Sunday, 6 January 2019

Alongside CJ Wow Shop, can Media Prima re-enter pay TV market to cover loss revenue?



Since 2014, Media Prima suffered loss profit. Now, its loss revenue is narrowed due to implementation of digital marketing, rather than traditional.

Thanks to digital revenue and home shopping programmes (CJ Wow Shop) to narrow the loss revenue figure.

From 31st December 2018, Media Prima ended ten months of unsuccessful programming segregation on ntv7, and extended CJ Wow Shop Mandarin segment on ntv7. In my opinion, it is common if normal audience will blame Media Prima for extending CJ Wow Shop broadcast hours on ntv7 and TV9 where gain lower rating because they have been used to watch those channels, but in the stance of broadcaster, I understand this implementation is applied because Media Prima still suffers loss revenue, although it is minimized, so they need to rely on new revenue way to cover the loss by launching CJ Wow Shop and digital revenue. CJ Wow Shop is also digital marketing initiative by Media Prima because people can shop their products via online or CJ Wow Shop mobile app when they watch TV. In addition, Media Prima does so because many people are shifting to non-linear platform to watch their favorite content where linear platform can't make, the group begins to focus on digital marketing. Besides that, for 2019, Media Prima just wants to concentrate only TV3 and 8TV as traditional free-to-air TV, meanwhile NTV7 and TV9 goes as home shopping television channels. Media Prima also launches its mobile games application to profit more on digital.

Beside the digital revenue, the biggest enemy of Media Prima actually is Astro, a satellite pay TV in Malaysia. Astro has been monopolized pay television market in Malaysia for many years, but recently UniFi TV is competing against Astro, but UniFi TV is only available in areas where covered by UniFi. In my opinion, I doubt that whether it is relevant or not if Media Prima expands its operation by entering pay TV market.

Media Prima was used to have pay TV station, known as Mega TV, first Malaysia's cable TV provider before Astro, launched in 1995, but closed in 2001 due to stiff competition with Astro, as well as unable to expand its content. Mega TV was pay TV under TV3 (Sistem Televisyen Malaysia Berhad, STMB), it broadcasted via DVB-C which was invented in 1994.



To compete with Astro, it sounds good if Media Prima re-enters pay TV market by relaunching Mega TV as pay TV provider, but what kind of transmission technology can be adapted for Media Prima's pay TV?


DVB-T2 is digital terrestrial television. In Malaysia, it is managed by MYTV Broadcasting, commercially known as "myFreeview", currently DVB-T2 are running free-to-air television stations and RTM national radio stations. For the frequency of DVB-T2, most of the areas are using UHF 546MHz (CH30), 594MHz (CH36), 666MHz (CH45), 674MHz (CH46),  and 682MHz (CH47), some of regions run single-frequency network (SFN). MUX 1 is belonged to MYTV Broadcasting, actually Media Prima can launch its pay TV channels by expanding DVB-T2 multiplex (example: MUX3) with another frequency (example: UHF 570MHz aka CH33 for pay channels). Once if when Media Prima is willing to launch pay TV via DVB-T2, few spectrum shall be reserved for Media Prima pay TV, but problem is Media Prima needs to install more transmitters nationwide, so this will make subscription fees for "all new Mega TV" very expensive due to high transmission costs.

If Media Prima chooses to adapt DVB-C2, which is digital cable television, same as DVB-T2, just difference is DVB-C2 transmits via cable, meanwhile DVB-T2 is via air. ABNxcess is an failure example, a DVB-C pay TV in Malaysia, suffered huge loss due to unable to expand coverage and less attractive channels, also poor management of the company. DVB-C2 transmits via cable with QAM modulator on UHF frequency, but to launch "all new Mega TV" as cable television, Media Prima still needs to expand coverage by putting more DVB-C2 transmitters, so this will not be effective much, unless Media Prima choose to target Chinese and niche pay TV markets.

Satellite in Malaysia known as MEASAT. Astro, Malaysia biggest pay TV, broadcasts via satellite by adapting DVB-S (for Standard Definition channels), and DVB-S2 (for High Definition Channels) technology. In the short future, Astro will launch 4K UHD (Ultra High Definition) TV channels by adapting DVB-S2X (extended version of DVB-S2 technology). MEASAT is owned by Ananda Krishnan, which is Malaysia's tycoon also owns Usaha Tegas, Astro and Maxis, but I don't think Media Prima will launch pay TV via DVB-S2 independently as high transmission costs, although DVB-S2 can cover nationwide instantly. Actually Media Prima already offers its 4 free-to-air TV to be available on Astro, but impossible it can provide its premium channels via Astro, despite they're competing each other.

The technology of DVB-S is monopolized by Astro in Malaysia, the disadvantage of DVB-S is sensitive to the rain fade because it runs on Ku band frequency. Many people who subscribe Astro are not happy when comes to rain fade. Because of this issue, I suggested Astro to use C band, rather than Ku band due to rain fade, but I noticed that with this switchover to C band will burden subscribers because C band transmission equipment is very expensive. 

If Media Prima launches pay TV via satellite, subscriber will face also the rain disruption because using Ku band. If Media Prima uses C band, the subscription fees can be higher than Astro.

Satellite vs. Cable. I think Media Prima is suitable to re-enter pay TV market through cable television tranmission, DVB-C2 as pay TV provider if the group is willing to do so. Beside TV3, NTV7, 8TV and TV9, Media Prima can launch premium channels where imported from overseas as pay channels, this may help to increase revenue. If Media Prima relaunches Mega TV as pay cable televis

For the moment, Media Prima is focusing on digital marketing and home shopping. So, the suggestion to re-enter pay TV market is not materialized for the time being.

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