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How Does CVM TV Fit Into Oliver Mcintosh’s Grand Plan? Part 2

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Let’s look at what CVM TV has to offer.

CVM TV is A Bride In Waiting

CVM TV has for many years now lost its way and strategic direction, and has fallen dramatically in its audience share and resulting advertising revenue.

Those in the know claim that majority owner Michael Lee-Chin has been looking for a strategic way to offload the company that will somehow still give him a stake in the business and a seat at the table. Lee Chin we know has investments in other media entities, so he obviously likes the space.

A close look at the shareholders of the RJR Gleaner Group will reveal that Lee-Chin and a select number within his tight inner circle control a sizable portion of the shareholding. This would suggest that he sees value in owning a piece of the media action. It’s interesting and somewhat strategic to note that with his holdings and that of his tight inner circle, he can effectively vote and control the company.

We also understand that Lee Chin has significant interest in FLOW and Ready TV, which as one industry insider suggested would colour his decisions going forward.

A Receptive and Willing Father

So, offloading or marrying CVM TV to the Oliver Mcintosh-led Verticast Media Group and retaining a smaller stake will be perfect for him, relieving him of the need to keep funding and keeping it alive.

It’s Free To Air

Yes, even though most if not all Jamaicans receive the CVM TV transmission via their cable providers, CVM TV is a free-to-air station. A key feature of CVM TV’s operating licence is that it must be broadcast via a network of transmitters around the island and received into the household through old fashioned antennas. This is the nature of the operating license CVM TV owns. Establishing and maintaining these networks of transmitters around the island is a very expensive undertaking and digs deep into the company’s revenue.

Must Carry On Cable

For Verticast Media to get its content out a cost-effective means of distribution will be critical for the venture’s success. Why is this important? As indicated above free-to-air transmitters are very expensive to operate, so distribution access through cable is the only other viable option.

Both of the two giant cable operators, Digicel and FLOW, have competing sports-focused channels and business operations, which will present them and Verticast Media Group with a serious competitive challenge. There is no compelling reason for Digicel and FLOW to carry Verticast Media Group as a competing cable channel.

However, Digicel and FLOW as part of their operating license must carry local free to air channels, so if VertiCast Media Group acquires CVM TV, Digicel and FLOW must carry Verticast Media Group content and channels, even if they are competing channels.

Digicel And FLOW Should Pay To Carry His Content

There is a strong and overwhelming argument to be made by VertiCast Media Group/CVM TV for Digicel And FLOW to pay to carry their content on their cable networks. The argument is grounded on the fact that both Digicel And FLOW pay heavy sums annually to carry the content of all international cable channels such as CNN, HBO, ABC, NBC etc.

This could be another very lucrative source of income for VertiCast Media Group/CVM TV.

Why Not Just Acquire SportsMax?

This option was quickly shot down by most of the people canvassed.

As the former President & CEO of SportsMax Limited and parent company International Media Content Ltd, Oliver McIntosh knows first-hand what strategic value he could extract. The fact that he has already determined that a traditional media company is the way to go from a distribution strategy acquisition for this purpose is out.

However, there is one think he may want to secure. The primary operating and revenue generating assets, the content rights and ownership are held exclusively by International Media Content Ltd, which is controlled separately by Digicel. However, were Digicel to even consider selling this particular company, it would essentially be messaging that they are shutting down SportsMax, which we do not see on the cards right now.

Regional Cable Distribution

While Digicel and FLOW will have to carry a proposed merged Verticast Media Group/CVM TV free to air content in Jamaica, that is not the case in all the islands they now operate in.

To get around this Oliver may strike broadcast and content deals with other regional free to air stations such as CNC3 in Trinidad, CBC in Barbados, and Winners TV in St Lucia, where Digicel and FLOW operate. The same must carry for local free to air operates in these other islands and so they will have to carry Verticast Media Group/CVM TV free to air content. This will in effect give him the regional distribution he needs to make the business model work.

Oliver had apparently, we assume, tested this model before he departed SportsMax. SportsMax produced the recently held CARIFTA Games and broadcasted on linear TV via its many cable partners across the region and on CEEN TV outside the Caribbean and on its SportsMax and SportsMax+ channels within the SportsMax App. This was executed in addition to partnering with several free-to-air entities across the region, ensuring that fans got to see their favourite athletes engage in pulsating track and field action.

Content Management Contracts

These strategic free to air partnerships may eventual morph into content management contracts with Verticast Media Group and the local stations. These management contract options were outlined by Oliver in a recent interview with Khaliah Reynolds. One of the ways this can be executed would be for Verticast Media Group/CVM TV to feed content to them from Jamaica.

Operational Head Quarters

CVM TV’s operational headquarters and primary broadcast house on Constant Spring Road Kingston, Jamaica, is a ready-made to move in head office for VertiCast Media Group Limited. Most of what Oliver will need to get off the ground will already be in place. We suspect that significant investments will have to be made to transform the broadcast system to high quality/definition digital standards.

An Operational Team

CVM TV will already have much of the support team Oliver will need to get the business up and running in a much shorter time frame. He will also have the option to pick and choose who he wants to keep, letting go of those who do not fit into the new business.

Phased Rollout Of Digital Switchover

Jamaica has embarked on a phased rollout of digital broadcasting technology, with initial focus on the main urban centres, beginning in January 2022.

It is not clear where CVM TV is with respect to its switch over plans. What we do know from the TVJ TV experience is that it’s a very expensive undertaking.

TVJ based on recently published reports has made good progress in their plans to install key infrastructure for the impending Digital Switchover, DSO, process for television. They plan to roll out digital broadcast services in phases, leading up to the government’s stated goal of completion in 2023.

DSO is the process converting and replacing older analog television broadcasting technology with digital television services. The switchover is expected to cost the industry between US$18 million and US$20 million, while households will be able to get a setup box with the digital signal for about $4,000 to $5,000.

Where CVM TV is in this switch over process will have a strong bearing on any acquisition price. If the process has not started, or has started but is still a long way to go, then the price would be discounted bearing in mind the investment to be made and the redundant analog equipment which is of no value going forward.

If, however this process is far advanced and nearing completion them the acquisition price will be much higher given the investment already made and the new digital equipment in place.

With the Digital Switchover (DSO) transition broadcasters are allowed at least one year of simultaneous digital and analogue broadcasts to give them time to change their equipment and test the new systems.

The transition is expected to free up valuable portions of the broadcast spectrum, which can then be used for other purposes such as advanced wireless services, dedicated educational channels, public and safety services and other applications.

Analogue switch-off is set for January 2023.

How Much Is CVM TV Worth?..Part 3

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Business Insights

Consolidating Marketing Efforts into a Social-First Framework: A Data-Driven Approach

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In the rapidly evolving digital landscape, consolidating marketing efforts into a social-first framework has become essential for brands seeking to maximize the effectiveness of their marketing channels, content strategies, and influencer collaborations. This comprehensive approach leverages the power of social media to create a cohesive and data-driven marketing strategy that enhances engagement, reach, and ROI.

Understanding the Social-First Framework
A social-first framework prioritizes social media as the primary channel for marketing activities. This approach ensures that all marketing efforts are integrated and optimized for social media platforms, where consumers increasingly spend their time. By consolidating efforts into a social-first strategy, brands can streamline their marketing processes and make more informed decisions based on real-time data and consumer insights.

Benefits of a Social-First Framework

Unified Marketing Channels:
Consolidating marketing efforts into a social-first framework allows brands to create a unified strategy across multiple channels. This ensures consistency in messaging and branding, leading to a stronger and more cohesive brand presence.

Example: Coca-Cola effectively uses a social-first approach by maintaining consistent branding and messaging across all social media platforms, which reinforces their brand identity and enhances consumer recognition​​.

Enhanced Content Strategies:
A social-first framework enables brands to develop content strategies that are tailored to the preferences and behaviors of their social media audiences. By analyzing social media data, brands can create content that resonates more deeply with their target audience.

Example: Starbucks uses social media analytics to understand what types of content their audience engages with the most. This data-driven approach allows them to create highly relevant and engaging content, from seasonal promotions to user-generated content campaigns​.

Optimized Influencer Collaborations:
Integrating influencer marketing into a social-first framework ensures that influencer collaborations are aligned with overall marketing goals and strategies. Social media data can help identify the most effective influencers and measure the impact of their campaigns.

Example: Daniel Wellington’s influencer marketing strategy is deeply integrated into their social-first framework. By leveraging data to identify influencers who resonate with their target audience, they have successfully driven brand awareness and sales​​.

Implementing a Social-First Framework

Centralized Data Collection and Analysis:
To implement a social-first framework, brands need to centralize their data collection and analysis. This involves using tools that aggregate data from various social media platforms, providing a comprehensive view of consumer behavior and campaign performance.

Example: Sprout Social offers robust analytics tools that help brands gather and analyze social media data, enabling them to make informed decisions and optimize their marketing strategies​​.

Content Creation and Distribution:
Content should be created with a social-first mindset, ensuring that it is optimized for the platforms where it will be shared. This includes creating visually appealing graphics, engaging videos, and interactive posts that are tailored to each platform’s unique features.

Example: GoPro’s social-first content strategy involves creating stunning visual content that showcases their products’ capabilities. By focusing on user-generated content and sharing it on platforms like Instagram and YouTube, GoPro effectively engages their audience and promotes their brand​ (Latest Insights)​.

Leveraging Real-Time Engagement:
Social media allows for real-time interaction with consumers, providing an opportunity to build stronger relationships and address customer needs promptly. Brands should use this capability to engage with their audience, respond to feedback, and foster a sense of community.

Example: Nike’s real-time engagement strategy involves actively responding to customer inquiries and comments on social media. This proactive approach not only improves customer satisfaction but also enhances the brand’s reputation as responsive and customer-focused​.

Conclusion
Consolidating marketing efforts into a social-first framework provides a comprehensive and data-driven approach that maximizes the potential of marketing channels, content strategies, and influencer collaborations. By prioritizing social media, brands can create more cohesive and effective marketing campaigns, engage with their audience in meaningful ways, and drive better business outcomes. Adopting a social-first strategy is essential for brands looking to thrive in the digital age and stay ahead of the competition.

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Elevating Traditional Marketing Efforts Through an Always-On, Social-First Lens

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In today’s digital age, traditional marketing efforts such as experiential marketing and customer service can be significantly enhanced through an always-on, social-first strategy. This approach not only increases engagement and reach but also creates a seamless brand experience for consumers. Here’s how brands can scale and elevate these efforts:

1. Transforming Experiential Marketing

Digital Amplification of Live Events:
Experiential marketing, which focuses on creating immersive brand experiences, can reach a broader audience by leveraging social media. Live streaming events, behind-the-scenes content, and interactive social media campaigns can extend the impact of physical events to a global audience.

Example: Red Bull’s Stratos Jump was not just an in-person event but a global phenomenon, thanks to its extensive live streaming and social media coverage. By sharing real-time updates and encouraging user-generated content, Red Bull created a massive online buzz that amplified the event’s reach and impact​​.

Creating Virtual Experiences:
Incorporating virtual reality (VR) and augmented reality (AR) into experiential marketing allows brands to create immersive experiences that can be shared on social media. This not only engages users but also encourages them to share their experiences, further extending the brand’s reach.

Example: IKEA’s AR app, which allows customers to visualize furniture in their homes, was widely shared on social media. This social-first approach turned a functional tool into an engaging experience that users were excited to share with their networks​.

2. Enhancing Customer Service

Always-On Customer Support:
Social media provides a platform for brands to offer real-time customer support. By utilizing chatbots and AI, brands can ensure 24/7 availability, quickly addressing customer inquiries and issues. This always-on support enhances customer satisfaction and loyalty.

Example: Nike uses Twitter to handle customer service inquiries efficiently. Their dedicated support account (@NikeSupport) provides real-time responses, demonstrating the brand’s commitment to customer care​.

Personalized Customer Interactions:
Brands can use social media to offer personalized customer service, leveraging data to tailor interactions. Personalized responses and proactive engagement based on past interactions make customers feel valued and understood.

Example: Spotify uses data-driven insights to personalize their interactions with users on social media. By addressing users by name and referencing their listening habits, Spotify creates a personalized experience that enhances customer satisfaction​.

3. Scaling Content Through User Engagement

User-Generated Content (UGC):
Encouraging customers to create and share content related to their brand experiences can significantly amplify marketing efforts. UGC not only provides authentic content but also increases engagement as users feel part of the brand community.

Example: GoPro excels at leveraging UGC by encouraging users to share videos and photos captured with their products. This content is then featured on GoPro’s social media channels, showcasing real user experiences and inspiring potential customers​.

Influencer Partnerships:
Collaborating with influencers can scale traditional marketing efforts by leveraging their established audiences. Influencers can create engaging content that resonates with their followers, extending the brand’s reach and authenticity.

Example: Daniel Wellington’s influencer marketing strategy involved sending free watches to influencers, who then shared their experiences on social media. This approach helped the brand achieve significant growth and recognition​​.

4. Integrating Data-Driven Insights

Real-Time Analytics:
Social media platforms offer robust analytics tools that provide insights into consumer behavior and campaign performance. Brands can use this data to refine their strategies, ensuring that marketing efforts are continuously optimized for better results.

Example: Starbucks uses social media analytics to track customer sentiment and engagement. By analyzing this data, they can adjust their campaigns in real-time, ensuring that their marketing efforts are always relevant and effective​​.

Feedback Loops:
Social media allows for immediate feedback from customers, which can be used to improve products, services, and marketing strategies. Creating a feedback loop where customer insights are regularly integrated into business decisions helps brands stay aligned with consumer needs.

Example: Sephora utilizes social media to gather customer feedback on new products. This feedback is then used to make adjustments and improvements, ensuring that the brand meets customer expectations​ (Sprout Social)​.

Conclusion
By adopting an always-on, social-first approach, brands can scale and elevate traditional marketing efforts such as experiential marketing and customer service. This strategy not only extends the reach and impact of these efforts but also creates a more engaging and personalized experience for consumers. Leveraging social media’s capabilities for real-time interaction, personalization, and data-driven insights ensures that marketing efforts remain relevant and effective in the ever-evolving digital landscape.

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Business Insights

Humanizing Brands Through Influencer Marketing: A Guide to Resonating with Social-First Audiences

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In today’s digital landscape, humanizing a brand is crucial for resonating with social-first audiences. Leveraging influencer marketing effectively can bridge the gap between brands and consumers, fostering authentic connections and enhancing brand loyalty. Here’s how brands can utilize influencer marketing to achieve these goals:

1. Authentic Storytelling
Influencers as Storytellers: Influencers are adept at weaving personal stories into their content, making them ideal partners for brands aiming to humanize their image. By sharing their genuine experiences with a product, influencers can create relatable and engaging narratives that resonate deeply with their followers.

Example: Nike collaborates with influencers who share their fitness journeys, personal challenges, and triumphs. These authentic stories not only promote Nike products but also inspire and connect with audiences on an emotional level​​.

2. Micro-Influencers for Relatability
The Power of Micro-Influencers: Micro-influencers, those with smaller but highly engaged followings, often come across as more relatable and trustworthy. Their recommendations feel like advice from a friend rather than a sales pitch, which can significantly humanize a brand.

Example: Beauty brands like Glossier leverage micro-influencers to showcase everyday use of their products. This strategy has helped Glossier build a community-driven brand image that feels personal and approachable​.

3. Interactive and Engaging Content
Engagement Through Interaction: Influencers can facilitate direct interaction between brands and consumers through Q&A sessions, live streams, and interactive stories. This type of content allows consumers to engage directly with the brand, fostering a sense of community and connection.

Example: Starbucks often collaborates with influencers to host live coffee-making sessions or behind-the-scenes tours of their stores. These interactive sessions allow followers to ask questions and engage in real-time, making the brand more accessible and human​.

4. Highlighting Brand Values and Social Causes
Championing Causes: Influencers who align with a brand’s values and social causes can help highlight these aspects authentically. This not only humanizes the brand but also builds trust and loyalty among consumers who share similar values.

Example: Patagonia partners with environmental influencers to promote its commitment to sustainability. These influencers share stories and content that highlight Patagonia’s environmental efforts, resonating with eco-conscious consumers​​.

5. Behind-the-Scenes Content
Transparency Through BTS: Behind-the-scenes content provided by influencers can offer a glimpse into the brand’s operations, culture, and people. This transparency can humanize the brand by showing the human effort and passion behind the products.

Example: Brands like Ben & Jerry’s use influencers to share behind-the-scenes content of their ice cream-making process, their fair trade practices, and employee stories. This approach helps consumers see the brand as a collection of real people and values, not just a corporate entity​.

6. User-Generated Content and Community Building
Empowering Consumers: Encouraging influencers to create and share user-generated content (UGC) can amplify the voices of everyday consumers, making the brand feel more inclusive and community-driven. UGC campaigns often lead to higher engagement and loyalty.

Example: Coca-Cola’s “Share a Coke” campaign, where influencers and consumers shared personalized Coke bottles, created a massive amount of UGC. This not only promoted the product but also built a sense of community and personal connection around the brand​​.

Conclusion
Influencer marketing offers a dynamic and effective way to humanize brands and resonate with social-first audiences. By leveraging authentic storytelling, engaging content, and aligning with influencers who share their values, brands can foster deeper connections with consumers. This approach not only enhances brand perception but also drives loyalty and long-term engagement.

In a world where consumers crave authenticity and connection, influencer marketing stands out as a powerful tool for humanizing brands and making them more relatable to their audiences.

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Business Insights

The Shift to Social-First Marketing

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Social media has significantly disrupted and redefined the consumer journey, positioning itself as a primary touchpoint for influencing purchase decisions. Innovative marketers now prioritize a social-first approach, which has proven more effective than traditional media-led strategies.

A social-first strategy involves prioritizing social media channels in marketing efforts, from product discovery to post-purchase engagement. This shift has been driven by the increasing influence of social media on consumer behavior. Platforms like Instagram, TikTok, and Pinterest are not just for connecting with friends or entertainment; they have become critical for discovering new products, evaluating them through user-generated content, and ultimately making purchasing decisions.

Influencing Purchase Decisions

Social media’s role in the consumer journey is multifaceted:

Product Discovery: Social media has become the leading channel for product discovery, particularly among younger generations. HubSpot’s 2024 report indicates that social media surpasses internet searches for product discovery among Gen Z, Millennials, and Gen X. These consumers prefer finding new products through social media, making it a vital platform for brands looking to reach new audiences​.

Consumer Trust in Creators: Influencer and creator marketing has surged, with creators now being more trusted than traditional advertisements. The LTK report reveals that trust in creators has grown by over 20%, making them pivotal in guiding consumers through their purchase journeys. This trust is particularly strong among Gen Z and Millennials, who are significantly more likely to make purchases based on creator recommendations​​.

Engagement and Customer Service: Social media has also transformed how brands interact with customers. Direct messages (DMs) on platforms like Instagram and Twitter are increasingly used for customer service, with many consumers preferring this method over traditional channels. This direct engagement helps build stronger relationships and enhances customer satisfaction​.

Brands Leading the Social-First Movement

Several brands exemplify the success of a social-first approach:

Glossier: This beauty brand has built its entire marketing strategy around social media, leveraging user-generated content and influencer partnerships to create a strong community and drive sales.

Gymshark: By focusing on social media and influencer marketing, Gymshark has grown from a small startup to a major player in the fitness apparel industry. Their effective use of fitness influencers has been key to their success.

Nike: Known for its innovative marketing, Nike utilizes social media not just for promotion but also for storytelling and engaging with their audience on a deeper level. Campaigns often feature inspirational stories that resonate well with their audience.

The Future of Social-First Strategies
The trend towards social-first marketing is set to continue, with more brands recognizing the importance of social media in the consumer journey. As third-party cookies become less reliable for tracking user behavior, first-party data collected through social media interactions will become even more valuable​​. Additionally, the integration of AI tools for creating engaging content and managing customer service will further enhance the effectiveness of social-first strategies​​.

In conclusion, social media’s role in disrupting and redefining the consumer journey cannot be overstated. Brands that adopt a social-first approach are well-positioned to influence purchase decisions at every touchpoint, ultimately outperforming those that rely solely on traditional media-led strategies.

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Businessuite Markets

Visual Vibe Main Driver Of Revenue And Profitability For iCreate Group

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Tyrone Wilson Chairman President & CEO for iCreate Limited (the Group) has released the following consolidated unaudited results for the quarter, ended March 31, 2024.

Overview

During the first quarter, the Group remained focused on streamlining the operations of all business units to achieve greater operational efficiency and improved governance and internal controls. The Group also made progress in developing its new business line, indoor digital advertising. We have partnered with some key locations and will continue to focus on building this segment.

There was a major focus on addressing the issues that were cited by the Regulatory and Market Oversight Division (RMOD) of the Jamaica Stock Exchange resulting in the Company’s suspension from trading. Based on the feedback received on the information we have submitted to the RMOD, we believe we have complied with the requirements of RMOD and based on their feedback we expect that trading in our stock will resume by the end of the second quarter.

iCreate Limited ‘the Company’ also successfully repaid the Sagicor Investments bond and consequently had the receivership discharged as at January 31, 2024.

Revenue
The Group achieved consolidated revenues of $32.9 million, representing an increase of $6.9 million (26.8%) over the comparative 2023 first quarter. The main driver of revenue for the period is our Digital Out-Of-Home (DOOH) advertising business segment, which continues to show an average revenue increase of 10% each quarter when compared to the corresponding period in 2023.

Profitability
The Group recorded profit before tax of $0.3 million for the first quarter, which is an improvement over the $11.8 million loss before tax over the same period of 2023.

Our acquisition of Visual Vibe.com Limited ‘Visual Vibe’ is showing immediate results for the Group. Visual Vibe delivered $14.0 million in profit before tax which is an increase of $9.0 million (178.7%) over the corresponding period in 2023.

In addition to revenue growth, profitability was also achieved through reduction in expenses in the first quarter. The Group’s administrative expenses increased by $1.8M (10.4%) over the first quarter in 2023, however, this includes the consolidation of Visual Vibe.com Limited, which was not included in the first quarter of 2023. Expenses trended down across the Group during the first quarter as we continue to streamline our operations.

Balance Sheet
As at March 31, 2024, the Group’s Total Assets were $712.1 million, which is $18.7 million (2.6%) below the $730.8 million at the comparable period in 2023.
Total liabilities were $168.6 million, which is a reduction of $98.9 million, following the closing of the Visual Vibe acquisition in May 2023.

iCreate Institute is undergoing a transformational plan which involves reviewing our academic programs due to the fast-changing nature of technology. This too, is the same for GetPAID.

Outlook
The Group remains focused on growth in revenue and cash flows from all member companies and simultaneously streamlining and strengthening our internal processes and investing in our team to realise our strategic objectives while strengthening the brands.
Our other business divisions/subsidiaries iCreate Institute and GetPaid Group Limited ‘GetPAID’ experienced a slowdown for the period.

iCreate Institute is undergoing a transformational plan which involves reviewing our academic programs due to the fast-changing nature of technology. This too, is the same for GetPAID. However, we have new partnerships on the horizon that will enable us to quickly move towards achieving these objectives.

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