strength which complements the required core competencies
4 Have move across 3 revenue models
Weaknesses1 limited number of stations variety and choice
for consumer2 Despite diversification revenues still mainly
driven by advertisers and TV -gt cross platforms is needed
3 Financial segmentation may hinder potentials of the company
Opportunities 1 Broadband infrastructure ndash via HSBB2 Development of technology ndash creating
medias gadgets that increase digital interaction and content consumption
3 Consumers are willing to pay for content4 Possible deregulation of content ndash leveling
the playing field
Threats 1 2012 forecasting a financial slow down
affecting Ad Ex ndash hence revenue is reduced2 Increase competition New Entrants Pay TV
player amp continual competition from ASTRO3 Changing consumer habits towards media
consumption -gt moving away from traditional media ndash hence have to fight for consumerrsquos attention
Right Technology (Gadget and Infrastructure) at the Right time (deregulation) amp Right consumers (shift in media habits and willingness to pay for content ndash ASTRO as indicator)
Vertical Value Chain advantage to compete in content development
Media Primarsquos Current situation in summary
+VE
-VE Revenue dependent on advertising which is affected correlated to GDP
Resources organization structure holds back effectiveness of organization
Moving forward2012 and beyond
Recommended Destination and future growth of Media Prima
Revenue mainly from advertising
Revenue from advertising
Content SubscriptionBy viewers
Content driven Complementary Services for advertiser (Auxillary Services)
Media Prima
Media Prima
Content Syndicationto competitors
+
How Moving from aggregator to content creator
Content Focus Leveraging on content to Embark on Revenue shifts
Long term sustainable leadership
Restructuring to liberateresources for Content
Sustainable Talent development -
Partnership
Riding the Technology Wave
Short term (2012) Mid Term (by 2013-2015) Long term 2015 beyond
How Moving from aggregator to content creator
Content Focus Leveraging on content to Embark on Revenue shifts
Long term sustainable leadership
Restructuring to liberateresources for Content
Sustainable Talent development -
Partnership
Riding the Technology Wave
Short term (2012) Mid Term (by 2013-2015) Long term 2015 beyond
Creating a Content focus agency All these can be enable via the following means
Demand- The content creation race bull There is a need to free up empower human capital to create more content which are relevant
segmented engaging and entertaining
How does media prima refocus its resources into where it matters Instead of multiple teams doing the same thing ndash there is a challenge to create a lean and efficient organization
Challenges Freeing Resources
Instead of looking at a Media based financial segment reporting structurally force the teams to integrate by changing the dynamics of PampL
Next page
Solution Redefining Business Units Paradigms
Take a step up from producing beyond the current vernacular program to meet shifting consumer needs
Challenges ndash Lifestyle lead Variety
Creating Channel programs which are target segment focus based on lifestyles hellip
Acquisition of content as content regulations will be relaxed
Solution Target Segment focus
Using financial view to free resources for content developmentFinancial segment reporting may create a ldquosilordquo mentality ndash which encourages each head of business to protect their bottom line Hence a less effective in operations
Our recommendation is to expand content creation to cut across and shift paradigms to free up resources and focus on new revenue streams And create new content for different segment
Tele
visi
on N
etw
ork
Radi
o N
etw
ork
Out
door
Med
ia
Prin
t M
edia
Oth
er M
edia
Current Financial Segment Reporting
Tele
visi
on N
etw
ork
Radi
o N
etw
ork
Out
door
Med
ia
Prin
t M
edia
Oth
er M
edia
Production
Content
Subscription
Advertising
Recommended Segment Reporting
Lifestyle Segments
Lifestyle Segments
Lifestyle Segments
Lifestyle Segments
Lifestyle Segments
Lifestyle Segments
By changing the business segment reporting it also affects the company structure
The benefits - Flexibility and empowers knowledge
economy ndash talent content driven
- Builds at strong work culture which may be replicated in the region
- Expansion to embark on talent and content crowd sourcing - open innovation creation
Media Prima can take this opportunity to achieve SPECIALIZATION COORDINATION AND COOPERATION Currently team structure ndash of Integrated Marketing Division is created as a temporary solution hellip to enable integration It will move towards a network model to haste integration fast and response to technology and consumer needs
Subcription
Advertising
Production
TechnologyPartner
Content
How Moving from aggregator to content creator
Content Focus Leveraging on content to Embark on Revenue shifts
Long term sustainable leadership
Restructuring to liberateresources for Content
Sustainable Talent development -
Partnership
Riding the Technology Wave
Short term (2012) Mid Term (by 2013-2015) Long term 2015 beyond
Technology ndash Enable Media Prima to leap into Interactive Content
Interactive Content
UniFi Axiata
Media Prima
Electronics Manufacturer
Demand - A ready market bull There is a latent demand for content-gt consumers are
willing to Pay bull Technology has accustomed consumers to interacting
with contentbull Regulatory push to shift from analogue to digital by
2015
However unlike Media Primarsquos western counterparts ie Time Warner Communication Media Prima does not have the advantages of cable infrastructure
Challenges ndash Limitation
Media Prima could depend on existing suppliers of connectivity and technology- Telecommunications ie AXIATA and - Manufacturing companies ie Samsungto take the leap into interactive content Unifi TM
Solution ndash Smart Partnerships
Maximizing Unrelated Diversification
It is not a Fad but a trend
Smart TV is an inevitable trend says Baeguen Kang vice president of
research and development at South Koreas LG Electronics Co the worlds second-largest seller of TV sets by unit volume As people experienced smartphones and tablet PCs the larger screen on a TV is very attractive for apps and Web content
210 million TV sets sold world-wide had an Internet connection (2010)
21 50It will be the forecast in (2014)
Source Evan Ramstad (January 2011)A ldquoManufacturers Turn to Smart TV After 3-D Disappointsrdquo The Wall Street Journal online httponlinewsjcomarticleSB10001424052748704835504576059783074010902html
As technology develops Current cost is will drop exponentially reflecting the Moorersquos Law
Hence lowering the cost of access for interactive content
Example of Smart TV
Smart Hub It is a front facing interface just like a main menu
when consumers turn on their TV There are few utilities that consumers can choose to be entertained
Video ndash consumers can choose from array of video collections that required to be paid
Apps ndash an internet-enabled applications like You Tube Facebook Twitter Skype and others
Internet browsing ndash just like PC internet browsing
Music photo and TV watching
Smart ConnectivityWIFI enabled that allows consumers to connect to all mobile devices like smart phone tablet PC notebook and camera with Samsung Wireless Router called 1 foot This connectivity is being called ldquoAllSharerdquo by Samsung
httpotbresearchcomau200509report-1-industry-forum
MEDIA PRIMA IS CURRENTLY HERE
This will ultimately lead Media Prima to reduce it dependence on advertising revenue
Others ndash Utilising the SMART TV technology and Apps to create any existing Media Prima businesses
NEW Revenue Streams for Media Prima
To take advantage of SMART TV and collaborate with SMART TV manufacturers Media Prima can look into following utilities
Collaborate with manufacturers to allow consumers to browse and pay for Media Prima video collections
Selling local music for Malaysia market
Collaborate with local or international content developers to create Malaysia specific contents for paid subscription or free for common content to attract new consumers
How
Content Focus Leveraging on content to Embark on Revenue shifts
Long term sustainable leadership
Restructuring to liberateresources for Content
Sustainable Talent development -
Partnership
Riding the Technology Wave
Short term (2012) Mid Term (by 2013-2015) Long term 2015 beyond
Building Talents in the long run
Education Building on its strategic CSR ndash Media Prima could champion the
development of the content industry by partnering with local universities in the areas of technology media and communication
Crowd Sourcing To haste up the strategic CSR it too could embark on crowd
sourcing for content ndash via scripts and interactive content In which Media Prima could support a great idea and develop the ideas for monetization
This is a synergistic and natural development from the networks structure (open innovation)
Summary ndash Media Prima
Develop Talent Pool
Ensure Vibrant Content Industry
Technologycreates ubiquitous
Low Access Cost
To spur the industry forward
Strong talent develops Content development
demand for access
Strong content industry drives demand for Talent drives demand for content
Our recommendations are aligned to help spur the industry forwardhellip
Restructuring to liberateresources for Content
Sustainable Talent development -
Partnership
Riding the Technology Wave ndash Via Smart
Partnerships
References
References
1 Anon ldquoMedia Prima Berhad implements Accenture integrated broadcast systemrdquo Accenture Press Release httpnewsroomaccenturecomarticle_displaycfmarticle_id=5005 viewed 3 November 2011
2 Anon ldquoNew exciting and vibrant offerings from MPB television networks in 2010rdquo Media Prima Press Release httpwwwmediaprimacommypressreleasepressreleaseaspxid=150 viewed 3 November 2011
3 Anderson J ldquoResource-based competitiveness managerial implications of the resource-based viewrdquo Strategic Direction Vol26 No5 2010 pp1-2
4 Arman Arshad (2006) Size matters Retrieved December 2 2011 from asiaviewsorg httpwwwasiaviewsorgindexphpoption=com_contentampview=articleampid=2171headlinealias2171ampcatid=1headlinesampItemid=2
5 Asia Times (2007 November 29) Malaysian media giant grasps for Internet Retrieved November 3 2011 from httpwwwatimescomatimesSoutheast_AsiaIK29Ae02html
6 Barney JB amp Hesterly WS (2008) Strategic Management and Competitive Advantage The Five Forces Model of Environmental Threats pp39Prentice Hall
7 BBC (2011) BBC News product launches on connected TV Retrieved from bbccoukpressofficepressreleasesstories201106_june17newsshtml
8 Boston Consulting Group (2011) Lean Advantage in Media Boston Consulting Group
9 Boston Consulting Group (2011) Running Forward Walking Backward Boston Consulting Group
10 Business Times (2011) Media Prima net revenue grows to RM119b Kuala Lumpur New Straits Times
11 Business Times (2011) Media Prima on track to achie1048665ing 2011 target Retrieved from www1btimescomm1048668Current_NewsBTIMESarticlespimeArticle
References (1)
12 Business Times (2011) Media Prima Puncak Semangat in early talks Retrieved from httpwwwbtimescommyarticlespimmaArticle
13 Carl W Stern George Stalk Carl W Stern George Stalk Stern CW amp Stalk G (2011) Perspectives of Strategy from the Boston Consulting Group Retrieved December 3 2011 from Value Based Managementnet httpwwwvaluebasedmanagementnetmethods_bcgmatrixhtml
14 ecmlibra (2011) Adex momentum to taper off in 2012 ecmlibra
15 Gershon R A amp Ratnadeep S V (2004) Viacom Inc A Case Study in Transnational Media Management Journal of Media Business Studies 1 (1) 47-69
16 Grant RM ldquoThe resource-based theory of competitive advantage implications for strategy formulationrdquo California Management Review Vol 3 2011 httpwwwskynetie~karenArticlesGrant1_NBpdf viewed 15 November 2011
17 GreyReview (2011) TonTon Streaming Over 11 Million Video Hours A Month now with 16 millions registered users Retrieved from httpwwwgreyreviewcom20110731tonton-serving-over-1-1-million-video-hours-a-month-now-with-1-6-registered-users
18 Heavy Reading (2011) Telecom in TV Land A Roadmap to New Digital Media Ecosystem Retrieved from wwwheavyreadingcomdetailsaspsku_id=1773ampskuitem_itemid=1030
19 Hegedus N (2010) The Great Scare EBR 3 10-17
20 JohnsonGScholesK amp Whittington (2008) Exploring Corporate Strategy Competitive Forces ndash the Five Forces Framework pp 59-64 Prentice Hall
21 kinetic (2011) Moving World Asia Hong Kong
References (2)
22 Knowledgefaber (2009) Telcos Avatar - As Media Companies 20 Retrieved from httpknowledgefabercomindexphpoption=com_contentampview=articleampid=40telecom-and-media-convergenceampcatid=10telecomampItemid=42
23 Knowledgefaber (2011) Telcos Avatar - As Media Companies 20 Retrieved from httpknowledgefabercomindexphpoption=com_contentampview=articleampid=40
24 Malik O (2011) GIGAOM Retrieved from httpgigaomcom20110223old-media-is-being-unbundled-just-like-telecom-was
25 Maxis with TM Astro with TIME Best Strategy to IPTV Market Retrieved December 1 2011 httpbizthestarcommynewsstoryaspfile=201111business7704581ampsec=business
26 Media Prima (2010) Annual Report Media Prima Berhad27 Media Prima Berhad (2011) 11 Nov 2011 - New Exciting amp Vibrant Offerings From MPB Television Retrieved from
wwwmediaprimacommypressreleasepressreleaseaspxid=15028 Media Prima (2010) Sustainability Report Media Prima Berhad29 OSK (2011) Media Prima OSK30 Pocket-Lint (2011) Samsung Smart TV hits 2 million mark Retrieved from
httpwwwpocket-lintcomnews40593samsung-smart-tv-2-million31 PricewaterhouseCoopers (2011) Achieving corporate financial PwC32 PricewaterhouseCoopers (2007) Financial Reporting Standards (FRS) in Malaysia PricewaterhouseCoopers33 SKMM (MCMC) (2009) Advertising Development in Malaysia SKMM34 SKMM (MCMC) (2011) Content Development SKMM35 Techpinions (2011) Interactive TV Trends - How the TV experience is changing - Part II Retrieved from
httptechpinionscominteractive-tv-trends-E28093-how-the-tv-experience-is-changing-part-ii4066
References (3)
36 The Edge (2011) Media Prima best proxy to sector Retrieved from wwwtheedgemalaysiacom37 The Edge Malaysia (2011 September 26) Education the mother of all reforms Retrieved October 30 2011 from
httpwwwtheedgemalaysiacomin-the-financial-daily193478-education-the-mother-of-all-reformshtml38 The Star Online (2011) Main players in the competitive TV sector Retrieved from bizthestarcommynewsstoryasp
file=20111126business997401739 The Star Online (2011) Maxis ready to move up value Retrieved from
bizthestarcommynewsstoryaspfile=201111business7704581ampse40 The Star Online (2011) New players enter the TV Retrieved from
bizthestarcommynewsstoryaspfile=20111126business997300841 The Star Newspaper (December 1 2011) Capital TV to make its debut today42 The Star Online (January 1 2011) Maxis ready to move up value chain Retrieved December 3 2011
httpbizthestarcommynewsstoryaspfile=201111business7704581ampsec=business43 The Star Online (2011 April 21) Media Prima to invest more on local content Retrieved October 30 2011 from C
Usersa34ffzzDesktopMedia PrimaUsed articlesMedia Prima to invest more in local contentmht44 Time Warners (2010) Annual Report Time Warners45 WHAT HI FI (2011) Samsung aims for 50m TV sales worldwide in 2012 set to announce launch date for Google TV
product Retrieved from httpwwwwhathificomnewssamsung-aims-for-50m-tv-sales-worldwide-in-2012-set-to-announce-launch-date-for-google-tv-produ
46 Woroch G A (1996) Turning the Cables Elsevier47 Zanuddin H (2007) Political influence in Malaysia and Thailand media sector Jati Vol12
- MEdiA PRIMA
- Agenda
- Company Profile
- Media Primarsquos Commitment amp Direction moving forward
- Media Industry Business Model ndash Content Driven
- Our Tasks ndash How
- PEST Analysis
- Politics Legal Issues amp Impact
- Economic Issues and Impact
- Social Issues and Impact
- Social Issues and Impact
- Technology Issues and Impact
- In short
- Porterrsquos 5 Forces Analysis
- Porterrsquos Five Forces ndash Competitive Analysis
- Financials
- Media Prima Financial Highlights
- However in further analysis
- Value Chain Analysis
- Resource Based View
- In the context of the Content industry value chain Mapped again
- Appraising capabilities which drives profitability
- Mapping Media Prima revenue streams against the Diversification
- Slide 25
- Related Constrained Diversification
- Related Constrained Diversification (2)
- Slide 28
- Related Linked Diversification
- Slide 30
- Social Responsibility Analysis
- Social Responsibility
- Social Responsibility ndash cont
- Media Prima Acknowledges it various stakeholder via Stakeholder
- It has moved on to 2nd stage of CSR
- SWOT Analysis
- SWOT Analysis ndash Summary
- Media Primarsquos Current situation in summary
- Moving forward 2012 and beyond
- Recommended Destination and future growth of Media Prima
- How Moving from aggregator to content creator
- How Moving from aggregator to content creator (2)
- Creating a Content focus agency All these can be enable via
- Using financial view to free resources for content development
- By changing the business segment reporting it also affects the
- How Moving from aggregator to content creator (3)
- Technology ndash Enable Media Prima to leap into Interactive Conten
- It is not a Fad but a trend
- Slide 50
- Example of Smart TV
- This will ultimately lead Media Prima to reduce it dependence o
- NEW Revenue Streams for Media Prima
- How
- Building Talents in the long run
- Summary ndash Media Prima
- References
- References
- References (1)
- References (2)
- References (3)
-
It has moved on to 2nd stage of CSR
1st Generation 2nd Generation 3rd Generation
Philanthropic short term risk management
Product Process innovation business and corporate governance model long term sustainability Strategic CSR
3rd Generation Multi- stakeholder standards and partnerships institutional building CR- Oriented advocacy and public policy
Opportunity
What is next for Media Prima to shape the industry
Creating content that generate advertising dollars amp donations of the poor social awareness
By leveraging on its content distribution capabilities
SWOT Analysis
SWOT Analysis ndash Summary
Strengths 1 Strong market share in TV segment2 Malaysiarsquos only integrated media
organization- have vertical and horizontal diversification advantage
3 Established value chains strength which complements the required core competencies
4 Have move across 3 revenue models
Weaknesses1 limited number of stations variety and choice
for consumer2 Despite diversification revenues still mainly
driven by advertisers and TV -gt cross platforms is needed
3 Financial segmentation may hinder potentials of the company
Opportunities 1 Broadband infrastructure ndash via HSBB2 Development of technology ndash creating
medias gadgets that increase digital interaction and content consumption
3 Consumers are willing to pay for content4 Possible deregulation of content ndash leveling
the playing field
Threats 1 2012 forecasting a financial slow down
affecting Ad Ex ndash hence revenue is reduced2 Increase competition New Entrants Pay TV
player amp continual competition from ASTRO3 Changing consumer habits towards media
consumption -gt moving away from traditional media ndash hence have to fight for consumerrsquos attention
Right Technology (Gadget and Infrastructure) at the Right time (deregulation) amp Right consumers (shift in media habits and willingness to pay for content ndash ASTRO as indicator)
Vertical Value Chain advantage to compete in content development
Media Primarsquos Current situation in summary
+VE
-VE Revenue dependent on advertising which is affected correlated to GDP
Resources organization structure holds back effectiveness of organization
Moving forward2012 and beyond
Recommended Destination and future growth of Media Prima
Revenue mainly from advertising
Revenue from advertising
Content SubscriptionBy viewers
Content driven Complementary Services for advertiser (Auxillary Services)
Media Prima
Media Prima
Content Syndicationto competitors
+
How Moving from aggregator to content creator
Content Focus Leveraging on content to Embark on Revenue shifts
Long term sustainable leadership
Restructuring to liberateresources for Content
Sustainable Talent development -
Partnership
Riding the Technology Wave
Short term (2012) Mid Term (by 2013-2015) Long term 2015 beyond
How Moving from aggregator to content creator
Content Focus Leveraging on content to Embark on Revenue shifts
Long term sustainable leadership
Restructuring to liberateresources for Content
Sustainable Talent development -
Partnership
Riding the Technology Wave
Short term (2012) Mid Term (by 2013-2015) Long term 2015 beyond
Creating a Content focus agency All these can be enable via the following means
Demand- The content creation race bull There is a need to free up empower human capital to create more content which are relevant
segmented engaging and entertaining
How does media prima refocus its resources into where it matters Instead of multiple teams doing the same thing ndash there is a challenge to create a lean and efficient organization
Challenges Freeing Resources
Instead of looking at a Media based financial segment reporting structurally force the teams to integrate by changing the dynamics of PampL
Next page
Solution Redefining Business Units Paradigms
Take a step up from producing beyond the current vernacular program to meet shifting consumer needs
Challenges ndash Lifestyle lead Variety
Creating Channel programs which are target segment focus based on lifestyles hellip
Acquisition of content as content regulations will be relaxed
Solution Target Segment focus
Using financial view to free resources for content developmentFinancial segment reporting may create a ldquosilordquo mentality ndash which encourages each head of business to protect their bottom line Hence a less effective in operations
Our recommendation is to expand content creation to cut across and shift paradigms to free up resources and focus on new revenue streams And create new content for different segment
Tele
visi
on N
etw
ork
Radi
o N
etw
ork
Out
door
Med
ia
Prin
t M
edia
Oth
er M
edia
Current Financial Segment Reporting
Tele
visi
on N
etw
ork
Radi
o N
etw
ork
Out
door
Med
ia
Prin
t M
edia
Oth
er M
edia
Production
Content
Subscription
Advertising
Recommended Segment Reporting
Lifestyle Segments
Lifestyle Segments
Lifestyle Segments
Lifestyle Segments
Lifestyle Segments
Lifestyle Segments
By changing the business segment reporting it also affects the company structure
The benefits - Flexibility and empowers knowledge
economy ndash talent content driven
- Builds at strong work culture which may be replicated in the region
- Expansion to embark on talent and content crowd sourcing - open innovation creation
Media Prima can take this opportunity to achieve SPECIALIZATION COORDINATION AND COOPERATION Currently team structure ndash of Integrated Marketing Division is created as a temporary solution hellip to enable integration It will move towards a network model to haste integration fast and response to technology and consumer needs
Subcription
Advertising
Production
TechnologyPartner
Content
How Moving from aggregator to content creator
Content Focus Leveraging on content to Embark on Revenue shifts
Long term sustainable leadership
Restructuring to liberateresources for Content
Sustainable Talent development -
Partnership
Riding the Technology Wave
Short term (2012) Mid Term (by 2013-2015) Long term 2015 beyond
Technology ndash Enable Media Prima to leap into Interactive Content
Interactive Content
UniFi Axiata
Media Prima
Electronics Manufacturer
Demand - A ready market bull There is a latent demand for content-gt consumers are
willing to Pay bull Technology has accustomed consumers to interacting
with contentbull Regulatory push to shift from analogue to digital by
2015
However unlike Media Primarsquos western counterparts ie Time Warner Communication Media Prima does not have the advantages of cable infrastructure
Challenges ndash Limitation
Media Prima could depend on existing suppliers of connectivity and technology- Telecommunications ie AXIATA and - Manufacturing companies ie Samsungto take the leap into interactive content Unifi TM
Solution ndash Smart Partnerships
Maximizing Unrelated Diversification
It is not a Fad but a trend
Smart TV is an inevitable trend says Baeguen Kang vice president of
research and development at South Koreas LG Electronics Co the worlds second-largest seller of TV sets by unit volume As people experienced smartphones and tablet PCs the larger screen on a TV is very attractive for apps and Web content
210 million TV sets sold world-wide had an Internet connection (2010)
21 50It will be the forecast in (2014)
Source Evan Ramstad (January 2011)A ldquoManufacturers Turn to Smart TV After 3-D Disappointsrdquo The Wall Street Journal online httponlinewsjcomarticleSB10001424052748704835504576059783074010902html
As technology develops Current cost is will drop exponentially reflecting the Moorersquos Law
Hence lowering the cost of access for interactive content
Example of Smart TV
Smart Hub It is a front facing interface just like a main menu
when consumers turn on their TV There are few utilities that consumers can choose to be entertained
Video ndash consumers can choose from array of video collections that required to be paid
Apps ndash an internet-enabled applications like You Tube Facebook Twitter Skype and others
Internet browsing ndash just like PC internet browsing
Music photo and TV watching
Smart ConnectivityWIFI enabled that allows consumers to connect to all mobile devices like smart phone tablet PC notebook and camera with Samsung Wireless Router called 1 foot This connectivity is being called ldquoAllSharerdquo by Samsung
httpotbresearchcomau200509report-1-industry-forum
MEDIA PRIMA IS CURRENTLY HERE
This will ultimately lead Media Prima to reduce it dependence on advertising revenue
Others ndash Utilising the SMART TV technology and Apps to create any existing Media Prima businesses
NEW Revenue Streams for Media Prima
To take advantage of SMART TV and collaborate with SMART TV manufacturers Media Prima can look into following utilities
Collaborate with manufacturers to allow consumers to browse and pay for Media Prima video collections
Selling local music for Malaysia market
Collaborate with local or international content developers to create Malaysia specific contents for paid subscription or free for common content to attract new consumers
How
Content Focus Leveraging on content to Embark on Revenue shifts
Long term sustainable leadership
Restructuring to liberateresources for Content
Sustainable Talent development -
Partnership
Riding the Technology Wave
Short term (2012) Mid Term (by 2013-2015) Long term 2015 beyond
Building Talents in the long run
Education Building on its strategic CSR ndash Media Prima could champion the
development of the content industry by partnering with local universities in the areas of technology media and communication
Crowd Sourcing To haste up the strategic CSR it too could embark on crowd
sourcing for content ndash via scripts and interactive content In which Media Prima could support a great idea and develop the ideas for monetization
This is a synergistic and natural development from the networks structure (open innovation)
Summary ndash Media Prima
Develop Talent Pool
Ensure Vibrant Content Industry
Technologycreates ubiquitous
Low Access Cost
To spur the industry forward
Strong talent develops Content development
demand for access
Strong content industry drives demand for Talent drives demand for content
Our recommendations are aligned to help spur the industry forwardhellip
Restructuring to liberateresources for Content
Sustainable Talent development -
Partnership
Riding the Technology Wave ndash Via Smart
Partnerships
References
References
1 Anon ldquoMedia Prima Berhad implements Accenture integrated broadcast systemrdquo Accenture Press Release httpnewsroomaccenturecomarticle_displaycfmarticle_id=5005 viewed 3 November 2011
2 Anon ldquoNew exciting and vibrant offerings from MPB television networks in 2010rdquo Media Prima Press Release httpwwwmediaprimacommypressreleasepressreleaseaspxid=150 viewed 3 November 2011
3 Anderson J ldquoResource-based competitiveness managerial implications of the resource-based viewrdquo Strategic Direction Vol26 No5 2010 pp1-2
4 Arman Arshad (2006) Size matters Retrieved December 2 2011 from asiaviewsorg httpwwwasiaviewsorgindexphpoption=com_contentampview=articleampid=2171headlinealias2171ampcatid=1headlinesampItemid=2
5 Asia Times (2007 November 29) Malaysian media giant grasps for Internet Retrieved November 3 2011 from httpwwwatimescomatimesSoutheast_AsiaIK29Ae02html
6 Barney JB amp Hesterly WS (2008) Strategic Management and Competitive Advantage The Five Forces Model of Environmental Threats pp39Prentice Hall
7 BBC (2011) BBC News product launches on connected TV Retrieved from bbccoukpressofficepressreleasesstories201106_june17newsshtml
8 Boston Consulting Group (2011) Lean Advantage in Media Boston Consulting Group
9 Boston Consulting Group (2011) Running Forward Walking Backward Boston Consulting Group
10 Business Times (2011) Media Prima net revenue grows to RM119b Kuala Lumpur New Straits Times
11 Business Times (2011) Media Prima on track to achie1048665ing 2011 target Retrieved from www1btimescomm1048668Current_NewsBTIMESarticlespimeArticle
References (1)
12 Business Times (2011) Media Prima Puncak Semangat in early talks Retrieved from httpwwwbtimescommyarticlespimmaArticle
13 Carl W Stern George Stalk Carl W Stern George Stalk Stern CW amp Stalk G (2011) Perspectives of Strategy from the Boston Consulting Group Retrieved December 3 2011 from Value Based Managementnet httpwwwvaluebasedmanagementnetmethods_bcgmatrixhtml
14 ecmlibra (2011) Adex momentum to taper off in 2012 ecmlibra
15 Gershon R A amp Ratnadeep S V (2004) Viacom Inc A Case Study in Transnational Media Management Journal of Media Business Studies 1 (1) 47-69
16 Grant RM ldquoThe resource-based theory of competitive advantage implications for strategy formulationrdquo California Management Review Vol 3 2011 httpwwwskynetie~karenArticlesGrant1_NBpdf viewed 15 November 2011
17 GreyReview (2011) TonTon Streaming Over 11 Million Video Hours A Month now with 16 millions registered users Retrieved from httpwwwgreyreviewcom20110731tonton-serving-over-1-1-million-video-hours-a-month-now-with-1-6-registered-users
18 Heavy Reading (2011) Telecom in TV Land A Roadmap to New Digital Media Ecosystem Retrieved from wwwheavyreadingcomdetailsaspsku_id=1773ampskuitem_itemid=1030
19 Hegedus N (2010) The Great Scare EBR 3 10-17
20 JohnsonGScholesK amp Whittington (2008) Exploring Corporate Strategy Competitive Forces ndash the Five Forces Framework pp 59-64 Prentice Hall
21 kinetic (2011) Moving World Asia Hong Kong
References (2)
22 Knowledgefaber (2009) Telcos Avatar - As Media Companies 20 Retrieved from httpknowledgefabercomindexphpoption=com_contentampview=articleampid=40telecom-and-media-convergenceampcatid=10telecomampItemid=42
23 Knowledgefaber (2011) Telcos Avatar - As Media Companies 20 Retrieved from httpknowledgefabercomindexphpoption=com_contentampview=articleampid=40
24 Malik O (2011) GIGAOM Retrieved from httpgigaomcom20110223old-media-is-being-unbundled-just-like-telecom-was
25 Maxis with TM Astro with TIME Best Strategy to IPTV Market Retrieved December 1 2011 httpbizthestarcommynewsstoryaspfile=201111business7704581ampsec=business
26 Media Prima (2010) Annual Report Media Prima Berhad27 Media Prima Berhad (2011) 11 Nov 2011 - New Exciting amp Vibrant Offerings From MPB Television Retrieved from
wwwmediaprimacommypressreleasepressreleaseaspxid=15028 Media Prima (2010) Sustainability Report Media Prima Berhad29 OSK (2011) Media Prima OSK30 Pocket-Lint (2011) Samsung Smart TV hits 2 million mark Retrieved from
httpwwwpocket-lintcomnews40593samsung-smart-tv-2-million31 PricewaterhouseCoopers (2011) Achieving corporate financial PwC32 PricewaterhouseCoopers (2007) Financial Reporting Standards (FRS) in Malaysia PricewaterhouseCoopers33 SKMM (MCMC) (2009) Advertising Development in Malaysia SKMM34 SKMM (MCMC) (2011) Content Development SKMM35 Techpinions (2011) Interactive TV Trends - How the TV experience is changing - Part II Retrieved from
httptechpinionscominteractive-tv-trends-E28093-how-the-tv-experience-is-changing-part-ii4066
References (3)
36 The Edge (2011) Media Prima best proxy to sector Retrieved from wwwtheedgemalaysiacom37 The Edge Malaysia (2011 September 26) Education the mother of all reforms Retrieved October 30 2011 from
httpwwwtheedgemalaysiacomin-the-financial-daily193478-education-the-mother-of-all-reformshtml38 The Star Online (2011) Main players in the competitive TV sector Retrieved from bizthestarcommynewsstoryasp
file=20111126business997401739 The Star Online (2011) Maxis ready to move up value Retrieved from
bizthestarcommynewsstoryaspfile=201111business7704581ampse40 The Star Online (2011) New players enter the TV Retrieved from
bizthestarcommynewsstoryaspfile=20111126business997300841 The Star Newspaper (December 1 2011) Capital TV to make its debut today42 The Star Online (January 1 2011) Maxis ready to move up value chain Retrieved December 3 2011
httpbizthestarcommynewsstoryaspfile=201111business7704581ampsec=business43 The Star Online (2011 April 21) Media Prima to invest more on local content Retrieved October 30 2011 from C
Usersa34ffzzDesktopMedia PrimaUsed articlesMedia Prima to invest more in local contentmht44 Time Warners (2010) Annual Report Time Warners45 WHAT HI FI (2011) Samsung aims for 50m TV sales worldwide in 2012 set to announce launch date for Google TV
product Retrieved from httpwwwwhathificomnewssamsung-aims-for-50m-tv-sales-worldwide-in-2012-set-to-announce-launch-date-for-google-tv-produ
46 Woroch G A (1996) Turning the Cables Elsevier47 Zanuddin H (2007) Political influence in Malaysia and Thailand media sector Jati Vol12
- MEdiA PRIMA
- Agenda
- Company Profile
- Media Primarsquos Commitment amp Direction moving forward
- Media Industry Business Model ndash Content Driven
- Our Tasks ndash How
- PEST Analysis
- Politics Legal Issues amp Impact
- Economic Issues and Impact
- Social Issues and Impact
- Social Issues and Impact
- Technology Issues and Impact
- In short
- Porterrsquos 5 Forces Analysis
- Porterrsquos Five Forces ndash Competitive Analysis
- Financials
- Media Prima Financial Highlights
- However in further analysis
- Value Chain Analysis
- Resource Based View
- In the context of the Content industry value chain Mapped again
- Appraising capabilities which drives profitability
- Mapping Media Prima revenue streams against the Diversification
- Slide 25
- Related Constrained Diversification
- Related Constrained Diversification (2)
- Slide 28
- Related Linked Diversification
- Slide 30
- Social Responsibility Analysis
- Social Responsibility
- Social Responsibility ndash cont
- Media Prima Acknowledges it various stakeholder via Stakeholder
- It has moved on to 2nd stage of CSR
- SWOT Analysis
- SWOT Analysis ndash Summary
- Media Primarsquos Current situation in summary
- Moving forward 2012 and beyond
- Recommended Destination and future growth of Media Prima
- How Moving from aggregator to content creator
- How Moving from aggregator to content creator (2)
- Creating a Content focus agency All these can be enable via
- Using financial view to free resources for content development
- By changing the business segment reporting it also affects the
- How Moving from aggregator to content creator (3)
- Technology ndash Enable Media Prima to leap into Interactive Conten
- It is not a Fad but a trend
- Slide 50
- Example of Smart TV
- This will ultimately lead Media Prima to reduce it dependence o
- NEW Revenue Streams for Media Prima
- How
- Building Talents in the long run
- Summary ndash Media Prima
- References
- References
- References (1)
- References (2)
- References (3)
-
SWOT Analysis
SWOT Analysis ndash Summary
Strengths 1 Strong market share in TV segment2 Malaysiarsquos only integrated media
organization- have vertical and horizontal diversification advantage
3 Established value chains strength which complements the required core competencies
4 Have move across 3 revenue models
Weaknesses1 limited number of stations variety and choice
for consumer2 Despite diversification revenues still mainly
driven by advertisers and TV -gt cross platforms is needed
3 Financial segmentation may hinder potentials of the company
Opportunities 1 Broadband infrastructure ndash via HSBB2 Development of technology ndash creating
medias gadgets that increase digital interaction and content consumption
3 Consumers are willing to pay for content4 Possible deregulation of content ndash leveling
the playing field
Threats 1 2012 forecasting a financial slow down
affecting Ad Ex ndash hence revenue is reduced2 Increase competition New Entrants Pay TV
player amp continual competition from ASTRO3 Changing consumer habits towards media
consumption -gt moving away from traditional media ndash hence have to fight for consumerrsquos attention
Right Technology (Gadget and Infrastructure) at the Right time (deregulation) amp Right consumers (shift in media habits and willingness to pay for content ndash ASTRO as indicator)
Vertical Value Chain advantage to compete in content development
Media Primarsquos Current situation in summary
+VE
-VE Revenue dependent on advertising which is affected correlated to GDP
Resources organization structure holds back effectiveness of organization
Moving forward2012 and beyond
Recommended Destination and future growth of Media Prima
Revenue mainly from advertising
Revenue from advertising
Content SubscriptionBy viewers
Content driven Complementary Services for advertiser (Auxillary Services)
Media Prima
Media Prima
Content Syndicationto competitors
+
How Moving from aggregator to content creator
Content Focus Leveraging on content to Embark on Revenue shifts
Long term sustainable leadership
Restructuring to liberateresources for Content
Sustainable Talent development -
Partnership
Riding the Technology Wave
Short term (2012) Mid Term (by 2013-2015) Long term 2015 beyond
How Moving from aggregator to content creator
Content Focus Leveraging on content to Embark on Revenue shifts
Long term sustainable leadership
Restructuring to liberateresources for Content
Sustainable Talent development -
Partnership
Riding the Technology Wave
Short term (2012) Mid Term (by 2013-2015) Long term 2015 beyond
Creating a Content focus agency All these can be enable via the following means
Demand- The content creation race bull There is a need to free up empower human capital to create more content which are relevant
segmented engaging and entertaining
How does media prima refocus its resources into where it matters Instead of multiple teams doing the same thing ndash there is a challenge to create a lean and efficient organization
Challenges Freeing Resources
Instead of looking at a Media based financial segment reporting structurally force the teams to integrate by changing the dynamics of PampL
Next page
Solution Redefining Business Units Paradigms
Take a step up from producing beyond the current vernacular program to meet shifting consumer needs
Challenges ndash Lifestyle lead Variety
Creating Channel programs which are target segment focus based on lifestyles hellip
Acquisition of content as content regulations will be relaxed
Solution Target Segment focus
Using financial view to free resources for content developmentFinancial segment reporting may create a ldquosilordquo mentality ndash which encourages each head of business to protect their bottom line Hence a less effective in operations
Our recommendation is to expand content creation to cut across and shift paradigms to free up resources and focus on new revenue streams And create new content for different segment
Tele
visi
on N
etw
ork
Radi
o N
etw
ork
Out
door
Med
ia
Prin
t M
edia
Oth
er M
edia
Current Financial Segment Reporting
Tele
visi
on N
etw
ork
Radi
o N
etw
ork
Out
door
Med
ia
Prin
t M
edia
Oth
er M
edia
Production
Content
Subscription
Advertising
Recommended Segment Reporting
Lifestyle Segments
Lifestyle Segments
Lifestyle Segments
Lifestyle Segments
Lifestyle Segments
Lifestyle Segments
By changing the business segment reporting it also affects the company structure
The benefits - Flexibility and empowers knowledge
economy ndash talent content driven
- Builds at strong work culture which may be replicated in the region
- Expansion to embark on talent and content crowd sourcing - open innovation creation
Media Prima can take this opportunity to achieve SPECIALIZATION COORDINATION AND COOPERATION Currently team structure ndash of Integrated Marketing Division is created as a temporary solution hellip to enable integration It will move towards a network model to haste integration fast and response to technology and consumer needs
Subcription
Advertising
Production
TechnologyPartner
Content
How Moving from aggregator to content creator
Content Focus Leveraging on content to Embark on Revenue shifts
Long term sustainable leadership
Restructuring to liberateresources for Content
Sustainable Talent development -
Partnership
Riding the Technology Wave
Short term (2012) Mid Term (by 2013-2015) Long term 2015 beyond
Technology ndash Enable Media Prima to leap into Interactive Content
Interactive Content
UniFi Axiata
Media Prima
Electronics Manufacturer
Demand - A ready market bull There is a latent demand for content-gt consumers are
willing to Pay bull Technology has accustomed consumers to interacting
with contentbull Regulatory push to shift from analogue to digital by
2015
However unlike Media Primarsquos western counterparts ie Time Warner Communication Media Prima does not have the advantages of cable infrastructure
Challenges ndash Limitation
Media Prima could depend on existing suppliers of connectivity and technology- Telecommunications ie AXIATA and - Manufacturing companies ie Samsungto take the leap into interactive content Unifi TM
Solution ndash Smart Partnerships
Maximizing Unrelated Diversification
It is not a Fad but a trend
Smart TV is an inevitable trend says Baeguen Kang vice president of
research and development at South Koreas LG Electronics Co the worlds second-largest seller of TV sets by unit volume As people experienced smartphones and tablet PCs the larger screen on a TV is very attractive for apps and Web content
210 million TV sets sold world-wide had an Internet connection (2010)
21 50It will be the forecast in (2014)
Source Evan Ramstad (January 2011)A ldquoManufacturers Turn to Smart TV After 3-D Disappointsrdquo The Wall Street Journal online httponlinewsjcomarticleSB10001424052748704835504576059783074010902html
As technology develops Current cost is will drop exponentially reflecting the Moorersquos Law
Hence lowering the cost of access for interactive content
Example of Smart TV
Smart Hub It is a front facing interface just like a main menu
when consumers turn on their TV There are few utilities that consumers can choose to be entertained
Video ndash consumers can choose from array of video collections that required to be paid
Apps ndash an internet-enabled applications like You Tube Facebook Twitter Skype and others
Internet browsing ndash just like PC internet browsing
Music photo and TV watching
Smart ConnectivityWIFI enabled that allows consumers to connect to all mobile devices like smart phone tablet PC notebook and camera with Samsung Wireless Router called 1 foot This connectivity is being called ldquoAllSharerdquo by Samsung
httpotbresearchcomau200509report-1-industry-forum
MEDIA PRIMA IS CURRENTLY HERE
This will ultimately lead Media Prima to reduce it dependence on advertising revenue
Others ndash Utilising the SMART TV technology and Apps to create any existing Media Prima businesses
NEW Revenue Streams for Media Prima
To take advantage of SMART TV and collaborate with SMART TV manufacturers Media Prima can look into following utilities
Collaborate with manufacturers to allow consumers to browse and pay for Media Prima video collections
Selling local music for Malaysia market
Collaborate with local or international content developers to create Malaysia specific contents for paid subscription or free for common content to attract new consumers
How
Content Focus Leveraging on content to Embark on Revenue shifts
Long term sustainable leadership
Restructuring to liberateresources for Content
Sustainable Talent development -
Partnership
Riding the Technology Wave
Short term (2012) Mid Term (by 2013-2015) Long term 2015 beyond
Building Talents in the long run
Education Building on its strategic CSR ndash Media Prima could champion the
development of the content industry by partnering with local universities in the areas of technology media and communication
Crowd Sourcing To haste up the strategic CSR it too could embark on crowd
sourcing for content ndash via scripts and interactive content In which Media Prima could support a great idea and develop the ideas for monetization
This is a synergistic and natural development from the networks structure (open innovation)
Summary ndash Media Prima
Develop Talent Pool
Ensure Vibrant Content Industry
Technologycreates ubiquitous
Low Access Cost
To spur the industry forward
Strong talent develops Content development
demand for access
Strong content industry drives demand for Talent drives demand for content
Our recommendations are aligned to help spur the industry forwardhellip
Restructuring to liberateresources for Content
Sustainable Talent development -
Partnership
Riding the Technology Wave ndash Via Smart
Partnerships
References
References
1 Anon ldquoMedia Prima Berhad implements Accenture integrated broadcast systemrdquo Accenture Press Release httpnewsroomaccenturecomarticle_displaycfmarticle_id=5005 viewed 3 November 2011
2 Anon ldquoNew exciting and vibrant offerings from MPB television networks in 2010rdquo Media Prima Press Release httpwwwmediaprimacommypressreleasepressreleaseaspxid=150 viewed 3 November 2011
3 Anderson J ldquoResource-based competitiveness managerial implications of the resource-based viewrdquo Strategic Direction Vol26 No5 2010 pp1-2
4 Arman Arshad (2006) Size matters Retrieved December 2 2011 from asiaviewsorg httpwwwasiaviewsorgindexphpoption=com_contentampview=articleampid=2171headlinealias2171ampcatid=1headlinesampItemid=2
5 Asia Times (2007 November 29) Malaysian media giant grasps for Internet Retrieved November 3 2011 from httpwwwatimescomatimesSoutheast_AsiaIK29Ae02html
6 Barney JB amp Hesterly WS (2008) Strategic Management and Competitive Advantage The Five Forces Model of Environmental Threats pp39Prentice Hall
7 BBC (2011) BBC News product launches on connected TV Retrieved from bbccoukpressofficepressreleasesstories201106_june17newsshtml
8 Boston Consulting Group (2011) Lean Advantage in Media Boston Consulting Group
9 Boston Consulting Group (2011) Running Forward Walking Backward Boston Consulting Group
10 Business Times (2011) Media Prima net revenue grows to RM119b Kuala Lumpur New Straits Times
11 Business Times (2011) Media Prima on track to achie1048665ing 2011 target Retrieved from www1btimescomm1048668Current_NewsBTIMESarticlespimeArticle
References (1)
12 Business Times (2011) Media Prima Puncak Semangat in early talks Retrieved from httpwwwbtimescommyarticlespimmaArticle
13 Carl W Stern George Stalk Carl W Stern George Stalk Stern CW amp Stalk G (2011) Perspectives of Strategy from the Boston Consulting Group Retrieved December 3 2011 from Value Based Managementnet httpwwwvaluebasedmanagementnetmethods_bcgmatrixhtml
14 ecmlibra (2011) Adex momentum to taper off in 2012 ecmlibra
15 Gershon R A amp Ratnadeep S V (2004) Viacom Inc A Case Study in Transnational Media Management Journal of Media Business Studies 1 (1) 47-69
16 Grant RM ldquoThe resource-based theory of competitive advantage implications for strategy formulationrdquo California Management Review Vol 3 2011 httpwwwskynetie~karenArticlesGrant1_NBpdf viewed 15 November 2011
17 GreyReview (2011) TonTon Streaming Over 11 Million Video Hours A Month now with 16 millions registered users Retrieved from httpwwwgreyreviewcom20110731tonton-serving-over-1-1-million-video-hours-a-month-now-with-1-6-registered-users
18 Heavy Reading (2011) Telecom in TV Land A Roadmap to New Digital Media Ecosystem Retrieved from wwwheavyreadingcomdetailsaspsku_id=1773ampskuitem_itemid=1030
19 Hegedus N (2010) The Great Scare EBR 3 10-17
20 JohnsonGScholesK amp Whittington (2008) Exploring Corporate Strategy Competitive Forces ndash the Five Forces Framework pp 59-64 Prentice Hall
21 kinetic (2011) Moving World Asia Hong Kong
References (2)
22 Knowledgefaber (2009) Telcos Avatar - As Media Companies 20 Retrieved from httpknowledgefabercomindexphpoption=com_contentampview=articleampid=40telecom-and-media-convergenceampcatid=10telecomampItemid=42
23 Knowledgefaber (2011) Telcos Avatar - As Media Companies 20 Retrieved from httpknowledgefabercomindexphpoption=com_contentampview=articleampid=40
24 Malik O (2011) GIGAOM Retrieved from httpgigaomcom20110223old-media-is-being-unbundled-just-like-telecom-was
25 Maxis with TM Astro with TIME Best Strategy to IPTV Market Retrieved December 1 2011 httpbizthestarcommynewsstoryaspfile=201111business7704581ampsec=business
26 Media Prima (2010) Annual Report Media Prima Berhad27 Media Prima Berhad (2011) 11 Nov 2011 - New Exciting amp Vibrant Offerings From MPB Television Retrieved from
wwwmediaprimacommypressreleasepressreleaseaspxid=15028 Media Prima (2010) Sustainability Report Media Prima Berhad29 OSK (2011) Media Prima OSK30 Pocket-Lint (2011) Samsung Smart TV hits 2 million mark Retrieved from
httpwwwpocket-lintcomnews40593samsung-smart-tv-2-million31 PricewaterhouseCoopers (2011) Achieving corporate financial PwC32 PricewaterhouseCoopers (2007) Financial Reporting Standards (FRS) in Malaysia PricewaterhouseCoopers33 SKMM (MCMC) (2009) Advertising Development in Malaysia SKMM34 SKMM (MCMC) (2011) Content Development SKMM35 Techpinions (2011) Interactive TV Trends - How the TV experience is changing - Part II Retrieved from
httptechpinionscominteractive-tv-trends-E28093-how-the-tv-experience-is-changing-part-ii4066
References (3)
36 The Edge (2011) Media Prima best proxy to sector Retrieved from wwwtheedgemalaysiacom37 The Edge Malaysia (2011 September 26) Education the mother of all reforms Retrieved October 30 2011 from
httpwwwtheedgemalaysiacomin-the-financial-daily193478-education-the-mother-of-all-reformshtml38 The Star Online (2011) Main players in the competitive TV sector Retrieved from bizthestarcommynewsstoryasp
file=20111126business997401739 The Star Online (2011) Maxis ready to move up value Retrieved from
bizthestarcommynewsstoryaspfile=201111business7704581ampse40 The Star Online (2011) New players enter the TV Retrieved from
bizthestarcommynewsstoryaspfile=20111126business997300841 The Star Newspaper (December 1 2011) Capital TV to make its debut today42 The Star Online (January 1 2011) Maxis ready to move up value chain Retrieved December 3 2011
httpbizthestarcommynewsstoryaspfile=201111business7704581ampsec=business43 The Star Online (2011 April 21) Media Prima to invest more on local content Retrieved October 30 2011 from C
Usersa34ffzzDesktopMedia PrimaUsed articlesMedia Prima to invest more in local contentmht44 Time Warners (2010) Annual Report Time Warners45 WHAT HI FI (2011) Samsung aims for 50m TV sales worldwide in 2012 set to announce launch date for Google TV
product Retrieved from httpwwwwhathificomnewssamsung-aims-for-50m-tv-sales-worldwide-in-2012-set-to-announce-launch-date-for-google-tv-produ
46 Woroch G A (1996) Turning the Cables Elsevier47 Zanuddin H (2007) Political influence in Malaysia and Thailand media sector Jati Vol12
- MEdiA PRIMA
- Agenda
- Company Profile
- Media Primarsquos Commitment amp Direction moving forward
- Media Industry Business Model ndash Content Driven
- Our Tasks ndash How
- PEST Analysis
- Politics Legal Issues amp Impact
- Economic Issues and Impact
- Social Issues and Impact
- Social Issues and Impact
- Technology Issues and Impact
- In short
- Porterrsquos 5 Forces Analysis
- Porterrsquos Five Forces ndash Competitive Analysis
- Financials
- Media Prima Financial Highlights
- However in further analysis
- Value Chain Analysis
- Resource Based View
- In the context of the Content industry value chain Mapped again
- Appraising capabilities which drives profitability
- Mapping Media Prima revenue streams against the Diversification
- Slide 25
- Related Constrained Diversification
- Related Constrained Diversification (2)
- Slide 28
- Related Linked Diversification
- Slide 30
- Social Responsibility Analysis
- Social Responsibility
- Social Responsibility ndash cont
- Media Prima Acknowledges it various stakeholder via Stakeholder
- It has moved on to 2nd stage of CSR
- SWOT Analysis
- SWOT Analysis ndash Summary
- Media Primarsquos Current situation in summary
- Moving forward 2012 and beyond
- Recommended Destination and future growth of Media Prima
- How Moving from aggregator to content creator
- How Moving from aggregator to content creator (2)
- Creating a Content focus agency All these can be enable via
- Using financial view to free resources for content development
- By changing the business segment reporting it also affects the
- How Moving from aggregator to content creator (3)
- Technology ndash Enable Media Prima to leap into Interactive Conten
- It is not a Fad but a trend
- Slide 50
- Example of Smart TV
- This will ultimately lead Media Prima to reduce it dependence o
- NEW Revenue Streams for Media Prima
- How
- Building Talents in the long run
- Summary ndash Media Prima
- References
- References
- References (1)
- References (2)
- References (3)
-
SWOT Analysis ndash Summary
Strengths 1 Strong market share in TV segment2 Malaysiarsquos only integrated media
organization- have vertical and horizontal diversification advantage
3 Established value chains strength which complements the required core competencies
4 Have move across 3 revenue models
Weaknesses1 limited number of stations variety and choice
for consumer2 Despite diversification revenues still mainly
driven by advertisers and TV -gt cross platforms is needed
3 Financial segmentation may hinder potentials of the company
Opportunities 1 Broadband infrastructure ndash via HSBB2 Development of technology ndash creating
medias gadgets that increase digital interaction and content consumption
3 Consumers are willing to pay for content4 Possible deregulation of content ndash leveling
the playing field
Threats 1 2012 forecasting a financial slow down
affecting Ad Ex ndash hence revenue is reduced2 Increase competition New Entrants Pay TV
player amp continual competition from ASTRO3 Changing consumer habits towards media
consumption -gt moving away from traditional media ndash hence have to fight for consumerrsquos attention
Right Technology (Gadget and Infrastructure) at the Right time (deregulation) amp Right consumers (shift in media habits and willingness to pay for content ndash ASTRO as indicator)
Vertical Value Chain advantage to compete in content development
Media Primarsquos Current situation in summary
+VE
-VE Revenue dependent on advertising which is affected correlated to GDP
Resources organization structure holds back effectiveness of organization
Moving forward2012 and beyond
Recommended Destination and future growth of Media Prima
Revenue mainly from advertising
Revenue from advertising
Content SubscriptionBy viewers
Content driven Complementary Services for advertiser (Auxillary Services)
Media Prima
Media Prima
Content Syndicationto competitors
+
How Moving from aggregator to content creator
Content Focus Leveraging on content to Embark on Revenue shifts
Long term sustainable leadership
Restructuring to liberateresources for Content
Sustainable Talent development -
Partnership
Riding the Technology Wave
Short term (2012) Mid Term (by 2013-2015) Long term 2015 beyond
How Moving from aggregator to content creator
Content Focus Leveraging on content to Embark on Revenue shifts
Long term sustainable leadership
Restructuring to liberateresources for Content
Sustainable Talent development -
Partnership
Riding the Technology Wave
Short term (2012) Mid Term (by 2013-2015) Long term 2015 beyond
Creating a Content focus agency All these can be enable via the following means
Demand- The content creation race bull There is a need to free up empower human capital to create more content which are relevant
segmented engaging and entertaining
How does media prima refocus its resources into where it matters Instead of multiple teams doing the same thing ndash there is a challenge to create a lean and efficient organization
Challenges Freeing Resources
Instead of looking at a Media based financial segment reporting structurally force the teams to integrate by changing the dynamics of PampL
Next page
Solution Redefining Business Units Paradigms
Take a step up from producing beyond the current vernacular program to meet shifting consumer needs
Challenges ndash Lifestyle lead Variety
Creating Channel programs which are target segment focus based on lifestyles hellip
Acquisition of content as content regulations will be relaxed
Solution Target Segment focus
Using financial view to free resources for content developmentFinancial segment reporting may create a ldquosilordquo mentality ndash which encourages each head of business to protect their bottom line Hence a less effective in operations
Our recommendation is to expand content creation to cut across and shift paradigms to free up resources and focus on new revenue streams And create new content for different segment
Tele
visi
on N
etw
ork
Radi
o N
etw
ork
Out
door
Med
ia
Prin
t M
edia
Oth
er M
edia
Current Financial Segment Reporting
Tele
visi
on N
etw
ork
Radi
o N
etw
ork
Out
door
Med
ia
Prin
t M
edia
Oth
er M
edia
Production
Content
Subscription
Advertising
Recommended Segment Reporting
Lifestyle Segments
Lifestyle Segments
Lifestyle Segments
Lifestyle Segments
Lifestyle Segments
Lifestyle Segments
By changing the business segment reporting it also affects the company structure
The benefits - Flexibility and empowers knowledge
economy ndash talent content driven
- Builds at strong work culture which may be replicated in the region
- Expansion to embark on talent and content crowd sourcing - open innovation creation
Media Prima can take this opportunity to achieve SPECIALIZATION COORDINATION AND COOPERATION Currently team structure ndash of Integrated Marketing Division is created as a temporary solution hellip to enable integration It will move towards a network model to haste integration fast and response to technology and consumer needs
Subcription
Advertising
Production
TechnologyPartner
Content
How Moving from aggregator to content creator
Content Focus Leveraging on content to Embark on Revenue shifts
Long term sustainable leadership
Restructuring to liberateresources for Content
Sustainable Talent development -
Partnership
Riding the Technology Wave
Short term (2012) Mid Term (by 2013-2015) Long term 2015 beyond
Technology ndash Enable Media Prima to leap into Interactive Content
Interactive Content
UniFi Axiata
Media Prima
Electronics Manufacturer
Demand - A ready market bull There is a latent demand for content-gt consumers are
willing to Pay bull Technology has accustomed consumers to interacting
with contentbull Regulatory push to shift from analogue to digital by
2015
However unlike Media Primarsquos western counterparts ie Time Warner Communication Media Prima does not have the advantages of cable infrastructure
Challenges ndash Limitation
Media Prima could depend on existing suppliers of connectivity and technology- Telecommunications ie AXIATA and - Manufacturing companies ie Samsungto take the leap into interactive content Unifi TM
Solution ndash Smart Partnerships
Maximizing Unrelated Diversification
It is not a Fad but a trend
Smart TV is an inevitable trend says Baeguen Kang vice president of
research and development at South Koreas LG Electronics Co the worlds second-largest seller of TV sets by unit volume As people experienced smartphones and tablet PCs the larger screen on a TV is very attractive for apps and Web content
210 million TV sets sold world-wide had an Internet connection (2010)
21 50It will be the forecast in (2014)
Source Evan Ramstad (January 2011)A ldquoManufacturers Turn to Smart TV After 3-D Disappointsrdquo The Wall Street Journal online httponlinewsjcomarticleSB10001424052748704835504576059783074010902html
As technology develops Current cost is will drop exponentially reflecting the Moorersquos Law
Hence lowering the cost of access for interactive content
Example of Smart TV
Smart Hub It is a front facing interface just like a main menu
when consumers turn on their TV There are few utilities that consumers can choose to be entertained
Video ndash consumers can choose from array of video collections that required to be paid
Apps ndash an internet-enabled applications like You Tube Facebook Twitter Skype and others
Internet browsing ndash just like PC internet browsing
Music photo and TV watching
Smart ConnectivityWIFI enabled that allows consumers to connect to all mobile devices like smart phone tablet PC notebook and camera with Samsung Wireless Router called 1 foot This connectivity is being called ldquoAllSharerdquo by Samsung
httpotbresearchcomau200509report-1-industry-forum
MEDIA PRIMA IS CURRENTLY HERE
This will ultimately lead Media Prima to reduce it dependence on advertising revenue
Others ndash Utilising the SMART TV technology and Apps to create any existing Media Prima businesses
NEW Revenue Streams for Media Prima
To take advantage of SMART TV and collaborate with SMART TV manufacturers Media Prima can look into following utilities
Collaborate with manufacturers to allow consumers to browse and pay for Media Prima video collections
Selling local music for Malaysia market
Collaborate with local or international content developers to create Malaysia specific contents for paid subscription or free for common content to attract new consumers
How
Content Focus Leveraging on content to Embark on Revenue shifts
Long term sustainable leadership
Restructuring to liberateresources for Content
Sustainable Talent development -
Partnership
Riding the Technology Wave
Short term (2012) Mid Term (by 2013-2015) Long term 2015 beyond
Building Talents in the long run
Education Building on its strategic CSR ndash Media Prima could champion the
development of the content industry by partnering with local universities in the areas of technology media and communication
Crowd Sourcing To haste up the strategic CSR it too could embark on crowd
sourcing for content ndash via scripts and interactive content In which Media Prima could support a great idea and develop the ideas for monetization
This is a synergistic and natural development from the networks structure (open innovation)
Summary ndash Media Prima
Develop Talent Pool
Ensure Vibrant Content Industry
Technologycreates ubiquitous
Low Access Cost
To spur the industry forward
Strong talent develops Content development
demand for access
Strong content industry drives demand for Talent drives demand for content
Our recommendations are aligned to help spur the industry forwardhellip
Restructuring to liberateresources for Content
Sustainable Talent development -
Partnership
Riding the Technology Wave ndash Via Smart
Partnerships
References
References
1 Anon ldquoMedia Prima Berhad implements Accenture integrated broadcast systemrdquo Accenture Press Release httpnewsroomaccenturecomarticle_displaycfmarticle_id=5005 viewed 3 November 2011
2 Anon ldquoNew exciting and vibrant offerings from MPB television networks in 2010rdquo Media Prima Press Release httpwwwmediaprimacommypressreleasepressreleaseaspxid=150 viewed 3 November 2011
3 Anderson J ldquoResource-based competitiveness managerial implications of the resource-based viewrdquo Strategic Direction Vol26 No5 2010 pp1-2
4 Arman Arshad (2006) Size matters Retrieved December 2 2011 from asiaviewsorg httpwwwasiaviewsorgindexphpoption=com_contentampview=articleampid=2171headlinealias2171ampcatid=1headlinesampItemid=2
5 Asia Times (2007 November 29) Malaysian media giant grasps for Internet Retrieved November 3 2011 from httpwwwatimescomatimesSoutheast_AsiaIK29Ae02html
6 Barney JB amp Hesterly WS (2008) Strategic Management and Competitive Advantage The Five Forces Model of Environmental Threats pp39Prentice Hall
7 BBC (2011) BBC News product launches on connected TV Retrieved from bbccoukpressofficepressreleasesstories201106_june17newsshtml
8 Boston Consulting Group (2011) Lean Advantage in Media Boston Consulting Group
9 Boston Consulting Group (2011) Running Forward Walking Backward Boston Consulting Group
10 Business Times (2011) Media Prima net revenue grows to RM119b Kuala Lumpur New Straits Times
11 Business Times (2011) Media Prima on track to achie1048665ing 2011 target Retrieved from www1btimescomm1048668Current_NewsBTIMESarticlespimeArticle
References (1)
12 Business Times (2011) Media Prima Puncak Semangat in early talks Retrieved from httpwwwbtimescommyarticlespimmaArticle
13 Carl W Stern George Stalk Carl W Stern George Stalk Stern CW amp Stalk G (2011) Perspectives of Strategy from the Boston Consulting Group Retrieved December 3 2011 from Value Based Managementnet httpwwwvaluebasedmanagementnetmethods_bcgmatrixhtml
14 ecmlibra (2011) Adex momentum to taper off in 2012 ecmlibra
15 Gershon R A amp Ratnadeep S V (2004) Viacom Inc A Case Study in Transnational Media Management Journal of Media Business Studies 1 (1) 47-69
16 Grant RM ldquoThe resource-based theory of competitive advantage implications for strategy formulationrdquo California Management Review Vol 3 2011 httpwwwskynetie~karenArticlesGrant1_NBpdf viewed 15 November 2011
17 GreyReview (2011) TonTon Streaming Over 11 Million Video Hours A Month now with 16 millions registered users Retrieved from httpwwwgreyreviewcom20110731tonton-serving-over-1-1-million-video-hours-a-month-now-with-1-6-registered-users
18 Heavy Reading (2011) Telecom in TV Land A Roadmap to New Digital Media Ecosystem Retrieved from wwwheavyreadingcomdetailsaspsku_id=1773ampskuitem_itemid=1030
19 Hegedus N (2010) The Great Scare EBR 3 10-17
20 JohnsonGScholesK amp Whittington (2008) Exploring Corporate Strategy Competitive Forces ndash the Five Forces Framework pp 59-64 Prentice Hall
21 kinetic (2011) Moving World Asia Hong Kong
References (2)
22 Knowledgefaber (2009) Telcos Avatar - As Media Companies 20 Retrieved from httpknowledgefabercomindexphpoption=com_contentampview=articleampid=40telecom-and-media-convergenceampcatid=10telecomampItemid=42
23 Knowledgefaber (2011) Telcos Avatar - As Media Companies 20 Retrieved from httpknowledgefabercomindexphpoption=com_contentampview=articleampid=40
24 Malik O (2011) GIGAOM Retrieved from httpgigaomcom20110223old-media-is-being-unbundled-just-like-telecom-was
25 Maxis with TM Astro with TIME Best Strategy to IPTV Market Retrieved December 1 2011 httpbizthestarcommynewsstoryaspfile=201111business7704581ampsec=business
26 Media Prima (2010) Annual Report Media Prima Berhad27 Media Prima Berhad (2011) 11 Nov 2011 - New Exciting amp Vibrant Offerings From MPB Television Retrieved from
wwwmediaprimacommypressreleasepressreleaseaspxid=15028 Media Prima (2010) Sustainability Report Media Prima Berhad29 OSK (2011) Media Prima OSK30 Pocket-Lint (2011) Samsung Smart TV hits 2 million mark Retrieved from
httpwwwpocket-lintcomnews40593samsung-smart-tv-2-million31 PricewaterhouseCoopers (2011) Achieving corporate financial PwC32 PricewaterhouseCoopers (2007) Financial Reporting Standards (FRS) in Malaysia PricewaterhouseCoopers33 SKMM (MCMC) (2009) Advertising Development in Malaysia SKMM34 SKMM (MCMC) (2011) Content Development SKMM35 Techpinions (2011) Interactive TV Trends - How the TV experience is changing - Part II Retrieved from
httptechpinionscominteractive-tv-trends-E28093-how-the-tv-experience-is-changing-part-ii4066
References (3)
36 The Edge (2011) Media Prima best proxy to sector Retrieved from wwwtheedgemalaysiacom37 The Edge Malaysia (2011 September 26) Education the mother of all reforms Retrieved October 30 2011 from
httpwwwtheedgemalaysiacomin-the-financial-daily193478-education-the-mother-of-all-reformshtml38 The Star Online (2011) Main players in the competitive TV sector Retrieved from bizthestarcommynewsstoryasp
file=20111126business997401739 The Star Online (2011) Maxis ready to move up value Retrieved from
bizthestarcommynewsstoryaspfile=201111business7704581ampse40 The Star Online (2011) New players enter the TV Retrieved from
bizthestarcommynewsstoryaspfile=20111126business997300841 The Star Newspaper (December 1 2011) Capital TV to make its debut today42 The Star Online (January 1 2011) Maxis ready to move up value chain Retrieved December 3 2011
httpbizthestarcommynewsstoryaspfile=201111business7704581ampsec=business43 The Star Online (2011 April 21) Media Prima to invest more on local content Retrieved October 30 2011 from C
Usersa34ffzzDesktopMedia PrimaUsed articlesMedia Prima to invest more in local contentmht44 Time Warners (2010) Annual Report Time Warners45 WHAT HI FI (2011) Samsung aims for 50m TV sales worldwide in 2012 set to announce launch date for Google TV
product Retrieved from httpwwwwhathificomnewssamsung-aims-for-50m-tv-sales-worldwide-in-2012-set-to-announce-launch-date-for-google-tv-produ
46 Woroch G A (1996) Turning the Cables Elsevier47 Zanuddin H (2007) Political influence in Malaysia and Thailand media sector Jati Vol12
- MEdiA PRIMA
- Agenda
- Company Profile
- Media Primarsquos Commitment amp Direction moving forward
- Media Industry Business Model ndash Content Driven
- Our Tasks ndash How
- PEST Analysis
- Politics Legal Issues amp Impact
- Economic Issues and Impact
- Social Issues and Impact
- Social Issues and Impact
- Technology Issues and Impact
- In short
- Porterrsquos 5 Forces Analysis
- Porterrsquos Five Forces ndash Competitive Analysis
- Financials
- Media Prima Financial Highlights
- However in further analysis
- Value Chain Analysis
- Resource Based View
- In the context of the Content industry value chain Mapped again
- Appraising capabilities which drives profitability
- Mapping Media Prima revenue streams against the Diversification
- Slide 25
- Related Constrained Diversification
- Related Constrained Diversification (2)
- Slide 28
- Related Linked Diversification
- Slide 30
- Social Responsibility Analysis
- Social Responsibility
- Social Responsibility ndash cont
- Media Prima Acknowledges it various stakeholder via Stakeholder
- It has moved on to 2nd stage of CSR
- SWOT Analysis
- SWOT Analysis ndash Summary
- Media Primarsquos Current situation in summary
- Moving forward 2012 and beyond
- Recommended Destination and future growth of Media Prima
- How Moving from aggregator to content creator
- How Moving from aggregator to content creator (2)
- Creating a Content focus agency All these can be enable via
- Using financial view to free resources for content development
- By changing the business segment reporting it also affects the
- How Moving from aggregator to content creator (3)
- Technology ndash Enable Media Prima to leap into Interactive Conten
- It is not a Fad but a trend
- Slide 50
- Example of Smart TV
- This will ultimately lead Media Prima to reduce it dependence o
- NEW Revenue Streams for Media Prima
- How
- Building Talents in the long run
- Summary ndash Media Prima
- References
- References
- References (1)
- References (2)
- References (3)
-
Right Technology (Gadget and Infrastructure) at the Right time (deregulation) amp Right consumers (shift in media habits and willingness to pay for content ndash ASTRO as indicator)
Vertical Value Chain advantage to compete in content development
Media Primarsquos Current situation in summary
+VE
-VE Revenue dependent on advertising which is affected correlated to GDP
Resources organization structure holds back effectiveness of organization
Moving forward2012 and beyond
Recommended Destination and future growth of Media Prima
Revenue mainly from advertising
Revenue from advertising
Content SubscriptionBy viewers
Content driven Complementary Services for advertiser (Auxillary Services)
Media Prima
Media Prima
Content Syndicationto competitors
+
How Moving from aggregator to content creator
Content Focus Leveraging on content to Embark on Revenue shifts
Long term sustainable leadership
Restructuring to liberateresources for Content
Sustainable Talent development -
Partnership
Riding the Technology Wave
Short term (2012) Mid Term (by 2013-2015) Long term 2015 beyond
How Moving from aggregator to content creator
Content Focus Leveraging on content to Embark on Revenue shifts
Long term sustainable leadership
Restructuring to liberateresources for Content
Sustainable Talent development -
Partnership
Riding the Technology Wave
Short term (2012) Mid Term (by 2013-2015) Long term 2015 beyond
Creating a Content focus agency All these can be enable via the following means
Demand- The content creation race bull There is a need to free up empower human capital to create more content which are relevant
segmented engaging and entertaining
How does media prima refocus its resources into where it matters Instead of multiple teams doing the same thing ndash there is a challenge to create a lean and efficient organization
Challenges Freeing Resources
Instead of looking at a Media based financial segment reporting structurally force the teams to integrate by changing the dynamics of PampL
Next page
Solution Redefining Business Units Paradigms
Take a step up from producing beyond the current vernacular program to meet shifting consumer needs
Challenges ndash Lifestyle lead Variety
Creating Channel programs which are target segment focus based on lifestyles hellip
Acquisition of content as content regulations will be relaxed
Solution Target Segment focus
Using financial view to free resources for content developmentFinancial segment reporting may create a ldquosilordquo mentality ndash which encourages each head of business to protect their bottom line Hence a less effective in operations
Our recommendation is to expand content creation to cut across and shift paradigms to free up resources and focus on new revenue streams And create new content for different segment
Tele
visi
on N
etw
ork
Radi
o N
etw
ork
Out
door
Med
ia
Prin
t M
edia
Oth
er M
edia
Current Financial Segment Reporting
Tele
visi
on N
etw
ork
Radi
o N
etw
ork
Out
door
Med
ia
Prin
t M
edia
Oth
er M
edia
Production
Content
Subscription
Advertising
Recommended Segment Reporting
Lifestyle Segments
Lifestyle Segments
Lifestyle Segments
Lifestyle Segments
Lifestyle Segments
Lifestyle Segments
By changing the business segment reporting it also affects the company structure
The benefits - Flexibility and empowers knowledge
economy ndash talent content driven
- Builds at strong work culture which may be replicated in the region
- Expansion to embark on talent and content crowd sourcing - open innovation creation
Media Prima can take this opportunity to achieve SPECIALIZATION COORDINATION AND COOPERATION Currently team structure ndash of Integrated Marketing Division is created as a temporary solution hellip to enable integration It will move towards a network model to haste integration fast and response to technology and consumer needs
Subcription
Advertising
Production
TechnologyPartner
Content
How Moving from aggregator to content creator
Content Focus Leveraging on content to Embark on Revenue shifts
Long term sustainable leadership
Restructuring to liberateresources for Content
Sustainable Talent development -
Partnership
Riding the Technology Wave
Short term (2012) Mid Term (by 2013-2015) Long term 2015 beyond
Technology ndash Enable Media Prima to leap into Interactive Content
Interactive Content
UniFi Axiata
Media Prima
Electronics Manufacturer
Demand - A ready market bull There is a latent demand for content-gt consumers are
willing to Pay bull Technology has accustomed consumers to interacting
with contentbull Regulatory push to shift from analogue to digital by
2015
However unlike Media Primarsquos western counterparts ie Time Warner Communication Media Prima does not have the advantages of cable infrastructure
Challenges ndash Limitation
Media Prima could depend on existing suppliers of connectivity and technology- Telecommunications ie AXIATA and - Manufacturing companies ie Samsungto take the leap into interactive content Unifi TM
Solution ndash Smart Partnerships
Maximizing Unrelated Diversification
It is not a Fad but a trend
Smart TV is an inevitable trend says Baeguen Kang vice president of
research and development at South Koreas LG Electronics Co the worlds second-largest seller of TV sets by unit volume As people experienced smartphones and tablet PCs the larger screen on a TV is very attractive for apps and Web content
210 million TV sets sold world-wide had an Internet connection (2010)
21 50It will be the forecast in (2014)
Source Evan Ramstad (January 2011)A ldquoManufacturers Turn to Smart TV After 3-D Disappointsrdquo The Wall Street Journal online httponlinewsjcomarticleSB10001424052748704835504576059783074010902html
As technology develops Current cost is will drop exponentially reflecting the Moorersquos Law
Hence lowering the cost of access for interactive content
Example of Smart TV
Smart Hub It is a front facing interface just like a main menu
when consumers turn on their TV There are few utilities that consumers can choose to be entertained
Video ndash consumers can choose from array of video collections that required to be paid
Apps ndash an internet-enabled applications like You Tube Facebook Twitter Skype and others
Internet browsing ndash just like PC internet browsing
Music photo and TV watching
Smart ConnectivityWIFI enabled that allows consumers to connect to all mobile devices like smart phone tablet PC notebook and camera with Samsung Wireless Router called 1 foot This connectivity is being called ldquoAllSharerdquo by Samsung
httpotbresearchcomau200509report-1-industry-forum
MEDIA PRIMA IS CURRENTLY HERE
This will ultimately lead Media Prima to reduce it dependence on advertising revenue
Others ndash Utilising the SMART TV technology and Apps to create any existing Media Prima businesses
NEW Revenue Streams for Media Prima
To take advantage of SMART TV and collaborate with SMART TV manufacturers Media Prima can look into following utilities
Collaborate with manufacturers to allow consumers to browse and pay for Media Prima video collections
Selling local music for Malaysia market
Collaborate with local or international content developers to create Malaysia specific contents for paid subscription or free for common content to attract new consumers
How
Content Focus Leveraging on content to Embark on Revenue shifts
Long term sustainable leadership
Restructuring to liberateresources for Content
Sustainable Talent development -
Partnership
Riding the Technology Wave
Short term (2012) Mid Term (by 2013-2015) Long term 2015 beyond
Building Talents in the long run
Education Building on its strategic CSR ndash Media Prima could champion the
development of the content industry by partnering with local universities in the areas of technology media and communication
Crowd Sourcing To haste up the strategic CSR it too could embark on crowd
sourcing for content ndash via scripts and interactive content In which Media Prima could support a great idea and develop the ideas for monetization
This is a synergistic and natural development from the networks structure (open innovation)
Summary ndash Media Prima
Develop Talent Pool
Ensure Vibrant Content Industry
Technologycreates ubiquitous
Low Access Cost
To spur the industry forward
Strong talent develops Content development
demand for access
Strong content industry drives demand for Talent drives demand for content
Our recommendations are aligned to help spur the industry forwardhellip
Restructuring to liberateresources for Content
Sustainable Talent development -
Partnership
Riding the Technology Wave ndash Via Smart
Partnerships
References
References
1 Anon ldquoMedia Prima Berhad implements Accenture integrated broadcast systemrdquo Accenture Press Release httpnewsroomaccenturecomarticle_displaycfmarticle_id=5005 viewed 3 November 2011
2 Anon ldquoNew exciting and vibrant offerings from MPB television networks in 2010rdquo Media Prima Press Release httpwwwmediaprimacommypressreleasepressreleaseaspxid=150 viewed 3 November 2011
3 Anderson J ldquoResource-based competitiveness managerial implications of the resource-based viewrdquo Strategic Direction Vol26 No5 2010 pp1-2
4 Arman Arshad (2006) Size matters Retrieved December 2 2011 from asiaviewsorg httpwwwasiaviewsorgindexphpoption=com_contentampview=articleampid=2171headlinealias2171ampcatid=1headlinesampItemid=2
5 Asia Times (2007 November 29) Malaysian media giant grasps for Internet Retrieved November 3 2011 from httpwwwatimescomatimesSoutheast_AsiaIK29Ae02html
6 Barney JB amp Hesterly WS (2008) Strategic Management and Competitive Advantage The Five Forces Model of Environmental Threats pp39Prentice Hall
7 BBC (2011) BBC News product launches on connected TV Retrieved from bbccoukpressofficepressreleasesstories201106_june17newsshtml
8 Boston Consulting Group (2011) Lean Advantage in Media Boston Consulting Group
9 Boston Consulting Group (2011) Running Forward Walking Backward Boston Consulting Group
10 Business Times (2011) Media Prima net revenue grows to RM119b Kuala Lumpur New Straits Times
11 Business Times (2011) Media Prima on track to achie1048665ing 2011 target Retrieved from www1btimescomm1048668Current_NewsBTIMESarticlespimeArticle
References (1)
12 Business Times (2011) Media Prima Puncak Semangat in early talks Retrieved from httpwwwbtimescommyarticlespimmaArticle
13 Carl W Stern George Stalk Carl W Stern George Stalk Stern CW amp Stalk G (2011) Perspectives of Strategy from the Boston Consulting Group Retrieved December 3 2011 from Value Based Managementnet httpwwwvaluebasedmanagementnetmethods_bcgmatrixhtml
14 ecmlibra (2011) Adex momentum to taper off in 2012 ecmlibra
15 Gershon R A amp Ratnadeep S V (2004) Viacom Inc A Case Study in Transnational Media Management Journal of Media Business Studies 1 (1) 47-69
16 Grant RM ldquoThe resource-based theory of competitive advantage implications for strategy formulationrdquo California Management Review Vol 3 2011 httpwwwskynetie~karenArticlesGrant1_NBpdf viewed 15 November 2011
17 GreyReview (2011) TonTon Streaming Over 11 Million Video Hours A Month now with 16 millions registered users Retrieved from httpwwwgreyreviewcom20110731tonton-serving-over-1-1-million-video-hours-a-month-now-with-1-6-registered-users
18 Heavy Reading (2011) Telecom in TV Land A Roadmap to New Digital Media Ecosystem Retrieved from wwwheavyreadingcomdetailsaspsku_id=1773ampskuitem_itemid=1030
19 Hegedus N (2010) The Great Scare EBR 3 10-17
20 JohnsonGScholesK amp Whittington (2008) Exploring Corporate Strategy Competitive Forces ndash the Five Forces Framework pp 59-64 Prentice Hall
21 kinetic (2011) Moving World Asia Hong Kong
References (2)
22 Knowledgefaber (2009) Telcos Avatar - As Media Companies 20 Retrieved from httpknowledgefabercomindexphpoption=com_contentampview=articleampid=40telecom-and-media-convergenceampcatid=10telecomampItemid=42
23 Knowledgefaber (2011) Telcos Avatar - As Media Companies 20 Retrieved from httpknowledgefabercomindexphpoption=com_contentampview=articleampid=40
24 Malik O (2011) GIGAOM Retrieved from httpgigaomcom20110223old-media-is-being-unbundled-just-like-telecom-was
25 Maxis with TM Astro with TIME Best Strategy to IPTV Market Retrieved December 1 2011 httpbizthestarcommynewsstoryaspfile=201111business7704581ampsec=business
26 Media Prima (2010) Annual Report Media Prima Berhad27 Media Prima Berhad (2011) 11 Nov 2011 - New Exciting amp Vibrant Offerings From MPB Television Retrieved from
wwwmediaprimacommypressreleasepressreleaseaspxid=15028 Media Prima (2010) Sustainability Report Media Prima Berhad29 OSK (2011) Media Prima OSK30 Pocket-Lint (2011) Samsung Smart TV hits 2 million mark Retrieved from
httpwwwpocket-lintcomnews40593samsung-smart-tv-2-million31 PricewaterhouseCoopers (2011) Achieving corporate financial PwC32 PricewaterhouseCoopers (2007) Financial Reporting Standards (FRS) in Malaysia PricewaterhouseCoopers33 SKMM (MCMC) (2009) Advertising Development in Malaysia SKMM34 SKMM (MCMC) (2011) Content Development SKMM35 Techpinions (2011) Interactive TV Trends - How the TV experience is changing - Part II Retrieved from
httptechpinionscominteractive-tv-trends-E28093-how-the-tv-experience-is-changing-part-ii4066
References (3)
36 The Edge (2011) Media Prima best proxy to sector Retrieved from wwwtheedgemalaysiacom37 The Edge Malaysia (2011 September 26) Education the mother of all reforms Retrieved October 30 2011 from
httpwwwtheedgemalaysiacomin-the-financial-daily193478-education-the-mother-of-all-reformshtml38 The Star Online (2011) Main players in the competitive TV sector Retrieved from bizthestarcommynewsstoryasp
file=20111126business997401739 The Star Online (2011) Maxis ready to move up value Retrieved from
bizthestarcommynewsstoryaspfile=201111business7704581ampse40 The Star Online (2011) New players enter the TV Retrieved from
bizthestarcommynewsstoryaspfile=20111126business997300841 The Star Newspaper (December 1 2011) Capital TV to make its debut today42 The Star Online (January 1 2011) Maxis ready to move up value chain Retrieved December 3 2011
httpbizthestarcommynewsstoryaspfile=201111business7704581ampsec=business43 The Star Online (2011 April 21) Media Prima to invest more on local content Retrieved October 30 2011 from C
Usersa34ffzzDesktopMedia PrimaUsed articlesMedia Prima to invest more in local contentmht44 Time Warners (2010) Annual Report Time Warners45 WHAT HI FI (2011) Samsung aims for 50m TV sales worldwide in 2012 set to announce launch date for Google TV
product Retrieved from httpwwwwhathificomnewssamsung-aims-for-50m-tv-sales-worldwide-in-2012-set-to-announce-launch-date-for-google-tv-produ
46 Woroch G A (1996) Turning the Cables Elsevier47 Zanuddin H (2007) Political influence in Malaysia and Thailand media sector Jati Vol12
- MEdiA PRIMA
- Agenda
- Company Profile
- Media Primarsquos Commitment amp Direction moving forward
- Media Industry Business Model ndash Content Driven
- Our Tasks ndash How
- PEST Analysis
- Politics Legal Issues amp Impact
- Economic Issues and Impact
- Social Issues and Impact
- Social Issues and Impact
- Technology Issues and Impact
- In short
- Porterrsquos 5 Forces Analysis
- Porterrsquos Five Forces ndash Competitive Analysis
- Financials
- Media Prima Financial Highlights
- However in further analysis
- Value Chain Analysis
- Resource Based View
- In the context of the Content industry value chain Mapped again
- Appraising capabilities which drives profitability
- Mapping Media Prima revenue streams against the Diversification
- Slide 25
- Related Constrained Diversification
- Related Constrained Diversification (2)
- Slide 28
- Related Linked Diversification
- Slide 30
- Social Responsibility Analysis
- Social Responsibility
- Social Responsibility ndash cont
- Media Prima Acknowledges it various stakeholder via Stakeholder
- It has moved on to 2nd stage of CSR
- SWOT Analysis
- SWOT Analysis ndash Summary
- Media Primarsquos Current situation in summary
- Moving forward 2012 and beyond
- Recommended Destination and future growth of Media Prima
- How Moving from aggregator to content creator
- How Moving from aggregator to content creator (2)
- Creating a Content focus agency All these can be enable via
- Using financial view to free resources for content development
- By changing the business segment reporting it also affects the
- How Moving from aggregator to content creator (3)
- Technology ndash Enable Media Prima to leap into Interactive Conten
- It is not a Fad but a trend
- Slide 50
- Example of Smart TV
- This will ultimately lead Media Prima to reduce it dependence o
- NEW Revenue Streams for Media Prima
- How
- Building Talents in the long run
- Summary ndash Media Prima
- References
- References
- References (1)
- References (2)
- References (3)
-
Moving forward2012 and beyond
Recommended Destination and future growth of Media Prima
Revenue mainly from advertising
Revenue from advertising
Content SubscriptionBy viewers
Content driven Complementary Services for advertiser (Auxillary Services)
Media Prima
Media Prima
Content Syndicationto competitors
+
How Moving from aggregator to content creator
Content Focus Leveraging on content to Embark on Revenue shifts
Long term sustainable leadership
Restructuring to liberateresources for Content
Sustainable Talent development -
Partnership
Riding the Technology Wave
Short term (2012) Mid Term (by 2013-2015) Long term 2015 beyond
How Moving from aggregator to content creator
Content Focus Leveraging on content to Embark on Revenue shifts
Long term sustainable leadership
Restructuring to liberateresources for Content
Sustainable Talent development -
Partnership
Riding the Technology Wave
Short term (2012) Mid Term (by 2013-2015) Long term 2015 beyond
Creating a Content focus agency All these can be enable via the following means
Demand- The content creation race bull There is a need to free up empower human capital to create more content which are relevant
segmented engaging and entertaining
How does media prima refocus its resources into where it matters Instead of multiple teams doing the same thing ndash there is a challenge to create a lean and efficient organization
Challenges Freeing Resources
Instead of looking at a Media based financial segment reporting structurally force the teams to integrate by changing the dynamics of PampL
Next page
Solution Redefining Business Units Paradigms
Take a step up from producing beyond the current vernacular program to meet shifting consumer needs
Challenges ndash Lifestyle lead Variety
Creating Channel programs which are target segment focus based on lifestyles hellip
Acquisition of content as content regulations will be relaxed
Solution Target Segment focus
Using financial view to free resources for content developmentFinancial segment reporting may create a ldquosilordquo mentality ndash which encourages each head of business to protect their bottom line Hence a less effective in operations
Our recommendation is to expand content creation to cut across and shift paradigms to free up resources and focus on new revenue streams And create new content for different segment
Tele
visi
on N
etw
ork
Radi
o N
etw
ork
Out
door
Med
ia
Prin
t M
edia
Oth
er M
edia
Current Financial Segment Reporting
Tele
visi
on N
etw
ork
Radi
o N
etw
ork
Out
door
Med
ia
Prin
t M
edia
Oth
er M
edia
Production
Content
Subscription
Advertising
Recommended Segment Reporting
Lifestyle Segments
Lifestyle Segments
Lifestyle Segments
Lifestyle Segments
Lifestyle Segments
Lifestyle Segments
By changing the business segment reporting it also affects the company structure
The benefits - Flexibility and empowers knowledge
economy ndash talent content driven
- Builds at strong work culture which may be replicated in the region
- Expansion to embark on talent and content crowd sourcing - open innovation creation
Media Prima can take this opportunity to achieve SPECIALIZATION COORDINATION AND COOPERATION Currently team structure ndash of Integrated Marketing Division is created as a temporary solution hellip to enable integration It will move towards a network model to haste integration fast and response to technology and consumer needs
Subcription
Advertising
Production
TechnologyPartner
Content
How Moving from aggregator to content creator
Content Focus Leveraging on content to Embark on Revenue shifts
Long term sustainable leadership
Restructuring to liberateresources for Content
Sustainable Talent development -
Partnership
Riding the Technology Wave
Short term (2012) Mid Term (by 2013-2015) Long term 2015 beyond
Technology ndash Enable Media Prima to leap into Interactive Content
Interactive Content
UniFi Axiata
Media Prima
Electronics Manufacturer
Demand - A ready market bull There is a latent demand for content-gt consumers are
willing to Pay bull Technology has accustomed consumers to interacting
with contentbull Regulatory push to shift from analogue to digital by
2015
However unlike Media Primarsquos western counterparts ie Time Warner Communication Media Prima does not have the advantages of cable infrastructure
Challenges ndash Limitation
Media Prima could depend on existing suppliers of connectivity and technology- Telecommunications ie AXIATA and - Manufacturing companies ie Samsungto take the leap into interactive content Unifi TM
Solution ndash Smart Partnerships
Maximizing Unrelated Diversification
It is not a Fad but a trend
Smart TV is an inevitable trend says Baeguen Kang vice president of
research and development at South Koreas LG Electronics Co the worlds second-largest seller of TV sets by unit volume As people experienced smartphones and tablet PCs the larger screen on a TV is very attractive for apps and Web content
210 million TV sets sold world-wide had an Internet connection (2010)
21 50It will be the forecast in (2014)
Source Evan Ramstad (January 2011)A ldquoManufacturers Turn to Smart TV After 3-D Disappointsrdquo The Wall Street Journal online httponlinewsjcomarticleSB10001424052748704835504576059783074010902html
As technology develops Current cost is will drop exponentially reflecting the Moorersquos Law
Hence lowering the cost of access for interactive content
Example of Smart TV
Smart Hub It is a front facing interface just like a main menu
when consumers turn on their TV There are few utilities that consumers can choose to be entertained
Video ndash consumers can choose from array of video collections that required to be paid
Apps ndash an internet-enabled applications like You Tube Facebook Twitter Skype and others
Internet browsing ndash just like PC internet browsing
Music photo and TV watching
Smart ConnectivityWIFI enabled that allows consumers to connect to all mobile devices like smart phone tablet PC notebook and camera with Samsung Wireless Router called 1 foot This connectivity is being called ldquoAllSharerdquo by Samsung
httpotbresearchcomau200509report-1-industry-forum
MEDIA PRIMA IS CURRENTLY HERE
This will ultimately lead Media Prima to reduce it dependence on advertising revenue
Others ndash Utilising the SMART TV technology and Apps to create any existing Media Prima businesses
NEW Revenue Streams for Media Prima
To take advantage of SMART TV and collaborate with SMART TV manufacturers Media Prima can look into following utilities
Collaborate with manufacturers to allow consumers to browse and pay for Media Prima video collections
Selling local music for Malaysia market
Collaborate with local or international content developers to create Malaysia specific contents for paid subscription or free for common content to attract new consumers
How
Content Focus Leveraging on content to Embark on Revenue shifts
Long term sustainable leadership
Restructuring to liberateresources for Content
Sustainable Talent development -
Partnership
Riding the Technology Wave
Short term (2012) Mid Term (by 2013-2015) Long term 2015 beyond
Building Talents in the long run
Education Building on its strategic CSR ndash Media Prima could champion the
development of the content industry by partnering with local universities in the areas of technology media and communication
Crowd Sourcing To haste up the strategic CSR it too could embark on crowd
sourcing for content ndash via scripts and interactive content In which Media Prima could support a great idea and develop the ideas for monetization
This is a synergistic and natural development from the networks structure (open innovation)
Summary ndash Media Prima
Develop Talent Pool
Ensure Vibrant Content Industry
Technologycreates ubiquitous
Low Access Cost
To spur the industry forward
Strong talent develops Content development
demand for access
Strong content industry drives demand for Talent drives demand for content
Our recommendations are aligned to help spur the industry forwardhellip
Restructuring to liberateresources for Content
Sustainable Talent development -
Partnership
Riding the Technology Wave ndash Via Smart
Partnerships
References
References
1 Anon ldquoMedia Prima Berhad implements Accenture integrated broadcast systemrdquo Accenture Press Release httpnewsroomaccenturecomarticle_displaycfmarticle_id=5005 viewed 3 November 2011
2 Anon ldquoNew exciting and vibrant offerings from MPB television networks in 2010rdquo Media Prima Press Release httpwwwmediaprimacommypressreleasepressreleaseaspxid=150 viewed 3 November 2011
3 Anderson J ldquoResource-based competitiveness managerial implications of the resource-based viewrdquo Strategic Direction Vol26 No5 2010 pp1-2
4 Arman Arshad (2006) Size matters Retrieved December 2 2011 from asiaviewsorg httpwwwasiaviewsorgindexphpoption=com_contentampview=articleampid=2171headlinealias2171ampcatid=1headlinesampItemid=2
5 Asia Times (2007 November 29) Malaysian media giant grasps for Internet Retrieved November 3 2011 from httpwwwatimescomatimesSoutheast_AsiaIK29Ae02html
6 Barney JB amp Hesterly WS (2008) Strategic Management and Competitive Advantage The Five Forces Model of Environmental Threats pp39Prentice Hall
7 BBC (2011) BBC News product launches on connected TV Retrieved from bbccoukpressofficepressreleasesstories201106_june17newsshtml
8 Boston Consulting Group (2011) Lean Advantage in Media Boston Consulting Group
9 Boston Consulting Group (2011) Running Forward Walking Backward Boston Consulting Group
10 Business Times (2011) Media Prima net revenue grows to RM119b Kuala Lumpur New Straits Times
11 Business Times (2011) Media Prima on track to achie1048665ing 2011 target Retrieved from www1btimescomm1048668Current_NewsBTIMESarticlespimeArticle
References (1)
12 Business Times (2011) Media Prima Puncak Semangat in early talks Retrieved from httpwwwbtimescommyarticlespimmaArticle
13 Carl W Stern George Stalk Carl W Stern George Stalk Stern CW amp Stalk G (2011) Perspectives of Strategy from the Boston Consulting Group Retrieved December 3 2011 from Value Based Managementnet httpwwwvaluebasedmanagementnetmethods_bcgmatrixhtml
14 ecmlibra (2011) Adex momentum to taper off in 2012 ecmlibra
15 Gershon R A amp Ratnadeep S V (2004) Viacom Inc A Case Study in Transnational Media Management Journal of Media Business Studies 1 (1) 47-69
16 Grant RM ldquoThe resource-based theory of competitive advantage implications for strategy formulationrdquo California Management Review Vol 3 2011 httpwwwskynetie~karenArticlesGrant1_NBpdf viewed 15 November 2011
17 GreyReview (2011) TonTon Streaming Over 11 Million Video Hours A Month now with 16 millions registered users Retrieved from httpwwwgreyreviewcom20110731tonton-serving-over-1-1-million-video-hours-a-month-now-with-1-6-registered-users
18 Heavy Reading (2011) Telecom in TV Land A Roadmap to New Digital Media Ecosystem Retrieved from wwwheavyreadingcomdetailsaspsku_id=1773ampskuitem_itemid=1030
19 Hegedus N (2010) The Great Scare EBR 3 10-17
20 JohnsonGScholesK amp Whittington (2008) Exploring Corporate Strategy Competitive Forces ndash the Five Forces Framework pp 59-64 Prentice Hall
21 kinetic (2011) Moving World Asia Hong Kong
References (2)
22 Knowledgefaber (2009) Telcos Avatar - As Media Companies 20 Retrieved from httpknowledgefabercomindexphpoption=com_contentampview=articleampid=40telecom-and-media-convergenceampcatid=10telecomampItemid=42
23 Knowledgefaber (2011) Telcos Avatar - As Media Companies 20 Retrieved from httpknowledgefabercomindexphpoption=com_contentampview=articleampid=40
24 Malik O (2011) GIGAOM Retrieved from httpgigaomcom20110223old-media-is-being-unbundled-just-like-telecom-was
25 Maxis with TM Astro with TIME Best Strategy to IPTV Market Retrieved December 1 2011 httpbizthestarcommynewsstoryaspfile=201111business7704581ampsec=business
26 Media Prima (2010) Annual Report Media Prima Berhad27 Media Prima Berhad (2011) 11 Nov 2011 - New Exciting amp Vibrant Offerings From MPB Television Retrieved from
wwwmediaprimacommypressreleasepressreleaseaspxid=15028 Media Prima (2010) Sustainability Report Media Prima Berhad29 OSK (2011) Media Prima OSK30 Pocket-Lint (2011) Samsung Smart TV hits 2 million mark Retrieved from
httpwwwpocket-lintcomnews40593samsung-smart-tv-2-million31 PricewaterhouseCoopers (2011) Achieving corporate financial PwC32 PricewaterhouseCoopers (2007) Financial Reporting Standards (FRS) in Malaysia PricewaterhouseCoopers33 SKMM (MCMC) (2009) Advertising Development in Malaysia SKMM34 SKMM (MCMC) (2011) Content Development SKMM35 Techpinions (2011) Interactive TV Trends - How the TV experience is changing - Part II Retrieved from
httptechpinionscominteractive-tv-trends-E28093-how-the-tv-experience-is-changing-part-ii4066
References (3)
36 The Edge (2011) Media Prima best proxy to sector Retrieved from wwwtheedgemalaysiacom37 The Edge Malaysia (2011 September 26) Education the mother of all reforms Retrieved October 30 2011 from
httpwwwtheedgemalaysiacomin-the-financial-daily193478-education-the-mother-of-all-reformshtml38 The Star Online (2011) Main players in the competitive TV sector Retrieved from bizthestarcommynewsstoryasp
file=20111126business997401739 The Star Online (2011) Maxis ready to move up value Retrieved from
bizthestarcommynewsstoryaspfile=201111business7704581ampse40 The Star Online (2011) New players enter the TV Retrieved from
bizthestarcommynewsstoryaspfile=20111126business997300841 The Star Newspaper (December 1 2011) Capital TV to make its debut today42 The Star Online (January 1 2011) Maxis ready to move up value chain Retrieved December 3 2011
httpbizthestarcommynewsstoryaspfile=201111business7704581ampsec=business43 The Star Online (2011 April 21) Media Prima to invest more on local content Retrieved October 30 2011 from C
Usersa34ffzzDesktopMedia PrimaUsed articlesMedia Prima to invest more in local contentmht44 Time Warners (2010) Annual Report Time Warners45 WHAT HI FI (2011) Samsung aims for 50m TV sales worldwide in 2012 set to announce launch date for Google TV
product Retrieved from httpwwwwhathificomnewssamsung-aims-for-50m-tv-sales-worldwide-in-2012-set-to-announce-launch-date-for-google-tv-produ
46 Woroch G A (1996) Turning the Cables Elsevier47 Zanuddin H (2007) Political influence in Malaysia and Thailand media sector Jati Vol12
- MEdiA PRIMA
- Agenda
- Company Profile
- Media Primarsquos Commitment amp Direction moving forward
- Media Industry Business Model ndash Content Driven
- Our Tasks ndash How
- PEST Analysis
- Politics Legal Issues amp Impact
- Economic Issues and Impact
- Social Issues and Impact
- Social Issues and Impact
- Technology Issues and Impact
- In short
- Porterrsquos 5 Forces Analysis
- Porterrsquos Five Forces ndash Competitive Analysis
- Financials
- Media Prima Financial Highlights
- However in further analysis
- Value Chain Analysis
- Resource Based View
- In the context of the Content industry value chain Mapped again
- Appraising capabilities which drives profitability
- Mapping Media Prima revenue streams against the Diversification
- Slide 25
- Related Constrained Diversification
- Related Constrained Diversification (2)
- Slide 28
- Related Linked Diversification
- Slide 30
- Social Responsibility Analysis
- Social Responsibility
- Social Responsibility ndash cont
- Media Prima Acknowledges it various stakeholder via Stakeholder
- It has moved on to 2nd stage of CSR
- SWOT Analysis
- SWOT Analysis ndash Summary
- Media Primarsquos Current situation in summary
- Moving forward 2012 and beyond
- Recommended Destination and future growth of Media Prima
- How Moving from aggregator to content creator
- How Moving from aggregator to content creator (2)
- Creating a Content focus agency All these can be enable via
- Using financial view to free resources for content development
- By changing the business segment reporting it also affects the
- How Moving from aggregator to content creator (3)
- Technology ndash Enable Media Prima to leap into Interactive Conten
- It is not a Fad but a trend
- Slide 50
- Example of Smart TV
- This will ultimately lead Media Prima to reduce it dependence o
- NEW Revenue Streams for Media Prima
- How
- Building Talents in the long run
- Summary ndash Media Prima
- References
- References
- References (1)
- References (2)
- References (3)
-
Recommended Destination and future growth of Media Prima
Revenue mainly from advertising
Revenue from advertising
Content SubscriptionBy viewers
Content driven Complementary Services for advertiser (Auxillary Services)
Media Prima
Media Prima
Content Syndicationto competitors
+
How Moving from aggregator to content creator
Content Focus Leveraging on content to Embark on Revenue shifts
Long term sustainable leadership
Restructuring to liberateresources for Content
Sustainable Talent development -
Partnership
Riding the Technology Wave
Short term (2012) Mid Term (by 2013-2015) Long term 2015 beyond
How Moving from aggregator to content creator
Content Focus Leveraging on content to Embark on Revenue shifts
Long term sustainable leadership
Restructuring to liberateresources for Content
Sustainable Talent development -
Partnership
Riding the Technology Wave
Short term (2012) Mid Term (by 2013-2015) Long term 2015 beyond
Creating a Content focus agency All these can be enable via the following means
Demand- The content creation race bull There is a need to free up empower human capital to create more content which are relevant
segmented engaging and entertaining
How does media prima refocus its resources into where it matters Instead of multiple teams doing the same thing ndash there is a challenge to create a lean and efficient organization
Challenges Freeing Resources
Instead of looking at a Media based financial segment reporting structurally force the teams to integrate by changing the dynamics of PampL
Next page
Solution Redefining Business Units Paradigms
Take a step up from producing beyond the current vernacular program to meet shifting consumer needs
Challenges ndash Lifestyle lead Variety
Creating Channel programs which are target segment focus based on lifestyles hellip
Acquisition of content as content regulations will be relaxed
Solution Target Segment focus
Using financial view to free resources for content developmentFinancial segment reporting may create a ldquosilordquo mentality ndash which encourages each head of business to protect their bottom line Hence a less effective in operations
Our recommendation is to expand content creation to cut across and shift paradigms to free up resources and focus on new revenue streams And create new content for different segment
Tele
visi
on N
etw
ork
Radi
o N
etw
ork
Out
door
Med
ia
Prin
t M
edia
Oth
er M
edia
Current Financial Segment Reporting
Tele
visi
on N
etw
ork
Radi
o N
etw
ork
Out
door
Med
ia
Prin
t M
edia
Oth
er M
edia
Production
Content
Subscription
Advertising
Recommended Segment Reporting
Lifestyle Segments
Lifestyle Segments
Lifestyle Segments
Lifestyle Segments
Lifestyle Segments
Lifestyle Segments
By changing the business segment reporting it also affects the company structure
The benefits - Flexibility and empowers knowledge
economy ndash talent content driven
- Builds at strong work culture which may be replicated in the region
- Expansion to embark on talent and content crowd sourcing - open innovation creation
Media Prima can take this opportunity to achieve SPECIALIZATION COORDINATION AND COOPERATION Currently team structure ndash of Integrated Marketing Division is created as a temporary solution hellip to enable integration It will move towards a network model to haste integration fast and response to technology and consumer needs
Subcription
Advertising
Production
TechnologyPartner
Content
How Moving from aggregator to content creator
Content Focus Leveraging on content to Embark on Revenue shifts
Long term sustainable leadership
Restructuring to liberateresources for Content
Sustainable Talent development -
Partnership
Riding the Technology Wave
Short term (2012) Mid Term (by 2013-2015) Long term 2015 beyond
Technology ndash Enable Media Prima to leap into Interactive Content
Interactive Content
UniFi Axiata
Media Prima
Electronics Manufacturer
Demand - A ready market bull There is a latent demand for content-gt consumers are
willing to Pay bull Technology has accustomed consumers to interacting
with contentbull Regulatory push to shift from analogue to digital by
2015
However unlike Media Primarsquos western counterparts ie Time Warner Communication Media Prima does not have the advantages of cable infrastructure
Challenges ndash Limitation
Media Prima could depend on existing suppliers of connectivity and technology- Telecommunications ie AXIATA and - Manufacturing companies ie Samsungto take the leap into interactive content Unifi TM
Solution ndash Smart Partnerships
Maximizing Unrelated Diversification
It is not a Fad but a trend
Smart TV is an inevitable trend says Baeguen Kang vice president of
research and development at South Koreas LG Electronics Co the worlds second-largest seller of TV sets by unit volume As people experienced smartphones and tablet PCs the larger screen on a TV is very attractive for apps and Web content
210 million TV sets sold world-wide had an Internet connection (2010)
21 50It will be the forecast in (2014)
Source Evan Ramstad (January 2011)A ldquoManufacturers Turn to Smart TV After 3-D Disappointsrdquo The Wall Street Journal online httponlinewsjcomarticleSB10001424052748704835504576059783074010902html
As technology develops Current cost is will drop exponentially reflecting the Moorersquos Law
Hence lowering the cost of access for interactive content
Example of Smart TV
Smart Hub It is a front facing interface just like a main menu
when consumers turn on their TV There are few utilities that consumers can choose to be entertained
Video ndash consumers can choose from array of video collections that required to be paid
Apps ndash an internet-enabled applications like You Tube Facebook Twitter Skype and others
Internet browsing ndash just like PC internet browsing
Music photo and TV watching
Smart ConnectivityWIFI enabled that allows consumers to connect to all mobile devices like smart phone tablet PC notebook and camera with Samsung Wireless Router called 1 foot This connectivity is being called ldquoAllSharerdquo by Samsung
httpotbresearchcomau200509report-1-industry-forum
MEDIA PRIMA IS CURRENTLY HERE
This will ultimately lead Media Prima to reduce it dependence on advertising revenue
Others ndash Utilising the SMART TV technology and Apps to create any existing Media Prima businesses
NEW Revenue Streams for Media Prima
To take advantage of SMART TV and collaborate with SMART TV manufacturers Media Prima can look into following utilities
Collaborate with manufacturers to allow consumers to browse and pay for Media Prima video collections
Selling local music for Malaysia market
Collaborate with local or international content developers to create Malaysia specific contents for paid subscription or free for common content to attract new consumers
How
Content Focus Leveraging on content to Embark on Revenue shifts
Long term sustainable leadership
Restructuring to liberateresources for Content
Sustainable Talent development -
Partnership
Riding the Technology Wave
Short term (2012) Mid Term (by 2013-2015) Long term 2015 beyond
Building Talents in the long run
Education Building on its strategic CSR ndash Media Prima could champion the
development of the content industry by partnering with local universities in the areas of technology media and communication
Crowd Sourcing To haste up the strategic CSR it too could embark on crowd
sourcing for content ndash via scripts and interactive content In which Media Prima could support a great idea and develop the ideas for monetization
This is a synergistic and natural development from the networks structure (open innovation)
Summary ndash Media Prima
Develop Talent Pool
Ensure Vibrant Content Industry
Technologycreates ubiquitous
Low Access Cost
To spur the industry forward
Strong talent develops Content development
demand for access
Strong content industry drives demand for Talent drives demand for content
Our recommendations are aligned to help spur the industry forwardhellip
Restructuring to liberateresources for Content
Sustainable Talent development -
Partnership
Riding the Technology Wave ndash Via Smart
Partnerships
References
References
1 Anon ldquoMedia Prima Berhad implements Accenture integrated broadcast systemrdquo Accenture Press Release httpnewsroomaccenturecomarticle_displaycfmarticle_id=5005 viewed 3 November 2011
2 Anon ldquoNew exciting and vibrant offerings from MPB television networks in 2010rdquo Media Prima Press Release httpwwwmediaprimacommypressreleasepressreleaseaspxid=150 viewed 3 November 2011
3 Anderson J ldquoResource-based competitiveness managerial implications of the resource-based viewrdquo Strategic Direction Vol26 No5 2010 pp1-2
4 Arman Arshad (2006) Size matters Retrieved December 2 2011 from asiaviewsorg httpwwwasiaviewsorgindexphpoption=com_contentampview=articleampid=2171headlinealias2171ampcatid=1headlinesampItemid=2
5 Asia Times (2007 November 29) Malaysian media giant grasps for Internet Retrieved November 3 2011 from httpwwwatimescomatimesSoutheast_AsiaIK29Ae02html
6 Barney JB amp Hesterly WS (2008) Strategic Management and Competitive Advantage The Five Forces Model of Environmental Threats pp39Prentice Hall
7 BBC (2011) BBC News product launches on connected TV Retrieved from bbccoukpressofficepressreleasesstories201106_june17newsshtml
8 Boston Consulting Group (2011) Lean Advantage in Media Boston Consulting Group
9 Boston Consulting Group (2011) Running Forward Walking Backward Boston Consulting Group
10 Business Times (2011) Media Prima net revenue grows to RM119b Kuala Lumpur New Straits Times
11 Business Times (2011) Media Prima on track to achie1048665ing 2011 target Retrieved from www1btimescomm1048668Current_NewsBTIMESarticlespimeArticle
References (1)
12 Business Times (2011) Media Prima Puncak Semangat in early talks Retrieved from httpwwwbtimescommyarticlespimmaArticle
13 Carl W Stern George Stalk Carl W Stern George Stalk Stern CW amp Stalk G (2011) Perspectives of Strategy from the Boston Consulting Group Retrieved December 3 2011 from Value Based Managementnet httpwwwvaluebasedmanagementnetmethods_bcgmatrixhtml
14 ecmlibra (2011) Adex momentum to taper off in 2012 ecmlibra
15 Gershon R A amp Ratnadeep S V (2004) Viacom Inc A Case Study in Transnational Media Management Journal of Media Business Studies 1 (1) 47-69
16 Grant RM ldquoThe resource-based theory of competitive advantage implications for strategy formulationrdquo California Management Review Vol 3 2011 httpwwwskynetie~karenArticlesGrant1_NBpdf viewed 15 November 2011
17 GreyReview (2011) TonTon Streaming Over 11 Million Video Hours A Month now with 16 millions registered users Retrieved from httpwwwgreyreviewcom20110731tonton-serving-over-1-1-million-video-hours-a-month-now-with-1-6-registered-users
18 Heavy Reading (2011) Telecom in TV Land A Roadmap to New Digital Media Ecosystem Retrieved from wwwheavyreadingcomdetailsaspsku_id=1773ampskuitem_itemid=1030
19 Hegedus N (2010) The Great Scare EBR 3 10-17
20 JohnsonGScholesK amp Whittington (2008) Exploring Corporate Strategy Competitive Forces ndash the Five Forces Framework pp 59-64 Prentice Hall
21 kinetic (2011) Moving World Asia Hong Kong
References (2)
22 Knowledgefaber (2009) Telcos Avatar - As Media Companies 20 Retrieved from httpknowledgefabercomindexphpoption=com_contentampview=articleampid=40telecom-and-media-convergenceampcatid=10telecomampItemid=42
23 Knowledgefaber (2011) Telcos Avatar - As Media Companies 20 Retrieved from httpknowledgefabercomindexphpoption=com_contentampview=articleampid=40
24 Malik O (2011) GIGAOM Retrieved from httpgigaomcom20110223old-media-is-being-unbundled-just-like-telecom-was
25 Maxis with TM Astro with TIME Best Strategy to IPTV Market Retrieved December 1 2011 httpbizthestarcommynewsstoryaspfile=201111business7704581ampsec=business
26 Media Prima (2010) Annual Report Media Prima Berhad27 Media Prima Berhad (2011) 11 Nov 2011 - New Exciting amp Vibrant Offerings From MPB Television Retrieved from
wwwmediaprimacommypressreleasepressreleaseaspxid=15028 Media Prima (2010) Sustainability Report Media Prima Berhad29 OSK (2011) Media Prima OSK30 Pocket-Lint (2011) Samsung Smart TV hits 2 million mark Retrieved from
httpwwwpocket-lintcomnews40593samsung-smart-tv-2-million31 PricewaterhouseCoopers (2011) Achieving corporate financial PwC32 PricewaterhouseCoopers (2007) Financial Reporting Standards (FRS) in Malaysia PricewaterhouseCoopers33 SKMM (MCMC) (2009) Advertising Development in Malaysia SKMM34 SKMM (MCMC) (2011) Content Development SKMM35 Techpinions (2011) Interactive TV Trends - How the TV experience is changing - Part II Retrieved from
httptechpinionscominteractive-tv-trends-E28093-how-the-tv-experience-is-changing-part-ii4066
References (3)
36 The Edge (2011) Media Prima best proxy to sector Retrieved from wwwtheedgemalaysiacom37 The Edge Malaysia (2011 September 26) Education the mother of all reforms Retrieved October 30 2011 from
httpwwwtheedgemalaysiacomin-the-financial-daily193478-education-the-mother-of-all-reformshtml38 The Star Online (2011) Main players in the competitive TV sector Retrieved from bizthestarcommynewsstoryasp
file=20111126business997401739 The Star Online (2011) Maxis ready to move up value Retrieved from
bizthestarcommynewsstoryaspfile=201111business7704581ampse40 The Star Online (2011) New players enter the TV Retrieved from
bizthestarcommynewsstoryaspfile=20111126business997300841 The Star Newspaper (December 1 2011) Capital TV to make its debut today42 The Star Online (January 1 2011) Maxis ready to move up value chain Retrieved December 3 2011
httpbizthestarcommynewsstoryaspfile=201111business7704581ampsec=business43 The Star Online (2011 April 21) Media Prima to invest more on local content Retrieved October 30 2011 from C
Usersa34ffzzDesktopMedia PrimaUsed articlesMedia Prima to invest more in local contentmht44 Time Warners (2010) Annual Report Time Warners45 WHAT HI FI (2011) Samsung aims for 50m TV sales worldwide in 2012 set to announce launch date for Google TV
product Retrieved from httpwwwwhathificomnewssamsung-aims-for-50m-tv-sales-worldwide-in-2012-set-to-announce-launch-date-for-google-tv-produ
46 Woroch G A (1996) Turning the Cables Elsevier47 Zanuddin H (2007) Political influence in Malaysia and Thailand media sector Jati Vol12
- MEdiA PRIMA
- Agenda
- Company Profile
- Media Primarsquos Commitment amp Direction moving forward
- Media Industry Business Model ndash Content Driven
- Our Tasks ndash How
- PEST Analysis
- Politics Legal Issues amp Impact
- Economic Issues and Impact
- Social Issues and Impact
- Social Issues and Impact
- Technology Issues and Impact
- In short
- Porterrsquos 5 Forces Analysis
- Porterrsquos Five Forces ndash Competitive Analysis
- Financials
- Media Prima Financial Highlights
- However in further analysis
- Value Chain Analysis
- Resource Based View
- In the context of the Content industry value chain Mapped again
- Appraising capabilities which drives profitability
- Mapping Media Prima revenue streams against the Diversification
- Slide 25
- Related Constrained Diversification
- Related Constrained Diversification (2)
- Slide 28
- Related Linked Diversification
- Slide 30
- Social Responsibility Analysis
- Social Responsibility
- Social Responsibility ndash cont
- Media Prima Acknowledges it various stakeholder via Stakeholder
- It has moved on to 2nd stage of CSR
- SWOT Analysis
- SWOT Analysis ndash Summary
- Media Primarsquos Current situation in summary
- Moving forward 2012 and beyond
- Recommended Destination and future growth of Media Prima
- How Moving from aggregator to content creator
- How Moving from aggregator to content creator (2)
- Creating a Content focus agency All these can be enable via
- Using financial view to free resources for content development
- By changing the business segment reporting it also affects the
- How Moving from aggregator to content creator (3)
- Technology ndash Enable Media Prima to leap into Interactive Conten
- It is not a Fad but a trend
- Slide 50
- Example of Smart TV
- This will ultimately lead Media Prima to reduce it dependence o
- NEW Revenue Streams for Media Prima
- How
- Building Talents in the long run
- Summary ndash Media Prima
- References
- References
- References (1)
- References (2)
- References (3)
-
How Moving from aggregator to content creator
Content Focus Leveraging on content to Embark on Revenue shifts
Long term sustainable leadership
Restructuring to liberateresources for Content
Sustainable Talent development -
Partnership
Riding the Technology Wave
Short term (2012) Mid Term (by 2013-2015) Long term 2015 beyond
How Moving from aggregator to content creator
Content Focus Leveraging on content to Embark on Revenue shifts
Long term sustainable leadership
Restructuring to liberateresources for Content
Sustainable Talent development -
Partnership
Riding the Technology Wave
Short term (2012) Mid Term (by 2013-2015) Long term 2015 beyond
Creating a Content focus agency All these can be enable via the following means
Demand- The content creation race bull There is a need to free up empower human capital to create more content which are relevant
segmented engaging and entertaining
How does media prima refocus its resources into where it matters Instead of multiple teams doing the same thing ndash there is a challenge to create a lean and efficient organization
Challenges Freeing Resources
Instead of looking at a Media based financial segment reporting structurally force the teams to integrate by changing the dynamics of PampL
Next page
Solution Redefining Business Units Paradigms
Take a step up from producing beyond the current vernacular program to meet shifting consumer needs
Challenges ndash Lifestyle lead Variety
Creating Channel programs which are target segment focus based on lifestyles hellip
Acquisition of content as content regulations will be relaxed
Solution Target Segment focus
Using financial view to free resources for content developmentFinancial segment reporting may create a ldquosilordquo mentality ndash which encourages each head of business to protect their bottom line Hence a less effective in operations
Our recommendation is to expand content creation to cut across and shift paradigms to free up resources and focus on new revenue streams And create new content for different segment
Tele
visi
on N
etw
ork
Radi
o N
etw
ork
Out
door
Med
ia
Prin
t M
edia
Oth
er M
edia
Current Financial Segment Reporting
Tele
visi
on N
etw
ork
Radi
o N
etw
ork
Out
door
Med
ia
Prin
t M
edia
Oth
er M
edia
Production
Content
Subscription
Advertising
Recommended Segment Reporting
Lifestyle Segments
Lifestyle Segments
Lifestyle Segments
Lifestyle Segments
Lifestyle Segments
Lifestyle Segments
By changing the business segment reporting it also affects the company structure
The benefits - Flexibility and empowers knowledge
economy ndash talent content driven
- Builds at strong work culture which may be replicated in the region
- Expansion to embark on talent and content crowd sourcing - open innovation creation
Media Prima can take this opportunity to achieve SPECIALIZATION COORDINATION AND COOPERATION Currently team structure ndash of Integrated Marketing Division is created as a temporary solution hellip to enable integration It will move towards a network model to haste integration fast and response to technology and consumer needs
Subcription
Advertising
Production
TechnologyPartner
Content
How Moving from aggregator to content creator
Content Focus Leveraging on content to Embark on Revenue shifts
Long term sustainable leadership
Restructuring to liberateresources for Content
Sustainable Talent development -
Partnership
Riding the Technology Wave
Short term (2012) Mid Term (by 2013-2015) Long term 2015 beyond
Technology ndash Enable Media Prima to leap into Interactive Content
Interactive Content
UniFi Axiata
Media Prima
Electronics Manufacturer
Demand - A ready market bull There is a latent demand for content-gt consumers are
willing to Pay bull Technology has accustomed consumers to interacting
with contentbull Regulatory push to shift from analogue to digital by
2015
However unlike Media Primarsquos western counterparts ie Time Warner Communication Media Prima does not have the advantages of cable infrastructure
Challenges ndash Limitation
Media Prima could depend on existing suppliers of connectivity and technology- Telecommunications ie AXIATA and - Manufacturing companies ie Samsungto take the leap into interactive content Unifi TM
Solution ndash Smart Partnerships
Maximizing Unrelated Diversification
It is not a Fad but a trend
Smart TV is an inevitable trend says Baeguen Kang vice president of
research and development at South Koreas LG Electronics Co the worlds second-largest seller of TV sets by unit volume As people experienced smartphones and tablet PCs the larger screen on a TV is very attractive for apps and Web content
210 million TV sets sold world-wide had an Internet connection (2010)
21 50It will be the forecast in (2014)
Source Evan Ramstad (January 2011)A ldquoManufacturers Turn to Smart TV After 3-D Disappointsrdquo The Wall Street Journal online httponlinewsjcomarticleSB10001424052748704835504576059783074010902html
As technology develops Current cost is will drop exponentially reflecting the Moorersquos Law
Hence lowering the cost of access for interactive content
Example of Smart TV
Smart Hub It is a front facing interface just like a main menu
when consumers turn on their TV There are few utilities that consumers can choose to be entertained
Video ndash consumers can choose from array of video collections that required to be paid
Apps ndash an internet-enabled applications like You Tube Facebook Twitter Skype and others
Internet browsing ndash just like PC internet browsing
Music photo and TV watching
Smart ConnectivityWIFI enabled that allows consumers to connect to all mobile devices like smart phone tablet PC notebook and camera with Samsung Wireless Router called 1 foot This connectivity is being called ldquoAllSharerdquo by Samsung
httpotbresearchcomau200509report-1-industry-forum
MEDIA PRIMA IS CURRENTLY HERE
This will ultimately lead Media Prima to reduce it dependence on advertising revenue
Others ndash Utilising the SMART TV technology and Apps to create any existing Media Prima businesses
NEW Revenue Streams for Media Prima
To take advantage of SMART TV and collaborate with SMART TV manufacturers Media Prima can look into following utilities
Collaborate with manufacturers to allow consumers to browse and pay for Media Prima video collections
Selling local music for Malaysia market
Collaborate with local or international content developers to create Malaysia specific contents for paid subscription or free for common content to attract new consumers
How
Content Focus Leveraging on content to Embark on Revenue shifts
Long term sustainable leadership
Restructuring to liberateresources for Content
Sustainable Talent development -
Partnership
Riding the Technology Wave
Short term (2012) Mid Term (by 2013-2015) Long term 2015 beyond
Building Talents in the long run
Education Building on its strategic CSR ndash Media Prima could champion the
development of the content industry by partnering with local universities in the areas of technology media and communication
Crowd Sourcing To haste up the strategic CSR it too could embark on crowd
sourcing for content ndash via scripts and interactive content In which Media Prima could support a great idea and develop the ideas for monetization
This is a synergistic and natural development from the networks structure (open innovation)
Summary ndash Media Prima
Develop Talent Pool
Ensure Vibrant Content Industry
Technologycreates ubiquitous
Low Access Cost
To spur the industry forward
Strong talent develops Content development
demand for access
Strong content industry drives demand for Talent drives demand for content
Our recommendations are aligned to help spur the industry forwardhellip
Restructuring to liberateresources for Content
Sustainable Talent development -
Partnership
Riding the Technology Wave ndash Via Smart
Partnerships
References
References
1 Anon ldquoMedia Prima Berhad implements Accenture integrated broadcast systemrdquo Accenture Press Release httpnewsroomaccenturecomarticle_displaycfmarticle_id=5005 viewed 3 November 2011
2 Anon ldquoNew exciting and vibrant offerings from MPB television networks in 2010rdquo Media Prima Press Release httpwwwmediaprimacommypressreleasepressreleaseaspxid=150 viewed 3 November 2011
3 Anderson J ldquoResource-based competitiveness managerial implications of the resource-based viewrdquo Strategic Direction Vol26 No5 2010 pp1-2
4 Arman Arshad (2006) Size matters Retrieved December 2 2011 from asiaviewsorg httpwwwasiaviewsorgindexphpoption=com_contentampview=articleampid=2171headlinealias2171ampcatid=1headlinesampItemid=2
5 Asia Times (2007 November 29) Malaysian media giant grasps for Internet Retrieved November 3 2011 from httpwwwatimescomatimesSoutheast_AsiaIK29Ae02html
6 Barney JB amp Hesterly WS (2008) Strategic Management and Competitive Advantage The Five Forces Model of Environmental Threats pp39Prentice Hall
7 BBC (2011) BBC News product launches on connected TV Retrieved from bbccoukpressofficepressreleasesstories201106_june17newsshtml
8 Boston Consulting Group (2011) Lean Advantage in Media Boston Consulting Group
9 Boston Consulting Group (2011) Running Forward Walking Backward Boston Consulting Group
10 Business Times (2011) Media Prima net revenue grows to RM119b Kuala Lumpur New Straits Times
11 Business Times (2011) Media Prima on track to achie1048665ing 2011 target Retrieved from www1btimescomm1048668Current_NewsBTIMESarticlespimeArticle
References (1)
12 Business Times (2011) Media Prima Puncak Semangat in early talks Retrieved from httpwwwbtimescommyarticlespimmaArticle
13 Carl W Stern George Stalk Carl W Stern George Stalk Stern CW amp Stalk G (2011) Perspectives of Strategy from the Boston Consulting Group Retrieved December 3 2011 from Value Based Managementnet httpwwwvaluebasedmanagementnetmethods_bcgmatrixhtml
14 ecmlibra (2011) Adex momentum to taper off in 2012 ecmlibra
15 Gershon R A amp Ratnadeep S V (2004) Viacom Inc A Case Study in Transnational Media Management Journal of Media Business Studies 1 (1) 47-69
16 Grant RM ldquoThe resource-based theory of competitive advantage implications for strategy formulationrdquo California Management Review Vol 3 2011 httpwwwskynetie~karenArticlesGrant1_NBpdf viewed 15 November 2011
17 GreyReview (2011) TonTon Streaming Over 11 Million Video Hours A Month now with 16 millions registered users Retrieved from httpwwwgreyreviewcom20110731tonton-serving-over-1-1-million-video-hours-a-month-now-with-1-6-registered-users
18 Heavy Reading (2011) Telecom in TV Land A Roadmap to New Digital Media Ecosystem Retrieved from wwwheavyreadingcomdetailsaspsku_id=1773ampskuitem_itemid=1030
19 Hegedus N (2010) The Great Scare EBR 3 10-17
20 JohnsonGScholesK amp Whittington (2008) Exploring Corporate Strategy Competitive Forces ndash the Five Forces Framework pp 59-64 Prentice Hall
21 kinetic (2011) Moving World Asia Hong Kong
References (2)
22 Knowledgefaber (2009) Telcos Avatar - As Media Companies 20 Retrieved from httpknowledgefabercomindexphpoption=com_contentampview=articleampid=40telecom-and-media-convergenceampcatid=10telecomampItemid=42
23 Knowledgefaber (2011) Telcos Avatar - As Media Companies 20 Retrieved from httpknowledgefabercomindexphpoption=com_contentampview=articleampid=40
24 Malik O (2011) GIGAOM Retrieved from httpgigaomcom20110223old-media-is-being-unbundled-just-like-telecom-was
25 Maxis with TM Astro with TIME Best Strategy to IPTV Market Retrieved December 1 2011 httpbizthestarcommynewsstoryaspfile=201111business7704581ampsec=business
26 Media Prima (2010) Annual Report Media Prima Berhad27 Media Prima Berhad (2011) 11 Nov 2011 - New Exciting amp Vibrant Offerings From MPB Television Retrieved from
wwwmediaprimacommypressreleasepressreleaseaspxid=15028 Media Prima (2010) Sustainability Report Media Prima Berhad29 OSK (2011) Media Prima OSK30 Pocket-Lint (2011) Samsung Smart TV hits 2 million mark Retrieved from
httpwwwpocket-lintcomnews40593samsung-smart-tv-2-million31 PricewaterhouseCoopers (2011) Achieving corporate financial PwC32 PricewaterhouseCoopers (2007) Financial Reporting Standards (FRS) in Malaysia PricewaterhouseCoopers33 SKMM (MCMC) (2009) Advertising Development in Malaysia SKMM34 SKMM (MCMC) (2011) Content Development SKMM35 Techpinions (2011) Interactive TV Trends - How the TV experience is changing - Part II Retrieved from
httptechpinionscominteractive-tv-trends-E28093-how-the-tv-experience-is-changing-part-ii4066
References (3)
36 The Edge (2011) Media Prima best proxy to sector Retrieved from wwwtheedgemalaysiacom37 The Edge Malaysia (2011 September 26) Education the mother of all reforms Retrieved October 30 2011 from
httpwwwtheedgemalaysiacomin-the-financial-daily193478-education-the-mother-of-all-reformshtml38 The Star Online (2011) Main players in the competitive TV sector Retrieved from bizthestarcommynewsstoryasp
file=20111126business997401739 The Star Online (2011) Maxis ready to move up value Retrieved from
bizthestarcommynewsstoryaspfile=201111business7704581ampse40 The Star Online (2011) New players enter the TV Retrieved from
bizthestarcommynewsstoryaspfile=20111126business997300841 The Star Newspaper (December 1 2011) Capital TV to make its debut today42 The Star Online (January 1 2011) Maxis ready to move up value chain Retrieved December 3 2011
httpbizthestarcommynewsstoryaspfile=201111business7704581ampsec=business43 The Star Online (2011 April 21) Media Prima to invest more on local content Retrieved October 30 2011 from C
Usersa34ffzzDesktopMedia PrimaUsed articlesMedia Prima to invest more in local contentmht44 Time Warners (2010) Annual Report Time Warners45 WHAT HI FI (2011) Samsung aims for 50m TV sales worldwide in 2012 set to announce launch date for Google TV
product Retrieved from httpwwwwhathificomnewssamsung-aims-for-50m-tv-sales-worldwide-in-2012-set-to-announce-launch-date-for-google-tv-produ
46 Woroch G A (1996) Turning the Cables Elsevier47 Zanuddin H (2007) Political influence in Malaysia and Thailand media sector Jati Vol12
- MEdiA PRIMA
- Agenda
- Company Profile
- Media Primarsquos Commitment amp Direction moving forward
- Media Industry Business Model ndash Content Driven
- Our Tasks ndash How
- PEST Analysis
- Politics Legal Issues amp Impact
- Economic Issues and Impact
- Social Issues and Impact
- Social Issues and Impact
- Technology Issues and Impact
- In short
- Porterrsquos 5 Forces Analysis
- Porterrsquos Five Forces ndash Competitive Analysis
- Financials
- Media Prima Financial Highlights
- However in further analysis
- Value Chain Analysis
- Resource Based View
- In the context of the Content industry value chain Mapped again
- Appraising capabilities which drives profitability
- Mapping Media Prima revenue streams against the Diversification
- Slide 25
- Related Constrained Diversification
- Related Constrained Diversification (2)
- Slide 28
- Related Linked Diversification
- Slide 30
- Social Responsibility Analysis
- Social Responsibility
- Social Responsibility ndash cont
- Media Prima Acknowledges it various stakeholder via Stakeholder
- It has moved on to 2nd stage of CSR
- SWOT Analysis
- SWOT Analysis ndash Summary
- Media Primarsquos Current situation in summary
- Moving forward 2012 and beyond
- Recommended Destination and future growth of Media Prima
- How Moving from aggregator to content creator
- How Moving from aggregator to content creator (2)
- Creating a Content focus agency All these can be enable via
- Using financial view to free resources for content development
- By changing the business segment reporting it also affects the
- How Moving from aggregator to content creator (3)
- Technology ndash Enable Media Prima to leap into Interactive Conten
- It is not a Fad but a trend
- Slide 50
- Example of Smart TV
- This will ultimately lead Media Prima to reduce it dependence o
- NEW Revenue Streams for Media Prima
- How
- Building Talents in the long run
- Summary ndash Media Prima
- References
- References
- References (1)
- References (2)
- References (3)
-
How Moving from aggregator to content creator
Content Focus Leveraging on content to Embark on Revenue shifts
Long term sustainable leadership
Restructuring to liberateresources for Content
Sustainable Talent development -
Partnership
Riding the Technology Wave
Short term (2012) Mid Term (by 2013-2015) Long term 2015 beyond
Creating a Content focus agency All these can be enable via the following means
Demand- The content creation race bull There is a need to free up empower human capital to create more content which are relevant
segmented engaging and entertaining
How does media prima refocus its resources into where it matters Instead of multiple teams doing the same thing ndash there is a challenge to create a lean and efficient organization
Challenges Freeing Resources
Instead of looking at a Media based financial segment reporting structurally force the teams to integrate by changing the dynamics of PampL
Next page
Solution Redefining Business Units Paradigms
Take a step up from producing beyond the current vernacular program to meet shifting consumer needs
Challenges ndash Lifestyle lead Variety
Creating Channel programs which are target segment focus based on lifestyles hellip
Acquisition of content as content regulations will be relaxed
Solution Target Segment focus
Using financial view to free resources for content developmentFinancial segment reporting may create a ldquosilordquo mentality ndash which encourages each head of business to protect their bottom line Hence a less effective in operations
Our recommendation is to expand content creation to cut across and shift paradigms to free up resources and focus on new revenue streams And create new content for different segment
Tele
visi
on N
etw
ork
Radi
o N
etw
ork
Out
door
Med
ia
Prin
t M
edia
Oth
er M
edia
Current Financial Segment Reporting
Tele
visi
on N
etw
ork
Radi
o N
etw
ork
Out
door
Med
ia
Prin
t M
edia
Oth
er M
edia
Production
Content
Subscription
Advertising
Recommended Segment Reporting
Lifestyle Segments
Lifestyle Segments
Lifestyle Segments
Lifestyle Segments
Lifestyle Segments
Lifestyle Segments
By changing the business segment reporting it also affects the company structure
The benefits - Flexibility and empowers knowledge
economy ndash talent content driven
- Builds at strong work culture which may be replicated in the region
- Expansion to embark on talent and content crowd sourcing - open innovation creation
Media Prima can take this opportunity to achieve SPECIALIZATION COORDINATION AND COOPERATION Currently team structure ndash of Integrated Marketing Division is created as a temporary solution hellip to enable integration It will move towards a network model to haste integration fast and response to technology and consumer needs
Subcription
Advertising
Production
TechnologyPartner
Content
How Moving from aggregator to content creator
Content Focus Leveraging on content to Embark on Revenue shifts
Long term sustainable leadership
Restructuring to liberateresources for Content
Sustainable Talent development -
Partnership
Riding the Technology Wave
Short term (2012) Mid Term (by 2013-2015) Long term 2015 beyond
Technology ndash Enable Media Prima to leap into Interactive Content
Interactive Content
UniFi Axiata
Media Prima
Electronics Manufacturer
Demand - A ready market bull There is a latent demand for content-gt consumers are
willing to Pay bull Technology has accustomed consumers to interacting
with contentbull Regulatory push to shift from analogue to digital by
2015
However unlike Media Primarsquos western counterparts ie Time Warner Communication Media Prima does not have the advantages of cable infrastructure
Challenges ndash Limitation
Media Prima could depend on existing suppliers of connectivity and technology- Telecommunications ie AXIATA and - Manufacturing companies ie Samsungto take the leap into interactive content Unifi TM
Solution ndash Smart Partnerships
Maximizing Unrelated Diversification
It is not a Fad but a trend
Smart TV is an inevitable trend says Baeguen Kang vice president of
research and development at South Koreas LG Electronics Co the worlds second-largest seller of TV sets by unit volume As people experienced smartphones and tablet PCs the larger screen on a TV is very attractive for apps and Web content
210 million TV sets sold world-wide had an Internet connection (2010)
21 50It will be the forecast in (2014)
Source Evan Ramstad (January 2011)A ldquoManufacturers Turn to Smart TV After 3-D Disappointsrdquo The Wall Street Journal online httponlinewsjcomarticleSB10001424052748704835504576059783074010902html
As technology develops Current cost is will drop exponentially reflecting the Moorersquos Law
Hence lowering the cost of access for interactive content
Example of Smart TV
Smart Hub It is a front facing interface just like a main menu
when consumers turn on their TV There are few utilities that consumers can choose to be entertained
Video ndash consumers can choose from array of video collections that required to be paid
Apps ndash an internet-enabled applications like You Tube Facebook Twitter Skype and others
Internet browsing ndash just like PC internet browsing
Music photo and TV watching
Smart ConnectivityWIFI enabled that allows consumers to connect to all mobile devices like smart phone tablet PC notebook and camera with Samsung Wireless Router called 1 foot This connectivity is being called ldquoAllSharerdquo by Samsung
httpotbresearchcomau200509report-1-industry-forum
MEDIA PRIMA IS CURRENTLY HERE
This will ultimately lead Media Prima to reduce it dependence on advertising revenue
Others ndash Utilising the SMART TV technology and Apps to create any existing Media Prima businesses
NEW Revenue Streams for Media Prima
To take advantage of SMART TV and collaborate with SMART TV manufacturers Media Prima can look into following utilities
Collaborate with manufacturers to allow consumers to browse and pay for Media Prima video collections
Selling local music for Malaysia market
Collaborate with local or international content developers to create Malaysia specific contents for paid subscription or free for common content to attract new consumers
How
Content Focus Leveraging on content to Embark on Revenue shifts
Long term sustainable leadership
Restructuring to liberateresources for Content
Sustainable Talent development -
Partnership
Riding the Technology Wave
Short term (2012) Mid Term (by 2013-2015) Long term 2015 beyond
Building Talents in the long run
Education Building on its strategic CSR ndash Media Prima could champion the
development of the content industry by partnering with local universities in the areas of technology media and communication
Crowd Sourcing To haste up the strategic CSR it too could embark on crowd
sourcing for content ndash via scripts and interactive content In which Media Prima could support a great idea and develop the ideas for monetization
This is a synergistic and natural development from the networks structure (open innovation)
Summary ndash Media Prima
Develop Talent Pool
Ensure Vibrant Content Industry
Technologycreates ubiquitous
Low Access Cost
To spur the industry forward
Strong talent develops Content development
demand for access
Strong content industry drives demand for Talent drives demand for content
Our recommendations are aligned to help spur the industry forwardhellip
Restructuring to liberateresources for Content
Sustainable Talent development -
Partnership
Riding the Technology Wave ndash Via Smart
Partnerships
References
References
1 Anon ldquoMedia Prima Berhad implements Accenture integrated broadcast systemrdquo Accenture Press Release httpnewsroomaccenturecomarticle_displaycfmarticle_id=5005 viewed 3 November 2011
2 Anon ldquoNew exciting and vibrant offerings from MPB television networks in 2010rdquo Media Prima Press Release httpwwwmediaprimacommypressreleasepressreleaseaspxid=150 viewed 3 November 2011
3 Anderson J ldquoResource-based competitiveness managerial implications of the resource-based viewrdquo Strategic Direction Vol26 No5 2010 pp1-2
4 Arman Arshad (2006) Size matters Retrieved December 2 2011 from asiaviewsorg httpwwwasiaviewsorgindexphpoption=com_contentampview=articleampid=2171headlinealias2171ampcatid=1headlinesampItemid=2
5 Asia Times (2007 November 29) Malaysian media giant grasps for Internet Retrieved November 3 2011 from httpwwwatimescomatimesSoutheast_AsiaIK29Ae02html
6 Barney JB amp Hesterly WS (2008) Strategic Management and Competitive Advantage The Five Forces Model of Environmental Threats pp39Prentice Hall
7 BBC (2011) BBC News product launches on connected TV Retrieved from bbccoukpressofficepressreleasesstories201106_june17newsshtml
8 Boston Consulting Group (2011) Lean Advantage in Media Boston Consulting Group
9 Boston Consulting Group (2011) Running Forward Walking Backward Boston Consulting Group
10 Business Times (2011) Media Prima net revenue grows to RM119b Kuala Lumpur New Straits Times
11 Business Times (2011) Media Prima on track to achie1048665ing 2011 target Retrieved from www1btimescomm1048668Current_NewsBTIMESarticlespimeArticle
References (1)
12 Business Times (2011) Media Prima Puncak Semangat in early talks Retrieved from httpwwwbtimescommyarticlespimmaArticle
13 Carl W Stern George Stalk Carl W Stern George Stalk Stern CW amp Stalk G (2011) Perspectives of Strategy from the Boston Consulting Group Retrieved December 3 2011 from Value Based Managementnet httpwwwvaluebasedmanagementnetmethods_bcgmatrixhtml
14 ecmlibra (2011) Adex momentum to taper off in 2012 ecmlibra
15 Gershon R A amp Ratnadeep S V (2004) Viacom Inc A Case Study in Transnational Media Management Journal of Media Business Studies 1 (1) 47-69
16 Grant RM ldquoThe resource-based theory of competitive advantage implications for strategy formulationrdquo California Management Review Vol 3 2011 httpwwwskynetie~karenArticlesGrant1_NBpdf viewed 15 November 2011
17 GreyReview (2011) TonTon Streaming Over 11 Million Video Hours A Month now with 16 millions registered users Retrieved from httpwwwgreyreviewcom20110731tonton-serving-over-1-1-million-video-hours-a-month-now-with-1-6-registered-users
18 Heavy Reading (2011) Telecom in TV Land A Roadmap to New Digital Media Ecosystem Retrieved from wwwheavyreadingcomdetailsaspsku_id=1773ampskuitem_itemid=1030
19 Hegedus N (2010) The Great Scare EBR 3 10-17
20 JohnsonGScholesK amp Whittington (2008) Exploring Corporate Strategy Competitive Forces ndash the Five Forces Framework pp 59-64 Prentice Hall
21 kinetic (2011) Moving World Asia Hong Kong
References (2)
22 Knowledgefaber (2009) Telcos Avatar - As Media Companies 20 Retrieved from httpknowledgefabercomindexphpoption=com_contentampview=articleampid=40telecom-and-media-convergenceampcatid=10telecomampItemid=42
23 Knowledgefaber (2011) Telcos Avatar - As Media Companies 20 Retrieved from httpknowledgefabercomindexphpoption=com_contentampview=articleampid=40
24 Malik O (2011) GIGAOM Retrieved from httpgigaomcom20110223old-media-is-being-unbundled-just-like-telecom-was
25 Maxis with TM Astro with TIME Best Strategy to IPTV Market Retrieved December 1 2011 httpbizthestarcommynewsstoryaspfile=201111business7704581ampsec=business
26 Media Prima (2010) Annual Report Media Prima Berhad27 Media Prima Berhad (2011) 11 Nov 2011 - New Exciting amp Vibrant Offerings From MPB Television Retrieved from
wwwmediaprimacommypressreleasepressreleaseaspxid=15028 Media Prima (2010) Sustainability Report Media Prima Berhad29 OSK (2011) Media Prima OSK30 Pocket-Lint (2011) Samsung Smart TV hits 2 million mark Retrieved from
httpwwwpocket-lintcomnews40593samsung-smart-tv-2-million31 PricewaterhouseCoopers (2011) Achieving corporate financial PwC32 PricewaterhouseCoopers (2007) Financial Reporting Standards (FRS) in Malaysia PricewaterhouseCoopers33 SKMM (MCMC) (2009) Advertising Development in Malaysia SKMM34 SKMM (MCMC) (2011) Content Development SKMM35 Techpinions (2011) Interactive TV Trends - How the TV experience is changing - Part II Retrieved from
httptechpinionscominteractive-tv-trends-E28093-how-the-tv-experience-is-changing-part-ii4066
References (3)
36 The Edge (2011) Media Prima best proxy to sector Retrieved from wwwtheedgemalaysiacom37 The Edge Malaysia (2011 September 26) Education the mother of all reforms Retrieved October 30 2011 from
httpwwwtheedgemalaysiacomin-the-financial-daily193478-education-the-mother-of-all-reformshtml38 The Star Online (2011) Main players in the competitive TV sector Retrieved from bizthestarcommynewsstoryasp
file=20111126business997401739 The Star Online (2011) Maxis ready to move up value Retrieved from
bizthestarcommynewsstoryaspfile=201111business7704581ampse40 The Star Online (2011) New players enter the TV Retrieved from
bizthestarcommynewsstoryaspfile=20111126business997300841 The Star Newspaper (December 1 2011) Capital TV to make its debut today42 The Star Online (January 1 2011) Maxis ready to move up value chain Retrieved December 3 2011
httpbizthestarcommynewsstoryaspfile=201111business7704581ampsec=business43 The Star Online (2011 April 21) Media Prima to invest more on local content Retrieved October 30 2011 from C
Usersa34ffzzDesktopMedia PrimaUsed articlesMedia Prima to invest more in local contentmht44 Time Warners (2010) Annual Report Time Warners45 WHAT HI FI (2011) Samsung aims for 50m TV sales worldwide in 2012 set to announce launch date for Google TV
product Retrieved from httpwwwwhathificomnewssamsung-aims-for-50m-tv-sales-worldwide-in-2012-set-to-announce-launch-date-for-google-tv-produ
46 Woroch G A (1996) Turning the Cables Elsevier47 Zanuddin H (2007) Political influence in Malaysia and Thailand media sector Jati Vol12
- MEdiA PRIMA
- Agenda
- Company Profile
- Media Primarsquos Commitment amp Direction moving forward
- Media Industry Business Model ndash Content Driven
- Our Tasks ndash How
- PEST Analysis
- Politics Legal Issues amp Impact
- Economic Issues and Impact
- Social Issues and Impact
- Social Issues and Impact
- Technology Issues and Impact
- In short
- Porterrsquos 5 Forces Analysis
- Porterrsquos Five Forces ndash Competitive Analysis
- Financials
- Media Prima Financial Highlights
- However in further analysis
- Value Chain Analysis
- Resource Based View
- In the context of the Content industry value chain Mapped again
- Appraising capabilities which drives profitability
- Mapping Media Prima revenue streams against the Diversification
- Slide 25
- Related Constrained Diversification
- Related Constrained Diversification (2)
- Slide 28
- Related Linked Diversification
- Slide 30
- Social Responsibility Analysis
- Social Responsibility
- Social Responsibility ndash cont
- Media Prima Acknowledges it various stakeholder via Stakeholder
- It has moved on to 2nd stage of CSR
- SWOT Analysis
- SWOT Analysis ndash Summary
- Media Primarsquos Current situation in summary
- Moving forward 2012 and beyond
- Recommended Destination and future growth of Media Prima
- How Moving from aggregator to content creator
- How Moving from aggregator to content creator (2)
- Creating a Content focus agency All these can be enable via
- Using financial view to free resources for content development
- By changing the business segment reporting it also affects the
- How Moving from aggregator to content creator (3)
- Technology ndash Enable Media Prima to leap into Interactive Conten
- It is not a Fad but a trend
- Slide 50
- Example of Smart TV
- This will ultimately lead Media Prima to reduce it dependence o
- NEW Revenue Streams for Media Prima
- How
- Building Talents in the long run
- Summary ndash Media Prima
- References
- References
- References (1)
- References (2)
- References (3)
-
Creating a Content focus agency All these can be enable via the following means
Demand- The content creation race bull There is a need to free up empower human capital to create more content which are relevant
segmented engaging and entertaining
How does media prima refocus its resources into where it matters Instead of multiple teams doing the same thing ndash there is a challenge to create a lean and efficient organization
Challenges Freeing Resources
Instead of looking at a Media based financial segment reporting structurally force the teams to integrate by changing the dynamics of PampL
Next page
Solution Redefining Business Units Paradigms
Take a step up from producing beyond the current vernacular program to meet shifting consumer needs
Challenges ndash Lifestyle lead Variety
Creating Channel programs which are target segment focus based on lifestyles hellip
Acquisition of content as content regulations will be relaxed
Solution Target Segment focus
Using financial view to free resources for content developmentFinancial segment reporting may create a ldquosilordquo mentality ndash which encourages each head of business to protect their bottom line Hence a less effective in operations
Our recommendation is to expand content creation to cut across and shift paradigms to free up resources and focus on new revenue streams And create new content for different segment
Tele
visi
on N
etw
ork
Radi
o N
etw
ork
Out
door
Med
ia
Prin
t M
edia
Oth
er M
edia
Current Financial Segment Reporting
Tele
visi
on N
etw
ork
Radi
o N
etw
ork
Out
door
Med
ia
Prin
t M
edia
Oth
er M
edia
Production
Content
Subscription
Advertising
Recommended Segment Reporting
Lifestyle Segments
Lifestyle Segments
Lifestyle Segments
Lifestyle Segments
Lifestyle Segments
Lifestyle Segments
By changing the business segment reporting it also affects the company structure
The benefits - Flexibility and empowers knowledge
economy ndash talent content driven
- Builds at strong work culture which may be replicated in the region
- Expansion to embark on talent and content crowd sourcing - open innovation creation
Media Prima can take this opportunity to achieve SPECIALIZATION COORDINATION AND COOPERATION Currently team structure ndash of Integrated Marketing Division is created as a temporary solution hellip to enable integration It will move towards a network model to haste integration fast and response to technology and consumer needs
Subcription
Advertising
Production
TechnologyPartner
Content
How Moving from aggregator to content creator
Content Focus Leveraging on content to Embark on Revenue shifts
Long term sustainable leadership
Restructuring to liberateresources for Content
Sustainable Talent development -
Partnership
Riding the Technology Wave
Short term (2012) Mid Term (by 2013-2015) Long term 2015 beyond
Technology ndash Enable Media Prima to leap into Interactive Content
Interactive Content
UniFi Axiata
Media Prima
Electronics Manufacturer
Demand - A ready market bull There is a latent demand for content-gt consumers are
willing to Pay bull Technology has accustomed consumers to interacting
with contentbull Regulatory push to shift from analogue to digital by
2015
However unlike Media Primarsquos western counterparts ie Time Warner Communication Media Prima does not have the advantages of cable infrastructure
Challenges ndash Limitation
Media Prima could depend on existing suppliers of connectivity and technology- Telecommunications ie AXIATA and - Manufacturing companies ie Samsungto take the leap into interactive content Unifi TM
Solution ndash Smart Partnerships
Maximizing Unrelated Diversification
It is not a Fad but a trend
Smart TV is an inevitable trend says Baeguen Kang vice president of
research and development at South Koreas LG Electronics Co the worlds second-largest seller of TV sets by unit volume As people experienced smartphones and tablet PCs the larger screen on a TV is very attractive for apps and Web content
210 million TV sets sold world-wide had an Internet connection (2010)
21 50It will be the forecast in (2014)
Source Evan Ramstad (January 2011)A ldquoManufacturers Turn to Smart TV After 3-D Disappointsrdquo The Wall Street Journal online httponlinewsjcomarticleSB10001424052748704835504576059783074010902html
As technology develops Current cost is will drop exponentially reflecting the Moorersquos Law
Hence lowering the cost of access for interactive content
Example of Smart TV
Smart Hub It is a front facing interface just like a main menu
when consumers turn on their TV There are few utilities that consumers can choose to be entertained
Video ndash consumers can choose from array of video collections that required to be paid
Apps ndash an internet-enabled applications like You Tube Facebook Twitter Skype and others
Internet browsing ndash just like PC internet browsing
Music photo and TV watching
Smart ConnectivityWIFI enabled that allows consumers to connect to all mobile devices like smart phone tablet PC notebook and camera with Samsung Wireless Router called 1 foot This connectivity is being called ldquoAllSharerdquo by Samsung
httpotbresearchcomau200509report-1-industry-forum
MEDIA PRIMA IS CURRENTLY HERE
This will ultimately lead Media Prima to reduce it dependence on advertising revenue
Others ndash Utilising the SMART TV technology and Apps to create any existing Media Prima businesses
NEW Revenue Streams for Media Prima
To take advantage of SMART TV and collaborate with SMART TV manufacturers Media Prima can look into following utilities
Collaborate with manufacturers to allow consumers to browse and pay for Media Prima video collections
Selling local music for Malaysia market
Collaborate with local or international content developers to create Malaysia specific contents for paid subscription or free for common content to attract new consumers
How
Content Focus Leveraging on content to Embark on Revenue shifts
Long term sustainable leadership
Restructuring to liberateresources for Content
Sustainable Talent development -
Partnership
Riding the Technology Wave
Short term (2012) Mid Term (by 2013-2015) Long term 2015 beyond
Building Talents in the long run
Education Building on its strategic CSR ndash Media Prima could champion the
development of the content industry by partnering with local universities in the areas of technology media and communication
Crowd Sourcing To haste up the strategic CSR it too could embark on crowd
sourcing for content ndash via scripts and interactive content In which Media Prima could support a great idea and develop the ideas for monetization
This is a synergistic and natural development from the networks structure (open innovation)
Summary ndash Media Prima
Develop Talent Pool
Ensure Vibrant Content Industry
Technologycreates ubiquitous
Low Access Cost
To spur the industry forward
Strong talent develops Content development
demand for access
Strong content industry drives demand for Talent drives demand for content
Our recommendations are aligned to help spur the industry forwardhellip
Restructuring to liberateresources for Content
Sustainable Talent development -
Partnership
Riding the Technology Wave ndash Via Smart
Partnerships
References
References
1 Anon ldquoMedia Prima Berhad implements Accenture integrated broadcast systemrdquo Accenture Press Release httpnewsroomaccenturecomarticle_displaycfmarticle_id=5005 viewed 3 November 2011
2 Anon ldquoNew exciting and vibrant offerings from MPB television networks in 2010rdquo Media Prima Press Release httpwwwmediaprimacommypressreleasepressreleaseaspxid=150 viewed 3 November 2011
3 Anderson J ldquoResource-based competitiveness managerial implications of the resource-based viewrdquo Strategic Direction Vol26 No5 2010 pp1-2
4 Arman Arshad (2006) Size matters Retrieved December 2 2011 from asiaviewsorg httpwwwasiaviewsorgindexphpoption=com_contentampview=articleampid=2171headlinealias2171ampcatid=1headlinesampItemid=2
5 Asia Times (2007 November 29) Malaysian media giant grasps for Internet Retrieved November 3 2011 from httpwwwatimescomatimesSoutheast_AsiaIK29Ae02html
6 Barney JB amp Hesterly WS (2008) Strategic Management and Competitive Advantage The Five Forces Model of Environmental Threats pp39Prentice Hall
7 BBC (2011) BBC News product launches on connected TV Retrieved from bbccoukpressofficepressreleasesstories201106_june17newsshtml
8 Boston Consulting Group (2011) Lean Advantage in Media Boston Consulting Group
9 Boston Consulting Group (2011) Running Forward Walking Backward Boston Consulting Group
10 Business Times (2011) Media Prima net revenue grows to RM119b Kuala Lumpur New Straits Times
11 Business Times (2011) Media Prima on track to achie1048665ing 2011 target Retrieved from www1btimescomm1048668Current_NewsBTIMESarticlespimeArticle
References (1)
12 Business Times (2011) Media Prima Puncak Semangat in early talks Retrieved from httpwwwbtimescommyarticlespimmaArticle
13 Carl W Stern George Stalk Carl W Stern George Stalk Stern CW amp Stalk G (2011) Perspectives of Strategy from the Boston Consulting Group Retrieved December 3 2011 from Value Based Managementnet httpwwwvaluebasedmanagementnetmethods_bcgmatrixhtml
14 ecmlibra (2011) Adex momentum to taper off in 2012 ecmlibra
15 Gershon R A amp Ratnadeep S V (2004) Viacom Inc A Case Study in Transnational Media Management Journal of Media Business Studies 1 (1) 47-69
16 Grant RM ldquoThe resource-based theory of competitive advantage implications for strategy formulationrdquo California Management Review Vol 3 2011 httpwwwskynetie~karenArticlesGrant1_NBpdf viewed 15 November 2011
17 GreyReview (2011) TonTon Streaming Over 11 Million Video Hours A Month now with 16 millions registered users Retrieved from httpwwwgreyreviewcom20110731tonton-serving-over-1-1-million-video-hours-a-month-now-with-1-6-registered-users
18 Heavy Reading (2011) Telecom in TV Land A Roadmap to New Digital Media Ecosystem Retrieved from wwwheavyreadingcomdetailsaspsku_id=1773ampskuitem_itemid=1030
19 Hegedus N (2010) The Great Scare EBR 3 10-17
20 JohnsonGScholesK amp Whittington (2008) Exploring Corporate Strategy Competitive Forces ndash the Five Forces Framework pp 59-64 Prentice Hall
21 kinetic (2011) Moving World Asia Hong Kong
References (2)
22 Knowledgefaber (2009) Telcos Avatar - As Media Companies 20 Retrieved from httpknowledgefabercomindexphpoption=com_contentampview=articleampid=40telecom-and-media-convergenceampcatid=10telecomampItemid=42
23 Knowledgefaber (2011) Telcos Avatar - As Media Companies 20 Retrieved from httpknowledgefabercomindexphpoption=com_contentampview=articleampid=40
24 Malik O (2011) GIGAOM Retrieved from httpgigaomcom20110223old-media-is-being-unbundled-just-like-telecom-was
25 Maxis with TM Astro with TIME Best Strategy to IPTV Market Retrieved December 1 2011 httpbizthestarcommynewsstoryaspfile=201111business7704581ampsec=business
26 Media Prima (2010) Annual Report Media Prima Berhad27 Media Prima Berhad (2011) 11 Nov 2011 - New Exciting amp Vibrant Offerings From MPB Television Retrieved from
wwwmediaprimacommypressreleasepressreleaseaspxid=15028 Media Prima (2010) Sustainability Report Media Prima Berhad29 OSK (2011) Media Prima OSK30 Pocket-Lint (2011) Samsung Smart TV hits 2 million mark Retrieved from
httpwwwpocket-lintcomnews40593samsung-smart-tv-2-million31 PricewaterhouseCoopers (2011) Achieving corporate financial PwC32 PricewaterhouseCoopers (2007) Financial Reporting Standards (FRS) in Malaysia PricewaterhouseCoopers33 SKMM (MCMC) (2009) Advertising Development in Malaysia SKMM34 SKMM (MCMC) (2011) Content Development SKMM35 Techpinions (2011) Interactive TV Trends - How the TV experience is changing - Part II Retrieved from
httptechpinionscominteractive-tv-trends-E28093-how-the-tv-experience-is-changing-part-ii4066
References (3)
36 The Edge (2011) Media Prima best proxy to sector Retrieved from wwwtheedgemalaysiacom37 The Edge Malaysia (2011 September 26) Education the mother of all reforms Retrieved October 30 2011 from
httpwwwtheedgemalaysiacomin-the-financial-daily193478-education-the-mother-of-all-reformshtml38 The Star Online (2011) Main players in the competitive TV sector Retrieved from bizthestarcommynewsstoryasp
file=20111126business997401739 The Star Online (2011) Maxis ready to move up value Retrieved from
bizthestarcommynewsstoryaspfile=201111business7704581ampse40 The Star Online (2011) New players enter the TV Retrieved from
bizthestarcommynewsstoryaspfile=20111126business997300841 The Star Newspaper (December 1 2011) Capital TV to make its debut today42 The Star Online (January 1 2011) Maxis ready to move up value chain Retrieved December 3 2011
httpbizthestarcommynewsstoryaspfile=201111business7704581ampsec=business43 The Star Online (2011 April 21) Media Prima to invest more on local content Retrieved October 30 2011 from C
Usersa34ffzzDesktopMedia PrimaUsed articlesMedia Prima to invest more in local contentmht44 Time Warners (2010) Annual Report Time Warners45 WHAT HI FI (2011) Samsung aims for 50m TV sales worldwide in 2012 set to announce launch date for Google TV
product Retrieved from httpwwwwhathificomnewssamsung-aims-for-50m-tv-sales-worldwide-in-2012-set-to-announce-launch-date-for-google-tv-produ
46 Woroch G A (1996) Turning the Cables Elsevier47 Zanuddin H (2007) Political influence in Malaysia and Thailand media sector Jati Vol12
- MEdiA PRIMA
- Agenda
- Company Profile
- Media Primarsquos Commitment amp Direction moving forward
- Media Industry Business Model ndash Content Driven
- Our Tasks ndash How
- PEST Analysis
- Politics Legal Issues amp Impact
- Economic Issues and Impact
- Social Issues and Impact
- Social Issues and Impact
- Technology Issues and Impact
- In short
- Porterrsquos 5 Forces Analysis
- Porterrsquos Five Forces ndash Competitive Analysis
- Financials
- Media Prima Financial Highlights
- However in further analysis
- Value Chain Analysis
- Resource Based View
- In the context of the Content industry value chain Mapped again
- Appraising capabilities which drives profitability
- Mapping Media Prima revenue streams against the Diversification
- Slide 25
- Related Constrained Diversification
- Related Constrained Diversification (2)
- Slide 28
- Related Linked Diversification
- Slide 30
- Social Responsibility Analysis
- Social Responsibility
- Social Responsibility ndash cont
- Media Prima Acknowledges it various stakeholder via Stakeholder
- It has moved on to 2nd stage of CSR
- SWOT Analysis
- SWOT Analysis ndash Summary
- Media Primarsquos Current situation in summary
- Moving forward 2012 and beyond
- Recommended Destination and future growth of Media Prima
- How Moving from aggregator to content creator
- How Moving from aggregator to content creator (2)
- Creating a Content focus agency All these can be enable via
- Using financial view to free resources for content development
- By changing the business segment reporting it also affects the
- How Moving from aggregator to content creator (3)
- Technology ndash Enable Media Prima to leap into Interactive Conten
- It is not a Fad but a trend
- Slide 50
- Example of Smart TV
- This will ultimately lead Media Prima to reduce it dependence o
- NEW Revenue Streams for Media Prima
- How
- Building Talents in the long run
- Summary ndash Media Prima
- References
- References
- References (1)
- References (2)
- References (3)
-
Using financial view to free resources for content developmentFinancial segment reporting may create a ldquosilordquo mentality ndash which encourages each head of business to protect their bottom line Hence a less effective in operations
Our recommendation is to expand content creation to cut across and shift paradigms to free up resources and focus on new revenue streams And create new content for different segment
Tele
visi
on N
etw
ork
Radi
o N
etw
ork
Out
door
Med
ia
Prin
t M
edia
Oth
er M
edia
Current Financial Segment Reporting
Tele
visi
on N
etw
ork
Radi
o N
etw
ork
Out
door
Med
ia
Prin
t M
edia
Oth
er M
edia
Production
Content
Subscription
Advertising
Recommended Segment Reporting
Lifestyle Segments
Lifestyle Segments
Lifestyle Segments
Lifestyle Segments
Lifestyle Segments
Lifestyle Segments
By changing the business segment reporting it also affects the company structure
The benefits - Flexibility and empowers knowledge
economy ndash talent content driven
- Builds at strong work culture which may be replicated in the region
- Expansion to embark on talent and content crowd sourcing - open innovation creation
Media Prima can take this opportunity to achieve SPECIALIZATION COORDINATION AND COOPERATION Currently team structure ndash of Integrated Marketing Division is created as a temporary solution hellip to enable integration It will move towards a network model to haste integration fast and response to technology and consumer needs
Subcription
Advertising
Production
TechnologyPartner
Content
How Moving from aggregator to content creator
Content Focus Leveraging on content to Embark on Revenue shifts
Long term sustainable leadership
Restructuring to liberateresources for Content
Sustainable Talent development -
Partnership
Riding the Technology Wave
Short term (2012) Mid Term (by 2013-2015) Long term 2015 beyond
Technology ndash Enable Media Prima to leap into Interactive Content
Interactive Content
UniFi Axiata
Media Prima
Electronics Manufacturer
Demand - A ready market bull There is a latent demand for content-gt consumers are
willing to Pay bull Technology has accustomed consumers to interacting
with contentbull Regulatory push to shift from analogue to digital by
2015
However unlike Media Primarsquos western counterparts ie Time Warner Communication Media Prima does not have the advantages of cable infrastructure
Challenges ndash Limitation
Media Prima could depend on existing suppliers of connectivity and technology- Telecommunications ie AXIATA and - Manufacturing companies ie Samsungto take the leap into interactive content Unifi TM
Solution ndash Smart Partnerships
Maximizing Unrelated Diversification
It is not a Fad but a trend
Smart TV is an inevitable trend says Baeguen Kang vice president of
research and development at South Koreas LG Electronics Co the worlds second-largest seller of TV sets by unit volume As people experienced smartphones and tablet PCs the larger screen on a TV is very attractive for apps and Web content
210 million TV sets sold world-wide had an Internet connection (2010)
21 50It will be the forecast in (2014)
Source Evan Ramstad (January 2011)A ldquoManufacturers Turn to Smart TV After 3-D Disappointsrdquo The Wall Street Journal online httponlinewsjcomarticleSB10001424052748704835504576059783074010902html
As technology develops Current cost is will drop exponentially reflecting the Moorersquos Law
Hence lowering the cost of access for interactive content
Example of Smart TV
Smart Hub It is a front facing interface just like a main menu
when consumers turn on their TV There are few utilities that consumers can choose to be entertained
Video ndash consumers can choose from array of video collections that required to be paid
Apps ndash an internet-enabled applications like You Tube Facebook Twitter Skype and others
Internet browsing ndash just like PC internet browsing
Music photo and TV watching
Smart ConnectivityWIFI enabled that allows consumers to connect to all mobile devices like smart phone tablet PC notebook and camera with Samsung Wireless Router called 1 foot This connectivity is being called ldquoAllSharerdquo by Samsung
httpotbresearchcomau200509report-1-industry-forum
MEDIA PRIMA IS CURRENTLY HERE
This will ultimately lead Media Prima to reduce it dependence on advertising revenue
Others ndash Utilising the SMART TV technology and Apps to create any existing Media Prima businesses
NEW Revenue Streams for Media Prima
To take advantage of SMART TV and collaborate with SMART TV manufacturers Media Prima can look into following utilities
Collaborate with manufacturers to allow consumers to browse and pay for Media Prima video collections
Selling local music for Malaysia market
Collaborate with local or international content developers to create Malaysia specific contents for paid subscription or free for common content to attract new consumers
How
Content Focus Leveraging on content to Embark on Revenue shifts
Long term sustainable leadership
Restructuring to liberateresources for Content
Sustainable Talent development -
Partnership
Riding the Technology Wave
Short term (2012) Mid Term (by 2013-2015) Long term 2015 beyond
Building Talents in the long run
Education Building on its strategic CSR ndash Media Prima could champion the
development of the content industry by partnering with local universities in the areas of technology media and communication
Crowd Sourcing To haste up the strategic CSR it too could embark on crowd
sourcing for content ndash via scripts and interactive content In which Media Prima could support a great idea and develop the ideas for monetization
This is a synergistic and natural development from the networks structure (open innovation)
Summary ndash Media Prima
Develop Talent Pool
Ensure Vibrant Content Industry
Technologycreates ubiquitous
Low Access Cost
To spur the industry forward
Strong talent develops Content development
demand for access
Strong content industry drives demand for Talent drives demand for content
Our recommendations are aligned to help spur the industry forwardhellip
Restructuring to liberateresources for Content
Sustainable Talent development -
Partnership
Riding the Technology Wave ndash Via Smart
Partnerships
References
References
1 Anon ldquoMedia Prima Berhad implements Accenture integrated broadcast systemrdquo Accenture Press Release httpnewsroomaccenturecomarticle_displaycfmarticle_id=5005 viewed 3 November 2011
2 Anon ldquoNew exciting and vibrant offerings from MPB television networks in 2010rdquo Media Prima Press Release httpwwwmediaprimacommypressreleasepressreleaseaspxid=150 viewed 3 November 2011
3 Anderson J ldquoResource-based competitiveness managerial implications of the resource-based viewrdquo Strategic Direction Vol26 No5 2010 pp1-2
4 Arman Arshad (2006) Size matters Retrieved December 2 2011 from asiaviewsorg httpwwwasiaviewsorgindexphpoption=com_contentampview=articleampid=2171headlinealias2171ampcatid=1headlinesampItemid=2
5 Asia Times (2007 November 29) Malaysian media giant grasps for Internet Retrieved November 3 2011 from httpwwwatimescomatimesSoutheast_AsiaIK29Ae02html
6 Barney JB amp Hesterly WS (2008) Strategic Management and Competitive Advantage The Five Forces Model of Environmental Threats pp39Prentice Hall
7 BBC (2011) BBC News product launches on connected TV Retrieved from bbccoukpressofficepressreleasesstories201106_june17newsshtml
8 Boston Consulting Group (2011) Lean Advantage in Media Boston Consulting Group
9 Boston Consulting Group (2011) Running Forward Walking Backward Boston Consulting Group
10 Business Times (2011) Media Prima net revenue grows to RM119b Kuala Lumpur New Straits Times
11 Business Times (2011) Media Prima on track to achie1048665ing 2011 target Retrieved from www1btimescomm1048668Current_NewsBTIMESarticlespimeArticle
References (1)
12 Business Times (2011) Media Prima Puncak Semangat in early talks Retrieved from httpwwwbtimescommyarticlespimmaArticle
13 Carl W Stern George Stalk Carl W Stern George Stalk Stern CW amp Stalk G (2011) Perspectives of Strategy from the Boston Consulting Group Retrieved December 3 2011 from Value Based Managementnet httpwwwvaluebasedmanagementnetmethods_bcgmatrixhtml
14 ecmlibra (2011) Adex momentum to taper off in 2012 ecmlibra
15 Gershon R A amp Ratnadeep S V (2004) Viacom Inc A Case Study in Transnational Media Management Journal of Media Business Studies 1 (1) 47-69
16 Grant RM ldquoThe resource-based theory of competitive advantage implications for strategy formulationrdquo California Management Review Vol 3 2011 httpwwwskynetie~karenArticlesGrant1_NBpdf viewed 15 November 2011
17 GreyReview (2011) TonTon Streaming Over 11 Million Video Hours A Month now with 16 millions registered users Retrieved from httpwwwgreyreviewcom20110731tonton-serving-over-1-1-million-video-hours-a-month-now-with-1-6-registered-users
18 Heavy Reading (2011) Telecom in TV Land A Roadmap to New Digital Media Ecosystem Retrieved from wwwheavyreadingcomdetailsaspsku_id=1773ampskuitem_itemid=1030
19 Hegedus N (2010) The Great Scare EBR 3 10-17
20 JohnsonGScholesK amp Whittington (2008) Exploring Corporate Strategy Competitive Forces ndash the Five Forces Framework pp 59-64 Prentice Hall
21 kinetic (2011) Moving World Asia Hong Kong
References (2)
22 Knowledgefaber (2009) Telcos Avatar - As Media Companies 20 Retrieved from httpknowledgefabercomindexphpoption=com_contentampview=articleampid=40telecom-and-media-convergenceampcatid=10telecomampItemid=42
23 Knowledgefaber (2011) Telcos Avatar - As Media Companies 20 Retrieved from httpknowledgefabercomindexphpoption=com_contentampview=articleampid=40
24 Malik O (2011) GIGAOM Retrieved from httpgigaomcom20110223old-media-is-being-unbundled-just-like-telecom-was
25 Maxis with TM Astro with TIME Best Strategy to IPTV Market Retrieved December 1 2011 httpbizthestarcommynewsstoryaspfile=201111business7704581ampsec=business
26 Media Prima (2010) Annual Report Media Prima Berhad27 Media Prima Berhad (2011) 11 Nov 2011 - New Exciting amp Vibrant Offerings From MPB Television Retrieved from
wwwmediaprimacommypressreleasepressreleaseaspxid=15028 Media Prima (2010) Sustainability Report Media Prima Berhad29 OSK (2011) Media Prima OSK30 Pocket-Lint (2011) Samsung Smart TV hits 2 million mark Retrieved from
httpwwwpocket-lintcomnews40593samsung-smart-tv-2-million31 PricewaterhouseCoopers (2011) Achieving corporate financial PwC32 PricewaterhouseCoopers (2007) Financial Reporting Standards (FRS) in Malaysia PricewaterhouseCoopers33 SKMM (MCMC) (2009) Advertising Development in Malaysia SKMM34 SKMM (MCMC) (2011) Content Development SKMM35 Techpinions (2011) Interactive TV Trends - How the TV experience is changing - Part II Retrieved from
httptechpinionscominteractive-tv-trends-E28093-how-the-tv-experience-is-changing-part-ii4066
References (3)
36 The Edge (2011) Media Prima best proxy to sector Retrieved from wwwtheedgemalaysiacom37 The Edge Malaysia (2011 September 26) Education the mother of all reforms Retrieved October 30 2011 from
httpwwwtheedgemalaysiacomin-the-financial-daily193478-education-the-mother-of-all-reformshtml38 The Star Online (2011) Main players in the competitive TV sector Retrieved from bizthestarcommynewsstoryasp
file=20111126business997401739 The Star Online (2011) Maxis ready to move up value Retrieved from
bizthestarcommynewsstoryaspfile=201111business7704581ampse40 The Star Online (2011) New players enter the TV Retrieved from
bizthestarcommynewsstoryaspfile=20111126business997300841 The Star Newspaper (December 1 2011) Capital TV to make its debut today42 The Star Online (January 1 2011) Maxis ready to move up value chain Retrieved December 3 2011
httpbizthestarcommynewsstoryaspfile=201111business7704581ampsec=business43 The Star Online (2011 April 21) Media Prima to invest more on local content Retrieved October 30 2011 from C
Usersa34ffzzDesktopMedia PrimaUsed articlesMedia Prima to invest more in local contentmht44 Time Warners (2010) Annual Report Time Warners45 WHAT HI FI (2011) Samsung aims for 50m TV sales worldwide in 2012 set to announce launch date for Google TV
product Retrieved from httpwwwwhathificomnewssamsung-aims-for-50m-tv-sales-worldwide-in-2012-set-to-announce-launch-date-for-google-tv-produ
46 Woroch G A (1996) Turning the Cables Elsevier47 Zanuddin H (2007) Political influence in Malaysia and Thailand media sector Jati Vol12
- MEdiA PRIMA
- Agenda
- Company Profile
- Media Primarsquos Commitment amp Direction moving forward
- Media Industry Business Model ndash Content Driven
- Our Tasks ndash How
- PEST Analysis
- Politics Legal Issues amp Impact
- Economic Issues and Impact
- Social Issues and Impact
- Social Issues and Impact
- Technology Issues and Impact
- In short
- Porterrsquos 5 Forces Analysis
- Porterrsquos Five Forces ndash Competitive Analysis
- Financials
- Media Prima Financial Highlights
- However in further analysis
- Value Chain Analysis
- Resource Based View
- In the context of the Content industry value chain Mapped again
- Appraising capabilities which drives profitability
- Mapping Media Prima revenue streams against the Diversification
- Slide 25
- Related Constrained Diversification
- Related Constrained Diversification (2)
- Slide 28
- Related Linked Diversification
- Slide 30
- Social Responsibility Analysis
- Social Responsibility
- Social Responsibility ndash cont
- Media Prima Acknowledges it various stakeholder via Stakeholder
- It has moved on to 2nd stage of CSR
- SWOT Analysis
- SWOT Analysis ndash Summary
- Media Primarsquos Current situation in summary
- Moving forward 2012 and beyond
- Recommended Destination and future growth of Media Prima
- How Moving from aggregator to content creator
- How Moving from aggregator to content creator (2)
- Creating a Content focus agency All these can be enable via
- Using financial view to free resources for content development
- By changing the business segment reporting it also affects the
- How Moving from aggregator to content creator (3)
- Technology ndash Enable Media Prima to leap into Interactive Conten
- It is not a Fad but a trend
- Slide 50
- Example of Smart TV
- This will ultimately lead Media Prima to reduce it dependence o
- NEW Revenue Streams for Media Prima
- How
- Building Talents in the long run
- Summary ndash Media Prima
- References
- References
- References (1)
- References (2)
- References (3)
-
By changing the business segment reporting it also affects the company structure
The benefits - Flexibility and empowers knowledge
economy ndash talent content driven
- Builds at strong work culture which may be replicated in the region
- Expansion to embark on talent and content crowd sourcing - open innovation creation
Media Prima can take this opportunity to achieve SPECIALIZATION COORDINATION AND COOPERATION Currently team structure ndash of Integrated Marketing Division is created as a temporary solution hellip to enable integration It will move towards a network model to haste integration fast and response to technology and consumer needs
Subcription
Advertising
Production
TechnologyPartner
Content
How Moving from aggregator to content creator
Content Focus Leveraging on content to Embark on Revenue shifts
Long term sustainable leadership
Restructuring to liberateresources for Content
Sustainable Talent development -
Partnership
Riding the Technology Wave
Short term (2012) Mid Term (by 2013-2015) Long term 2015 beyond
Technology ndash Enable Media Prima to leap into Interactive Content
Interactive Content
UniFi Axiata
Media Prima
Electronics Manufacturer
Demand - A ready market bull There is a latent demand for content-gt consumers are
willing to Pay bull Technology has accustomed consumers to interacting
with contentbull Regulatory push to shift from analogue to digital by
2015
However unlike Media Primarsquos western counterparts ie Time Warner Communication Media Prima does not have the advantages of cable infrastructure
Challenges ndash Limitation
Media Prima could depend on existing suppliers of connectivity and technology- Telecommunications ie AXIATA and - Manufacturing companies ie Samsungto take the leap into interactive content Unifi TM
Solution ndash Smart Partnerships
Maximizing Unrelated Diversification
It is not a Fad but a trend
Smart TV is an inevitable trend says Baeguen Kang vice president of
research and development at South Koreas LG Electronics Co the worlds second-largest seller of TV sets by unit volume As people experienced smartphones and tablet PCs the larger screen on a TV is very attractive for apps and Web content
210 million TV sets sold world-wide had an Internet connection (2010)
21 50It will be the forecast in (2014)
Source Evan Ramstad (January 2011)A ldquoManufacturers Turn to Smart TV After 3-D Disappointsrdquo The Wall Street Journal online httponlinewsjcomarticleSB10001424052748704835504576059783074010902html
As technology develops Current cost is will drop exponentially reflecting the Moorersquos Law
Hence lowering the cost of access for interactive content
Example of Smart TV
Smart Hub It is a front facing interface just like a main menu
when consumers turn on their TV There are few utilities that consumers can choose to be entertained
Video ndash consumers can choose from array of video collections that required to be paid
Apps ndash an internet-enabled applications like You Tube Facebook Twitter Skype and others
Internet browsing ndash just like PC internet browsing
Music photo and TV watching
Smart ConnectivityWIFI enabled that allows consumers to connect to all mobile devices like smart phone tablet PC notebook and camera with Samsung Wireless Router called 1 foot This connectivity is being called ldquoAllSharerdquo by Samsung
httpotbresearchcomau200509report-1-industry-forum
MEDIA PRIMA IS CURRENTLY HERE
This will ultimately lead Media Prima to reduce it dependence on advertising revenue
Others ndash Utilising the SMART TV technology and Apps to create any existing Media Prima businesses
NEW Revenue Streams for Media Prima
To take advantage of SMART TV and collaborate with SMART TV manufacturers Media Prima can look into following utilities
Collaborate with manufacturers to allow consumers to browse and pay for Media Prima video collections
Selling local music for Malaysia market
Collaborate with local or international content developers to create Malaysia specific contents for paid subscription or free for common content to attract new consumers
How
Content Focus Leveraging on content to Embark on Revenue shifts
Long term sustainable leadership
Restructuring to liberateresources for Content
Sustainable Talent development -
Partnership
Riding the Technology Wave
Short term (2012) Mid Term (by 2013-2015) Long term 2015 beyond
Building Talents in the long run
Education Building on its strategic CSR ndash Media Prima could champion the
development of the content industry by partnering with local universities in the areas of technology media and communication
Crowd Sourcing To haste up the strategic CSR it too could embark on crowd
sourcing for content ndash via scripts and interactive content In which Media Prima could support a great idea and develop the ideas for monetization
This is a synergistic and natural development from the networks structure (open innovation)
Summary ndash Media Prima
Develop Talent Pool
Ensure Vibrant Content Industry
Technologycreates ubiquitous
Low Access Cost
To spur the industry forward
Strong talent develops Content development
demand for access
Strong content industry drives demand for Talent drives demand for content
Our recommendations are aligned to help spur the industry forwardhellip
Restructuring to liberateresources for Content
Sustainable Talent development -
Partnership
Riding the Technology Wave ndash Via Smart
Partnerships
References
References
1 Anon ldquoMedia Prima Berhad implements Accenture integrated broadcast systemrdquo Accenture Press Release httpnewsroomaccenturecomarticle_displaycfmarticle_id=5005 viewed 3 November 2011
2 Anon ldquoNew exciting and vibrant offerings from MPB television networks in 2010rdquo Media Prima Press Release httpwwwmediaprimacommypressreleasepressreleaseaspxid=150 viewed 3 November 2011
3 Anderson J ldquoResource-based competitiveness managerial implications of the resource-based viewrdquo Strategic Direction Vol26 No5 2010 pp1-2
4 Arman Arshad (2006) Size matters Retrieved December 2 2011 from asiaviewsorg httpwwwasiaviewsorgindexphpoption=com_contentampview=articleampid=2171headlinealias2171ampcatid=1headlinesampItemid=2
5 Asia Times (2007 November 29) Malaysian media giant grasps for Internet Retrieved November 3 2011 from httpwwwatimescomatimesSoutheast_AsiaIK29Ae02html
6 Barney JB amp Hesterly WS (2008) Strategic Management and Competitive Advantage The Five Forces Model of Environmental Threats pp39Prentice Hall
7 BBC (2011) BBC News product launches on connected TV Retrieved from bbccoukpressofficepressreleasesstories201106_june17newsshtml
8 Boston Consulting Group (2011) Lean Advantage in Media Boston Consulting Group
9 Boston Consulting Group (2011) Running Forward Walking Backward Boston Consulting Group
10 Business Times (2011) Media Prima net revenue grows to RM119b Kuala Lumpur New Straits Times
11 Business Times (2011) Media Prima on track to achie1048665ing 2011 target Retrieved from www1btimescomm1048668Current_NewsBTIMESarticlespimeArticle
References (1)
12 Business Times (2011) Media Prima Puncak Semangat in early talks Retrieved from httpwwwbtimescommyarticlespimmaArticle
13 Carl W Stern George Stalk Carl W Stern George Stalk Stern CW amp Stalk G (2011) Perspectives of Strategy from the Boston Consulting Group Retrieved December 3 2011 from Value Based Managementnet httpwwwvaluebasedmanagementnetmethods_bcgmatrixhtml
14 ecmlibra (2011) Adex momentum to taper off in 2012 ecmlibra
15 Gershon R A amp Ratnadeep S V (2004) Viacom Inc A Case Study in Transnational Media Management Journal of Media Business Studies 1 (1) 47-69
16 Grant RM ldquoThe resource-based theory of competitive advantage implications for strategy formulationrdquo California Management Review Vol 3 2011 httpwwwskynetie~karenArticlesGrant1_NBpdf viewed 15 November 2011
17 GreyReview (2011) TonTon Streaming Over 11 Million Video Hours A Month now with 16 millions registered users Retrieved from httpwwwgreyreviewcom20110731tonton-serving-over-1-1-million-video-hours-a-month-now-with-1-6-registered-users
18 Heavy Reading (2011) Telecom in TV Land A Roadmap to New Digital Media Ecosystem Retrieved from wwwheavyreadingcomdetailsaspsku_id=1773ampskuitem_itemid=1030
19 Hegedus N (2010) The Great Scare EBR 3 10-17
20 JohnsonGScholesK amp Whittington (2008) Exploring Corporate Strategy Competitive Forces ndash the Five Forces Framework pp 59-64 Prentice Hall
21 kinetic (2011) Moving World Asia Hong Kong
References (2)
22 Knowledgefaber (2009) Telcos Avatar - As Media Companies 20 Retrieved from httpknowledgefabercomindexphpoption=com_contentampview=articleampid=40telecom-and-media-convergenceampcatid=10telecomampItemid=42
23 Knowledgefaber (2011) Telcos Avatar - As Media Companies 20 Retrieved from httpknowledgefabercomindexphpoption=com_contentampview=articleampid=40
24 Malik O (2011) GIGAOM Retrieved from httpgigaomcom20110223old-media-is-being-unbundled-just-like-telecom-was
25 Maxis with TM Astro with TIME Best Strategy to IPTV Market Retrieved December 1 2011 httpbizthestarcommynewsstoryaspfile=201111business7704581ampsec=business
26 Media Prima (2010) Annual Report Media Prima Berhad27 Media Prima Berhad (2011) 11 Nov 2011 - New Exciting amp Vibrant Offerings From MPB Television Retrieved from
wwwmediaprimacommypressreleasepressreleaseaspxid=15028 Media Prima (2010) Sustainability Report Media Prima Berhad29 OSK (2011) Media Prima OSK30 Pocket-Lint (2011) Samsung Smart TV hits 2 million mark Retrieved from
httpwwwpocket-lintcomnews40593samsung-smart-tv-2-million31 PricewaterhouseCoopers (2011) Achieving corporate financial PwC32 PricewaterhouseCoopers (2007) Financial Reporting Standards (FRS) in Malaysia PricewaterhouseCoopers33 SKMM (MCMC) (2009) Advertising Development in Malaysia SKMM34 SKMM (MCMC) (2011) Content Development SKMM35 Techpinions (2011) Interactive TV Trends - How the TV experience is changing - Part II Retrieved from
httptechpinionscominteractive-tv-trends-E28093-how-the-tv-experience-is-changing-part-ii4066
References (3)
36 The Edge (2011) Media Prima best proxy to sector Retrieved from wwwtheedgemalaysiacom37 The Edge Malaysia (2011 September 26) Education the mother of all reforms Retrieved October 30 2011 from
httpwwwtheedgemalaysiacomin-the-financial-daily193478-education-the-mother-of-all-reformshtml38 The Star Online (2011) Main players in the competitive TV sector Retrieved from bizthestarcommynewsstoryasp
file=20111126business997401739 The Star Online (2011) Maxis ready to move up value Retrieved from
bizthestarcommynewsstoryaspfile=201111business7704581ampse40 The Star Online (2011) New players enter the TV Retrieved from
bizthestarcommynewsstoryaspfile=20111126business997300841 The Star Newspaper (December 1 2011) Capital TV to make its debut today42 The Star Online (January 1 2011) Maxis ready to move up value chain Retrieved December 3 2011
httpbizthestarcommynewsstoryaspfile=201111business7704581ampsec=business43 The Star Online (2011 April 21) Media Prima to invest more on local content Retrieved October 30 2011 from C
Usersa34ffzzDesktopMedia PrimaUsed articlesMedia Prima to invest more in local contentmht44 Time Warners (2010) Annual Report Time Warners45 WHAT HI FI (2011) Samsung aims for 50m TV sales worldwide in 2012 set to announce launch date for Google TV
product Retrieved from httpwwwwhathificomnewssamsung-aims-for-50m-tv-sales-worldwide-in-2012-set-to-announce-launch-date-for-google-tv-produ
46 Woroch G A (1996) Turning the Cables Elsevier47 Zanuddin H (2007) Political influence in Malaysia and Thailand media sector Jati Vol12
- MEdiA PRIMA
- Agenda
- Company Profile
- Media Primarsquos Commitment amp Direction moving forward
- Media Industry Business Model ndash Content Driven
- Our Tasks ndash How
- PEST Analysis
- Politics Legal Issues amp Impact
- Economic Issues and Impact
- Social Issues and Impact
- Social Issues and Impact
- Technology Issues and Impact
- In short
- Porterrsquos 5 Forces Analysis
- Porterrsquos Five Forces ndash Competitive Analysis
- Financials
- Media Prima Financial Highlights
- However in further analysis
- Value Chain Analysis
- Resource Based View
- In the context of the Content industry value chain Mapped again
- Appraising capabilities which drives profitability
- Mapping Media Prima revenue streams against the Diversification
- Slide 25
- Related Constrained Diversification
- Related Constrained Diversification (2)
- Slide 28
- Related Linked Diversification
- Slide 30
- Social Responsibility Analysis
- Social Responsibility
- Social Responsibility ndash cont
- Media Prima Acknowledges it various stakeholder via Stakeholder
- It has moved on to 2nd stage of CSR
- SWOT Analysis
- SWOT Analysis ndash Summary
- Media Primarsquos Current situation in summary
- Moving forward 2012 and beyond
- Recommended Destination and future growth of Media Prima
- How Moving from aggregator to content creator
- How Moving from aggregator to content creator (2)
- Creating a Content focus agency All these can be enable via
- Using financial view to free resources for content development
- By changing the business segment reporting it also affects the
- How Moving from aggregator to content creator (3)
- Technology ndash Enable Media Prima to leap into Interactive Conten
- It is not a Fad but a trend
- Slide 50
- Example of Smart TV
- This will ultimately lead Media Prima to reduce it dependence o
- NEW Revenue Streams for Media Prima
- How
- Building Talents in the long run
- Summary ndash Media Prima
- References
- References
- References (1)
- References (2)
- References (3)
-
How Moving from aggregator to content creator
Content Focus Leveraging on content to Embark on Revenue shifts
Long term sustainable leadership
Restructuring to liberateresources for Content
Sustainable Talent development -
Partnership
Riding the Technology Wave
Short term (2012) Mid Term (by 2013-2015) Long term 2015 beyond
Technology ndash Enable Media Prima to leap into Interactive Content
Interactive Content
UniFi Axiata
Media Prima
Electronics Manufacturer
Demand - A ready market bull There is a latent demand for content-gt consumers are
willing to Pay bull Technology has accustomed consumers to interacting
with contentbull Regulatory push to shift from analogue to digital by
2015
However unlike Media Primarsquos western counterparts ie Time Warner Communication Media Prima does not have the advantages of cable infrastructure
Challenges ndash Limitation
Media Prima could depend on existing suppliers of connectivity and technology- Telecommunications ie AXIATA and - Manufacturing companies ie Samsungto take the leap into interactive content Unifi TM
Solution ndash Smart Partnerships
Maximizing Unrelated Diversification
It is not a Fad but a trend
Smart TV is an inevitable trend says Baeguen Kang vice president of
research and development at South Koreas LG Electronics Co the worlds second-largest seller of TV sets by unit volume As people experienced smartphones and tablet PCs the larger screen on a TV is very attractive for apps and Web content
210 million TV sets sold world-wide had an Internet connection (2010)
21 50It will be the forecast in (2014)
Source Evan Ramstad (January 2011)A ldquoManufacturers Turn to Smart TV After 3-D Disappointsrdquo The Wall Street Journal online httponlinewsjcomarticleSB10001424052748704835504576059783074010902html
As technology develops Current cost is will drop exponentially reflecting the Moorersquos Law
Hence lowering the cost of access for interactive content
Example of Smart TV
Smart Hub It is a front facing interface just like a main menu
when consumers turn on their TV There are few utilities that consumers can choose to be entertained
Video ndash consumers can choose from array of video collections that required to be paid
Apps ndash an internet-enabled applications like You Tube Facebook Twitter Skype and others
Internet browsing ndash just like PC internet browsing
Music photo and TV watching
Smart ConnectivityWIFI enabled that allows consumers to connect to all mobile devices like smart phone tablet PC notebook and camera with Samsung Wireless Router called 1 foot This connectivity is being called ldquoAllSharerdquo by Samsung
httpotbresearchcomau200509report-1-industry-forum
MEDIA PRIMA IS CURRENTLY HERE
This will ultimately lead Media Prima to reduce it dependence on advertising revenue
Others ndash Utilising the SMART TV technology and Apps to create any existing Media Prima businesses
NEW Revenue Streams for Media Prima
To take advantage of SMART TV and collaborate with SMART TV manufacturers Media Prima can look into following utilities
Collaborate with manufacturers to allow consumers to browse and pay for Media Prima video collections
Selling local music for Malaysia market
Collaborate with local or international content developers to create Malaysia specific contents for paid subscription or free for common content to attract new consumers
How
Content Focus Leveraging on content to Embark on Revenue shifts
Long term sustainable leadership
Restructuring to liberateresources for Content
Sustainable Talent development -
Partnership
Riding the Technology Wave
Short term (2012) Mid Term (by 2013-2015) Long term 2015 beyond
Building Talents in the long run
Education Building on its strategic CSR ndash Media Prima could champion the
development of the content industry by partnering with local universities in the areas of technology media and communication
Crowd Sourcing To haste up the strategic CSR it too could embark on crowd
sourcing for content ndash via scripts and interactive content In which Media Prima could support a great idea and develop the ideas for monetization
This is a synergistic and natural development from the networks structure (open innovation)
Summary ndash Media Prima
Develop Talent Pool
Ensure Vibrant Content Industry
Technologycreates ubiquitous
Low Access Cost
To spur the industry forward
Strong talent develops Content development
demand for access
Strong content industry drives demand for Talent drives demand for content
Our recommendations are aligned to help spur the industry forwardhellip
Restructuring to liberateresources for Content
Sustainable Talent development -
Partnership
Riding the Technology Wave ndash Via Smart
Partnerships
References
References
1 Anon ldquoMedia Prima Berhad implements Accenture integrated broadcast systemrdquo Accenture Press Release httpnewsroomaccenturecomarticle_displaycfmarticle_id=5005 viewed 3 November 2011
2 Anon ldquoNew exciting and vibrant offerings from MPB television networks in 2010rdquo Media Prima Press Release httpwwwmediaprimacommypressreleasepressreleaseaspxid=150 viewed 3 November 2011
3 Anderson J ldquoResource-based competitiveness managerial implications of the resource-based viewrdquo Strategic Direction Vol26 No5 2010 pp1-2
4 Arman Arshad (2006) Size matters Retrieved December 2 2011 from asiaviewsorg httpwwwasiaviewsorgindexphpoption=com_contentampview=articleampid=2171headlinealias2171ampcatid=1headlinesampItemid=2
5 Asia Times (2007 November 29) Malaysian media giant grasps for Internet Retrieved November 3 2011 from httpwwwatimescomatimesSoutheast_AsiaIK29Ae02html
6 Barney JB amp Hesterly WS (2008) Strategic Management and Competitive Advantage The Five Forces Model of Environmental Threats pp39Prentice Hall
7 BBC (2011) BBC News product launches on connected TV Retrieved from bbccoukpressofficepressreleasesstories201106_june17newsshtml
8 Boston Consulting Group (2011) Lean Advantage in Media Boston Consulting Group
9 Boston Consulting Group (2011) Running Forward Walking Backward Boston Consulting Group
10 Business Times (2011) Media Prima net revenue grows to RM119b Kuala Lumpur New Straits Times
11 Business Times (2011) Media Prima on track to achie1048665ing 2011 target Retrieved from www1btimescomm1048668Current_NewsBTIMESarticlespimeArticle
References (1)
12 Business Times (2011) Media Prima Puncak Semangat in early talks Retrieved from httpwwwbtimescommyarticlespimmaArticle
13 Carl W Stern George Stalk Carl W Stern George Stalk Stern CW amp Stalk G (2011) Perspectives of Strategy from the Boston Consulting Group Retrieved December 3 2011 from Value Based Managementnet httpwwwvaluebasedmanagementnetmethods_bcgmatrixhtml
14 ecmlibra (2011) Adex momentum to taper off in 2012 ecmlibra
15 Gershon R A amp Ratnadeep S V (2004) Viacom Inc A Case Study in Transnational Media Management Journal of Media Business Studies 1 (1) 47-69
16 Grant RM ldquoThe resource-based theory of competitive advantage implications for strategy formulationrdquo California Management Review Vol 3 2011 httpwwwskynetie~karenArticlesGrant1_NBpdf viewed 15 November 2011
17 GreyReview (2011) TonTon Streaming Over 11 Million Video Hours A Month now with 16 millions registered users Retrieved from httpwwwgreyreviewcom20110731tonton-serving-over-1-1-million-video-hours-a-month-now-with-1-6-registered-users
18 Heavy Reading (2011) Telecom in TV Land A Roadmap to New Digital Media Ecosystem Retrieved from wwwheavyreadingcomdetailsaspsku_id=1773ampskuitem_itemid=1030
19 Hegedus N (2010) The Great Scare EBR 3 10-17
20 JohnsonGScholesK amp Whittington (2008) Exploring Corporate Strategy Competitive Forces ndash the Five Forces Framework pp 59-64 Prentice Hall
21 kinetic (2011) Moving World Asia Hong Kong
References (2)
22 Knowledgefaber (2009) Telcos Avatar - As Media Companies 20 Retrieved from httpknowledgefabercomindexphpoption=com_contentampview=articleampid=40telecom-and-media-convergenceampcatid=10telecomampItemid=42
23 Knowledgefaber (2011) Telcos Avatar - As Media Companies 20 Retrieved from httpknowledgefabercomindexphpoption=com_contentampview=articleampid=40
24 Malik O (2011) GIGAOM Retrieved from httpgigaomcom20110223old-media-is-being-unbundled-just-like-telecom-was
25 Maxis with TM Astro with TIME Best Strategy to IPTV Market Retrieved December 1 2011 httpbizthestarcommynewsstoryaspfile=201111business7704581ampsec=business
26 Media Prima (2010) Annual Report Media Prima Berhad27 Media Prima Berhad (2011) 11 Nov 2011 - New Exciting amp Vibrant Offerings From MPB Television Retrieved from
wwwmediaprimacommypressreleasepressreleaseaspxid=15028 Media Prima (2010) Sustainability Report Media Prima Berhad29 OSK (2011) Media Prima OSK30 Pocket-Lint (2011) Samsung Smart TV hits 2 million mark Retrieved from
httpwwwpocket-lintcomnews40593samsung-smart-tv-2-million31 PricewaterhouseCoopers (2011) Achieving corporate financial PwC32 PricewaterhouseCoopers (2007) Financial Reporting Standards (FRS) in Malaysia PricewaterhouseCoopers33 SKMM (MCMC) (2009) Advertising Development in Malaysia SKMM34 SKMM (MCMC) (2011) Content Development SKMM35 Techpinions (2011) Interactive TV Trends - How the TV experience is changing - Part II Retrieved from
httptechpinionscominteractive-tv-trends-E28093-how-the-tv-experience-is-changing-part-ii4066
References (3)
36 The Edge (2011) Media Prima best proxy to sector Retrieved from wwwtheedgemalaysiacom37 The Edge Malaysia (2011 September 26) Education the mother of all reforms Retrieved October 30 2011 from
httpwwwtheedgemalaysiacomin-the-financial-daily193478-education-the-mother-of-all-reformshtml38 The Star Online (2011) Main players in the competitive TV sector Retrieved from bizthestarcommynewsstoryasp
file=20111126business997401739 The Star Online (2011) Maxis ready to move up value Retrieved from
bizthestarcommynewsstoryaspfile=201111business7704581ampse40 The Star Online (2011) New players enter the TV Retrieved from
bizthestarcommynewsstoryaspfile=20111126business997300841 The Star Newspaper (December 1 2011) Capital TV to make its debut today42 The Star Online (January 1 2011) Maxis ready to move up value chain Retrieved December 3 2011
httpbizthestarcommynewsstoryaspfile=201111business7704581ampsec=business43 The Star Online (2011 April 21) Media Prima to invest more on local content Retrieved October 30 2011 from C
Usersa34ffzzDesktopMedia PrimaUsed articlesMedia Prima to invest more in local contentmht44 Time Warners (2010) Annual Report Time Warners45 WHAT HI FI (2011) Samsung aims for 50m TV sales worldwide in 2012 set to announce launch date for Google TV
product Retrieved from httpwwwwhathificomnewssamsung-aims-for-50m-tv-sales-worldwide-in-2012-set-to-announce-launch-date-for-google-tv-produ
46 Woroch G A (1996) Turning the Cables Elsevier47 Zanuddin H (2007) Political influence in Malaysia and Thailand media sector Jati Vol12
- MEdiA PRIMA
- Agenda
- Company Profile
- Media Primarsquos Commitment amp Direction moving forward
- Media Industry Business Model ndash Content Driven
- Our Tasks ndash How
- PEST Analysis
- Politics Legal Issues amp Impact
- Economic Issues and Impact
- Social Issues and Impact
- Social Issues and Impact
- Technology Issues and Impact
- In short
- Porterrsquos 5 Forces Analysis
- Porterrsquos Five Forces ndash Competitive Analysis
- Financials
- Media Prima Financial Highlights
- However in further analysis
- Value Chain Analysis
- Resource Based View
- In the context of the Content industry value chain Mapped again
- Appraising capabilities which drives profitability
- Mapping Media Prima revenue streams against the Diversification
- Slide 25
- Related Constrained Diversification
- Related Constrained Diversification (2)
- Slide 28
- Related Linked Diversification
- Slide 30
- Social Responsibility Analysis
- Social Responsibility
- Social Responsibility ndash cont
- Media Prima Acknowledges it various stakeholder via Stakeholder
- It has moved on to 2nd stage of CSR
- SWOT Analysis
- SWOT Analysis ndash Summary
- Media Primarsquos Current situation in summary
- Moving forward 2012 and beyond
- Recommended Destination and future growth of Media Prima
- How Moving from aggregator to content creator
- How Moving from aggregator to content creator (2)
- Creating a Content focus agency All these can be enable via
- Using financial view to free resources for content development
- By changing the business segment reporting it also affects the
- How Moving from aggregator to content creator (3)
- Technology ndash Enable Media Prima to leap into Interactive Conten
- It is not a Fad but a trend
- Slide 50
- Example of Smart TV
- This will ultimately lead Media Prima to reduce it dependence o
- NEW Revenue Streams for Media Prima
- How
- Building Talents in the long run
- Summary ndash Media Prima
- References
- References
- References (1)
- References (2)
- References (3)
-
Technology ndash Enable Media Prima to leap into Interactive Content
Interactive Content
UniFi Axiata
Media Prima
Electronics Manufacturer
Demand - A ready market bull There is a latent demand for content-gt consumers are
willing to Pay bull Technology has accustomed consumers to interacting
with contentbull Regulatory push to shift from analogue to digital by
2015
However unlike Media Primarsquos western counterparts ie Time Warner Communication Media Prima does not have the advantages of cable infrastructure
Challenges ndash Limitation
Media Prima could depend on existing suppliers of connectivity and technology- Telecommunications ie AXIATA and - Manufacturing companies ie Samsungto take the leap into interactive content Unifi TM
Solution ndash Smart Partnerships
Maximizing Unrelated Diversification
It is not a Fad but a trend
Smart TV is an inevitable trend says Baeguen Kang vice president of
research and development at South Koreas LG Electronics Co the worlds second-largest seller of TV sets by unit volume As people experienced smartphones and tablet PCs the larger screen on a TV is very attractive for apps and Web content
210 million TV sets sold world-wide had an Internet connection (2010)
21 50It will be the forecast in (2014)
Source Evan Ramstad (January 2011)A ldquoManufacturers Turn to Smart TV After 3-D Disappointsrdquo The Wall Street Journal online httponlinewsjcomarticleSB10001424052748704835504576059783074010902html
As technology develops Current cost is will drop exponentially reflecting the Moorersquos Law
Hence lowering the cost of access for interactive content
Example of Smart TV
Smart Hub It is a front facing interface just like a main menu
when consumers turn on their TV There are few utilities that consumers can choose to be entertained
Video ndash consumers can choose from array of video collections that required to be paid
Apps ndash an internet-enabled applications like You Tube Facebook Twitter Skype and others
Internet browsing ndash just like PC internet browsing
Music photo and TV watching
Smart ConnectivityWIFI enabled that allows consumers to connect to all mobile devices like smart phone tablet PC notebook and camera with Samsung Wireless Router called 1 foot This connectivity is being called ldquoAllSharerdquo by Samsung
httpotbresearchcomau200509report-1-industry-forum
MEDIA PRIMA IS CURRENTLY HERE
This will ultimately lead Media Prima to reduce it dependence on advertising revenue
Others ndash Utilising the SMART TV technology and Apps to create any existing Media Prima businesses
NEW Revenue Streams for Media Prima
To take advantage of SMART TV and collaborate with SMART TV manufacturers Media Prima can look into following utilities
Collaborate with manufacturers to allow consumers to browse and pay for Media Prima video collections
Selling local music for Malaysia market
Collaborate with local or international content developers to create Malaysia specific contents for paid subscription or free for common content to attract new consumers
How
Content Focus Leveraging on content to Embark on Revenue shifts
Long term sustainable leadership
Restructuring to liberateresources for Content
Sustainable Talent development -
Partnership
Riding the Technology Wave
Short term (2012) Mid Term (by 2013-2015) Long term 2015 beyond
Building Talents in the long run
Education Building on its strategic CSR ndash Media Prima could champion the
development of the content industry by partnering with local universities in the areas of technology media and communication
Crowd Sourcing To haste up the strategic CSR it too could embark on crowd
sourcing for content ndash via scripts and interactive content In which Media Prima could support a great idea and develop the ideas for monetization
This is a synergistic and natural development from the networks structure (open innovation)
Summary ndash Media Prima
Develop Talent Pool
Ensure Vibrant Content Industry
Technologycreates ubiquitous
Low Access Cost
To spur the industry forward
Strong talent develops Content development
demand for access
Strong content industry drives demand for Talent drives demand for content
Our recommendations are aligned to help spur the industry forwardhellip
Restructuring to liberateresources for Content
Sustainable Talent development -
Partnership
Riding the Technology Wave ndash Via Smart
Partnerships
References
References
1 Anon ldquoMedia Prima Berhad implements Accenture integrated broadcast systemrdquo Accenture Press Release httpnewsroomaccenturecomarticle_displaycfmarticle_id=5005 viewed 3 November 2011
2 Anon ldquoNew exciting and vibrant offerings from MPB television networks in 2010rdquo Media Prima Press Release httpwwwmediaprimacommypressreleasepressreleaseaspxid=150 viewed 3 November 2011
3 Anderson J ldquoResource-based competitiveness managerial implications of the resource-based viewrdquo Strategic Direction Vol26 No5 2010 pp1-2
4 Arman Arshad (2006) Size matters Retrieved December 2 2011 from asiaviewsorg httpwwwasiaviewsorgindexphpoption=com_contentampview=articleampid=2171headlinealias2171ampcatid=1headlinesampItemid=2
5 Asia Times (2007 November 29) Malaysian media giant grasps for Internet Retrieved November 3 2011 from httpwwwatimescomatimesSoutheast_AsiaIK29Ae02html
6 Barney JB amp Hesterly WS (2008) Strategic Management and Competitive Advantage The Five Forces Model of Environmental Threats pp39Prentice Hall
7 BBC (2011) BBC News product launches on connected TV Retrieved from bbccoukpressofficepressreleasesstories201106_june17newsshtml
8 Boston Consulting Group (2011) Lean Advantage in Media Boston Consulting Group
9 Boston Consulting Group (2011) Running Forward Walking Backward Boston Consulting Group
10 Business Times (2011) Media Prima net revenue grows to RM119b Kuala Lumpur New Straits Times
11 Business Times (2011) Media Prima on track to achie1048665ing 2011 target Retrieved from www1btimescomm1048668Current_NewsBTIMESarticlespimeArticle
References (1)
12 Business Times (2011) Media Prima Puncak Semangat in early talks Retrieved from httpwwwbtimescommyarticlespimmaArticle
13 Carl W Stern George Stalk Carl W Stern George Stalk Stern CW amp Stalk G (2011) Perspectives of Strategy from the Boston Consulting Group Retrieved December 3 2011 from Value Based Managementnet httpwwwvaluebasedmanagementnetmethods_bcgmatrixhtml
14 ecmlibra (2011) Adex momentum to taper off in 2012 ecmlibra
15 Gershon R A amp Ratnadeep S V (2004) Viacom Inc A Case Study in Transnational Media Management Journal of Media Business Studies 1 (1) 47-69
16 Grant RM ldquoThe resource-based theory of competitive advantage implications for strategy formulationrdquo California Management Review Vol 3 2011 httpwwwskynetie~karenArticlesGrant1_NBpdf viewed 15 November 2011
17 GreyReview (2011) TonTon Streaming Over 11 Million Video Hours A Month now with 16 millions registered users Retrieved from httpwwwgreyreviewcom20110731tonton-serving-over-1-1-million-video-hours-a-month-now-with-1-6-registered-users
18 Heavy Reading (2011) Telecom in TV Land A Roadmap to New Digital Media Ecosystem Retrieved from wwwheavyreadingcomdetailsaspsku_id=1773ampskuitem_itemid=1030
19 Hegedus N (2010) The Great Scare EBR 3 10-17
20 JohnsonGScholesK amp Whittington (2008) Exploring Corporate Strategy Competitive Forces ndash the Five Forces Framework pp 59-64 Prentice Hall
21 kinetic (2011) Moving World Asia Hong Kong
References (2)
22 Knowledgefaber (2009) Telcos Avatar - As Media Companies 20 Retrieved from httpknowledgefabercomindexphpoption=com_contentampview=articleampid=40telecom-and-media-convergenceampcatid=10telecomampItemid=42
23 Knowledgefaber (2011) Telcos Avatar - As Media Companies 20 Retrieved from httpknowledgefabercomindexphpoption=com_contentampview=articleampid=40
24 Malik O (2011) GIGAOM Retrieved from httpgigaomcom20110223old-media-is-being-unbundled-just-like-telecom-was
25 Maxis with TM Astro with TIME Best Strategy to IPTV Market Retrieved December 1 2011 httpbizthestarcommynewsstoryaspfile=201111business7704581ampsec=business
26 Media Prima (2010) Annual Report Media Prima Berhad27 Media Prima Berhad (2011) 11 Nov 2011 - New Exciting amp Vibrant Offerings From MPB Television Retrieved from
wwwmediaprimacommypressreleasepressreleaseaspxid=15028 Media Prima (2010) Sustainability Report Media Prima Berhad29 OSK (2011) Media Prima OSK30 Pocket-Lint (2011) Samsung Smart TV hits 2 million mark Retrieved from
httpwwwpocket-lintcomnews40593samsung-smart-tv-2-million31 PricewaterhouseCoopers (2011) Achieving corporate financial PwC32 PricewaterhouseCoopers (2007) Financial Reporting Standards (FRS) in Malaysia PricewaterhouseCoopers33 SKMM (MCMC) (2009) Advertising Development in Malaysia SKMM34 SKMM (MCMC) (2011) Content Development SKMM35 Techpinions (2011) Interactive TV Trends - How the TV experience is changing - Part II Retrieved from
httptechpinionscominteractive-tv-trends-E28093-how-the-tv-experience-is-changing-part-ii4066
References (3)
36 The Edge (2011) Media Prima best proxy to sector Retrieved from wwwtheedgemalaysiacom37 The Edge Malaysia (2011 September 26) Education the mother of all reforms Retrieved October 30 2011 from
httpwwwtheedgemalaysiacomin-the-financial-daily193478-education-the-mother-of-all-reformshtml38 The Star Online (2011) Main players in the competitive TV sector Retrieved from bizthestarcommynewsstoryasp
file=20111126business997401739 The Star Online (2011) Maxis ready to move up value Retrieved from
bizthestarcommynewsstoryaspfile=201111business7704581ampse40 The Star Online (2011) New players enter the TV Retrieved from
bizthestarcommynewsstoryaspfile=20111126business997300841 The Star Newspaper (December 1 2011) Capital TV to make its debut today42 The Star Online (January 1 2011) Maxis ready to move up value chain Retrieved December 3 2011
httpbizthestarcommynewsstoryaspfile=201111business7704581ampsec=business43 The Star Online (2011 April 21) Media Prima to invest more on local content Retrieved October 30 2011 from C
Usersa34ffzzDesktopMedia PrimaUsed articlesMedia Prima to invest more in local contentmht44 Time Warners (2010) Annual Report Time Warners45 WHAT HI FI (2011) Samsung aims for 50m TV sales worldwide in 2012 set to announce launch date for Google TV
product Retrieved from httpwwwwhathificomnewssamsung-aims-for-50m-tv-sales-worldwide-in-2012-set-to-announce-launch-date-for-google-tv-produ
46 Woroch G A (1996) Turning the Cables Elsevier47 Zanuddin H (2007) Political influence in Malaysia and Thailand media sector Jati Vol12
- MEdiA PRIMA
- Agenda
- Company Profile
- Media Primarsquos Commitment amp Direction moving forward
- Media Industry Business Model ndash Content Driven
- Our Tasks ndash How
- PEST Analysis
- Politics Legal Issues amp Impact
- Economic Issues and Impact
- Social Issues and Impact
- Social Issues and Impact
- Technology Issues and Impact
- In short
- Porterrsquos 5 Forces Analysis
- Porterrsquos Five Forces ndash Competitive Analysis
- Financials
- Media Prima Financial Highlights
- However in further analysis
- Value Chain Analysis
- Resource Based View
- In the context of the Content industry value chain Mapped again
- Appraising capabilities which drives profitability
- Mapping Media Prima revenue streams against the Diversification
- Slide 25
- Related Constrained Diversification
- Related Constrained Diversification (2)
- Slide 28
- Related Linked Diversification
- Slide 30
- Social Responsibility Analysis
- Social Responsibility
- Social Responsibility ndash cont
- Media Prima Acknowledges it various stakeholder via Stakeholder
- It has moved on to 2nd stage of CSR
- SWOT Analysis
- SWOT Analysis ndash Summary
- Media Primarsquos Current situation in summary
- Moving forward 2012 and beyond
- Recommended Destination and future growth of Media Prima
- How Moving from aggregator to content creator
- How Moving from aggregator to content creator (2)
- Creating a Content focus agency All these can be enable via
- Using financial view to free resources for content development
- By changing the business segment reporting it also affects the
- How Moving from aggregator to content creator (3)
- Technology ndash Enable Media Prima to leap into Interactive Conten
- It is not a Fad but a trend
- Slide 50
- Example of Smart TV
- This will ultimately lead Media Prima to reduce it dependence o
- NEW Revenue Streams for Media Prima
- How
- Building Talents in the long run
- Summary ndash Media Prima
- References
- References
- References (1)
- References (2)
- References (3)
-
It is not a Fad but a trend
Smart TV is an inevitable trend says Baeguen Kang vice president of
research and development at South Koreas LG Electronics Co the worlds second-largest seller of TV sets by unit volume As people experienced smartphones and tablet PCs the larger screen on a TV is very attractive for apps and Web content
210 million TV sets sold world-wide had an Internet connection (2010)
21 50It will be the forecast in (2014)
Source Evan Ramstad (January 2011)A ldquoManufacturers Turn to Smart TV After 3-D Disappointsrdquo The Wall Street Journal online httponlinewsjcomarticleSB10001424052748704835504576059783074010902html
As technology develops Current cost is will drop exponentially reflecting the Moorersquos Law
Hence lowering the cost of access for interactive content
Example of Smart TV
Smart Hub It is a front facing interface just like a main menu
when consumers turn on their TV There are few utilities that consumers can choose to be entertained
Video ndash consumers can choose from array of video collections that required to be paid
Apps ndash an internet-enabled applications like You Tube Facebook Twitter Skype and others
Internet browsing ndash just like PC internet browsing
Music photo and TV watching
Smart ConnectivityWIFI enabled that allows consumers to connect to all mobile devices like smart phone tablet PC notebook and camera with Samsung Wireless Router called 1 foot This connectivity is being called ldquoAllSharerdquo by Samsung
httpotbresearchcomau200509report-1-industry-forum
MEDIA PRIMA IS CURRENTLY HERE
This will ultimately lead Media Prima to reduce it dependence on advertising revenue
Others ndash Utilising the SMART TV technology and Apps to create any existing Media Prima businesses
NEW Revenue Streams for Media Prima
To take advantage of SMART TV and collaborate with SMART TV manufacturers Media Prima can look into following utilities
Collaborate with manufacturers to allow consumers to browse and pay for Media Prima video collections
Selling local music for Malaysia market
Collaborate with local or international content developers to create Malaysia specific contents for paid subscription or free for common content to attract new consumers
How
Content Focus Leveraging on content to Embark on Revenue shifts
Long term sustainable leadership
Restructuring to liberateresources for Content
Sustainable Talent development -
Partnership
Riding the Technology Wave
Short term (2012) Mid Term (by 2013-2015) Long term 2015 beyond
Building Talents in the long run
Education Building on its strategic CSR ndash Media Prima could champion the
development of the content industry by partnering with local universities in the areas of technology media and communication
Crowd Sourcing To haste up the strategic CSR it too could embark on crowd
sourcing for content ndash via scripts and interactive content In which Media Prima could support a great idea and develop the ideas for monetization
This is a synergistic and natural development from the networks structure (open innovation)
Summary ndash Media Prima
Develop Talent Pool
Ensure Vibrant Content Industry
Technologycreates ubiquitous
Low Access Cost
To spur the industry forward
Strong talent develops Content development
demand for access
Strong content industry drives demand for Talent drives demand for content
Our recommendations are aligned to help spur the industry forwardhellip
Restructuring to liberateresources for Content
Sustainable Talent development -
Partnership
Riding the Technology Wave ndash Via Smart
Partnerships
References
References
1 Anon ldquoMedia Prima Berhad implements Accenture integrated broadcast systemrdquo Accenture Press Release httpnewsroomaccenturecomarticle_displaycfmarticle_id=5005 viewed 3 November 2011
2 Anon ldquoNew exciting and vibrant offerings from MPB television networks in 2010rdquo Media Prima Press Release httpwwwmediaprimacommypressreleasepressreleaseaspxid=150 viewed 3 November 2011
3 Anderson J ldquoResource-based competitiveness managerial implications of the resource-based viewrdquo Strategic Direction Vol26 No5 2010 pp1-2
4 Arman Arshad (2006) Size matters Retrieved December 2 2011 from asiaviewsorg httpwwwasiaviewsorgindexphpoption=com_contentampview=articleampid=2171headlinealias2171ampcatid=1headlinesampItemid=2
5 Asia Times (2007 November 29) Malaysian media giant grasps for Internet Retrieved November 3 2011 from httpwwwatimescomatimesSoutheast_AsiaIK29Ae02html
6 Barney JB amp Hesterly WS (2008) Strategic Management and Competitive Advantage The Five Forces Model of Environmental Threats pp39Prentice Hall
7 BBC (2011) BBC News product launches on connected TV Retrieved from bbccoukpressofficepressreleasesstories201106_june17newsshtml
8 Boston Consulting Group (2011) Lean Advantage in Media Boston Consulting Group
9 Boston Consulting Group (2011) Running Forward Walking Backward Boston Consulting Group
10 Business Times (2011) Media Prima net revenue grows to RM119b Kuala Lumpur New Straits Times
11 Business Times (2011) Media Prima on track to achie1048665ing 2011 target Retrieved from www1btimescomm1048668Current_NewsBTIMESarticlespimeArticle
References (1)
12 Business Times (2011) Media Prima Puncak Semangat in early talks Retrieved from httpwwwbtimescommyarticlespimmaArticle
13 Carl W Stern George Stalk Carl W Stern George Stalk Stern CW amp Stalk G (2011) Perspectives of Strategy from the Boston Consulting Group Retrieved December 3 2011 from Value Based Managementnet httpwwwvaluebasedmanagementnetmethods_bcgmatrixhtml
14 ecmlibra (2011) Adex momentum to taper off in 2012 ecmlibra
15 Gershon R A amp Ratnadeep S V (2004) Viacom Inc A Case Study in Transnational Media Management Journal of Media Business Studies 1 (1) 47-69
16 Grant RM ldquoThe resource-based theory of competitive advantage implications for strategy formulationrdquo California Management Review Vol 3 2011 httpwwwskynetie~karenArticlesGrant1_NBpdf viewed 15 November 2011
17 GreyReview (2011) TonTon Streaming Over 11 Million Video Hours A Month now with 16 millions registered users Retrieved from httpwwwgreyreviewcom20110731tonton-serving-over-1-1-million-video-hours-a-month-now-with-1-6-registered-users
18 Heavy Reading (2011) Telecom in TV Land A Roadmap to New Digital Media Ecosystem Retrieved from wwwheavyreadingcomdetailsaspsku_id=1773ampskuitem_itemid=1030
19 Hegedus N (2010) The Great Scare EBR 3 10-17
20 JohnsonGScholesK amp Whittington (2008) Exploring Corporate Strategy Competitive Forces ndash the Five Forces Framework pp 59-64 Prentice Hall
21 kinetic (2011) Moving World Asia Hong Kong
References (2)
22 Knowledgefaber (2009) Telcos Avatar - As Media Companies 20 Retrieved from httpknowledgefabercomindexphpoption=com_contentampview=articleampid=40telecom-and-media-convergenceampcatid=10telecomampItemid=42
23 Knowledgefaber (2011) Telcos Avatar - As Media Companies 20 Retrieved from httpknowledgefabercomindexphpoption=com_contentampview=articleampid=40
24 Malik O (2011) GIGAOM Retrieved from httpgigaomcom20110223old-media-is-being-unbundled-just-like-telecom-was
25 Maxis with TM Astro with TIME Best Strategy to IPTV Market Retrieved December 1 2011 httpbizthestarcommynewsstoryaspfile=201111business7704581ampsec=business
26 Media Prima (2010) Annual Report Media Prima Berhad27 Media Prima Berhad (2011) 11 Nov 2011 - New Exciting amp Vibrant Offerings From MPB Television Retrieved from
wwwmediaprimacommypressreleasepressreleaseaspxid=15028 Media Prima (2010) Sustainability Report Media Prima Berhad29 OSK (2011) Media Prima OSK30 Pocket-Lint (2011) Samsung Smart TV hits 2 million mark Retrieved from
httpwwwpocket-lintcomnews40593samsung-smart-tv-2-million31 PricewaterhouseCoopers (2011) Achieving corporate financial PwC32 PricewaterhouseCoopers (2007) Financial Reporting Standards (FRS) in Malaysia PricewaterhouseCoopers33 SKMM (MCMC) (2009) Advertising Development in Malaysia SKMM34 SKMM (MCMC) (2011) Content Development SKMM35 Techpinions (2011) Interactive TV Trends - How the TV experience is changing - Part II Retrieved from
httptechpinionscominteractive-tv-trends-E28093-how-the-tv-experience-is-changing-part-ii4066
References (3)
36 The Edge (2011) Media Prima best proxy to sector Retrieved from wwwtheedgemalaysiacom37 The Edge Malaysia (2011 September 26) Education the mother of all reforms Retrieved October 30 2011 from
httpwwwtheedgemalaysiacomin-the-financial-daily193478-education-the-mother-of-all-reformshtml38 The Star Online (2011) Main players in the competitive TV sector Retrieved from bizthestarcommynewsstoryasp
file=20111126business997401739 The Star Online (2011) Maxis ready to move up value Retrieved from
bizthestarcommynewsstoryaspfile=201111business7704581ampse40 The Star Online (2011) New players enter the TV Retrieved from
bizthestarcommynewsstoryaspfile=20111126business997300841 The Star Newspaper (December 1 2011) Capital TV to make its debut today42 The Star Online (January 1 2011) Maxis ready to move up value chain Retrieved December 3 2011
httpbizthestarcommynewsstoryaspfile=201111business7704581ampsec=business43 The Star Online (2011 April 21) Media Prima to invest more on local content Retrieved October 30 2011 from C
Usersa34ffzzDesktopMedia PrimaUsed articlesMedia Prima to invest more in local contentmht44 Time Warners (2010) Annual Report Time Warners45 WHAT HI FI (2011) Samsung aims for 50m TV sales worldwide in 2012 set to announce launch date for Google TV
product Retrieved from httpwwwwhathificomnewssamsung-aims-for-50m-tv-sales-worldwide-in-2012-set-to-announce-launch-date-for-google-tv-produ
46 Woroch G A (1996) Turning the Cables Elsevier47 Zanuddin H (2007) Political influence in Malaysia and Thailand media sector Jati Vol12
- MEdiA PRIMA
- Agenda
- Company Profile
- Media Primarsquos Commitment amp Direction moving forward
- Media Industry Business Model ndash Content Driven
- Our Tasks ndash How
- PEST Analysis
- Politics Legal Issues amp Impact
- Economic Issues and Impact
- Social Issues and Impact
- Social Issues and Impact
- Technology Issues and Impact
- In short
- Porterrsquos 5 Forces Analysis
- Porterrsquos Five Forces ndash Competitive Analysis
- Financials
- Media Prima Financial Highlights
- However in further analysis
- Value Chain Analysis
- Resource Based View
- In the context of the Content industry value chain Mapped again
- Appraising capabilities which drives profitability
- Mapping Media Prima revenue streams against the Diversification
- Slide 25
- Related Constrained Diversification
- Related Constrained Diversification (2)
- Slide 28
- Related Linked Diversification
- Slide 30
- Social Responsibility Analysis
- Social Responsibility
- Social Responsibility ndash cont
- Media Prima Acknowledges it various stakeholder via Stakeholder
- It has moved on to 2nd stage of CSR
- SWOT Analysis
- SWOT Analysis ndash Summary
- Media Primarsquos Current situation in summary
- Moving forward 2012 and beyond
- Recommended Destination and future growth of Media Prima
- How Moving from aggregator to content creator
- How Moving from aggregator to content creator (2)
- Creating a Content focus agency All these can be enable via
- Using financial view to free resources for content development
- By changing the business segment reporting it also affects the
- How Moving from aggregator to content creator (3)
- Technology ndash Enable Media Prima to leap into Interactive Conten
- It is not a Fad but a trend
- Slide 50
- Example of Smart TV
- This will ultimately lead Media Prima to reduce it dependence o
- NEW Revenue Streams for Media Prima
- How
- Building Talents in the long run
- Summary ndash Media Prima
- References
- References
- References (1)
- References (2)
- References (3)
-
As technology develops Current cost is will drop exponentially reflecting the Moorersquos Law
Hence lowering the cost of access for interactive content
Example of Smart TV
Smart Hub It is a front facing interface just like a main menu
when consumers turn on their TV There are few utilities that consumers can choose to be entertained
Video ndash consumers can choose from array of video collections that required to be paid
Apps ndash an internet-enabled applications like You Tube Facebook Twitter Skype and others
Internet browsing ndash just like PC internet browsing
Music photo and TV watching
Smart ConnectivityWIFI enabled that allows consumers to connect to all mobile devices like smart phone tablet PC notebook and camera with Samsung Wireless Router called 1 foot This connectivity is being called ldquoAllSharerdquo by Samsung
httpotbresearchcomau200509report-1-industry-forum
MEDIA PRIMA IS CURRENTLY HERE
This will ultimately lead Media Prima to reduce it dependence on advertising revenue
Others ndash Utilising the SMART TV technology and Apps to create any existing Media Prima businesses
NEW Revenue Streams for Media Prima
To take advantage of SMART TV and collaborate with SMART TV manufacturers Media Prima can look into following utilities
Collaborate with manufacturers to allow consumers to browse and pay for Media Prima video collections
Selling local music for Malaysia market
Collaborate with local or international content developers to create Malaysia specific contents for paid subscription or free for common content to attract new consumers
How
Content Focus Leveraging on content to Embark on Revenue shifts
Long term sustainable leadership
Restructuring to liberateresources for Content
Sustainable Talent development -
Partnership
Riding the Technology Wave
Short term (2012) Mid Term (by 2013-2015) Long term 2015 beyond
Building Talents in the long run
Education Building on its strategic CSR ndash Media Prima could champion the
development of the content industry by partnering with local universities in the areas of technology media and communication
Crowd Sourcing To haste up the strategic CSR it too could embark on crowd
sourcing for content ndash via scripts and interactive content In which Media Prima could support a great idea and develop the ideas for monetization
This is a synergistic and natural development from the networks structure (open innovation)
Summary ndash Media Prima
Develop Talent Pool
Ensure Vibrant Content Industry
Technologycreates ubiquitous
Low Access Cost
To spur the industry forward
Strong talent develops Content development
demand for access
Strong content industry drives demand for Talent drives demand for content
Our recommendations are aligned to help spur the industry forwardhellip
Restructuring to liberateresources for Content
Sustainable Talent development -
Partnership
Riding the Technology Wave ndash Via Smart
Partnerships
References
References
1 Anon ldquoMedia Prima Berhad implements Accenture integrated broadcast systemrdquo Accenture Press Release httpnewsroomaccenturecomarticle_displaycfmarticle_id=5005 viewed 3 November 2011
2 Anon ldquoNew exciting and vibrant offerings from MPB television networks in 2010rdquo Media Prima Press Release httpwwwmediaprimacommypressreleasepressreleaseaspxid=150 viewed 3 November 2011
3 Anderson J ldquoResource-based competitiveness managerial implications of the resource-based viewrdquo Strategic Direction Vol26 No5 2010 pp1-2
4 Arman Arshad (2006) Size matters Retrieved December 2 2011 from asiaviewsorg httpwwwasiaviewsorgindexphpoption=com_contentampview=articleampid=2171headlinealias2171ampcatid=1headlinesampItemid=2
5 Asia Times (2007 November 29) Malaysian media giant grasps for Internet Retrieved November 3 2011 from httpwwwatimescomatimesSoutheast_AsiaIK29Ae02html
6 Barney JB amp Hesterly WS (2008) Strategic Management and Competitive Advantage The Five Forces Model of Environmental Threats pp39Prentice Hall
7 BBC (2011) BBC News product launches on connected TV Retrieved from bbccoukpressofficepressreleasesstories201106_june17newsshtml
8 Boston Consulting Group (2011) Lean Advantage in Media Boston Consulting Group
9 Boston Consulting Group (2011) Running Forward Walking Backward Boston Consulting Group
10 Business Times (2011) Media Prima net revenue grows to RM119b Kuala Lumpur New Straits Times
11 Business Times (2011) Media Prima on track to achie1048665ing 2011 target Retrieved from www1btimescomm1048668Current_NewsBTIMESarticlespimeArticle
References (1)
12 Business Times (2011) Media Prima Puncak Semangat in early talks Retrieved from httpwwwbtimescommyarticlespimmaArticle
13 Carl W Stern George Stalk Carl W Stern George Stalk Stern CW amp Stalk G (2011) Perspectives of Strategy from the Boston Consulting Group Retrieved December 3 2011 from Value Based Managementnet httpwwwvaluebasedmanagementnetmethods_bcgmatrixhtml
14 ecmlibra (2011) Adex momentum to taper off in 2012 ecmlibra
15 Gershon R A amp Ratnadeep S V (2004) Viacom Inc A Case Study in Transnational Media Management Journal of Media Business Studies 1 (1) 47-69
16 Grant RM ldquoThe resource-based theory of competitive advantage implications for strategy formulationrdquo California Management Review Vol 3 2011 httpwwwskynetie~karenArticlesGrant1_NBpdf viewed 15 November 2011
17 GreyReview (2011) TonTon Streaming Over 11 Million Video Hours A Month now with 16 millions registered users Retrieved from httpwwwgreyreviewcom20110731tonton-serving-over-1-1-million-video-hours-a-month-now-with-1-6-registered-users
18 Heavy Reading (2011) Telecom in TV Land A Roadmap to New Digital Media Ecosystem Retrieved from wwwheavyreadingcomdetailsaspsku_id=1773ampskuitem_itemid=1030
19 Hegedus N (2010) The Great Scare EBR 3 10-17
20 JohnsonGScholesK amp Whittington (2008) Exploring Corporate Strategy Competitive Forces ndash the Five Forces Framework pp 59-64 Prentice Hall
21 kinetic (2011) Moving World Asia Hong Kong
References (2)
22 Knowledgefaber (2009) Telcos Avatar - As Media Companies 20 Retrieved from httpknowledgefabercomindexphpoption=com_contentampview=articleampid=40telecom-and-media-convergenceampcatid=10telecomampItemid=42
23 Knowledgefaber (2011) Telcos Avatar - As Media Companies 20 Retrieved from httpknowledgefabercomindexphpoption=com_contentampview=articleampid=40
24 Malik O (2011) GIGAOM Retrieved from httpgigaomcom20110223old-media-is-being-unbundled-just-like-telecom-was
25 Maxis with TM Astro with TIME Best Strategy to IPTV Market Retrieved December 1 2011 httpbizthestarcommynewsstoryaspfile=201111business7704581ampsec=business
26 Media Prima (2010) Annual Report Media Prima Berhad27 Media Prima Berhad (2011) 11 Nov 2011 - New Exciting amp Vibrant Offerings From MPB Television Retrieved from
wwwmediaprimacommypressreleasepressreleaseaspxid=15028 Media Prima (2010) Sustainability Report Media Prima Berhad29 OSK (2011) Media Prima OSK30 Pocket-Lint (2011) Samsung Smart TV hits 2 million mark Retrieved from
httpwwwpocket-lintcomnews40593samsung-smart-tv-2-million31 PricewaterhouseCoopers (2011) Achieving corporate financial PwC32 PricewaterhouseCoopers (2007) Financial Reporting Standards (FRS) in Malaysia PricewaterhouseCoopers33 SKMM (MCMC) (2009) Advertising Development in Malaysia SKMM34 SKMM (MCMC) (2011) Content Development SKMM35 Techpinions (2011) Interactive TV Trends - How the TV experience is changing - Part II Retrieved from
httptechpinionscominteractive-tv-trends-E28093-how-the-tv-experience-is-changing-part-ii4066
References (3)
36 The Edge (2011) Media Prima best proxy to sector Retrieved from wwwtheedgemalaysiacom37 The Edge Malaysia (2011 September 26) Education the mother of all reforms Retrieved October 30 2011 from
httpwwwtheedgemalaysiacomin-the-financial-daily193478-education-the-mother-of-all-reformshtml38 The Star Online (2011) Main players in the competitive TV sector Retrieved from bizthestarcommynewsstoryasp
file=20111126business997401739 The Star Online (2011) Maxis ready to move up value Retrieved from
bizthestarcommynewsstoryaspfile=201111business7704581ampse40 The Star Online (2011) New players enter the TV Retrieved from
bizthestarcommynewsstoryaspfile=20111126business997300841 The Star Newspaper (December 1 2011) Capital TV to make its debut today42 The Star Online (January 1 2011) Maxis ready to move up value chain Retrieved December 3 2011
httpbizthestarcommynewsstoryaspfile=201111business7704581ampsec=business43 The Star Online (2011 April 21) Media Prima to invest more on local content Retrieved October 30 2011 from C
Usersa34ffzzDesktopMedia PrimaUsed articlesMedia Prima to invest more in local contentmht44 Time Warners (2010) Annual Report Time Warners45 WHAT HI FI (2011) Samsung aims for 50m TV sales worldwide in 2012 set to announce launch date for Google TV
product Retrieved from httpwwwwhathificomnewssamsung-aims-for-50m-tv-sales-worldwide-in-2012-set-to-announce-launch-date-for-google-tv-produ
46 Woroch G A (1996) Turning the Cables Elsevier47 Zanuddin H (2007) Political influence in Malaysia and Thailand media sector Jati Vol12
- MEdiA PRIMA
- Agenda
- Company Profile
- Media Primarsquos Commitment amp Direction moving forward
- Media Industry Business Model ndash Content Driven
- Our Tasks ndash How
- PEST Analysis
- Politics Legal Issues amp Impact
- Economic Issues and Impact
- Social Issues and Impact
- Social Issues and Impact
- Technology Issues and Impact
- In short
- Porterrsquos 5 Forces Analysis
- Porterrsquos Five Forces ndash Competitive Analysis
- Financials
- Media Prima Financial Highlights
- However in further analysis
- Value Chain Analysis
- Resource Based View
- In the context of the Content industry value chain Mapped again
- Appraising capabilities which drives profitability
- Mapping Media Prima revenue streams against the Diversification
- Slide 25
- Related Constrained Diversification
- Related Constrained Diversification (2)
- Slide 28
- Related Linked Diversification
- Slide 30
- Social Responsibility Analysis
- Social Responsibility
- Social Responsibility ndash cont
- Media Prima Acknowledges it various stakeholder via Stakeholder
- It has moved on to 2nd stage of CSR
- SWOT Analysis
- SWOT Analysis ndash Summary
- Media Primarsquos Current situation in summary
- Moving forward 2012 and beyond
- Recommended Destination and future growth of Media Prima
- How Moving from aggregator to content creator
- How Moving from aggregator to content creator (2)
- Creating a Content focus agency All these can be enable via
- Using financial view to free resources for content development
- By changing the business segment reporting it also affects the
- How Moving from aggregator to content creator (3)
- Technology ndash Enable Media Prima to leap into Interactive Conten
- It is not a Fad but a trend
- Slide 50
- Example of Smart TV
- This will ultimately lead Media Prima to reduce it dependence o
- NEW Revenue Streams for Media Prima
- How
- Building Talents in the long run
- Summary ndash Media Prima
- References
- References
- References (1)
- References (2)
- References (3)
-
Example of Smart TV
Smart Hub It is a front facing interface just like a main menu
when consumers turn on their TV There are few utilities that consumers can choose to be entertained
Video ndash consumers can choose from array of video collections that required to be paid
Apps ndash an internet-enabled applications like You Tube Facebook Twitter Skype and others
Internet browsing ndash just like PC internet browsing
Music photo and TV watching
Smart ConnectivityWIFI enabled that allows consumers to connect to all mobile devices like smart phone tablet PC notebook and camera with Samsung Wireless Router called 1 foot This connectivity is being called ldquoAllSharerdquo by Samsung
httpotbresearchcomau200509report-1-industry-forum
MEDIA PRIMA IS CURRENTLY HERE
This will ultimately lead Media Prima to reduce it dependence on advertising revenue
Others ndash Utilising the SMART TV technology and Apps to create any existing Media Prima businesses
NEW Revenue Streams for Media Prima
To take advantage of SMART TV and collaborate with SMART TV manufacturers Media Prima can look into following utilities
Collaborate with manufacturers to allow consumers to browse and pay for Media Prima video collections
Selling local music for Malaysia market
Collaborate with local or international content developers to create Malaysia specific contents for paid subscription or free for common content to attract new consumers
How
Content Focus Leveraging on content to Embark on Revenue shifts
Long term sustainable leadership
Restructuring to liberateresources for Content
Sustainable Talent development -
Partnership
Riding the Technology Wave
Short term (2012) Mid Term (by 2013-2015) Long term 2015 beyond
Building Talents in the long run
Education Building on its strategic CSR ndash Media Prima could champion the
development of the content industry by partnering with local universities in the areas of technology media and communication
Crowd Sourcing To haste up the strategic CSR it too could embark on crowd
sourcing for content ndash via scripts and interactive content In which Media Prima could support a great idea and develop the ideas for monetization
This is a synergistic and natural development from the networks structure (open innovation)
Summary ndash Media Prima
Develop Talent Pool
Ensure Vibrant Content Industry
Technologycreates ubiquitous
Low Access Cost
To spur the industry forward
Strong talent develops Content development
demand for access
Strong content industry drives demand for Talent drives demand for content
Our recommendations are aligned to help spur the industry forwardhellip
Restructuring to liberateresources for Content
Sustainable Talent development -
Partnership
Riding the Technology Wave ndash Via Smart
Partnerships
References
References
1 Anon ldquoMedia Prima Berhad implements Accenture integrated broadcast systemrdquo Accenture Press Release httpnewsroomaccenturecomarticle_displaycfmarticle_id=5005 viewed 3 November 2011
2 Anon ldquoNew exciting and vibrant offerings from MPB television networks in 2010rdquo Media Prima Press Release httpwwwmediaprimacommypressreleasepressreleaseaspxid=150 viewed 3 November 2011
3 Anderson J ldquoResource-based competitiveness managerial implications of the resource-based viewrdquo Strategic Direction Vol26 No5 2010 pp1-2
4 Arman Arshad (2006) Size matters Retrieved December 2 2011 from asiaviewsorg httpwwwasiaviewsorgindexphpoption=com_contentampview=articleampid=2171headlinealias2171ampcatid=1headlinesampItemid=2
5 Asia Times (2007 November 29) Malaysian media giant grasps for Internet Retrieved November 3 2011 from httpwwwatimescomatimesSoutheast_AsiaIK29Ae02html
6 Barney JB amp Hesterly WS (2008) Strategic Management and Competitive Advantage The Five Forces Model of Environmental Threats pp39Prentice Hall
7 BBC (2011) BBC News product launches on connected TV Retrieved from bbccoukpressofficepressreleasesstories201106_june17newsshtml
8 Boston Consulting Group (2011) Lean Advantage in Media Boston Consulting Group
9 Boston Consulting Group (2011) Running Forward Walking Backward Boston Consulting Group
10 Business Times (2011) Media Prima net revenue grows to RM119b Kuala Lumpur New Straits Times
11 Business Times (2011) Media Prima on track to achie1048665ing 2011 target Retrieved from www1btimescomm1048668Current_NewsBTIMESarticlespimeArticle
References (1)
12 Business Times (2011) Media Prima Puncak Semangat in early talks Retrieved from httpwwwbtimescommyarticlespimmaArticle
13 Carl W Stern George Stalk Carl W Stern George Stalk Stern CW amp Stalk G (2011) Perspectives of Strategy from the Boston Consulting Group Retrieved December 3 2011 from Value Based Managementnet httpwwwvaluebasedmanagementnetmethods_bcgmatrixhtml
14 ecmlibra (2011) Adex momentum to taper off in 2012 ecmlibra
15 Gershon R A amp Ratnadeep S V (2004) Viacom Inc A Case Study in Transnational Media Management Journal of Media Business Studies 1 (1) 47-69
16 Grant RM ldquoThe resource-based theory of competitive advantage implications for strategy formulationrdquo California Management Review Vol 3 2011 httpwwwskynetie~karenArticlesGrant1_NBpdf viewed 15 November 2011
17 GreyReview (2011) TonTon Streaming Over 11 Million Video Hours A Month now with 16 millions registered users Retrieved from httpwwwgreyreviewcom20110731tonton-serving-over-1-1-million-video-hours-a-month-now-with-1-6-registered-users
18 Heavy Reading (2011) Telecom in TV Land A Roadmap to New Digital Media Ecosystem Retrieved from wwwheavyreadingcomdetailsaspsku_id=1773ampskuitem_itemid=1030
19 Hegedus N (2010) The Great Scare EBR 3 10-17
20 JohnsonGScholesK amp Whittington (2008) Exploring Corporate Strategy Competitive Forces ndash the Five Forces Framework pp 59-64 Prentice Hall
21 kinetic (2011) Moving World Asia Hong Kong
References (2)
22 Knowledgefaber (2009) Telcos Avatar - As Media Companies 20 Retrieved from httpknowledgefabercomindexphpoption=com_contentampview=articleampid=40telecom-and-media-convergenceampcatid=10telecomampItemid=42
23 Knowledgefaber (2011) Telcos Avatar - As Media Companies 20 Retrieved from httpknowledgefabercomindexphpoption=com_contentampview=articleampid=40
24 Malik O (2011) GIGAOM Retrieved from httpgigaomcom20110223old-media-is-being-unbundled-just-like-telecom-was
25 Maxis with TM Astro with TIME Best Strategy to IPTV Market Retrieved December 1 2011 httpbizthestarcommynewsstoryaspfile=201111business7704581ampsec=business
26 Media Prima (2010) Annual Report Media Prima Berhad27 Media Prima Berhad (2011) 11 Nov 2011 - New Exciting amp Vibrant Offerings From MPB Television Retrieved from
wwwmediaprimacommypressreleasepressreleaseaspxid=15028 Media Prima (2010) Sustainability Report Media Prima Berhad29 OSK (2011) Media Prima OSK30 Pocket-Lint (2011) Samsung Smart TV hits 2 million mark Retrieved from
httpwwwpocket-lintcomnews40593samsung-smart-tv-2-million31 PricewaterhouseCoopers (2011) Achieving corporate financial PwC32 PricewaterhouseCoopers (2007) Financial Reporting Standards (FRS) in Malaysia PricewaterhouseCoopers33 SKMM (MCMC) (2009) Advertising Development in Malaysia SKMM34 SKMM (MCMC) (2011) Content Development SKMM35 Techpinions (2011) Interactive TV Trends - How the TV experience is changing - Part II Retrieved from
httptechpinionscominteractive-tv-trends-E28093-how-the-tv-experience-is-changing-part-ii4066
References (3)
36 The Edge (2011) Media Prima best proxy to sector Retrieved from wwwtheedgemalaysiacom37 The Edge Malaysia (2011 September 26) Education the mother of all reforms Retrieved October 30 2011 from
httpwwwtheedgemalaysiacomin-the-financial-daily193478-education-the-mother-of-all-reformshtml38 The Star Online (2011) Main players in the competitive TV sector Retrieved from bizthestarcommynewsstoryasp
file=20111126business997401739 The Star Online (2011) Maxis ready to move up value Retrieved from
bizthestarcommynewsstoryaspfile=201111business7704581ampse40 The Star Online (2011) New players enter the TV Retrieved from
bizthestarcommynewsstoryaspfile=20111126business997300841 The Star Newspaper (December 1 2011) Capital TV to make its debut today42 The Star Online (January 1 2011) Maxis ready to move up value chain Retrieved December 3 2011
httpbizthestarcommynewsstoryaspfile=201111business7704581ampsec=business43 The Star Online (2011 April 21) Media Prima to invest more on local content Retrieved October 30 2011 from C
Usersa34ffzzDesktopMedia PrimaUsed articlesMedia Prima to invest more in local contentmht44 Time Warners (2010) Annual Report Time Warners45 WHAT HI FI (2011) Samsung aims for 50m TV sales worldwide in 2012 set to announce launch date for Google TV
product Retrieved from httpwwwwhathificomnewssamsung-aims-for-50m-tv-sales-worldwide-in-2012-set-to-announce-launch-date-for-google-tv-produ
46 Woroch G A (1996) Turning the Cables Elsevier47 Zanuddin H (2007) Political influence in Malaysia and Thailand media sector Jati Vol12
- MEdiA PRIMA
- Agenda
- Company Profile
- Media Primarsquos Commitment amp Direction moving forward
- Media Industry Business Model ndash Content Driven
- Our Tasks ndash How
- PEST Analysis
- Politics Legal Issues amp Impact
- Economic Issues and Impact
- Social Issues and Impact
- Social Issues and Impact
- Technology Issues and Impact
- In short
- Porterrsquos 5 Forces Analysis
- Porterrsquos Five Forces ndash Competitive Analysis
- Financials
- Media Prima Financial Highlights
- However in further analysis
- Value Chain Analysis
- Resource Based View
- In the context of the Content industry value chain Mapped again
- Appraising capabilities which drives profitability
- Mapping Media Prima revenue streams against the Diversification
- Slide 25
- Related Constrained Diversification
- Related Constrained Diversification (2)
- Slide 28
- Related Linked Diversification
- Slide 30
- Social Responsibility Analysis
- Social Responsibility
- Social Responsibility ndash cont
- Media Prima Acknowledges it various stakeholder via Stakeholder
- It has moved on to 2nd stage of CSR
- SWOT Analysis
- SWOT Analysis ndash Summary
- Media Primarsquos Current situation in summary
- Moving forward 2012 and beyond
- Recommended Destination and future growth of Media Prima
- How Moving from aggregator to content creator
- How Moving from aggregator to content creator (2)
- Creating a Content focus agency All these can be enable via
- Using financial view to free resources for content development
- By changing the business segment reporting it also affects the
- How Moving from aggregator to content creator (3)
- Technology ndash Enable Media Prima to leap into Interactive Conten
- It is not a Fad but a trend
- Slide 50
- Example of Smart TV
- This will ultimately lead Media Prima to reduce it dependence o
- NEW Revenue Streams for Media Prima
- How
- Building Talents in the long run
- Summary ndash Media Prima
- References
- References
- References (1)
- References (2)
- References (3)
-
httpotbresearchcomau200509report-1-industry-forum
MEDIA PRIMA IS CURRENTLY HERE
This will ultimately lead Media Prima to reduce it dependence on advertising revenue
Others ndash Utilising the SMART TV technology and Apps to create any existing Media Prima businesses
NEW Revenue Streams for Media Prima
To take advantage of SMART TV and collaborate with SMART TV manufacturers Media Prima can look into following utilities
Collaborate with manufacturers to allow consumers to browse and pay for Media Prima video collections
Selling local music for Malaysia market
Collaborate with local or international content developers to create Malaysia specific contents for paid subscription or free for common content to attract new consumers
How
Content Focus Leveraging on content to Embark on Revenue shifts
Long term sustainable leadership
Restructuring to liberateresources for Content
Sustainable Talent development -
Partnership
Riding the Technology Wave
Short term (2012) Mid Term (by 2013-2015) Long term 2015 beyond
Building Talents in the long run
Education Building on its strategic CSR ndash Media Prima could champion the
development of the content industry by partnering with local universities in the areas of technology media and communication
Crowd Sourcing To haste up the strategic CSR it too could embark on crowd
sourcing for content ndash via scripts and interactive content In which Media Prima could support a great idea and develop the ideas for monetization
This is a synergistic and natural development from the networks structure (open innovation)
Summary ndash Media Prima
Develop Talent Pool
Ensure Vibrant Content Industry
Technologycreates ubiquitous
Low Access Cost
To spur the industry forward
Strong talent develops Content development
demand for access
Strong content industry drives demand for Talent drives demand for content
Our recommendations are aligned to help spur the industry forwardhellip
Restructuring to liberateresources for Content
Sustainable Talent development -
Partnership
Riding the Technology Wave ndash Via Smart
Partnerships
References
References
1 Anon ldquoMedia Prima Berhad implements Accenture integrated broadcast systemrdquo Accenture Press Release httpnewsroomaccenturecomarticle_displaycfmarticle_id=5005 viewed 3 November 2011
2 Anon ldquoNew exciting and vibrant offerings from MPB television networks in 2010rdquo Media Prima Press Release httpwwwmediaprimacommypressreleasepressreleaseaspxid=150 viewed 3 November 2011
3 Anderson J ldquoResource-based competitiveness managerial implications of the resource-based viewrdquo Strategic Direction Vol26 No5 2010 pp1-2
4 Arman Arshad (2006) Size matters Retrieved December 2 2011 from asiaviewsorg httpwwwasiaviewsorgindexphpoption=com_contentampview=articleampid=2171headlinealias2171ampcatid=1headlinesampItemid=2
5 Asia Times (2007 November 29) Malaysian media giant grasps for Internet Retrieved November 3 2011 from httpwwwatimescomatimesSoutheast_AsiaIK29Ae02html
6 Barney JB amp Hesterly WS (2008) Strategic Management and Competitive Advantage The Five Forces Model of Environmental Threats pp39Prentice Hall
7 BBC (2011) BBC News product launches on connected TV Retrieved from bbccoukpressofficepressreleasesstories201106_june17newsshtml
8 Boston Consulting Group (2011) Lean Advantage in Media Boston Consulting Group
9 Boston Consulting Group (2011) Running Forward Walking Backward Boston Consulting Group
10 Business Times (2011) Media Prima net revenue grows to RM119b Kuala Lumpur New Straits Times
11 Business Times (2011) Media Prima on track to achie1048665ing 2011 target Retrieved from www1btimescomm1048668Current_NewsBTIMESarticlespimeArticle
References (1)
12 Business Times (2011) Media Prima Puncak Semangat in early talks Retrieved from httpwwwbtimescommyarticlespimmaArticle
13 Carl W Stern George Stalk Carl W Stern George Stalk Stern CW amp Stalk G (2011) Perspectives of Strategy from the Boston Consulting Group Retrieved December 3 2011 from Value Based Managementnet httpwwwvaluebasedmanagementnetmethods_bcgmatrixhtml
14 ecmlibra (2011) Adex momentum to taper off in 2012 ecmlibra
15 Gershon R A amp Ratnadeep S V (2004) Viacom Inc A Case Study in Transnational Media Management Journal of Media Business Studies 1 (1) 47-69
16 Grant RM ldquoThe resource-based theory of competitive advantage implications for strategy formulationrdquo California Management Review Vol 3 2011 httpwwwskynetie~karenArticlesGrant1_NBpdf viewed 15 November 2011
17 GreyReview (2011) TonTon Streaming Over 11 Million Video Hours A Month now with 16 millions registered users Retrieved from httpwwwgreyreviewcom20110731tonton-serving-over-1-1-million-video-hours-a-month-now-with-1-6-registered-users
18 Heavy Reading (2011) Telecom in TV Land A Roadmap to New Digital Media Ecosystem Retrieved from wwwheavyreadingcomdetailsaspsku_id=1773ampskuitem_itemid=1030
19 Hegedus N (2010) The Great Scare EBR 3 10-17
20 JohnsonGScholesK amp Whittington (2008) Exploring Corporate Strategy Competitive Forces ndash the Five Forces Framework pp 59-64 Prentice Hall
21 kinetic (2011) Moving World Asia Hong Kong
References (2)
22 Knowledgefaber (2009) Telcos Avatar - As Media Companies 20 Retrieved from httpknowledgefabercomindexphpoption=com_contentampview=articleampid=40telecom-and-media-convergenceampcatid=10telecomampItemid=42
23 Knowledgefaber (2011) Telcos Avatar - As Media Companies 20 Retrieved from httpknowledgefabercomindexphpoption=com_contentampview=articleampid=40
24 Malik O (2011) GIGAOM Retrieved from httpgigaomcom20110223old-media-is-being-unbundled-just-like-telecom-was
25 Maxis with TM Astro with TIME Best Strategy to IPTV Market Retrieved December 1 2011 httpbizthestarcommynewsstoryaspfile=201111business7704581ampsec=business
26 Media Prima (2010) Annual Report Media Prima Berhad27 Media Prima Berhad (2011) 11 Nov 2011 - New Exciting amp Vibrant Offerings From MPB Television Retrieved from
wwwmediaprimacommypressreleasepressreleaseaspxid=15028 Media Prima (2010) Sustainability Report Media Prima Berhad29 OSK (2011) Media Prima OSK30 Pocket-Lint (2011) Samsung Smart TV hits 2 million mark Retrieved from
httpwwwpocket-lintcomnews40593samsung-smart-tv-2-million31 PricewaterhouseCoopers (2011) Achieving corporate financial PwC32 PricewaterhouseCoopers (2007) Financial Reporting Standards (FRS) in Malaysia PricewaterhouseCoopers33 SKMM (MCMC) (2009) Advertising Development in Malaysia SKMM34 SKMM (MCMC) (2011) Content Development SKMM35 Techpinions (2011) Interactive TV Trends - How the TV experience is changing - Part II Retrieved from
httptechpinionscominteractive-tv-trends-E28093-how-the-tv-experience-is-changing-part-ii4066
References (3)
36 The Edge (2011) Media Prima best proxy to sector Retrieved from wwwtheedgemalaysiacom37 The Edge Malaysia (2011 September 26) Education the mother of all reforms Retrieved October 30 2011 from
httpwwwtheedgemalaysiacomin-the-financial-daily193478-education-the-mother-of-all-reformshtml38 The Star Online (2011) Main players in the competitive TV sector Retrieved from bizthestarcommynewsstoryasp
file=20111126business997401739 The Star Online (2011) Maxis ready to move up value Retrieved from
bizthestarcommynewsstoryaspfile=201111business7704581ampse40 The Star Online (2011) New players enter the TV Retrieved from
bizthestarcommynewsstoryaspfile=20111126business997300841 The Star Newspaper (December 1 2011) Capital TV to make its debut today42 The Star Online (January 1 2011) Maxis ready to move up value chain Retrieved December 3 2011
httpbizthestarcommynewsstoryaspfile=201111business7704581ampsec=business43 The Star Online (2011 April 21) Media Prima to invest more on local content Retrieved October 30 2011 from C
Usersa34ffzzDesktopMedia PrimaUsed articlesMedia Prima to invest more in local contentmht44 Time Warners (2010) Annual Report Time Warners45 WHAT HI FI (2011) Samsung aims for 50m TV sales worldwide in 2012 set to announce launch date for Google TV
product Retrieved from httpwwwwhathificomnewssamsung-aims-for-50m-tv-sales-worldwide-in-2012-set-to-announce-launch-date-for-google-tv-produ
46 Woroch G A (1996) Turning the Cables Elsevier47 Zanuddin H (2007) Political influence in Malaysia and Thailand media sector Jati Vol12
- MEdiA PRIMA
- Agenda
- Company Profile
- Media Primarsquos Commitment amp Direction moving forward
- Media Industry Business Model ndash Content Driven
- Our Tasks ndash How
- PEST Analysis
- Politics Legal Issues amp Impact
- Economic Issues and Impact
- Social Issues and Impact
- Social Issues and Impact
- Technology Issues and Impact
- In short
- Porterrsquos 5 Forces Analysis
- Porterrsquos Five Forces ndash Competitive Analysis
- Financials
- Media Prima Financial Highlights
- However in further analysis
- Value Chain Analysis
- Resource Based View
- In the context of the Content industry value chain Mapped again
- Appraising capabilities which drives profitability
- Mapping Media Prima revenue streams against the Diversification
- Slide 25
- Related Constrained Diversification
- Related Constrained Diversification (2)
- Slide 28
- Related Linked Diversification
- Slide 30
- Social Responsibility Analysis
- Social Responsibility
- Social Responsibility ndash cont
- Media Prima Acknowledges it various stakeholder via Stakeholder
- It has moved on to 2nd stage of CSR
- SWOT Analysis
- SWOT Analysis ndash Summary
- Media Primarsquos Current situation in summary
- Moving forward 2012 and beyond
- Recommended Destination and future growth of Media Prima
- How Moving from aggregator to content creator
- How Moving from aggregator to content creator (2)
- Creating a Content focus agency All these can be enable via
- Using financial view to free resources for content development
- By changing the business segment reporting it also affects the
- How Moving from aggregator to content creator (3)
- Technology ndash Enable Media Prima to leap into Interactive Conten
- It is not a Fad but a trend
- Slide 50
- Example of Smart TV
- This will ultimately lead Media Prima to reduce it dependence o
- NEW Revenue Streams for Media Prima
- How
- Building Talents in the long run
- Summary ndash Media Prima
- References
- References
- References (1)
- References (2)
- References (3)
-
Others ndash Utilising the SMART TV technology and Apps to create any existing Media Prima businesses
NEW Revenue Streams for Media Prima
To take advantage of SMART TV and collaborate with SMART TV manufacturers Media Prima can look into following utilities
Collaborate with manufacturers to allow consumers to browse and pay for Media Prima video collections
Selling local music for Malaysia market
Collaborate with local or international content developers to create Malaysia specific contents for paid subscription or free for common content to attract new consumers
How
Content Focus Leveraging on content to Embark on Revenue shifts
Long term sustainable leadership
Restructuring to liberateresources for Content
Sustainable Talent development -
Partnership
Riding the Technology Wave
Short term (2012) Mid Term (by 2013-2015) Long term 2015 beyond
Building Talents in the long run
Education Building on its strategic CSR ndash Media Prima could champion the
development of the content industry by partnering with local universities in the areas of technology media and communication
Crowd Sourcing To haste up the strategic CSR it too could embark on crowd
sourcing for content ndash via scripts and interactive content In which Media Prima could support a great idea and develop the ideas for monetization
This is a synergistic and natural development from the networks structure (open innovation)
Summary ndash Media Prima
Develop Talent Pool
Ensure Vibrant Content Industry
Technologycreates ubiquitous
Low Access Cost
To spur the industry forward
Strong talent develops Content development
demand for access
Strong content industry drives demand for Talent drives demand for content
Our recommendations are aligned to help spur the industry forwardhellip
Restructuring to liberateresources for Content
Sustainable Talent development -
Partnership
Riding the Technology Wave ndash Via Smart
Partnerships
References
References
1 Anon ldquoMedia Prima Berhad implements Accenture integrated broadcast systemrdquo Accenture Press Release httpnewsroomaccenturecomarticle_displaycfmarticle_id=5005 viewed 3 November 2011
2 Anon ldquoNew exciting and vibrant offerings from MPB television networks in 2010rdquo Media Prima Press Release httpwwwmediaprimacommypressreleasepressreleaseaspxid=150 viewed 3 November 2011
3 Anderson J ldquoResource-based competitiveness managerial implications of the resource-based viewrdquo Strategic Direction Vol26 No5 2010 pp1-2
4 Arman Arshad (2006) Size matters Retrieved December 2 2011 from asiaviewsorg httpwwwasiaviewsorgindexphpoption=com_contentampview=articleampid=2171headlinealias2171ampcatid=1headlinesampItemid=2
5 Asia Times (2007 November 29) Malaysian media giant grasps for Internet Retrieved November 3 2011 from httpwwwatimescomatimesSoutheast_AsiaIK29Ae02html
6 Barney JB amp Hesterly WS (2008) Strategic Management and Competitive Advantage The Five Forces Model of Environmental Threats pp39Prentice Hall
7 BBC (2011) BBC News product launches on connected TV Retrieved from bbccoukpressofficepressreleasesstories201106_june17newsshtml
8 Boston Consulting Group (2011) Lean Advantage in Media Boston Consulting Group
9 Boston Consulting Group (2011) Running Forward Walking Backward Boston Consulting Group
10 Business Times (2011) Media Prima net revenue grows to RM119b Kuala Lumpur New Straits Times
11 Business Times (2011) Media Prima on track to achie1048665ing 2011 target Retrieved from www1btimescomm1048668Current_NewsBTIMESarticlespimeArticle
References (1)
12 Business Times (2011) Media Prima Puncak Semangat in early talks Retrieved from httpwwwbtimescommyarticlespimmaArticle
13 Carl W Stern George Stalk Carl W Stern George Stalk Stern CW amp Stalk G (2011) Perspectives of Strategy from the Boston Consulting Group Retrieved December 3 2011 from Value Based Managementnet httpwwwvaluebasedmanagementnetmethods_bcgmatrixhtml
14 ecmlibra (2011) Adex momentum to taper off in 2012 ecmlibra
15 Gershon R A amp Ratnadeep S V (2004) Viacom Inc A Case Study in Transnational Media Management Journal of Media Business Studies 1 (1) 47-69
16 Grant RM ldquoThe resource-based theory of competitive advantage implications for strategy formulationrdquo California Management Review Vol 3 2011 httpwwwskynetie~karenArticlesGrant1_NBpdf viewed 15 November 2011
17 GreyReview (2011) TonTon Streaming Over 11 Million Video Hours A Month now with 16 millions registered users Retrieved from httpwwwgreyreviewcom20110731tonton-serving-over-1-1-million-video-hours-a-month-now-with-1-6-registered-users
18 Heavy Reading (2011) Telecom in TV Land A Roadmap to New Digital Media Ecosystem Retrieved from wwwheavyreadingcomdetailsaspsku_id=1773ampskuitem_itemid=1030
19 Hegedus N (2010) The Great Scare EBR 3 10-17
20 JohnsonGScholesK amp Whittington (2008) Exploring Corporate Strategy Competitive Forces ndash the Five Forces Framework pp 59-64 Prentice Hall
21 kinetic (2011) Moving World Asia Hong Kong
References (2)
22 Knowledgefaber (2009) Telcos Avatar - As Media Companies 20 Retrieved from httpknowledgefabercomindexphpoption=com_contentampview=articleampid=40telecom-and-media-convergenceampcatid=10telecomampItemid=42
23 Knowledgefaber (2011) Telcos Avatar - As Media Companies 20 Retrieved from httpknowledgefabercomindexphpoption=com_contentampview=articleampid=40
24 Malik O (2011) GIGAOM Retrieved from httpgigaomcom20110223old-media-is-being-unbundled-just-like-telecom-was
25 Maxis with TM Astro with TIME Best Strategy to IPTV Market Retrieved December 1 2011 httpbizthestarcommynewsstoryaspfile=201111business7704581ampsec=business
26 Media Prima (2010) Annual Report Media Prima Berhad27 Media Prima Berhad (2011) 11 Nov 2011 - New Exciting amp Vibrant Offerings From MPB Television Retrieved from
wwwmediaprimacommypressreleasepressreleaseaspxid=15028 Media Prima (2010) Sustainability Report Media Prima Berhad29 OSK (2011) Media Prima OSK30 Pocket-Lint (2011) Samsung Smart TV hits 2 million mark Retrieved from
httpwwwpocket-lintcomnews40593samsung-smart-tv-2-million31 PricewaterhouseCoopers (2011) Achieving corporate financial PwC32 PricewaterhouseCoopers (2007) Financial Reporting Standards (FRS) in Malaysia PricewaterhouseCoopers33 SKMM (MCMC) (2009) Advertising Development in Malaysia SKMM34 SKMM (MCMC) (2011) Content Development SKMM35 Techpinions (2011) Interactive TV Trends - How the TV experience is changing - Part II Retrieved from
httptechpinionscominteractive-tv-trends-E28093-how-the-tv-experience-is-changing-part-ii4066
References (3)
36 The Edge (2011) Media Prima best proxy to sector Retrieved from wwwtheedgemalaysiacom37 The Edge Malaysia (2011 September 26) Education the mother of all reforms Retrieved October 30 2011 from
httpwwwtheedgemalaysiacomin-the-financial-daily193478-education-the-mother-of-all-reformshtml38 The Star Online (2011) Main players in the competitive TV sector Retrieved from bizthestarcommynewsstoryasp
file=20111126business997401739 The Star Online (2011) Maxis ready to move up value Retrieved from
bizthestarcommynewsstoryaspfile=201111business7704581ampse40 The Star Online (2011) New players enter the TV Retrieved from
bizthestarcommynewsstoryaspfile=20111126business997300841 The Star Newspaper (December 1 2011) Capital TV to make its debut today42 The Star Online (January 1 2011) Maxis ready to move up value chain Retrieved December 3 2011
httpbizthestarcommynewsstoryaspfile=201111business7704581ampsec=business43 The Star Online (2011 April 21) Media Prima to invest more on local content Retrieved October 30 2011 from C
Usersa34ffzzDesktopMedia PrimaUsed articlesMedia Prima to invest more in local contentmht44 Time Warners (2010) Annual Report Time Warners45 WHAT HI FI (2011) Samsung aims for 50m TV sales worldwide in 2012 set to announce launch date for Google TV
product Retrieved from httpwwwwhathificomnewssamsung-aims-for-50m-tv-sales-worldwide-in-2012-set-to-announce-launch-date-for-google-tv-produ
46 Woroch G A (1996) Turning the Cables Elsevier47 Zanuddin H (2007) Political influence in Malaysia and Thailand media sector Jati Vol12
- MEdiA PRIMA
- Agenda
- Company Profile
- Media Primarsquos Commitment amp Direction moving forward
- Media Industry Business Model ndash Content Driven
- Our Tasks ndash How
- PEST Analysis
- Politics Legal Issues amp Impact
- Economic Issues and Impact
- Social Issues and Impact
- Social Issues and Impact
- Technology Issues and Impact
- In short
- Porterrsquos 5 Forces Analysis
- Porterrsquos Five Forces ndash Competitive Analysis
- Financials
- Media Prima Financial Highlights
- However in further analysis
- Value Chain Analysis
- Resource Based View
- In the context of the Content industry value chain Mapped again
- Appraising capabilities which drives profitability
- Mapping Media Prima revenue streams against the Diversification
- Slide 25
- Related Constrained Diversification
- Related Constrained Diversification (2)
- Slide 28
- Related Linked Diversification
- Slide 30
- Social Responsibility Analysis
- Social Responsibility
- Social Responsibility ndash cont
- Media Prima Acknowledges it various stakeholder via Stakeholder
- It has moved on to 2nd stage of CSR
- SWOT Analysis
- SWOT Analysis ndash Summary
- Media Primarsquos Current situation in summary
- Moving forward 2012 and beyond
- Recommended Destination and future growth of Media Prima
- How Moving from aggregator to content creator
- How Moving from aggregator to content creator (2)
- Creating a Content focus agency All these can be enable via
- Using financial view to free resources for content development
- By changing the business segment reporting it also affects the
- How Moving from aggregator to content creator (3)
- Technology ndash Enable Media Prima to leap into Interactive Conten
- It is not a Fad but a trend
- Slide 50
- Example of Smart TV
- This will ultimately lead Media Prima to reduce it dependence o
- NEW Revenue Streams for Media Prima
- How
- Building Talents in the long run
- Summary ndash Media Prima
- References
- References
- References (1)
- References (2)
- References (3)
-
How
Content Focus Leveraging on content to Embark on Revenue shifts
Long term sustainable leadership
Restructuring to liberateresources for Content
Sustainable Talent development -
Partnership
Riding the Technology Wave
Short term (2012) Mid Term (by 2013-2015) Long term 2015 beyond
Building Talents in the long run
Education Building on its strategic CSR ndash Media Prima could champion the
development of the content industry by partnering with local universities in the areas of technology media and communication
Crowd Sourcing To haste up the strategic CSR it too could embark on crowd
sourcing for content ndash via scripts and interactive content In which Media Prima could support a great idea and develop the ideas for monetization
This is a synergistic and natural development from the networks structure (open innovation)
Summary ndash Media Prima
Develop Talent Pool
Ensure Vibrant Content Industry
Technologycreates ubiquitous
Low Access Cost
To spur the industry forward
Strong talent develops Content development
demand for access
Strong content industry drives demand for Talent drives demand for content
Our recommendations are aligned to help spur the industry forwardhellip
Restructuring to liberateresources for Content
Sustainable Talent development -
Partnership
Riding the Technology Wave ndash Via Smart
Partnerships
References
References
1 Anon ldquoMedia Prima Berhad implements Accenture integrated broadcast systemrdquo Accenture Press Release httpnewsroomaccenturecomarticle_displaycfmarticle_id=5005 viewed 3 November 2011
2 Anon ldquoNew exciting and vibrant offerings from MPB television networks in 2010rdquo Media Prima Press Release httpwwwmediaprimacommypressreleasepressreleaseaspxid=150 viewed 3 November 2011
3 Anderson J ldquoResource-based competitiveness managerial implications of the resource-based viewrdquo Strategic Direction Vol26 No5 2010 pp1-2
4 Arman Arshad (2006) Size matters Retrieved December 2 2011 from asiaviewsorg httpwwwasiaviewsorgindexphpoption=com_contentampview=articleampid=2171headlinealias2171ampcatid=1headlinesampItemid=2
5 Asia Times (2007 November 29) Malaysian media giant grasps for Internet Retrieved November 3 2011 from httpwwwatimescomatimesSoutheast_AsiaIK29Ae02html
6 Barney JB amp Hesterly WS (2008) Strategic Management and Competitive Advantage The Five Forces Model of Environmental Threats pp39Prentice Hall
7 BBC (2011) BBC News product launches on connected TV Retrieved from bbccoukpressofficepressreleasesstories201106_june17newsshtml
8 Boston Consulting Group (2011) Lean Advantage in Media Boston Consulting Group
9 Boston Consulting Group (2011) Running Forward Walking Backward Boston Consulting Group
10 Business Times (2011) Media Prima net revenue grows to RM119b Kuala Lumpur New Straits Times
11 Business Times (2011) Media Prima on track to achie1048665ing 2011 target Retrieved from www1btimescomm1048668Current_NewsBTIMESarticlespimeArticle
References (1)
12 Business Times (2011) Media Prima Puncak Semangat in early talks Retrieved from httpwwwbtimescommyarticlespimmaArticle
13 Carl W Stern George Stalk Carl W Stern George Stalk Stern CW amp Stalk G (2011) Perspectives of Strategy from the Boston Consulting Group Retrieved December 3 2011 from Value Based Managementnet httpwwwvaluebasedmanagementnetmethods_bcgmatrixhtml
14 ecmlibra (2011) Adex momentum to taper off in 2012 ecmlibra
15 Gershon R A amp Ratnadeep S V (2004) Viacom Inc A Case Study in Transnational Media Management Journal of Media Business Studies 1 (1) 47-69
16 Grant RM ldquoThe resource-based theory of competitive advantage implications for strategy formulationrdquo California Management Review Vol 3 2011 httpwwwskynetie~karenArticlesGrant1_NBpdf viewed 15 November 2011
17 GreyReview (2011) TonTon Streaming Over 11 Million Video Hours A Month now with 16 millions registered users Retrieved from httpwwwgreyreviewcom20110731tonton-serving-over-1-1-million-video-hours-a-month-now-with-1-6-registered-users
18 Heavy Reading (2011) Telecom in TV Land A Roadmap to New Digital Media Ecosystem Retrieved from wwwheavyreadingcomdetailsaspsku_id=1773ampskuitem_itemid=1030
19 Hegedus N (2010) The Great Scare EBR 3 10-17
20 JohnsonGScholesK amp Whittington (2008) Exploring Corporate Strategy Competitive Forces ndash the Five Forces Framework pp 59-64 Prentice Hall
21 kinetic (2011) Moving World Asia Hong Kong
References (2)
22 Knowledgefaber (2009) Telcos Avatar - As Media Companies 20 Retrieved from httpknowledgefabercomindexphpoption=com_contentampview=articleampid=40telecom-and-media-convergenceampcatid=10telecomampItemid=42
23 Knowledgefaber (2011) Telcos Avatar - As Media Companies 20 Retrieved from httpknowledgefabercomindexphpoption=com_contentampview=articleampid=40
24 Malik O (2011) GIGAOM Retrieved from httpgigaomcom20110223old-media-is-being-unbundled-just-like-telecom-was
25 Maxis with TM Astro with TIME Best Strategy to IPTV Market Retrieved December 1 2011 httpbizthestarcommynewsstoryaspfile=201111business7704581ampsec=business
26 Media Prima (2010) Annual Report Media Prima Berhad27 Media Prima Berhad (2011) 11 Nov 2011 - New Exciting amp Vibrant Offerings From MPB Television Retrieved from
wwwmediaprimacommypressreleasepressreleaseaspxid=15028 Media Prima (2010) Sustainability Report Media Prima Berhad29 OSK (2011) Media Prima OSK30 Pocket-Lint (2011) Samsung Smart TV hits 2 million mark Retrieved from
httpwwwpocket-lintcomnews40593samsung-smart-tv-2-million31 PricewaterhouseCoopers (2011) Achieving corporate financial PwC32 PricewaterhouseCoopers (2007) Financial Reporting Standards (FRS) in Malaysia PricewaterhouseCoopers33 SKMM (MCMC) (2009) Advertising Development in Malaysia SKMM34 SKMM (MCMC) (2011) Content Development SKMM35 Techpinions (2011) Interactive TV Trends - How the TV experience is changing - Part II Retrieved from
httptechpinionscominteractive-tv-trends-E28093-how-the-tv-experience-is-changing-part-ii4066
References (3)
36 The Edge (2011) Media Prima best proxy to sector Retrieved from wwwtheedgemalaysiacom37 The Edge Malaysia (2011 September 26) Education the mother of all reforms Retrieved October 30 2011 from
httpwwwtheedgemalaysiacomin-the-financial-daily193478-education-the-mother-of-all-reformshtml38 The Star Online (2011) Main players in the competitive TV sector Retrieved from bizthestarcommynewsstoryasp
file=20111126business997401739 The Star Online (2011) Maxis ready to move up value Retrieved from
bizthestarcommynewsstoryaspfile=201111business7704581ampse40 The Star Online (2011) New players enter the TV Retrieved from
bizthestarcommynewsstoryaspfile=20111126business997300841 The Star Newspaper (December 1 2011) Capital TV to make its debut today42 The Star Online (January 1 2011) Maxis ready to move up value chain Retrieved December 3 2011
httpbizthestarcommynewsstoryaspfile=201111business7704581ampsec=business43 The Star Online (2011 April 21) Media Prima to invest more on local content Retrieved October 30 2011 from C
Usersa34ffzzDesktopMedia PrimaUsed articlesMedia Prima to invest more in local contentmht44 Time Warners (2010) Annual Report Time Warners45 WHAT HI FI (2011) Samsung aims for 50m TV sales worldwide in 2012 set to announce launch date for Google TV
product Retrieved from httpwwwwhathificomnewssamsung-aims-for-50m-tv-sales-worldwide-in-2012-set-to-announce-launch-date-for-google-tv-produ
46 Woroch G A (1996) Turning the Cables Elsevier47 Zanuddin H (2007) Political influence in Malaysia and Thailand media sector Jati Vol12
- MEdiA PRIMA
- Agenda
- Company Profile
- Media Primarsquos Commitment amp Direction moving forward
- Media Industry Business Model ndash Content Driven
- Our Tasks ndash How
- PEST Analysis
- Politics Legal Issues amp Impact
- Economic Issues and Impact
- Social Issues and Impact
- Social Issues and Impact
- Technology Issues and Impact
- In short
- Porterrsquos 5 Forces Analysis
- Porterrsquos Five Forces ndash Competitive Analysis
- Financials
- Media Prima Financial Highlights
- However in further analysis
- Value Chain Analysis
- Resource Based View
- In the context of the Content industry value chain Mapped again
- Appraising capabilities which drives profitability
- Mapping Media Prima revenue streams against the Diversification
- Slide 25
- Related Constrained Diversification
- Related Constrained Diversification (2)
- Slide 28
- Related Linked Diversification
- Slide 30
- Social Responsibility Analysis
- Social Responsibility
- Social Responsibility ndash cont
- Media Prima Acknowledges it various stakeholder via Stakeholder
- It has moved on to 2nd stage of CSR
- SWOT Analysis
- SWOT Analysis ndash Summary
- Media Primarsquos Current situation in summary
- Moving forward 2012 and beyond
- Recommended Destination and future growth of Media Prima
- How Moving from aggregator to content creator
- How Moving from aggregator to content creator (2)
- Creating a Content focus agency All these can be enable via
- Using financial view to free resources for content development
- By changing the business segment reporting it also affects the
- How Moving from aggregator to content creator (3)
- Technology ndash Enable Media Prima to leap into Interactive Conten
- It is not a Fad but a trend
- Slide 50
- Example of Smart TV
- This will ultimately lead Media Prima to reduce it dependence o
- NEW Revenue Streams for Media Prima
- How
- Building Talents in the long run
- Summary ndash Media Prima
- References
- References
- References (1)
- References (2)
- References (3)
-
Building Talents in the long run
Education Building on its strategic CSR ndash Media Prima could champion the
development of the content industry by partnering with local universities in the areas of technology media and communication
Crowd Sourcing To haste up the strategic CSR it too could embark on crowd
sourcing for content ndash via scripts and interactive content In which Media Prima could support a great idea and develop the ideas for monetization
This is a synergistic and natural development from the networks structure (open innovation)
Summary ndash Media Prima
Develop Talent Pool
Ensure Vibrant Content Industry
Technologycreates ubiquitous
Low Access Cost
To spur the industry forward
Strong talent develops Content development
demand for access
Strong content industry drives demand for Talent drives demand for content
Our recommendations are aligned to help spur the industry forwardhellip
Restructuring to liberateresources for Content
Sustainable Talent development -
Partnership
Riding the Technology Wave ndash Via Smart
Partnerships
References
References
1 Anon ldquoMedia Prima Berhad implements Accenture integrated broadcast systemrdquo Accenture Press Release httpnewsroomaccenturecomarticle_displaycfmarticle_id=5005 viewed 3 November 2011
2 Anon ldquoNew exciting and vibrant offerings from MPB television networks in 2010rdquo Media Prima Press Release httpwwwmediaprimacommypressreleasepressreleaseaspxid=150 viewed 3 November 2011
3 Anderson J ldquoResource-based competitiveness managerial implications of the resource-based viewrdquo Strategic Direction Vol26 No5 2010 pp1-2
4 Arman Arshad (2006) Size matters Retrieved December 2 2011 from asiaviewsorg httpwwwasiaviewsorgindexphpoption=com_contentampview=articleampid=2171headlinealias2171ampcatid=1headlinesampItemid=2
5 Asia Times (2007 November 29) Malaysian media giant grasps for Internet Retrieved November 3 2011 from httpwwwatimescomatimesSoutheast_AsiaIK29Ae02html
6 Barney JB amp Hesterly WS (2008) Strategic Management and Competitive Advantage The Five Forces Model of Environmental Threats pp39Prentice Hall
7 BBC (2011) BBC News product launches on connected TV Retrieved from bbccoukpressofficepressreleasesstories201106_june17newsshtml
8 Boston Consulting Group (2011) Lean Advantage in Media Boston Consulting Group
9 Boston Consulting Group (2011) Running Forward Walking Backward Boston Consulting Group
10 Business Times (2011) Media Prima net revenue grows to RM119b Kuala Lumpur New Straits Times
11 Business Times (2011) Media Prima on track to achie1048665ing 2011 target Retrieved from www1btimescomm1048668Current_NewsBTIMESarticlespimeArticle
References (1)
12 Business Times (2011) Media Prima Puncak Semangat in early talks Retrieved from httpwwwbtimescommyarticlespimmaArticle
13 Carl W Stern George Stalk Carl W Stern George Stalk Stern CW amp Stalk G (2011) Perspectives of Strategy from the Boston Consulting Group Retrieved December 3 2011 from Value Based Managementnet httpwwwvaluebasedmanagementnetmethods_bcgmatrixhtml
14 ecmlibra (2011) Adex momentum to taper off in 2012 ecmlibra
15 Gershon R A amp Ratnadeep S V (2004) Viacom Inc A Case Study in Transnational Media Management Journal of Media Business Studies 1 (1) 47-69
16 Grant RM ldquoThe resource-based theory of competitive advantage implications for strategy formulationrdquo California Management Review Vol 3 2011 httpwwwskynetie~karenArticlesGrant1_NBpdf viewed 15 November 2011
17 GreyReview (2011) TonTon Streaming Over 11 Million Video Hours A Month now with 16 millions registered users Retrieved from httpwwwgreyreviewcom20110731tonton-serving-over-1-1-million-video-hours-a-month-now-with-1-6-registered-users
18 Heavy Reading (2011) Telecom in TV Land A Roadmap to New Digital Media Ecosystem Retrieved from wwwheavyreadingcomdetailsaspsku_id=1773ampskuitem_itemid=1030
19 Hegedus N (2010) The Great Scare EBR 3 10-17
20 JohnsonGScholesK amp Whittington (2008) Exploring Corporate Strategy Competitive Forces ndash the Five Forces Framework pp 59-64 Prentice Hall
21 kinetic (2011) Moving World Asia Hong Kong
References (2)
22 Knowledgefaber (2009) Telcos Avatar - As Media Companies 20 Retrieved from httpknowledgefabercomindexphpoption=com_contentampview=articleampid=40telecom-and-media-convergenceampcatid=10telecomampItemid=42
23 Knowledgefaber (2011) Telcos Avatar - As Media Companies 20 Retrieved from httpknowledgefabercomindexphpoption=com_contentampview=articleampid=40
24 Malik O (2011) GIGAOM Retrieved from httpgigaomcom20110223old-media-is-being-unbundled-just-like-telecom-was
25 Maxis with TM Astro with TIME Best Strategy to IPTV Market Retrieved December 1 2011 httpbizthestarcommynewsstoryaspfile=201111business7704581ampsec=business
26 Media Prima (2010) Annual Report Media Prima Berhad27 Media Prima Berhad (2011) 11 Nov 2011 - New Exciting amp Vibrant Offerings From MPB Television Retrieved from
wwwmediaprimacommypressreleasepressreleaseaspxid=15028 Media Prima (2010) Sustainability Report Media Prima Berhad29 OSK (2011) Media Prima OSK30 Pocket-Lint (2011) Samsung Smart TV hits 2 million mark Retrieved from
httpwwwpocket-lintcomnews40593samsung-smart-tv-2-million31 PricewaterhouseCoopers (2011) Achieving corporate financial PwC32 PricewaterhouseCoopers (2007) Financial Reporting Standards (FRS) in Malaysia PricewaterhouseCoopers33 SKMM (MCMC) (2009) Advertising Development in Malaysia SKMM34 SKMM (MCMC) (2011) Content Development SKMM35 Techpinions (2011) Interactive TV Trends - How the TV experience is changing - Part II Retrieved from
httptechpinionscominteractive-tv-trends-E28093-how-the-tv-experience-is-changing-part-ii4066
References (3)
36 The Edge (2011) Media Prima best proxy to sector Retrieved from wwwtheedgemalaysiacom37 The Edge Malaysia (2011 September 26) Education the mother of all reforms Retrieved October 30 2011 from
httpwwwtheedgemalaysiacomin-the-financial-daily193478-education-the-mother-of-all-reformshtml38 The Star Online (2011) Main players in the competitive TV sector Retrieved from bizthestarcommynewsstoryasp
file=20111126business997401739 The Star Online (2011) Maxis ready to move up value Retrieved from
bizthestarcommynewsstoryaspfile=201111business7704581ampse40 The Star Online (2011) New players enter the TV Retrieved from
bizthestarcommynewsstoryaspfile=20111126business997300841 The Star Newspaper (December 1 2011) Capital TV to make its debut today42 The Star Online (January 1 2011) Maxis ready to move up value chain Retrieved December 3 2011
httpbizthestarcommynewsstoryaspfile=201111business7704581ampsec=business43 The Star Online (2011 April 21) Media Prima to invest more on local content Retrieved October 30 2011 from C
Usersa34ffzzDesktopMedia PrimaUsed articlesMedia Prima to invest more in local contentmht44 Time Warners (2010) Annual Report Time Warners45 WHAT HI FI (2011) Samsung aims for 50m TV sales worldwide in 2012 set to announce launch date for Google TV
product Retrieved from httpwwwwhathificomnewssamsung-aims-for-50m-tv-sales-worldwide-in-2012-set-to-announce-launch-date-for-google-tv-produ
46 Woroch G A (1996) Turning the Cables Elsevier47 Zanuddin H (2007) Political influence in Malaysia and Thailand media sector Jati Vol12
- MEdiA PRIMA
- Agenda
- Company Profile
- Media Primarsquos Commitment amp Direction moving forward
- Media Industry Business Model ndash Content Driven
- Our Tasks ndash How
- PEST Analysis
- Politics Legal Issues amp Impact
- Economic Issues and Impact
- Social Issues and Impact
- Social Issues and Impact
- Technology Issues and Impact
- In short
- Porterrsquos 5 Forces Analysis
- Porterrsquos Five Forces ndash Competitive Analysis
- Financials
- Media Prima Financial Highlights
- However in further analysis
- Value Chain Analysis
- Resource Based View
- In the context of the Content industry value chain Mapped again
- Appraising capabilities which drives profitability
- Mapping Media Prima revenue streams against the Diversification
- Slide 25
- Related Constrained Diversification
- Related Constrained Diversification (2)
- Slide 28
- Related Linked Diversification
- Slide 30
- Social Responsibility Analysis
- Social Responsibility
- Social Responsibility ndash cont
- Media Prima Acknowledges it various stakeholder via Stakeholder
- It has moved on to 2nd stage of CSR
- SWOT Analysis
- SWOT Analysis ndash Summary
- Media Primarsquos Current situation in summary
- Moving forward 2012 and beyond
- Recommended Destination and future growth of Media Prima
- How Moving from aggregator to content creator
- How Moving from aggregator to content creator (2)
- Creating a Content focus agency All these can be enable via
- Using financial view to free resources for content development
- By changing the business segment reporting it also affects the
- How Moving from aggregator to content creator (3)
- Technology ndash Enable Media Prima to leap into Interactive Conten
- It is not a Fad but a trend
- Slide 50
- Example of Smart TV
- This will ultimately lead Media Prima to reduce it dependence o
- NEW Revenue Streams for Media Prima
- How
- Building Talents in the long run
- Summary ndash Media Prima
- References
- References
- References (1)
- References (2)
- References (3)
-
Summary ndash Media Prima
Develop Talent Pool
Ensure Vibrant Content Industry
Technologycreates ubiquitous
Low Access Cost
To spur the industry forward
Strong talent develops Content development
demand for access
Strong content industry drives demand for Talent drives demand for content
Our recommendations are aligned to help spur the industry forwardhellip
Restructuring to liberateresources for Content
Sustainable Talent development -
Partnership
Riding the Technology Wave ndash Via Smart
Partnerships
References
References
1 Anon ldquoMedia Prima Berhad implements Accenture integrated broadcast systemrdquo Accenture Press Release httpnewsroomaccenturecomarticle_displaycfmarticle_id=5005 viewed 3 November 2011
2 Anon ldquoNew exciting and vibrant offerings from MPB television networks in 2010rdquo Media Prima Press Release httpwwwmediaprimacommypressreleasepressreleaseaspxid=150 viewed 3 November 2011
3 Anderson J ldquoResource-based competitiveness managerial implications of the resource-based viewrdquo Strategic Direction Vol26 No5 2010 pp1-2
4 Arman Arshad (2006) Size matters Retrieved December 2 2011 from asiaviewsorg httpwwwasiaviewsorgindexphpoption=com_contentampview=articleampid=2171headlinealias2171ampcatid=1headlinesampItemid=2
5 Asia Times (2007 November 29) Malaysian media giant grasps for Internet Retrieved November 3 2011 from httpwwwatimescomatimesSoutheast_AsiaIK29Ae02html
6 Barney JB amp Hesterly WS (2008) Strategic Management and Competitive Advantage The Five Forces Model of Environmental Threats pp39Prentice Hall
7 BBC (2011) BBC News product launches on connected TV Retrieved from bbccoukpressofficepressreleasesstories201106_june17newsshtml
8 Boston Consulting Group (2011) Lean Advantage in Media Boston Consulting Group
9 Boston Consulting Group (2011) Running Forward Walking Backward Boston Consulting Group
10 Business Times (2011) Media Prima net revenue grows to RM119b Kuala Lumpur New Straits Times
11 Business Times (2011) Media Prima on track to achie1048665ing 2011 target Retrieved from www1btimescomm1048668Current_NewsBTIMESarticlespimeArticle
References (1)
12 Business Times (2011) Media Prima Puncak Semangat in early talks Retrieved from httpwwwbtimescommyarticlespimmaArticle
13 Carl W Stern George Stalk Carl W Stern George Stalk Stern CW amp Stalk G (2011) Perspectives of Strategy from the Boston Consulting Group Retrieved December 3 2011 from Value Based Managementnet httpwwwvaluebasedmanagementnetmethods_bcgmatrixhtml
14 ecmlibra (2011) Adex momentum to taper off in 2012 ecmlibra
15 Gershon R A amp Ratnadeep S V (2004) Viacom Inc A Case Study in Transnational Media Management Journal of Media Business Studies 1 (1) 47-69
16 Grant RM ldquoThe resource-based theory of competitive advantage implications for strategy formulationrdquo California Management Review Vol 3 2011 httpwwwskynetie~karenArticlesGrant1_NBpdf viewed 15 November 2011
17 GreyReview (2011) TonTon Streaming Over 11 Million Video Hours A Month now with 16 millions registered users Retrieved from httpwwwgreyreviewcom20110731tonton-serving-over-1-1-million-video-hours-a-month-now-with-1-6-registered-users
18 Heavy Reading (2011) Telecom in TV Land A Roadmap to New Digital Media Ecosystem Retrieved from wwwheavyreadingcomdetailsaspsku_id=1773ampskuitem_itemid=1030
19 Hegedus N (2010) The Great Scare EBR 3 10-17
20 JohnsonGScholesK amp Whittington (2008) Exploring Corporate Strategy Competitive Forces ndash the Five Forces Framework pp 59-64 Prentice Hall
21 kinetic (2011) Moving World Asia Hong Kong
References (2)
22 Knowledgefaber (2009) Telcos Avatar - As Media Companies 20 Retrieved from httpknowledgefabercomindexphpoption=com_contentampview=articleampid=40telecom-and-media-convergenceampcatid=10telecomampItemid=42
23 Knowledgefaber (2011) Telcos Avatar - As Media Companies 20 Retrieved from httpknowledgefabercomindexphpoption=com_contentampview=articleampid=40
24 Malik O (2011) GIGAOM Retrieved from httpgigaomcom20110223old-media-is-being-unbundled-just-like-telecom-was
25 Maxis with TM Astro with TIME Best Strategy to IPTV Market Retrieved December 1 2011 httpbizthestarcommynewsstoryaspfile=201111business7704581ampsec=business
26 Media Prima (2010) Annual Report Media Prima Berhad27 Media Prima Berhad (2011) 11 Nov 2011 - New Exciting amp Vibrant Offerings From MPB Television Retrieved from
wwwmediaprimacommypressreleasepressreleaseaspxid=15028 Media Prima (2010) Sustainability Report Media Prima Berhad29 OSK (2011) Media Prima OSK30 Pocket-Lint (2011) Samsung Smart TV hits 2 million mark Retrieved from
httpwwwpocket-lintcomnews40593samsung-smart-tv-2-million31 PricewaterhouseCoopers (2011) Achieving corporate financial PwC32 PricewaterhouseCoopers (2007) Financial Reporting Standards (FRS) in Malaysia PricewaterhouseCoopers33 SKMM (MCMC) (2009) Advertising Development in Malaysia SKMM34 SKMM (MCMC) (2011) Content Development SKMM35 Techpinions (2011) Interactive TV Trends - How the TV experience is changing - Part II Retrieved from
httptechpinionscominteractive-tv-trends-E28093-how-the-tv-experience-is-changing-part-ii4066
References (3)
36 The Edge (2011) Media Prima best proxy to sector Retrieved from wwwtheedgemalaysiacom37 The Edge Malaysia (2011 September 26) Education the mother of all reforms Retrieved October 30 2011 from
httpwwwtheedgemalaysiacomin-the-financial-daily193478-education-the-mother-of-all-reformshtml38 The Star Online (2011) Main players in the competitive TV sector Retrieved from bizthestarcommynewsstoryasp
file=20111126business997401739 The Star Online (2011) Maxis ready to move up value Retrieved from
bizthestarcommynewsstoryaspfile=201111business7704581ampse40 The Star Online (2011) New players enter the TV Retrieved from
bizthestarcommynewsstoryaspfile=20111126business997300841 The Star Newspaper (December 1 2011) Capital TV to make its debut today42 The Star Online (January 1 2011) Maxis ready to move up value chain Retrieved December 3 2011
httpbizthestarcommynewsstoryaspfile=201111business7704581ampsec=business43 The Star Online (2011 April 21) Media Prima to invest more on local content Retrieved October 30 2011 from C
Usersa34ffzzDesktopMedia PrimaUsed articlesMedia Prima to invest more in local contentmht44 Time Warners (2010) Annual Report Time Warners45 WHAT HI FI (2011) Samsung aims for 50m TV sales worldwide in 2012 set to announce launch date for Google TV
product Retrieved from httpwwwwhathificomnewssamsung-aims-for-50m-tv-sales-worldwide-in-2012-set-to-announce-launch-date-for-google-tv-produ
46 Woroch G A (1996) Turning the Cables Elsevier47 Zanuddin H (2007) Political influence in Malaysia and Thailand media sector Jati Vol12
- MEdiA PRIMA
- Agenda
- Company Profile
- Media Primarsquos Commitment amp Direction moving forward
- Media Industry Business Model ndash Content Driven
- Our Tasks ndash How
- PEST Analysis
- Politics Legal Issues amp Impact
- Economic Issues and Impact
- Social Issues and Impact
- Social Issues and Impact
- Technology Issues and Impact
- In short
- Porterrsquos 5 Forces Analysis
- Porterrsquos Five Forces ndash Competitive Analysis
- Financials
- Media Prima Financial Highlights
- However in further analysis
- Value Chain Analysis
- Resource Based View
- In the context of the Content industry value chain Mapped again
- Appraising capabilities which drives profitability
- Mapping Media Prima revenue streams against the Diversification
- Slide 25
- Related Constrained Diversification
- Related Constrained Diversification (2)
- Slide 28
- Related Linked Diversification
- Slide 30
- Social Responsibility Analysis
- Social Responsibility
- Social Responsibility ndash cont
- Media Prima Acknowledges it various stakeholder via Stakeholder
- It has moved on to 2nd stage of CSR
- SWOT Analysis
- SWOT Analysis ndash Summary
- Media Primarsquos Current situation in summary
- Moving forward 2012 and beyond
- Recommended Destination and future growth of Media Prima
- How Moving from aggregator to content creator
- How Moving from aggregator to content creator (2)
- Creating a Content focus agency All these can be enable via
- Using financial view to free resources for content development
- By changing the business segment reporting it also affects the
- How Moving from aggregator to content creator (3)
- Technology ndash Enable Media Prima to leap into Interactive Conten
- It is not a Fad but a trend
- Slide 50
- Example of Smart TV
- This will ultimately lead Media Prima to reduce it dependence o
- NEW Revenue Streams for Media Prima
- How
- Building Talents in the long run
- Summary ndash Media Prima
- References
- References
- References (1)
- References (2)
- References (3)
-
References
References
1 Anon ldquoMedia Prima Berhad implements Accenture integrated broadcast systemrdquo Accenture Press Release httpnewsroomaccenturecomarticle_displaycfmarticle_id=5005 viewed 3 November 2011
2 Anon ldquoNew exciting and vibrant offerings from MPB television networks in 2010rdquo Media Prima Press Release httpwwwmediaprimacommypressreleasepressreleaseaspxid=150 viewed 3 November 2011
3 Anderson J ldquoResource-based competitiveness managerial implications of the resource-based viewrdquo Strategic Direction Vol26 No5 2010 pp1-2
4 Arman Arshad (2006) Size matters Retrieved December 2 2011 from asiaviewsorg httpwwwasiaviewsorgindexphpoption=com_contentampview=articleampid=2171headlinealias2171ampcatid=1headlinesampItemid=2
5 Asia Times (2007 November 29) Malaysian media giant grasps for Internet Retrieved November 3 2011 from httpwwwatimescomatimesSoutheast_AsiaIK29Ae02html
6 Barney JB amp Hesterly WS (2008) Strategic Management and Competitive Advantage The Five Forces Model of Environmental Threats pp39Prentice Hall
7 BBC (2011) BBC News product launches on connected TV Retrieved from bbccoukpressofficepressreleasesstories201106_june17newsshtml
8 Boston Consulting Group (2011) Lean Advantage in Media Boston Consulting Group
9 Boston Consulting Group (2011) Running Forward Walking Backward Boston Consulting Group
10 Business Times (2011) Media Prima net revenue grows to RM119b Kuala Lumpur New Straits Times
11 Business Times (2011) Media Prima on track to achie1048665ing 2011 target Retrieved from www1btimescomm1048668Current_NewsBTIMESarticlespimeArticle
References (1)
12 Business Times (2011) Media Prima Puncak Semangat in early talks Retrieved from httpwwwbtimescommyarticlespimmaArticle
13 Carl W Stern George Stalk Carl W Stern George Stalk Stern CW amp Stalk G (2011) Perspectives of Strategy from the Boston Consulting Group Retrieved December 3 2011 from Value Based Managementnet httpwwwvaluebasedmanagementnetmethods_bcgmatrixhtml
14 ecmlibra (2011) Adex momentum to taper off in 2012 ecmlibra
15 Gershon R A amp Ratnadeep S V (2004) Viacom Inc A Case Study in Transnational Media Management Journal of Media Business Studies 1 (1) 47-69
16 Grant RM ldquoThe resource-based theory of competitive advantage implications for strategy formulationrdquo California Management Review Vol 3 2011 httpwwwskynetie~karenArticlesGrant1_NBpdf viewed 15 November 2011
17 GreyReview (2011) TonTon Streaming Over 11 Million Video Hours A Month now with 16 millions registered users Retrieved from httpwwwgreyreviewcom20110731tonton-serving-over-1-1-million-video-hours-a-month-now-with-1-6-registered-users
18 Heavy Reading (2011) Telecom in TV Land A Roadmap to New Digital Media Ecosystem Retrieved from wwwheavyreadingcomdetailsaspsku_id=1773ampskuitem_itemid=1030
19 Hegedus N (2010) The Great Scare EBR 3 10-17
20 JohnsonGScholesK amp Whittington (2008) Exploring Corporate Strategy Competitive Forces ndash the Five Forces Framework pp 59-64 Prentice Hall
21 kinetic (2011) Moving World Asia Hong Kong
References (2)
22 Knowledgefaber (2009) Telcos Avatar - As Media Companies 20 Retrieved from httpknowledgefabercomindexphpoption=com_contentampview=articleampid=40telecom-and-media-convergenceampcatid=10telecomampItemid=42
23 Knowledgefaber (2011) Telcos Avatar - As Media Companies 20 Retrieved from httpknowledgefabercomindexphpoption=com_contentampview=articleampid=40
24 Malik O (2011) GIGAOM Retrieved from httpgigaomcom20110223old-media-is-being-unbundled-just-like-telecom-was
25 Maxis with TM Astro with TIME Best Strategy to IPTV Market Retrieved December 1 2011 httpbizthestarcommynewsstoryaspfile=201111business7704581ampsec=business
26 Media Prima (2010) Annual Report Media Prima Berhad27 Media Prima Berhad (2011) 11 Nov 2011 - New Exciting amp Vibrant Offerings From MPB Television Retrieved from
wwwmediaprimacommypressreleasepressreleaseaspxid=15028 Media Prima (2010) Sustainability Report Media Prima Berhad29 OSK (2011) Media Prima OSK30 Pocket-Lint (2011) Samsung Smart TV hits 2 million mark Retrieved from
httpwwwpocket-lintcomnews40593samsung-smart-tv-2-million31 PricewaterhouseCoopers (2011) Achieving corporate financial PwC32 PricewaterhouseCoopers (2007) Financial Reporting Standards (FRS) in Malaysia PricewaterhouseCoopers33 SKMM (MCMC) (2009) Advertising Development in Malaysia SKMM34 SKMM (MCMC) (2011) Content Development SKMM35 Techpinions (2011) Interactive TV Trends - How the TV experience is changing - Part II Retrieved from
httptechpinionscominteractive-tv-trends-E28093-how-the-tv-experience-is-changing-part-ii4066
References (3)
36 The Edge (2011) Media Prima best proxy to sector Retrieved from wwwtheedgemalaysiacom37 The Edge Malaysia (2011 September 26) Education the mother of all reforms Retrieved October 30 2011 from
httpwwwtheedgemalaysiacomin-the-financial-daily193478-education-the-mother-of-all-reformshtml38 The Star Online (2011) Main players in the competitive TV sector Retrieved from bizthestarcommynewsstoryasp
file=20111126business997401739 The Star Online (2011) Maxis ready to move up value Retrieved from
bizthestarcommynewsstoryaspfile=201111business7704581ampse40 The Star Online (2011) New players enter the TV Retrieved from
bizthestarcommynewsstoryaspfile=20111126business997300841 The Star Newspaper (December 1 2011) Capital TV to make its debut today42 The Star Online (January 1 2011) Maxis ready to move up value chain Retrieved December 3 2011
httpbizthestarcommynewsstoryaspfile=201111business7704581ampsec=business43 The Star Online (2011 April 21) Media Prima to invest more on local content Retrieved October 30 2011 from C
Usersa34ffzzDesktopMedia PrimaUsed articlesMedia Prima to invest more in local contentmht44 Time Warners (2010) Annual Report Time Warners45 WHAT HI FI (2011) Samsung aims for 50m TV sales worldwide in 2012 set to announce launch date for Google TV
product Retrieved from httpwwwwhathificomnewssamsung-aims-for-50m-tv-sales-worldwide-in-2012-set-to-announce-launch-date-for-google-tv-produ
46 Woroch G A (1996) Turning the Cables Elsevier47 Zanuddin H (2007) Political influence in Malaysia and Thailand media sector Jati Vol12
- MEdiA PRIMA
- Agenda
- Company Profile
- Media Primarsquos Commitment amp Direction moving forward
- Media Industry Business Model ndash Content Driven
- Our Tasks ndash How
- PEST Analysis
- Politics Legal Issues amp Impact
- Economic Issues and Impact
- Social Issues and Impact
- Social Issues and Impact
- Technology Issues and Impact
- In short
- Porterrsquos 5 Forces Analysis
- Porterrsquos Five Forces ndash Competitive Analysis
- Financials
- Media Prima Financial Highlights
- However in further analysis
- Value Chain Analysis
- Resource Based View
- In the context of the Content industry value chain Mapped again
- Appraising capabilities which drives profitability
- Mapping Media Prima revenue streams against the Diversification
- Slide 25
- Related Constrained Diversification
- Related Constrained Diversification (2)
- Slide 28
- Related Linked Diversification
- Slide 30
- Social Responsibility Analysis
- Social Responsibility
- Social Responsibility ndash cont
- Media Prima Acknowledges it various stakeholder via Stakeholder
- It has moved on to 2nd stage of CSR
- SWOT Analysis
- SWOT Analysis ndash Summary
- Media Primarsquos Current situation in summary
- Moving forward 2012 and beyond
- Recommended Destination and future growth of Media Prima
- How Moving from aggregator to content creator
- How Moving from aggregator to content creator (2)
- Creating a Content focus agency All these can be enable via
- Using financial view to free resources for content development
- By changing the business segment reporting it also affects the
- How Moving from aggregator to content creator (3)
- Technology ndash Enable Media Prima to leap into Interactive Conten
- It is not a Fad but a trend
- Slide 50
- Example of Smart TV
- This will ultimately lead Media Prima to reduce it dependence o
- NEW Revenue Streams for Media Prima
- How
- Building Talents in the long run
- Summary ndash Media Prima
- References
- References
- References (1)
- References (2)
- References (3)
-
References
1 Anon ldquoMedia Prima Berhad implements Accenture integrated broadcast systemrdquo Accenture Press Release httpnewsroomaccenturecomarticle_displaycfmarticle_id=5005 viewed 3 November 2011
2 Anon ldquoNew exciting and vibrant offerings from MPB television networks in 2010rdquo Media Prima Press Release httpwwwmediaprimacommypressreleasepressreleaseaspxid=150 viewed 3 November 2011
3 Anderson J ldquoResource-based competitiveness managerial implications of the resource-based viewrdquo Strategic Direction Vol26 No5 2010 pp1-2
4 Arman Arshad (2006) Size matters Retrieved December 2 2011 from asiaviewsorg httpwwwasiaviewsorgindexphpoption=com_contentampview=articleampid=2171headlinealias2171ampcatid=1headlinesampItemid=2
5 Asia Times (2007 November 29) Malaysian media giant grasps for Internet Retrieved November 3 2011 from httpwwwatimescomatimesSoutheast_AsiaIK29Ae02html
6 Barney JB amp Hesterly WS (2008) Strategic Management and Competitive Advantage The Five Forces Model of Environmental Threats pp39Prentice Hall
7 BBC (2011) BBC News product launches on connected TV Retrieved from bbccoukpressofficepressreleasesstories201106_june17newsshtml
8 Boston Consulting Group (2011) Lean Advantage in Media Boston Consulting Group
9 Boston Consulting Group (2011) Running Forward Walking Backward Boston Consulting Group
10 Business Times (2011) Media Prima net revenue grows to RM119b Kuala Lumpur New Straits Times
11 Business Times (2011) Media Prima on track to achie1048665ing 2011 target Retrieved from www1btimescomm1048668Current_NewsBTIMESarticlespimeArticle
References (1)
12 Business Times (2011) Media Prima Puncak Semangat in early talks Retrieved from httpwwwbtimescommyarticlespimmaArticle
13 Carl W Stern George Stalk Carl W Stern George Stalk Stern CW amp Stalk G (2011) Perspectives of Strategy from the Boston Consulting Group Retrieved December 3 2011 from Value Based Managementnet httpwwwvaluebasedmanagementnetmethods_bcgmatrixhtml
14 ecmlibra (2011) Adex momentum to taper off in 2012 ecmlibra
15 Gershon R A amp Ratnadeep S V (2004) Viacom Inc A Case Study in Transnational Media Management Journal of Media Business Studies 1 (1) 47-69
16 Grant RM ldquoThe resource-based theory of competitive advantage implications for strategy formulationrdquo California Management Review Vol 3 2011 httpwwwskynetie~karenArticlesGrant1_NBpdf viewed 15 November 2011
17 GreyReview (2011) TonTon Streaming Over 11 Million Video Hours A Month now with 16 millions registered users Retrieved from httpwwwgreyreviewcom20110731tonton-serving-over-1-1-million-video-hours-a-month-now-with-1-6-registered-users
18 Heavy Reading (2011) Telecom in TV Land A Roadmap to New Digital Media Ecosystem Retrieved from wwwheavyreadingcomdetailsaspsku_id=1773ampskuitem_itemid=1030
19 Hegedus N (2010) The Great Scare EBR 3 10-17
20 JohnsonGScholesK amp Whittington (2008) Exploring Corporate Strategy Competitive Forces ndash the Five Forces Framework pp 59-64 Prentice Hall
21 kinetic (2011) Moving World Asia Hong Kong
References (2)
22 Knowledgefaber (2009) Telcos Avatar - As Media Companies 20 Retrieved from httpknowledgefabercomindexphpoption=com_contentampview=articleampid=40telecom-and-media-convergenceampcatid=10telecomampItemid=42
23 Knowledgefaber (2011) Telcos Avatar - As Media Companies 20 Retrieved from httpknowledgefabercomindexphpoption=com_contentampview=articleampid=40
24 Malik O (2011) GIGAOM Retrieved from httpgigaomcom20110223old-media-is-being-unbundled-just-like-telecom-was
25 Maxis with TM Astro with TIME Best Strategy to IPTV Market Retrieved December 1 2011 httpbizthestarcommynewsstoryaspfile=201111business7704581ampsec=business
26 Media Prima (2010) Annual Report Media Prima Berhad27 Media Prima Berhad (2011) 11 Nov 2011 - New Exciting amp Vibrant Offerings From MPB Television Retrieved from
wwwmediaprimacommypressreleasepressreleaseaspxid=15028 Media Prima (2010) Sustainability Report Media Prima Berhad29 OSK (2011) Media Prima OSK30 Pocket-Lint (2011) Samsung Smart TV hits 2 million mark Retrieved from
httpwwwpocket-lintcomnews40593samsung-smart-tv-2-million31 PricewaterhouseCoopers (2011) Achieving corporate financial PwC32 PricewaterhouseCoopers (2007) Financial Reporting Standards (FRS) in Malaysia PricewaterhouseCoopers33 SKMM (MCMC) (2009) Advertising Development in Malaysia SKMM34 SKMM (MCMC) (2011) Content Development SKMM35 Techpinions (2011) Interactive TV Trends - How the TV experience is changing - Part II Retrieved from
httptechpinionscominteractive-tv-trends-E28093-how-the-tv-experience-is-changing-part-ii4066
References (3)
36 The Edge (2011) Media Prima best proxy to sector Retrieved from wwwtheedgemalaysiacom37 The Edge Malaysia (2011 September 26) Education the mother of all reforms Retrieved October 30 2011 from
httpwwwtheedgemalaysiacomin-the-financial-daily193478-education-the-mother-of-all-reformshtml38 The Star Online (2011) Main players in the competitive TV sector Retrieved from bizthestarcommynewsstoryasp
file=20111126business997401739 The Star Online (2011) Maxis ready to move up value Retrieved from
bizthestarcommynewsstoryaspfile=201111business7704581ampse40 The Star Online (2011) New players enter the TV Retrieved from
bizthestarcommynewsstoryaspfile=20111126business997300841 The Star Newspaper (December 1 2011) Capital TV to make its debut today42 The Star Online (January 1 2011) Maxis ready to move up value chain Retrieved December 3 2011
httpbizthestarcommynewsstoryaspfile=201111business7704581ampsec=business43 The Star Online (2011 April 21) Media Prima to invest more on local content Retrieved October 30 2011 from C
Usersa34ffzzDesktopMedia PrimaUsed articlesMedia Prima to invest more in local contentmht44 Time Warners (2010) Annual Report Time Warners45 WHAT HI FI (2011) Samsung aims for 50m TV sales worldwide in 2012 set to announce launch date for Google TV
product Retrieved from httpwwwwhathificomnewssamsung-aims-for-50m-tv-sales-worldwide-in-2012-set-to-announce-launch-date-for-google-tv-produ
46 Woroch G A (1996) Turning the Cables Elsevier47 Zanuddin H (2007) Political influence in Malaysia and Thailand media sector Jati Vol12
- MEdiA PRIMA
- Agenda
- Company Profile
- Media Primarsquos Commitment amp Direction moving forward
- Media Industry Business Model ndash Content Driven
- Our Tasks ndash How
- PEST Analysis
- Politics Legal Issues amp Impact
- Economic Issues and Impact
- Social Issues and Impact
- Social Issues and Impact
- Technology Issues and Impact
- In short
- Porterrsquos 5 Forces Analysis
- Porterrsquos Five Forces ndash Competitive Analysis
- Financials
- Media Prima Financial Highlights
- However in further analysis
- Value Chain Analysis
- Resource Based View
- In the context of the Content industry value chain Mapped again
- Appraising capabilities which drives profitability
- Mapping Media Prima revenue streams against the Diversification
- Slide 25
- Related Constrained Diversification
- Related Constrained Diversification (2)
- Slide 28
- Related Linked Diversification
- Slide 30
- Social Responsibility Analysis
- Social Responsibility
- Social Responsibility ndash cont
- Media Prima Acknowledges it various stakeholder via Stakeholder
- It has moved on to 2nd stage of CSR
- SWOT Analysis
- SWOT Analysis ndash Summary
- Media Primarsquos Current situation in summary
- Moving forward 2012 and beyond
- Recommended Destination and future growth of Media Prima
- How Moving from aggregator to content creator
- How Moving from aggregator to content creator (2)
- Creating a Content focus agency All these can be enable via
- Using financial view to free resources for content development
- By changing the business segment reporting it also affects the
- How Moving from aggregator to content creator (3)
- Technology ndash Enable Media Prima to leap into Interactive Conten
- It is not a Fad but a trend
- Slide 50
- Example of Smart TV
- This will ultimately lead Media Prima to reduce it dependence o
- NEW Revenue Streams for Media Prima
- How
- Building Talents in the long run
- Summary ndash Media Prima
- References
- References
- References (1)
- References (2)
- References (3)
-
References (1)
12 Business Times (2011) Media Prima Puncak Semangat in early talks Retrieved from httpwwwbtimescommyarticlespimmaArticle
13 Carl W Stern George Stalk Carl W Stern George Stalk Stern CW amp Stalk G (2011) Perspectives of Strategy from the Boston Consulting Group Retrieved December 3 2011 from Value Based Managementnet httpwwwvaluebasedmanagementnetmethods_bcgmatrixhtml
14 ecmlibra (2011) Adex momentum to taper off in 2012 ecmlibra
15 Gershon R A amp Ratnadeep S V (2004) Viacom Inc A Case Study in Transnational Media Management Journal of Media Business Studies 1 (1) 47-69
16 Grant RM ldquoThe resource-based theory of competitive advantage implications for strategy formulationrdquo California Management Review Vol 3 2011 httpwwwskynetie~karenArticlesGrant1_NBpdf viewed 15 November 2011
17 GreyReview (2011) TonTon Streaming Over 11 Million Video Hours A Month now with 16 millions registered users Retrieved from httpwwwgreyreviewcom20110731tonton-serving-over-1-1-million-video-hours-a-month-now-with-1-6-registered-users
18 Heavy Reading (2011) Telecom in TV Land A Roadmap to New Digital Media Ecosystem Retrieved from wwwheavyreadingcomdetailsaspsku_id=1773ampskuitem_itemid=1030
19 Hegedus N (2010) The Great Scare EBR 3 10-17
20 JohnsonGScholesK amp Whittington (2008) Exploring Corporate Strategy Competitive Forces ndash the Five Forces Framework pp 59-64 Prentice Hall
21 kinetic (2011) Moving World Asia Hong Kong
References (2)
22 Knowledgefaber (2009) Telcos Avatar - As Media Companies 20 Retrieved from httpknowledgefabercomindexphpoption=com_contentampview=articleampid=40telecom-and-media-convergenceampcatid=10telecomampItemid=42
23 Knowledgefaber (2011) Telcos Avatar - As Media Companies 20 Retrieved from httpknowledgefabercomindexphpoption=com_contentampview=articleampid=40
24 Malik O (2011) GIGAOM Retrieved from httpgigaomcom20110223old-media-is-being-unbundled-just-like-telecom-was
25 Maxis with TM Astro with TIME Best Strategy to IPTV Market Retrieved December 1 2011 httpbizthestarcommynewsstoryaspfile=201111business7704581ampsec=business
26 Media Prima (2010) Annual Report Media Prima Berhad27 Media Prima Berhad (2011) 11 Nov 2011 - New Exciting amp Vibrant Offerings From MPB Television Retrieved from
wwwmediaprimacommypressreleasepressreleaseaspxid=15028 Media Prima (2010) Sustainability Report Media Prima Berhad29 OSK (2011) Media Prima OSK30 Pocket-Lint (2011) Samsung Smart TV hits 2 million mark Retrieved from
httpwwwpocket-lintcomnews40593samsung-smart-tv-2-million31 PricewaterhouseCoopers (2011) Achieving corporate financial PwC32 PricewaterhouseCoopers (2007) Financial Reporting Standards (FRS) in Malaysia PricewaterhouseCoopers33 SKMM (MCMC) (2009) Advertising Development in Malaysia SKMM34 SKMM (MCMC) (2011) Content Development SKMM35 Techpinions (2011) Interactive TV Trends - How the TV experience is changing - Part II Retrieved from
httptechpinionscominteractive-tv-trends-E28093-how-the-tv-experience-is-changing-part-ii4066
References (3)
36 The Edge (2011) Media Prima best proxy to sector Retrieved from wwwtheedgemalaysiacom37 The Edge Malaysia (2011 September 26) Education the mother of all reforms Retrieved October 30 2011 from
httpwwwtheedgemalaysiacomin-the-financial-daily193478-education-the-mother-of-all-reformshtml38 The Star Online (2011) Main players in the competitive TV sector Retrieved from bizthestarcommynewsstoryasp
file=20111126business997401739 The Star Online (2011) Maxis ready to move up value Retrieved from
bizthestarcommynewsstoryaspfile=201111business7704581ampse40 The Star Online (2011) New players enter the TV Retrieved from
bizthestarcommynewsstoryaspfile=20111126business997300841 The Star Newspaper (December 1 2011) Capital TV to make its debut today42 The Star Online (January 1 2011) Maxis ready to move up value chain Retrieved December 3 2011
httpbizthestarcommynewsstoryaspfile=201111business7704581ampsec=business43 The Star Online (2011 April 21) Media Prima to invest more on local content Retrieved October 30 2011 from C
Usersa34ffzzDesktopMedia PrimaUsed articlesMedia Prima to invest more in local contentmht44 Time Warners (2010) Annual Report Time Warners45 WHAT HI FI (2011) Samsung aims for 50m TV sales worldwide in 2012 set to announce launch date for Google TV
product Retrieved from httpwwwwhathificomnewssamsung-aims-for-50m-tv-sales-worldwide-in-2012-set-to-announce-launch-date-for-google-tv-produ
46 Woroch G A (1996) Turning the Cables Elsevier47 Zanuddin H (2007) Political influence in Malaysia and Thailand media sector Jati Vol12
- MEdiA PRIMA
- Agenda
- Company Profile
- Media Primarsquos Commitment amp Direction moving forward
- Media Industry Business Model ndash Content Driven
- Our Tasks ndash How
- PEST Analysis
- Politics Legal Issues amp Impact
- Economic Issues and Impact
- Social Issues and Impact
- Social Issues and Impact
- Technology Issues and Impact
- In short
- Porterrsquos 5 Forces Analysis
- Porterrsquos Five Forces ndash Competitive Analysis
- Financials
- Media Prima Financial Highlights
- However in further analysis
- Value Chain Analysis
- Resource Based View
- In the context of the Content industry value chain Mapped again
- Appraising capabilities which drives profitability
- Mapping Media Prima revenue streams against the Diversification
- Slide 25
- Related Constrained Diversification
- Related Constrained Diversification (2)
- Slide 28
- Related Linked Diversification
- Slide 30
- Social Responsibility Analysis
- Social Responsibility
- Social Responsibility ndash cont
- Media Prima Acknowledges it various stakeholder via Stakeholder
- It has moved on to 2nd stage of CSR
- SWOT Analysis
- SWOT Analysis ndash Summary
- Media Primarsquos Current situation in summary
- Moving forward 2012 and beyond
- Recommended Destination and future growth of Media Prima
- How Moving from aggregator to content creator
- How Moving from aggregator to content creator (2)
- Creating a Content focus agency All these can be enable via
- Using financial view to free resources for content development
- By changing the business segment reporting it also affects the
- How Moving from aggregator to content creator (3)
- Technology ndash Enable Media Prima to leap into Interactive Conten
- It is not a Fad but a trend
- Slide 50
- Example of Smart TV
- This will ultimately lead Media Prima to reduce it dependence o
- NEW Revenue Streams for Media Prima
- How
- Building Talents in the long run
- Summary ndash Media Prima
- References
- References
- References (1)
- References (2)
- References (3)
-
References (2)
22 Knowledgefaber (2009) Telcos Avatar - As Media Companies 20 Retrieved from httpknowledgefabercomindexphpoption=com_contentampview=articleampid=40telecom-and-media-convergenceampcatid=10telecomampItemid=42
23 Knowledgefaber (2011) Telcos Avatar - As Media Companies 20 Retrieved from httpknowledgefabercomindexphpoption=com_contentampview=articleampid=40
24 Malik O (2011) GIGAOM Retrieved from httpgigaomcom20110223old-media-is-being-unbundled-just-like-telecom-was
25 Maxis with TM Astro with TIME Best Strategy to IPTV Market Retrieved December 1 2011 httpbizthestarcommynewsstoryaspfile=201111business7704581ampsec=business
26 Media Prima (2010) Annual Report Media Prima Berhad27 Media Prima Berhad (2011) 11 Nov 2011 - New Exciting amp Vibrant Offerings From MPB Television Retrieved from
wwwmediaprimacommypressreleasepressreleaseaspxid=15028 Media Prima (2010) Sustainability Report Media Prima Berhad29 OSK (2011) Media Prima OSK30 Pocket-Lint (2011) Samsung Smart TV hits 2 million mark Retrieved from
httpwwwpocket-lintcomnews40593samsung-smart-tv-2-million31 PricewaterhouseCoopers (2011) Achieving corporate financial PwC32 PricewaterhouseCoopers (2007) Financial Reporting Standards (FRS) in Malaysia PricewaterhouseCoopers33 SKMM (MCMC) (2009) Advertising Development in Malaysia SKMM34 SKMM (MCMC) (2011) Content Development SKMM35 Techpinions (2011) Interactive TV Trends - How the TV experience is changing - Part II Retrieved from
httptechpinionscominteractive-tv-trends-E28093-how-the-tv-experience-is-changing-part-ii4066
References (3)
36 The Edge (2011) Media Prima best proxy to sector Retrieved from wwwtheedgemalaysiacom37 The Edge Malaysia (2011 September 26) Education the mother of all reforms Retrieved October 30 2011 from
httpwwwtheedgemalaysiacomin-the-financial-daily193478-education-the-mother-of-all-reformshtml38 The Star Online (2011) Main players in the competitive TV sector Retrieved from bizthestarcommynewsstoryasp
file=20111126business997401739 The Star Online (2011) Maxis ready to move up value Retrieved from
bizthestarcommynewsstoryaspfile=201111business7704581ampse40 The Star Online (2011) New players enter the TV Retrieved from
bizthestarcommynewsstoryaspfile=20111126business997300841 The Star Newspaper (December 1 2011) Capital TV to make its debut today42 The Star Online (January 1 2011) Maxis ready to move up value chain Retrieved December 3 2011
httpbizthestarcommynewsstoryaspfile=201111business7704581ampsec=business43 The Star Online (2011 April 21) Media Prima to invest more on local content Retrieved October 30 2011 from C
Usersa34ffzzDesktopMedia PrimaUsed articlesMedia Prima to invest more in local contentmht44 Time Warners (2010) Annual Report Time Warners45 WHAT HI FI (2011) Samsung aims for 50m TV sales worldwide in 2012 set to announce launch date for Google TV
product Retrieved from httpwwwwhathificomnewssamsung-aims-for-50m-tv-sales-worldwide-in-2012-set-to-announce-launch-date-for-google-tv-produ
46 Woroch G A (1996) Turning the Cables Elsevier47 Zanuddin H (2007) Political influence in Malaysia and Thailand media sector Jati Vol12
- MEdiA PRIMA
- Agenda
- Company Profile
- Media Primarsquos Commitment amp Direction moving forward
- Media Industry Business Model ndash Content Driven
- Our Tasks ndash How
- PEST Analysis
- Politics Legal Issues amp Impact
- Economic Issues and Impact
- Social Issues and Impact
- Social Issues and Impact
- Technology Issues and Impact
- In short
- Porterrsquos 5 Forces Analysis
- Porterrsquos Five Forces ndash Competitive Analysis
- Financials
- Media Prima Financial Highlights
- However in further analysis
- Value Chain Analysis
- Resource Based View
- In the context of the Content industry value chain Mapped again
- Appraising capabilities which drives profitability
- Mapping Media Prima revenue streams against the Diversification
- Slide 25
- Related Constrained Diversification
- Related Constrained Diversification (2)
- Slide 28
- Related Linked Diversification
- Slide 30
- Social Responsibility Analysis
- Social Responsibility
- Social Responsibility ndash cont
- Media Prima Acknowledges it various stakeholder via Stakeholder
- It has moved on to 2nd stage of CSR
- SWOT Analysis
- SWOT Analysis ndash Summary
- Media Primarsquos Current situation in summary
- Moving forward 2012 and beyond
- Recommended Destination and future growth of Media Prima
- How Moving from aggregator to content creator
- How Moving from aggregator to content creator (2)
- Creating a Content focus agency All these can be enable via
- Using financial view to free resources for content development
- By changing the business segment reporting it also affects the
- How Moving from aggregator to content creator (3)
- Technology ndash Enable Media Prima to leap into Interactive Conten
- It is not a Fad but a trend
- Slide 50
- Example of Smart TV
- This will ultimately lead Media Prima to reduce it dependence o
- NEW Revenue Streams for Media Prima
- How
- Building Talents in the long run
- Summary ndash Media Prima
- References
- References
- References (1)
- References (2)
- References (3)
-
References (3)
36 The Edge (2011) Media Prima best proxy to sector Retrieved from wwwtheedgemalaysiacom37 The Edge Malaysia (2011 September 26) Education the mother of all reforms Retrieved October 30 2011 from
httpwwwtheedgemalaysiacomin-the-financial-daily193478-education-the-mother-of-all-reformshtml38 The Star Online (2011) Main players in the competitive TV sector Retrieved from bizthestarcommynewsstoryasp
file=20111126business997401739 The Star Online (2011) Maxis ready to move up value Retrieved from
bizthestarcommynewsstoryaspfile=201111business7704581ampse40 The Star Online (2011) New players enter the TV Retrieved from
bizthestarcommynewsstoryaspfile=20111126business997300841 The Star Newspaper (December 1 2011) Capital TV to make its debut today42 The Star Online (January 1 2011) Maxis ready to move up value chain Retrieved December 3 2011
httpbizthestarcommynewsstoryaspfile=201111business7704581ampsec=business43 The Star Online (2011 April 21) Media Prima to invest more on local content Retrieved October 30 2011 from C
Usersa34ffzzDesktopMedia PrimaUsed articlesMedia Prima to invest more in local contentmht44 Time Warners (2010) Annual Report Time Warners45 WHAT HI FI (2011) Samsung aims for 50m TV sales worldwide in 2012 set to announce launch date for Google TV
product Retrieved from httpwwwwhathificomnewssamsung-aims-for-50m-tv-sales-worldwide-in-2012-set-to-announce-launch-date-for-google-tv-produ
46 Woroch G A (1996) Turning the Cables Elsevier47 Zanuddin H (2007) Political influence in Malaysia and Thailand media sector Jati Vol12
- MEdiA PRIMA
- Agenda
- Company Profile
- Media Primarsquos Commitment amp Direction moving forward
- Media Industry Business Model ndash Content Driven
- Our Tasks ndash How
- PEST Analysis
- Politics Legal Issues amp Impact
- Economic Issues and Impact
- Social Issues and Impact
- Social Issues and Impact
- Technology Issues and Impact
- In short
- Porterrsquos 5 Forces Analysis
- Porterrsquos Five Forces ndash Competitive Analysis
- Financials
- Media Prima Financial Highlights
- However in further analysis
- Value Chain Analysis
- Resource Based View
- In the context of the Content industry value chain Mapped again
- Appraising capabilities which drives profitability
- Mapping Media Prima revenue streams against the Diversification
- Slide 25
- Related Constrained Diversification
- Related Constrained Diversification (2)
- Slide 28
- Related Linked Diversification
- Slide 30
- Social Responsibility Analysis
- Social Responsibility
- Social Responsibility ndash cont
- Media Prima Acknowledges it various stakeholder via Stakeholder
- It has moved on to 2nd stage of CSR
- SWOT Analysis
- SWOT Analysis ndash Summary
- Media Primarsquos Current situation in summary
- Moving forward 2012 and beyond
- Recommended Destination and future growth of Media Prima
- How Moving from aggregator to content creator
- How Moving from aggregator to content creator (2)
- Creating a Content focus agency All these can be enable via
- Using financial view to free resources for content development
- By changing the business segment reporting it also affects the
- How Moving from aggregator to content creator (3)
- Technology ndash Enable Media Prima to leap into Interactive Conten
- It is not a Fad but a trend
- Slide 50
- Example of Smart TV
- This will ultimately lead Media Prima to reduce it dependence o
- NEW Revenue Streams for Media Prima
- How
- Building Talents in the long run
- Summary ndash Media Prima
- References
- References
- References (1)
- References (2)
- References (3)
-