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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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2 years 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 2 years ago by @mediavet
1 year ago

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

Artificial Intelligence

AMK Communications Pioneers AI-Generated Advertising Campaign for InterMetroONE



In a landmark move set to redefine the advertising landscape, AMK Communications, through its subsidiary Click Digital Agency, is poised to launch Jamaica’s first AI-generated advertising campaign for the revolutionary InterMetroONE super app. This ground-breaking initiative not only marks a significant milestone for Jamaica but also positions AMK Communications as a leader in innovative marketing strategies within the Caribbean region.

A New Era of Advertising

The introduction of AI-generated advertising heralds a new era of creativity and efficiency in marketing. By leveraging advanced artificial intelligence, AMK Communications can produce highly targeted, data-driven campaigns that resonate deeply with diverse audiences. This technology enables the creation of personalized content at scale, ensuring that every message is relevant and engaging.

Unparalleled Benefits for Clients

For clients, the benefits of AI-generated advertising are manifold:

Enhanced Creativity: AI tools can analyse vast amounts of data to generate unique, creative concepts that might not emerge through traditional brainstorming sessions. This opens up new avenues for storytelling and brand expression.

Data-Driven Insights: AI provides valuable insights into consumer behavior and preferences, allowing for more precise targeting and message customization. This ensures that marketing efforts are not only creative but also strategically aligned with audience interests.

Efficiency and Scalability: AI can rapidly produce multiple variations of ads, testing and refining them in real-time to optimize performance. This reduces the time and cost associated with traditional ad creation and allows for quick adjustments based on market feedback.

Personalization at Scale: With AI, it’s possible to create highly personalized advertisements for large audiences, ensuring that each viewer receives a message that feels uniquely tailored to them. This enhances engagement and drives better results.

Setting Trends in the Caribbean

AMK Communications’ initiative is part of a broader trend towards the adoption of AI in advertising. Globally, AI is being used to create more dynamic, interactive, and personalized ad experiences. From chatbots and virtual assistants to AI-driven video content, the possibilities are endless. This move by AMK places Jamaica and the Caribbean at the forefront of these international developments, showcasing the region’s ability to innovate and lead in the digital age.

Looking Ahead

The AI-generated campaign for InterMetroONE will serve as a benchmark for future marketing efforts, demonstrating the power and potential of artificial intelligence in advertising. As AI continues to evolve, it will unlock even more opportunities for creativity and efficiency, helping brands to connect with their audiences in deeper, more meaningful ways.

AMK Communications Limited and Click Digital Agency are not just launching a campaign; they are setting a new standard for the industry, proving that the future of advertising is here and it is powered by AI. Clients can look forward to a new realm of possibilities, where technology and creativity come together to deliver exceptional results.

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Businessuite News24 International

Unilever Initiates Talks To Potentially Sell Ice Cream Business



Unilever has initiated talks with buyout firms to potentially sell its ice cream business, a move estimated to be worth up to $19.4 billion. This strategic decision aims to streamline Unilever’s operations and focus on its core business areas.

Unilever’s ice cream division, which includes renowned brands like Ben & Jerry’s, Magnum, and Wall’s, generated a turnover of €7.9 billion in 2023, representing about 13% of the company’s total sales. The separation will create a standalone ice cream business with significant global presence in both in-home and out-of-home segments.

The sale is driven by the distinct operational needs of the ice cream business, which differ from Unilever’s other segments. Ice cream has unique supply chain requirements, seasonal demand fluctuations, and higher capital intensity. By separating, Unilever can focus on its remaining core segments—Beauty & Wellbeing, Personal Care, Home Care, and Nutrition—aiming for mid-single-digit sales growth and improved margins post-separation​.

The potential buyers include private equity firms like Advent International, Blackstone, Cinven, and CVC Capital Partners, which have shown preliminary interest. The separation process will involve significant operational changes, including a major productivity program aimed at reducing costs by €800 million over the next three years, offsetting any dis-synergies from the separation. This plan also involves a restructuring that will impact approximately 7,500 predominantly office-based roles globally​​.

Overall, this move is expected to create a world-leading ice cream business with the flexibility to grow and innovate independently while enabling Unilever to become a more focused and higher-performing company.

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Business Insights

Broadcast Radio Is Not Dead For Jamaican And Caribbean Radio Stations If……



The headline in last weeks business gleaner read “The Bridge Radio Station Up For Sale”.

The opening paragraph of the article told the story, “After débuting on air with much fanfare nearly three years ago, radio station The Bridge 99 FM is facing an uncertain future and is now up for sale. Two investors in The Bridge, one of the newest FM radio stations in a crowded and dwindling market, have confirmed that they are seeking buyers for the station.”

Target Market

The Bridge, the brainchild of New York-based Jamaican Robert ‘Bobby’ Clarke who heads the Irie Jam Media Group, which operated Irie Jam Radio in the Tri-State area for more than two decades, came on air in August 2021 aiming, as its name suggested, to connect Jamaicans abroad, mainly in the United States, and those at home, through a unified platform.

On-air Talent

The upstart station was able to attract a slate of well-known names to its airwaves, including disk jocks Richard ‘Ritchie B’ Burgess, Kurt Riley and Nikki Z, veteran recording artiste Tony Rebel, retired politicians Ronald Thwaites and Pearnel Charles Sr, and controversial talk show host Dr Kingsley ‘Ragashanti’ Stewart.

But The Bridge failed to attract a significant audience, with more persons turning away from traditional media sources like radio to social media for information and entertainment.

The Question that we have to ask is very clear. Is Broadcast Radio Dead!

In the article Zachary Harding, founding partner of Delta Capital Partners Jamaica, and an investor in The Bridge was asked about the future of FM radio: “There can be money in FM radio, as it is still a popular means of entertainment and getting information. Radio is not dead. However, advertisers now have more options in terms of marketing spend and there has definitely been a tremendous shift towards social media and away from traditional media. This trend will always impact smaller players in the market negatively. However, with the right strategy, you can integrate social media into your strategy to command more loyal listener base and differentiate the station, while providing greater points of distribution. This is exactly what we are doing at CaribStar Media”.

Broadcast radio is not dead, but it does face significant challenges in the current media landscape.

Here’s a comprehensive look at trends and potential directions for making broadcast radio viable in Jamaica and the Caribbean:

Convergence with Digital Platforms: One major trend is the integration of broadcasting with digital and social media platforms. Radio stations are increasingly using live streaming services like YouTube, Facebook Live, and Twitch to reach audiences seeking real-time and interactive content​​.

Local Focus and Community Engagement: Despite the shift towards digital, local advertising remains a strong point for radio. Industries such as retail, real estate, automotive, financial services, and healthcare continue to invest in local radio ads due to its strong community presence and trust factor​. Radio can leverage this by focusing on hyper-local content and community engagement, which digital platforms may not provide as effectively.

Political Advertising: Political campaigns are a significant revenue source, especially in local markets. With political spending on the rise, particularly in swing states, radio stations can capitalize on this by offering targeted advertising solutions​.

Shorter, More Engaging Ads: Long ad breaks can drive listeners away, especially when compared to the ad-skipping options available on streaming services. To combat this, radio can focus on shorter, more engaging ads, including authentic endorsements from popular hosts, which tend to resonate more with listeners​​.

Technological Advancements: The deployment of 5G networks will revolutionize content delivery, allowing for seamless streaming and improved connectivity. This can enable more interactive and immersive experiences for radio listeners, potentially attracting a larger audience​.

Diverse Revenue Streams: Beyond traditional ads, radio stations can explore additional revenue streams such as sponsored content, events, and partnerships with local businesses. This diversification can help mitigate the risks associated with declining ad revenues​.

Content Personalization and On-Demand Options: Emulating successful aspects of streaming services, radio stations can offer personalized content and on-demand listening options through podcasts and digital archives. This approach caters to the growing demand for content that fits individual schedules and preferences​​.

For Jamaican and Caribbean radio stations, adopting these strategies could help create a more sustainable business model in a rapidly evolving media environment. Emphasizing local content, leveraging digital convergence, and exploring new revenue streams are key steps towards maintaining relevance and profitability.


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Businessuite News24

The Pros And Cons Of Using Influencers And Brand Ambassadors And How Caribbean Brands Can Navigate The Decision



The debate around whether weak brands need influencers and brand ambassadors while strong brands can rely on their established presence is multifaceted, encompassing various pros and cons. Here’s a look at the perspectives on both sides and how Caribbean brands can navigate this decision.

Pros of Using Influencers and Brand Ambassadors:

Increased Brand Awareness: Influencers and brand ambassadors can introduce your brand to a larger and more diverse audience. They leverage their established followings to enhance visibility and engagement.

Credibility and Trust: Influencers are often viewed as trusted figures within their communities. Their endorsements can lend credibility to your brand, making their followers more likely to trust and purchase your products.

Targeted Marketing: Collaborating with influencers allows brands to target specific demographics more precisely. For instance, if your brand appeals to a niche market, finding an influencer within that niche can be highly effective.

Cost-Effective Marketing: While hiring top-tier influencers can be expensive, working with micro-influencers (those with smaller, but highly engaged followings) can offer a strong return on investment. These influencers often have more genuine interactions with their followers, which can lead to better engagement rates.

Cons of Using Influencers and Brand Ambassadors:

Potential for Scandals: Partnering with influencers can be risky if they engage in behavior that damages their reputation, which in turn can negatively impact your brand.

Management and Logistics: Coordinating with influencers can involve a lot of back and forth, requiring significant time and resources to manage relationships and campaigns effectively.

Authenticity Concerns: If an influencer’s endorsement of your brand seems inauthentic, it can backfire. Followers may perceive the partnership as a mere commercial transaction, which can erode trust.

Strong Brands Carrying Their Own Weight:

Strong brands with established reputations often have the luxury of relying on their existing customer base and brand equity. These brands can focus on organic growth through customer loyalty programs, high-quality products, and robust marketing strategies without heavily relying on influencers. However, even strong brands occasionally use influencers to stay relevant and tap into new markets.

Caribbean Brands Navigating the Decision:

Caribbean brands, whether established or emerging, should consider a balanced approach:

Identify Goals and Audience: Clearly define what you aim to achieve with influencer partnerships. Whether it’s raising brand awareness, entering new markets, or boosting sales, your goals will shape your strategy.

Select the Right Influencers: Choose influencers whose values align with your brand and who have a genuine connection to your products. This is especially important in the Caribbean context, where community and authenticity are highly valued.

Start Small: Experiment with micro-influencers who have a strong local following. They can provide more authentic endorsements and are often more cost-effective than larger influencers.

Monitor and Adapt: Continuously monitor the effectiveness of your influencer campaigns. Use metrics such as engagement rates, brand mentions, and sales to evaluate success and make necessary adjustments.

In conclusion, while weak brands may significantly benefit from the boost provided by influencers and brand ambassadors, strong brands can also find value in these partnerships to maintain relevance and expand their reach.

For Caribbean brands, a strategic and culturally sensitive approach to influencer marketing can lead to substantial growth and brand loyalty.

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Business Insights

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



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​.

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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