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



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

Marketing & Advertising

Innovations And Challenges Impacting The Ooh Advertising Landscape Of 2023.. Part 2



Bluetooth Low-Energy Transmission

As consumers spend more time traveling and venturing out of their homes this year, brands are returning to billboards and incorporating technology to reach consumers in new and impactful ways.

Beacon technology has been in existence since 2013. Recently, marketers are using beacons that transmit Bluetooth low-energy (BLE) signals to smartphones within a 300-meter proximity per beacon. These BLE signals carry small packets of data, which can be a form or a specific product being advertised, directly to the audiences’ smartphones.

This innovation in outdoor advertising may help brands connect directly with consumers and increase their engagement with ads. The challenge with this innovation, however, is that recipients must accept the BLE signals coming into their phones before the ad can be delivered. Augmenting this with an outdoor display ad can increase the BLE signal acceptance rate.

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Marketing & Advertising

Innovations And Challenges Impacting The Ooh Advertising Landscape Of 2023…Part 1



Physical-Digital Hybrid Experience

As consumers spend more time traveling and venturing out of their homes this year, brands are returning to billboards and incorporating technology to reach consumers in new and impactful ways.

Except for brand awareness, customer engagement is the main objective of advertising. There’s no better way for businesses to engage audiences than helping them transition from what is a regular outdoor ad on a billboard to a digital experience on their mobile phones. Marketers are making this possible by using hashtags and QR codes as the main elements of their ads. As the target audiences interact with these adverts, brands can retain their attention for a longer duration than they’d normally do staring at a billboard.

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Businessuite News24 International

Walmart Wants More Income From Outside Sources To Increase Overall Profits.



The reason is simple. About 55% of Walmart sales come from its grocery business, and these sales are relatively low margin. In order to generate better profits, Walmart’s effort is to increase the income from advertising, business-to-business activity, and third party sellers on its marketplace. Delivery services from stores and other activities are also under consideration as sources of additional profits.

“The company will shift more attention to advertising sales, third party income, and business-to-business sales to improve its bottom line. More vendors want to spend advertising money with Walmart because it attracts so many shoppers. The advertising revenues typically fall into the 70 to 80 percent range and can change the composition of the company’s profit and loss statement.”
Insider Intelligence expects Walmart’s ad revenues to grow +42 percent in fiscal 2023.
John David Rainey, CFOCFO of Walmart, speaking at a recent Raymond James Institutional Investors Conference.

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Businessuite Markets

Guardian Media’s Strong Final Quarter’s Performance, Helping To Report Profit Before Taxation Of TT$3.9M For Year December 2022.



Peter Clarke Chairman of Guardian Media Limited has released the following audited results for the twelve months ended 31 December, 2022.

The steady contribution of our newspaper was re-enforced by our hugely popular special publications and increasingly popular digital presence. Combined, these campaigns stimulated increased activity and advertising spend, and drove the reversal of Guardian Media Limited’s Q3 year to date loss before taxation of $6.5M, and the delivery of its full year result.

In similar fashion to 2021, the final quarter’s performance was very strong. In 2022, for the quarter ended 31 December, Guardian Media Limited reported profit before taxation of $10.3M, just behind last year’s fourth quarter result of $11.5M profit before taxation. These results were driven primarily by our successful 2022 FIFA World Cup Finals campaign.

For the year ending 31 December 2022, Guardian Media Limited reported profit before taxation of $3.9M compared to a $6.5M profit before taxation in the prior year.

Revenues reported for the year were $117.8M ($104.7M – 2021) reflecting an increase of $13M or 12.5% in advertising revenues.

Operating expenses increased year over year due to our efforts to stimulate commercial interest, and in order to fund growth strategies across all business segments.

The year 2022 opened without the much-anticipated levels of commercial recovery and activity. The Russia-Ukraine war, supply chain challenges and financial market pressures forced businesses to focus on survival instead of advertising campaigns.

As part of our 105th year celebrations, we at Guardian Media Limited, spared no effort to re-connect advertisers with their customers by investing heavily in irresistible content, whilst continuing to be the trusted media partner across all platforms.

During the year our branded Radio campaigns included the Caura Fest, Sangeet Premier League, bar crawls and other outside broadcasts, through which our loyal listeners were again able to connect with their favourite on-air personalities. After introducing our citizens to iconic global motivational speaker Sadhguru in August, we covered the 2022 Caribbean Premier League, and acquired the rights for the 2022 FIFA World Cup finals in Qatar, as well as the English Premier League.

In spite of the challenging commercial environment, we remain resolute in our
conviction that the business is well positioned to face the future. It has bravely weathered the pandemic, stabilized its operations and re-defined its strategic objectives to achieve delivery of enhanced shareholder value.

Your Board of Directors is pleased to announce a final ordinary dividend of 4 cents per share (2021 – 7 cents). Preference shareholders will receive a final dividend of 3%. Dividends will be paid on 15 June, 2023.

In accordance with section 110(1)(a)(i) of the Companies Act 1995, the Directors have fixed 22 May, 2023 as the Record Date for payment of this final dividend. The Register of Members will be closed on both 25 May and 26 May, 2023.

For More Information CLICK HERE

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Businessuite News24

JA$1-Billion Fund for Film and TV Production



The Government will be establishing a $1-billion Jamaica Screen Fund to provide financing for the development and production of film and television (TV) shows in the country.

Opening the 2023/24 Budget Debate in the House of Representatives on March 7, Minister of Finance and the Public Service, Dr. Hon. Nigel Clarke, said the Government will continue to support the growth of a local film, television, and animation industry.

He informed that the Fund will be established in partnership with the Ministry of Industry, Investment and Commerce.

Dr. Clarke said that the $1 billion, which is an initial amount, will be provided over two years, with $500 million in 2023/24.

He said that the Fund will enable creatives to devote time and sweat equity to developing their projects to the point where they can receive financing.

This includes, for example, writing a feature script or a TV series pilot script, producing a short film as proof of concept, or producing a teaser video as proof of concept for animation.

Dr. Clarke said the Jamaica Screen Fund will also support production of films locally by providing a defined percentage of the production costs up to a maximum contribution for local productions, with other percentages and thresholds for foreign films being shot in Jamaica once certain criteria are met.

Dr. Clarke informed that the Ministry of Industry, Investment and Commerce will be responsible for governance arrangements, which will be multi-stakeholder .

Portfolio Minister, Senator the Hon. Aubyn Hill, will publish the rules of the Jamaica Screen Fund, along with guidance on how to access grants and financing, inclusive of what is expected of writers, creatives, and production companies, which receive support.

Dr. Clarke explained that the resources for the Fund will remain with the Ministry of Finance and the Public Service to be drawn down in tranches once the Ministry of Industry, Investment and Commerce approves eligible projects that have completed and fulfilled the application requirements.

The Minister, in noting the potential of the film industry, said that creative content production can make a significant contribution to Jamaica’s economy and to gross domestic product (GDP) growth.

He said that film and television involve the employment of skilled production crew, technicians, support and logistics staff behind the camera and talented cast in front.

“Hundreds of persons can be employed in a single production for months at a time. In addition, the production of film and television generates indirect and spin-off economic impact through the provision of goods and services required and spending in the local economy,” Dr. Clarke pointed out.

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