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Marketing & Advertising

How Much Is CVM TV Worth?..Part 3



According to word on the ground an offer of US$3M was made a few years ago by a consortium, including we understand some of the minority shareholders. This offer was rejected by Lee Chin as too low.

According to sources AIC has been covering the annual shortfalls, and is said to be owed at least JA$1B, in financing loans by CVM.

But other factors must be looked at in any acquisition price consideration.

Subscription Revenue

As the former President & CEO of SportsMax Limited and parent company International Media Content Ltd, Oliver McIntosh knows first-hand the severe challenge of getting Caribbean viewers to subscribe to content.

As one writer to the media remarked “My question is, if SportsMax is really not interested in showing the Winter Olympics, why have they acquired the exclusive rights, thus preventing Jamaicans from watching it through other media outlets to which they already subscribe, and online if they wish, and in prime time? This is not an acceptable situation. Jamaicans should be able to watch their team compete without having to pay for it through SportsMax. Those of us who love the Winter Olympics and sports, like ice skating, should be able to watch it where it is being aired.”

This was always a very limiting revenue factor for Oliver while at SportsMax. One industry insider estimated that the total potential subscriber market was around 3M in the English-speaking Caribbean, with best guess rate of $12.00 per annum for each subscriber, placing at value of US$36M. SportsMax we understand found it difficult to achieve this mark.

Subscription revenue is not a major driver or part of his revenue model as we understand his business model.

Advertising Revenue

CVM TV is coming from a position of Gross Annual Revenues in 2012 of around JA$700M to what some estimate to be JA$200M today, a significant fall off and grossly insufficient to cover the cost of operations.

For some reason major local and regional advertisers are more inclined to advertise on local free to air stations rather than regional cable channels. This is seen as the major driving force for Oliver, who sees greater opportunies to maximise the advertising and sponsorship revenues from such high-priced events like English Premier League, FIFA World Cup, NBA, etc.

Again, the former President & CEO of SportsMax Limited, Oliver McIntosh, knows first-hand the severe challenges of getting Caribbean advertisers to spend against this kind of content on Cable.

Advertising and sponsorship opportunities on Cable channels such as SportsMax was estimated at the upper end to be around US$500,000 per annum, which we again understand was difficult for them to achieve.

As free-to-air channel, Verticast Media Group/CVM TV, is free to sell advertising and sponsorship at whatever price a more willing and receptive advertiser market will bear. This is critical to his revenue model for the business.

The RJRGLEANER Communications Group Experience

The following is presented for context, to illustrate the challenge media in Jamaica is facing in an effort to be profitable.

For its second quarter ended September 30, 2021 the RJRGLEANER Communications Group recorded a pre-tax profit of $25 million and after-tax profit of $27 million for the quarter, compared to a pre-tax loss of $96 million and an after-tax loss of $68 million during the second quarter of the prior year.

Primary contributors to the quarter’s performance were: –

A $191 million or 15% increase in the Group’s revenues, was mainly driven by increases in the:

  • Audio/Visual division $150 million or 28% (comprising the operations of the free-to-air television station, cable stations, 1spotmedia and TVJ International.
  • Audio division $28 million or 15%
  • Print and Online division $10 million or 2%

Apart from general increases in advertising placements across all divisions, the Group earned event revenues, specifically from the staging of the Olympics, as well as the Junior and Senior Track and Field Trials, during the quarter. The results of the second quarter reflect a more normalised profile of the business, with the return of high-cost sporting events, necessary to satisfy viewer interest, but not supported by sufficient revenues to be strongly profitable.

No Brand Value In CVMTV

Marketing and branding experts, we reached out to point to what they consider to be a significant fall off in the brand value for CVM, due to operations and presence in the market. As such this is not an intellectual asset of much value to VertiCast Media Group and would more than likely be replaced with new branding.

Diminished Audience

Based on recent all media surveys CVM TV has less than a 20% share of the local audience, with the majority going to TVJ. Its acquisition value as a result is severely impacted, as VertiCast Media Group will not be benefiting from this value and will have to spend considerable sums to win back a reasonable share of the audience market, which directly impacts advertising revenues.

The Free To Air License

For many people we spoke to the only real asset CVM TV has is its Free To Air License, and the cherished position of one of only two Free To Air stations on the island. How much is this worth, that depends on what it would cost to secure a new one.

So How Much Is CVM TV Worth?

Only one person can answer that question, that is Michael Lee Chin, the majority owner through AIC, his holding company. CVM has a number of minority shareholders who held on to their positions when Lee Chin took over the business from Neville Blythe many years ago.

One industry insider left us with this telling observation, ” Given the fact that digital licenses are around the corner, I wouldn’t advise anyone to acquire CVM…. too much baggage and brand impairment. Stay tuned for a possible FYAH/Jamaica Observer digital TV channel.”

Will There Be A Wedding?

YES, If Lee Chin is ready to sell. We think so providing Oliver can keep Lee Chin at the table as a minority shareholder, converting debt to equity.

Stay Tuned…


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1 year ago

Interesting but not surprising development by any means. CVM has been waiting to be taken by an entity with interest in and understanding of media. It is a shame that Lee Chin took the station and did nothing with it, destroying the station and so many careers in the process.
It has been painful for those of us who spent years building to watch.

Not sure how much CVM is really worth at this point but it is pointless having an entity with so much potential wobbling along at  below 20%  of audience share. Of course any take over will require a new strategic direction, rebranding and repositioning.

I would be very happy to see someone who has a genuine interest in building a professional media organization take it over. Hope this comes to reality. It will be good for CVM, media practitioners, and the country.

Last edited 1 year ago by @mediavet
8 months ago

[…] How Much Is CVM TV Worth?..Part 3 […]

Marketing & Advertising

Nominate Businessuite’s Top 50 Caribbean Marketers to watch for 2023



Businessuite Top 50 Caribbean Marketers to watch for 2023

Final selection will be based on factors that include business results driven by breakthrough advertising and smart strategic thinking, as judged by fellow marketing professionals. It is expected that Marketers and their brands selected will have shown throughout the year, the ability to grow, innovate — and more importantly — cut through the noise in 2022 into 2023. To Nominate Click This Link

Businessuite top 20 most influential Caribbean CMO’s for 2023.

So what is influence? We define it as the impact a CMO’s actions and words have on their organization internally as well as externally in their industry, in Jamaica and in the Caribbean more broadly. That of course includes corporate brand perception, but also marketing and advertising efforts, trends, financial performance and overall conversational and societal impact in 2022 into 2023. To Nominate Click This Link

General Terms and Conditions

The  finalists will be chosen by marketing professionals in Jamaica and around the Caribbean, Businessuite contributors, reporters and editors.

All Marketers nominated must be listed on LinkedIn.
To vote you must be a marketing professional listed on LinkedIn

The Final lists for both categories will be published in June and July 2023 on

Sponsored by

AMK Communications Limited

BlackTone Technologies Limited

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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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