Tuesday 28 November 2017

TV Alhijrah becomes loss making TV station. Will Media Prima acquire TV Alhijrah?



According to Auditor General's report 2016 series 2, TV Alhijrah lost money 3 years continuously.
Its pre-tax losses were RM19.65 million in 2014, RM17.03 million (2015) and RM10.88 million (2016), meanwhile the losses of TVAH were RM21.34 million in 2014, RM16.55 million (2015), and RM11.73 million (2016) after the tax.

The AG report stated that advertising performance is also unsatisfactory because the number of sponsored programmes is still low"

TV Alhijrah is a Malaysia Islamic free-to-air television which operated by JAKIM (Islamic development affairs department), it was launched in 2010 and broadcasted via analog TV (selected areas), Astro, internet and myFreeview digital terrestrial television (in HD form).

The objective of the company to become a broadcaster that educates, entertains and unites the ummah lacked effectiveness due to the low ratings. Revenue from airtime is also far from achieving the company's target.

In my opinion, as Islamic media, TV Alhijrah is very far away from IKIM FM (Islamic radio station in Malaysia). Firstly, programming content is one of the issue. Secondly, TV Alhijrah analog channel coverage is not widely transmitted. Other than Mersing and east Johor, TV Alhijrah has no coverage in rest of Johor areas, same goes to Penang and Negeri Sembilan. Thirdly, most of Malaysians are watching commercial television such as Astro and Media Prima channels, so the viewership is affecting TV Alhijrah because it is owned by JAKIM.

Next, if TV Alhijrah continues loss making by subsequent years like Capital FM from The Star, I may think Media Prima acquired TV Alhijrah.



In the past, most of standalone TV channels such as Metrovision, NTV7, Channel 9 were acquired by Media Prima (TV3 company). Media Prima is a fully integrated media company which born from the asset of TV3 and New Straits Times to form since 2003. The acquisition of Media Prima on Metrovision, NTV7 and Channel 9 leds the company becomes monopoly of free-to-air TV markets. About FTA TV market in Malaysia, there are RTM, Media Prima, TV-Alhijrah (JAKIM) and Bernama, the FTA TV market is dominated by Media Prima. When comes to viewership ratings of FTA TV, Media Prima TV3 is the highest, following by TV9, NTV7 and 8TV, beating away RTM TV channels.

Here are the history of Media Prima acquisitions:

- Metrovision: Acquired in 2000. Rebranded to 8TV since 2004 to target Chinese and English viewers.
- NTV7: Acquired in 2005, but remained its programming format.
- Channel 9: Acquired in 2005. Rebranded to TV9 since 2006 to target younger Malay viewers
- Wa FM (Synchrosound Studios Sdn Bhd): Acquired in 2005. Rebranded as Hot FM since 2006 as Malay hot contemporary radio station to target Gen Y and Gen Z Malays.
- Radio Wanita WFM 88.1: Acquired in 2008. Rebranded as One FM since 2009 as Chinese hot contemporary radio station
- Ultra FM and PiMai FM: Acquired in 2015. Rebranded as Kool FM since March 2016 as Malay classic retro radio station to target Malay Gen X.

Last acquisition by Media Prima was on October 2015 to take over Copyright Laureate Sdn Bhd (Ultra and Pi Mai). Since TV Alhijrah lost money in 2014, 2015 and 2016, will Media Prima acquire TVAH at the next?

Media Prima currently owns six TV channels until today, such as:
- TV3 (HD and SD)
- NTV7
- 8TV
- TV9

and newly:
- Drama Sangat (currently in trial transmission via digital terrestrial television/DTT to air drama 24/7, formerly Drama Sangat was just a segment on TV3 and TV9)
- CJ Wow Shop (trial transmission via DTT, a shopping TV 24/7 in the future. Currently CJ Wow Shop also aired on NTV7, 8TV and TV9 during early morning slots)

Imagine if Media Prima acquires TV Alhijrah to settle the loss making of the station, there are three possibilities can be happened. Death or alive of TVAH?

1. Media Prima can fully rebrand TV Alhijrah as other format TV station. This means former TVAH will not become Islamic TV station anymore, just like Metrovision to 8TV.

2. Media Prima may remain TVAH brand, but different management. Advertising will be totally different.

3. Media Prima can rename TVAH without changing its format. Currently there is Islamic related segment on TV3 and TV9 called as "Raudhah". In my opinion, if Media Prima acquires TV Alhijrah, MPB can rename it as "Raudhah TV", 24 hours Islamic TV station by Media Prima. So, those TV3 and TV9 Islamic related programmes can be transferred to this newly acquired TV.




Jokingly say after MPB acquires TVAH and rebrands it as Raudhah, they can add CJ Wow Shop shopping segment on that station, called as "CJ Wow Shop Islamic" to sell Islamic products to target Muslims community who may prefer to buy Islamic products via shopping television. Jubah, hijab, niqab, burqa, variety design kopiah (Muslim men praying cap) with TV3/TV9/Hot FM/Kool FM logo etc can be sold on CJ Wow Shop Islamic at Raudhah TV. Hehehhehehhe! XD "Pakai tanpa was-was! Hahahahhahhaha! XD"

Anyway see what is the next action course.

At the same time, someone is asking me that what if TV Alhijrah is absorbed by RTM. For this, I never think RTM will absorb TVAH because the acquisition is very expensive. Plus, TVAH is semi commercial free-to-air TV station, which is operated by JAKIM. From my view, as I know, the acquisition on loss making TV or radio costs at least RM 20 millions, maximum up to RM 100 millions, depends on the seller auction price.

In Malaysia, most of giant media company like Astro and Media Prima will acquire those loss making media especially TV and radio because the giant media company can launch new brands without applying new license. Due to limited spectrum in Malaysia, it is very difficult to apply new broadcast license (including CASP license).

MPB can transfer those existing Islamic programmes on TV3 and TV9 such as Tanyalah Ustaz, DAI (Dakwah Nusantara), Jejak Rasul etc to post acquired TVAH station if MPB remains TVAH format.

Media Prima- "King of Free To Air TV" in Malaysia.

 

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