Connect with us

Marketing & Advertising

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

Published

2 years ago

on

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

Related Topics:
Continue Reading
1 Comment
Subscribe
Notify of
guest
1 Comment
Oldest
Newest Most Voted
Inline Feedbacks
View all comments
trackback
VertiCast Media Acquires CVM-TV from AIC Barbados – BusinessuiteOnline
1 year ago

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

0
Reply

Marketing & Advertising

The List – Businessuite’s Top 50 Caribbean Marketers to watch for 2024

Published

1 month ago

on

November 3, 2023

By

Djuvane Browne, Co-founder and CEO One Great Studio

Businessuite’s Top 50 Caribbean Marketers to watch

Djuvane Browne Chief Executive Officer is a man of many talents – Djuvane is an ultimate frisbee player, father of four, honorary husband of the year, and of course, our Team Leader. With over 20 years of experience, his passion for innovation and creation is only rivaled by his love for family and fresh prestige jelly donuts. Djuvane combines a wealth of experience with his established educational background in Psychology, Computer Science and Business Management, to match people-focused technology solutions to business objectives.

At One Great Studio, our digital agency is fully staffed by some of Jamaica’s most talented designers, developers & digital marketers who take pride in consistently delivering GREAT results for our clients.

We’re digital natives with deep knowledge of design, technology & business. We help you generate more leads & make more sales with digital marketing, websites, web applications & mobile applications.

Nominate Businessuite’s Top 50 Caribbean Marketers to watch for 2024

Continue Reading

Marketing & Advertising

The List – Businessuite’s Top 50 Caribbean Marketers to watch for 2024

Published

1 month ago

on

November 3, 2023

By

Arnold J. Foote C.E.O. AdMark

Businessuite’s Top 50 Caribbean Marketers to watch

I have been fortunate throughout my career to be surrounded by amazing talent that positively influenced by life. Starting with my Dad who understandably worked hard to keep me in line and mentor me, to all the other people I wave worked with in various capacities. I lead an amazing company filled with a blend of crazy and skill. Strategic thinkers, designers, creatives and managers. We are a first world agency residing in a developing world scenario and we wouldn’t have it any other way. AdMark is a lean, mean communications machine that many competitors are still trying to figure out. We love the clients that have us as their communications partners, hate their competitors and appreciate our media and production partnerships. Anyway, back to work. One day I will read this over and proof read. This is not that day. Cheers.

Since 1964, AdMark has been revolutionising the industry with its innovative approach to crafting effective and creative communications campaigns for some of the region’s biggest brands. Our relentless pursuit of excellence and out-of-the-box thinking has earned us a reputation as one of the most dynamic and cutting-edge agencies in the region.

We are proud to be powered by our powerful FCB International Alliance. This partnership enables us to leverage the latest thinking, technologies and strategies to deliver results that exceed our clients’ expectations and KPI’s.

Continue Reading

Marketing & Advertising

The List – Businessuite’s Top 50 Caribbean Marketers to watch for 2024

Published

1 month ago

on

November 3, 2023

By

Businessuite’s Top 50 Caribbean Marketers to watch

Kimala Bennett Founder and CEO The Lab

Kimala Bennett is extremely goal-oriented and solution driven, and has always loved telling a good story in a creative way, and by creating both of her companies, she has had the perfect avenues to do so. In 2007, she founded The Production Lab with Melissa Llewellyn, with the aim to produce high quality video production, in fast turn around time and on budget.

Kimala has directed and produced over 150 advertisements, documentaries, corporate videos and music videos. With her keen ability to pool the best thinkers and pair them with the best executors; she has led The Production Lab to now become The LAB, a fully integrated Advertising Agency.

The LAB delivers with ROI in mind; this stems from Kimala’s strength and expertise in business management and entrepreneurship. The LAB team has built a reputation for being effective in logistics and creativity; known for delivering first- world quality productions.

The Business Lab, established in 2009, is a business solution company focusing on youth entrepreneurship. So far Kimala has published three books, Starting a Business In Jamaica, The Young Entrepreneur’s Handbook and Let’s Talk Money as consulting products of The Business Lab.

The Business Lab team and Kimala having led multiple island-wide executions; both the “I am the Change” and the “I3” programmes has brought entrepreneurship and innovation to Jamaican students. As a certified trainer of the Network for Teaching Entrepreneurship (NFTE) University, Kimala has also taught workshops to Jamaican students.

From Kimala’s perspective, changing the mindset of youth to focus heavily on entrepreneurship is one of the biggest contributions she can make to the development of the nation. “Youth are now able to see entrepreneurship as a viable option, creating business models around their ideas, and to be more focused on finding solutions to problems” .

We are a fully integrated 100% Jamaican born and bred advertising agency with global reach and an island swagger. We are a strategic, creative, passionate solutions oriented and no nonsense group with a heavy emphasis on getting stuff done!

The LAB – We love ideas, but we love to see ideas in action more, and we are crazy obsessive about getting results. We know we’re not for everyone but we might just be what you’ve been looking for.

Nominate Businessuite’s Top 50 Caribbean Marketers to watch for 2024

Continue Reading

Marketing & Advertising

The List – Businessuite’s Top 50 Caribbean Marketers to watch for 2024

Published

1 month ago

on

November 3, 2023

By

Kemal Brown is the Chairman of Digita Global Group Inc

Businessuite’s Top 50 Caribbean Marketers to watch

Kemal Brown is the Chairman of Digita Global Group Inc., and serves in varied capacities in its subsidiary companies, Digita Global Marketing Ltd, a Caribbean based, globally focused media, marketing and technology company, and Digita Properties Ltd., a tech-infused real estate holding, management and development company. Kemal is an avid speaker and consultant on entrepreneurship, leadership, digital strategy and transformation.

His experience spans academia, business consulting, political strategy, research, media relation and digital transformation. He is a son of the Caribbean, having been educated on her soil, and lectured at her most prominent universities. He is an award-winning entrepreneur, an impactful and a sought-after speaker, having delivered over one hundred (100) talks across four (4) continents to corporate bodies, international organization and service clubs alike. A few include VistaPrint, Sagicor, Scotiabank, the Horasis Global Community (Cascais), Rotary International, ProColombia, Jamaica Energy Partners, JMMB, the Project Management Institute, the Global Shapers Community and Aerofield International.

His interests span economic development, building growth focused ecosystems and transforming communities. To this end he has served as a mentor to several high growth Caribbean start-ups; the Vice Curator of the Global Shapers Kingston Hub, an initiative of the World Economic Forum (WEF); a Member of the Rotary Club of St. Andrew; a Fellow of the Commonwealth 33Sixty Leadership Programme and presently sits on the Regional Distinguished Volunteers Committee of the University of the West Indies (UWI) and is a member of the Private Sector Organization of Jamaica (PSOJ).

He lives by the philosophy of Kaizen, constantly pursuing daily improvement towards excellence. He enjoys reading and investing his time, energy and resources towards developing both young and seasoned members of society alike, primarily through mentorship and delivering presentations geared towards empowerment and creating a winner’s mindset.

Digita Global Marketing Ltd. is a Caribbean-based, globally-minded digital marketing agency located in Kingston, Jamaica. Digita specializes in interactive media experiences; design, bespoke and innovative websites and expressive visual identities, that come together to perfectly convey the values and vision of our clients, helping them to achieve their goals.

Nominate Businessuite’s Top 50 Caribbean Marketers to watch for 2024

Continue Reading

Marketing & Advertising

The List – Businessuite’s Top 50 Caribbean Marketers to watch for 2024

Published

1 month ago

on

November 3, 2023

By

Javette Nixon Founder, Chairman & CEO of Point Global Marketing Group (POINT)

Businessuite’s Top 50 Caribbean Marketers to watch

Javette Nixon is the Founder, Chairman & CEO of Point Global Marketing Group (POINT), Seaforth Holding Limited and Esther Ventures Limited as well as a Director of Vein Centers of Jamaica. He is an experienced entrepreneur, investor, and marketing consultant specializing in market entry and branding strategies for emerging brands and global companies.

Javette’s expertise is deeply innovation-driven, ranging from digital and e-commerce to global market strategies and business model disruption. He founded his first company at the age of 23 – an e-commerce business that he sold five years later. He has also worked at MCIS Advance, Edgechem Jamaica Limited, and Capital & Credit Merchant Bank, while serving as an active investor in such startups as True Shade Cosmetics Limited and Zoombridge Solutions Limited.

He holds a Bachelor’s Degree in Political Science and Economics from the University of the West Indies, Mona and a Master’s of Science Degree in International Marketing from Hult International Business, Boston.

Javette is also an Alumnus of the University of London, the Technology Innovation Centre Incubator at the University of Technology Jamaica, and the Branson Centre of Entrepreneurship in the Caribbean. He was the season one winner of NCB Capital Quest and a 2016 Young Leader of the Americas Professional Fellow. His other interests include volunteerism, travelling, and football. Javette has two children and is married to Dr. Hillary Brown Nixon.

Point Global is a Pan-Caribbean Management Consulting Firm. We work with business throughout the Caribbean and North America combining human expertise with cutting edge technology solutions to solve business challenges related to marketing, data and insight and technology.

 

Nominate Businessuite’s Top 50 Caribbean Marketers to watch for 2024

Continue Reading

Trending

1
0
Would love your thoughts, please comment.x
()
x