The sale of its stake in Primedia in the PhilippinesEarlier this month the company announced the sale of its stake in Primedia in the Philippines , a joint venture with national free-to-air channel ABC5, for US$16 million. In March 2008, MPB invested in Primedia from a fund it had established to snap up media assets with long-term value around the region. But after a tough 12 months, it has decided to scrap that strategy.
MPB’s group MD, Dato Amrin Awaluddin, insists that the venture was worthwhile, noting that the TV5 investment had proved “an important experience” and provided “invaluable lessons in applying our operational philosophy across a different regional and highly competitive market”.
However, most local media industry executives agree that the failed overseas venture is not necessarily a bad thing, as the media giant will now shift its focus back to Malaysia.
“Whatever the reasons for pulling out abroad, MPB will now refocus on its home base and look to elevate its products here,” says Andreas Vogiatzakis, MD of Omnicom Group Malaysia. “And that’s a good thing for the Malaysian media industry, as healthy expansion and competition would invariably boost the market for us and advertisers.”
The first sign of this new strategy is the proposed acquisition of the country’s oldest and largest newspaper publisher, The New Straits Times Press (NSTP) , through a share swap exercise.
However, there is still a lot more work to be done. One promising area that MPB has yet to capitalise on fully is the digital space. While Vogiatzakis believes that MPB has done some good work with its Alt Media subsidiary in developing websites and online campaigns, more needs to be done to tie them in with its other media properties. “It has all the media, but in the near future, digital will be decisive - it’s the heart to bring it all together.”
Rahul Thappa, MD of Mindshare Malaysia, expresses the same concerns. “MPB will seek growth from consolidating and cross-selling its other properties - especially digital content and distribution, which are not making much revenue at present,” he says.
“It will find tremendous gains if it manages to establish a way of combining the forces of its TV, print, digital, radio and OOH businesses, which at present are sold as separate parts at a time when advertisers and agencies are looking for an integrated approach to targeting consumers.”
However, MPB’s failure in the Philippines will probably not mean an end to its regional ambitions. Thappa contends that growth potential within Malaysia can only last so long.
One strategy for MPB to jumpstart its regional aspirations in future would involve creating strong local content that has legs to travel, says S Ranganathan, CEO of Starcom Malaysia . “Looking at new revenue funnels is a very smart thing. Focusing on local content will enable MPB to win the battle on both fronts - home and away.”
Got a view?
Email [email protected]
This article was originally published in 5 November 2009 issue of Media.
MPB’s group MD, Dato Amrin Awaluddin, insists that the venture was worthwhile, noting that the TV5 investment had proved “an important experience” and provided “invaluable lessons in applying our operational philosophy across a different regional and highly competitive market”.
However, most local media industry executives agree that the failed overseas venture is not necessarily a bad thing, as the media giant will now shift its focus back to Malaysia.
“Whatever the reasons for pulling out abroad, MPB will now refocus on its home base and look to elevate its products here,” says Andreas Vogiatzakis, MD of Omnicom Group Malaysia. “And that’s a good thing for the Malaysian media industry, as healthy expansion and competition would invariably boost the market for us and advertisers.”
The first sign of this new strategy is the proposed acquisition of the country’s oldest and largest newspaper publisher, The New Straits Times Press (NSTP) , through a share swap exercise.
However, there is still a lot more work to be done. One promising area that MPB has yet to capitalise on fully is the digital space. While Vogiatzakis believes that MPB has done some good work with its Alt Media subsidiary in developing websites and online campaigns, more needs to be done to tie them in with its other media properties. “It has all the media, but in the near future, digital will be decisive - it’s the heart to bring it all together.”
Rahul Thappa, MD of Mindshare Malaysia, expresses the same concerns. “MPB will seek growth from consolidating and cross-selling its other properties - especially digital content and distribution, which are not making much revenue at present,” he says.
“It will find tremendous gains if it manages to establish a way of combining the forces of its TV, print, digital, radio and OOH businesses, which at present are sold as separate parts at a time when advertisers and agencies are looking for an integrated approach to targeting consumers.”
However, MPB’s failure in the Philippines will probably not mean an end to its regional ambitions. Thappa contends that growth potential within Malaysia can only last so long.
One strategy for MPB to jumpstart its regional aspirations in future would involve creating strong local content that has legs to travel, says S Ranganathan, CEO of Starcom Malaysia . “Looking at new revenue funnels is a very smart thing. Focusing on local content will enable MPB to win the battle on both fronts - home and away.”
Got a view?
Email [email protected]
This article was originally published in 5 November 2009 issue of Media.
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