Media Prima

Last updated
Media Prima Berhad
ميديا ڤريما برحد‎
FormerlyProfitune Sdn. Bhd. (2000–2002)
Company type Public limited company
MYX: 4502
ISIN MYL4502OO000
Industry
Founded27 November 2000;24 years ago (2000-11-27)
Headquarters
Key people
  • Datuk (Dr) Syed Hussian bin Syed Junid
  • (Chairman)
  • Rafiq Razali
  • (Group Managing Director)
Services
RevenueIncrease2.svg RM 8.81 billion [1]
Increase2.svg RM 95.7 million [1]
Owner
Number of employees
6,187 (December 2023)
Subsidiaries
Website www.mediaprima.com.my

Media Prima Berhad (English: Prime Media Limited; doing business as Media Prima and stylized in lowercase title), also abbreviated as MPB, is a Malaysian media company based in Bangsar, Kuala Lumpur and Petaling Jaya, Selangor. [2] [3] [4] It is the largest media and entertainment conglomerate in Malaysia with business interests in television, print, radio, out-of-home advertising, content creation and digital media. As of 2023, Media Prima employs over 6,000 staffs in total, of whom approximately 1,300 are in private-sector broadcasting. The company forms half of the mass media duopoly in the country along with Astro. [5]

Contents

Established in 2000 as Profitune Sdn Bhd and originally started out as a multimedia company, Media Prima evolved to its current state with its present name in 2002 [6] and began operations a year later after the demerger of Malaysian Resources Corporation Berhad's (MRCB) media assets. The company operates four television channels — TV3, NTV7, 8TV and TV9 and also five radio stations – Kool 101, Fly FM, Eight FM, Hot FM and Molek FM. Media Prima is also the owner of the New Straits Times Press, Malaysia's largest newspaper publisher with three national news brands – the New Straits Times , Berita Harian and Harian Metro .

Primeworks Studios, Media Prima's commercial subsidiary, responsible in produces, distributes and sells Media Prima TV networks' programs as well as helps to generate funding for content provision and also distributes TV3's online news service, Buletin TV3. The company currently ranks third in Malaysia in digital reach following the 2017 acquisition of REV Asia Holdings (now Catcha Digital), one of Southeast Asia's leading digital media groups. [7] In 2018, Media Prima became the number one choice for mobile content ahead of Google and Facebook. [8]

Background

Media Prima traced its roots and origins back to the Malaysian operations division of Singaporean company The Straits Times Press Group, the forerunner of SPH Media. Prior to its establishment, [9] [10] both The New Straits Times Press and Sistem Televisyen Malaysia Berhad were formerly a subsidiaries of Fleet Holdings, an investment arm of United Malays National Organisation (UMNO) and helmed by Junus Sudin. Fleet Holdings had acquired its ownership of the Malaysian operations of The Straits Times Press Group, which consisting of the Malaysian edition of The Straits Times and Berita Harian as well as the Malay Mail , in September 1972. [11] [12] Following the acquisition, Fleet Holdings transferred these assets to the new company, and renamed it as the NSTP on 31 January 1973. [13]

In 1983, the company granted a license from the Malaysian Government to operate Malaysia's first private television station, TV3, which began operations on 1 June 1984, ending the monopoly of Government-owned TV stations. [14] [15] It later divested its ownership of the NSTP and TV3 to Renong Berhad, a company helmed by Halim Saad in 1988. In 1993, four senior managements of Realmild Sdn Bhd held a management buyout which led Renong in turn, divested its shares in the NSTP and TV3. [16] Subsequently, both of the companies were acquired by Malaysian Resources Corporation Berhad (MRCB), which primarily focused on construction and property development as its main core businesses. The acquisition was completed on June 25, 1993 as part of the MRCB's foray into other business and considered the largest management buyout in Malaysian corporate history. [17] Before Media Prima was created, TV3 led a consortium to set up Malaysia's first pay-TV operator, Mega TV, which was launched in 1994 and started operations a year later, in 1995. [10] In 1998, TV3 and MRCB agreed to build a studio facility and an auditorium in Shah Alam, Selangor, costing RM 7.2 million and planned to be completed on 31 October. TV3 would be the sole user of such facilities, while MRCB will receive RM1.7 million from the latter's advertising income. [18]

History

2000–2009: Formation and early history

Media Prima was established on 27 November 2000 as Profitune Sdn. Bhd., [19] with a focus on multimedia and communications services. On 1 October 2001, MRCB announced that it proposed to divested its equity interest in its media subsidiaries, Sistem Televisyen Malaysia Berhad (STMB) and The New Straits Times Press (Malaysia) Berhad (NSTP), in which the latter had acquired from Renong Berhad in 1993 and shutting down its pay-TV unit, Mega TV to help repay RM1 million of debt. [20] The proposed restructuring scheme was officially announced on 8 October. [21] [22] MRCB and Profitune inked a share sale agreement on 22 October in which the company will assume the listing status of TV3. The divestiture is part of the MRCB's reorganization plan, which saw its media business were transferred to Profitune while MRCB focused solely on infrastructure and construction business. [23] [24] The company was upgraded into a public limited company status and renamed as Profitune Berhad on 7 November 2001. [19]

In January 2002, following the reduction of assumed TV3's debt, MRCB revised the purchase consideration of its debt restructuring scheme. [25] The restructuring was expected to be completed in the third quarter of the year. [26] [27]

On 10 June 2002, Profitune shifted its business focus to media and entertainment and changed its name to Media Prima in preparation for media competition in Malaysia. [19] [28] At the same time, the company unveiled its first corporate logo (which continued to be used to this day same as TV3), which saws the word 'Media' placed in the red box, while the word 'Prima' placed outside the red box. On 25 November, the company signed a second supplemental agreement with MRCB for another proposal which concerning the NSTP. [29]

In late July 2003, the MRCB has obtained a sanction from the High Court which allowed it to proceed the demerger exercise with Media Prima and lodged a court order's copy with the Companies Commission of Malaysia (SSM). It also issued a circular to its shareholders on the demerger. [30]

The corporate restructuring of MRCB and the spin-out of its media assets, namely TV3 and the NSTP was formally completed in August 2003, [31] [32] and the following month, MRCB spin-offs TV3 and the NSTP, marking the latter's official exit from media business.

Media Prima began operations on 23 September 2003, [33] [34] with the launching ceremony was officiated by the then-Deputy Prime Minister, Abdullah Ahmad Badawi. [35] [36] [37] Upon of its official launch, the company began to offers a cross-media solutions to its clients through the capitalisation of its broadcasting and print publication assets. [38] On 22 October, the company takes over the listing status of the STMB on the Main Board of Bursa Malaysia Securities Berhad. [39] [40] [41] [42]

Not long after, Media Prima acquired 80% interest in Metropolitan TV Sdn Bhd which had a Content Application Service Provider (CASP) license which allowed it to open a television station. [43] On January 8, 2004, 8TV was relaunched as a successor of MetroVision which was closed in November 1999. [44] In June 2005, Media Prima acquired 100% stake in Ch-9 Media, which operates Channel 9 in a RM40.61 million deal and renamed it as TV9. [45] [46] [47] In July, the company entered into a Collaboration and Assistance Agreement with Natseven TV Sdn Bhd (which operates ntv7), Synchrosound Studio Sdn Bhd (which operates now-defunct Wow FM), Questseven Dot Com Sdn Bhd and the respective companies' shareholders to provide assistance for the companies to undertake a corporate and debt restructuring scheme. [48] On October 27, Media Prima acquired 100% stake in Natseven TV for RM90 million. The acquisition increased the company's television viewership market share to 48%, making Media Prima the owner of all free-to-air private television networks in Malaysia. [49] [50]

In November 2006, Media Prima acquires 70% stake in Big Tree Outdoor, [51] followed by the entire stakes in two other outdoor advertising firms, namely UPD and The Right Channel. [52] By December, the company became one of the main components of the Bursa Malaysia's Composite Index. [53]

In 2007, Media Prima launches its over-the-top streaming service, Catch-Up TV, [54] [55] [56] which offers content from the company's television channels and their respective websites. [57] The company also launched an Internet portal, gua.com.my [58] and its music portal, guamuzik.com.my. The company also planned to expand its business operations abroad [59] in order to be the major "regional media powerhouse". [60]

Also in 2007, Media Prima dominates 54% of television viewership market in Malaysia, after Astro (29%) and Radio Televisyen Malaysia (17%). [61]

In 2008, Media Prima established its subsidiary in the Philippines, MPB Primedia Inc. in partnership with the ABC Development Corp. (now TV5 Network) to relaunch the TV5 with new image with US$150 million media funding provided by the company. [62] However, in October 2009, the company decided to divest its 70% of its shares in MPB Primedia to MediaQuest Holdings to prevent the liquidity of profits on the company's behalf. [63] Also, in 2008, Media Prima launched a new subsidiary, Primeworks Studios to oversee productions of all Media Prima's television networks while promotes Malaysian TV programs to international markets. [64] [65]

The company announced in February 2009 that it would enter a partnership with the Islamic Republic of Iran Broadcasting for the television program exchange. [66]

2009–2014: Expansion of business operations

In March, Media Prima was among 6 ASEAN broadcasting companies including Mediacorp, Media Nusantara Citra (MNC) and ABS-CBN Corporation jointly to form a regional broadcasting alliance, Smart Alliance to carry out an alliance to cooperate in three areas—content, sales and marketing, and technology—and take advantage of economies of scale and combined markets that the region can offer. [67] [68] [69] In October, the company signed a multi-year deal with The Walt Disney Company's integrated distribution subsidiary, Disney-ABC International Television (DAIT) Asia Pacific, which encompasses of ABC Studios programs for TV3, NTV7 and 8TV. [70] [71] [72] At the same time, the company considering its offer to takeover the New Straits Times Press through a share swap to formed the largest media group. [73]

The company, through its wholly-owned subsidiary Gama Media International (BVI) Ltd, began to divest 90% of its equity stake in Ghanaian television network, TV3 Ghana in the third quarter of 2011 [74] [75] and sold to Ghanaian media firm, Media General Ghana Ltd. [76] [77]

Media Prima signed a memorandum of understanding (MoU) with Malaysia Digital Economy Corporation (MDEC) for three-year term to promote initiatives related to the creative industry implemented through the National ICT Initiative via MSC Malaysia. [78]

On 14 December 2012, Media Prima launched its expanded digital business unit as Media Prima Digital. The reorganization is part of the company's wider strategy to align and optimize its existing digital business across multiple platforms. [79]

The company is among of 20 strategic partners of the Universiti Utara Malaysia's Bachelor of Creative Industry Management (BCIM) program which was introduced on 20 August 2013. [80]

In 2014, Media Prima began collaborating with the Universiti Sains Malaysia to provide Malay subtitles for the hearing-impaired, initially for TV3 and TV9's Islamic programming including Kopi Bersama Ustaz Kazim and Fiqh Wanita, whose programmes were reported to have reached 100,000 viewers when they were aired with subtitles. The subtitles were provided by the university's undergraduate students in translation and interpretation. [81]

2014–present: Recent developments

The company announced in November 2014 that it would reduce the number of employees by offering them a one-time payment. According to its statement, the mutual separation scheme (MSS) will be implemented from November 14 and completed on December 15. [82]

The company entered a conditional purchase agreement as early as October 2015 to acquire the entire stake of radio broadcasting company, Copyright Laureate, which owns and operates Ultra FM and Pi Mai FM, in a cash consideration of RM20 million. [83] [84] [85] The acquisition was completed on October 21. [86]

In early 2016, Media Prima signed a deal with South Korean company CJ Group to launch a home shopping channel, CJ Wow Shop and operated by the companies' joint-venture, MP CJ O Shopping Sdn. Bhd. [87] [88] In May 2017, Media Prima announced that it has reached an agreement to acquire new media startup Rev Asia for RM105 million, or about $24.2 million. The agreement will see Rev Asia being integrated into the company's platform to create the nation's largest digital media entity. [89] In June 2018, Media Prima through its subsidiary, Rev Asia Holdings announced that it had acquired a 52% equity stake in Vocket Media Sdn Bhd worth RM2.6 million. The acquisition also simultaneously makes Vocket another new subsidiary of Media Prima. [90]

By August 2018, Media Prima has reportedly sold the New Straits Times Press' Balai Berita site in Bangsar and the land where its printing factory is located in Shah Alam to PNB Development Sdn Bhd for RM280 million. This is the second major asset disposed by the company after selling a 21.36% stake to Malaysian Newsprint Industries (MNI; now Asia Honour Paper Industries) for a cash consideration of RM45.4 million on 2 May. [91] The company will move its operations from Sri Pentas in Bandar Utama, which has been operated since the 1990s. One of the premises the group is considering moving to is at Saujana Resort, Seksyen U2, Shah Alam, which is owned by Pelaburan Hartanah Bhd. [92] In September, the company received sponsorship from the Perak State Government to provide coverage for the 2018 Malaysia Games (SUKMA 2018). [93] [94]

Media Prima signs an MoU with Dailymotion on 22 October 2018 to expand digital reach and improving contents for Malaysian audiences. [95] The company alongside Astro and DiGi Telecommunications collaborated to launch a digital learning hub, known as JomStudi in January 2019. The initiative, which supported by the Malaysia Digital Economy Corporation (MDEC), provides quality educational resources in a single platform which accessible to students. [96] [97] [98]

On 9 April 2019, Media Prima partnered with Grabyo to enhance its social video strategy and increase its dominance in the Malaysian digital content market. [99] [100] Few days later, Media Prima entered a digital partnership with iflix for free catch-up TV, shortly after the latter signed a similar partnership with JTBC Content Hub, the content distribution arm of South Korean media company JTBC. As part of the partnership, the company will make more than 1,000 hours of content from its library through exclusive Tonton-branded channels on the platform to increase Malaysia's local content offering. [101] [102]

In April 2020, Media Prima consolidated its advertising functions in different business segments into a new subsidiary called Media Prima Omnia. [4] On November 1, 2020, Media Prima acquired the remaining 49% stake in CJ Wow Shop from CJ Group and renamed it as Wow Shop. The acquisition is part of its plan to capitalize on the strong prospects of the home shopping and e-commerce industry. [103] [104]

In July 2021, the company reacquired its Bangsar headquarters, the Balai Berita from PNB Development in a RM156.4 million deal. [105] [106] [107] Media Prima collaborated with Celcom Axiata and South Korean telecom company, LG Uplus Corp in October 2021 to exploring the potential 5G content and services cutting across VR and AR for Malaysian market. [108]

The company, through its content production and commercial arm, Primeworks Studios, partnered with South Korean broadcasting company, Seoul Broadcasting System (SBS) to produced the Malaysian version of the Korean reality show, Master in the House . The program premiered on TV3 on 15 January 2022. [109] [110] The company entered a strategic partnership with the Malaysian Anti-Corruption Commission in August 2022 in their effort to broadening an anti-corruption program. [111]

In November, Media Prima began collaborating with Chinese television network Hunan Broadcasting System to co-produce programmes as well as broadcast the latter's produced content. [112]

In June 2023, the company become as a official media partner for Visit Melaka Year 2024 campaign. [113] [114]

The company was named as a strategic media partner for the Malaysia-China Macro Entrepreneur Health Forum and the Asian Celebrity Charity Gala Night 2023 (MCEH 2023) which took place on 25 and 26 November 2023 at The Majestic Hotel, Kuala Lumpur. [115]

The company planned to utilize the artificial intelligence (AI) technology for all of its operations by the year-end. [116] Media Prima announced on 15 October 2024 that the news operations of all of its television networks will began broadcast at the company's Balai Berita starting 21 October after more than two decades operated at Sri Pentas, Bandar Utama. [117] [118] [119]

Institutional ownership

As of July 2019, tycoon Syed Mokhtar Albukhary through his company, Aurora Mulia owns 24% of equity stake in Media Prima, [120] which makes him the third largest controlling shareholder of the company. Malaysian political party, the United Malays National Organisation (UMNO), previously holds 11.09% of its interest in the company before divested its shares to Syed Mokhtar. [121] [122] Aurora Mulia acquired more 7.9% stake in Media Prima and raised its stake in the company to 31.22% in September 2019. [123]

In 2021, former second Finance Minister, Johari Abdul Ghani through his own investment company, JAG Capital Holdings became the second largest shareholder of the company after acquiring 109.7 million shares, followed by another 54.37 in March. [124] [125]

Apart from Aurora Mulia and JAG Capital Holdings, Media Prima's ownership also consisted of several other shareholders, including Morgan Stanley & Co. Int. and Mitsubishi UFJ Financial Group. [126]

Assets and subsidiaries

Media Prima owns major of media and entertainment companies in Malaysia, and has a multiple services and products such as television and radio broadcast, content production, program and film distributor, television production, film production, advertising, print publication, new media and digital platforms and music label and recording. [127] Under its TV broadcasting subsidiary, Media Prima TV Networks, the company operates four terrestrial TV networks – TV3, ntv7, 8TV, TV9, an educational TV channel, DidikTV and a home shopping channel, Wow Shop (formerly CJ Wow Shop) [128] as well as five radio stations under its radio broadcasting subsidiary, Media Prima Audio (formerly Media Prima Radio Networks and later Ripple) – Kool 101 (formerly Kool FM and later Buletin FM), Fly FM, Eight FM (formerly One FM and later 8FM), Hot FM and Molek FM as well as a podcast platform Audio+ (formerly Ais Kacang). [127] [129]

Other companies that operate under the Media Prima group are print publishing subsidiary the New Straits Times Press–in which the company owns more than 98% of equity interests–which owns three major print and online news brands the New Straits Times , Berita Harian and Harian Metro and their respective weekend editions as well as online newspaper archive KLiK (formerly NSTP e-Media and later News & Image Bank or NIB). It also owned printing subsidiary Print Towers, tertiary education reference website Mind Campus and learning portal FullAMark; commercial subsidiary, Primeworks Studios that provides content output in diverse categories covering television, cinema, and digital platforms; [130] new media subsidiary Catcha Digital (formerly Alt Media and later Media Prima Digital, then REV Media Group) which owns the Tonton streaming service and multiple online portals such as Oh Bulan!, MyResipi, Vocket, Mashable SEA and TechNave; integrated solution provider Media Prima Omnia (or simply Omnia) which offers creative services and integrated marketing solutions across all the company's platforms. [131] The company also owns out-of-home advertising business under its advertising arms, which consists of Big Tree, The Right Channel, Kurnia Outdoor, Gotcha, UPD, and Big Tree Seni Jaya, [127] as well as an art gallery, Galeri Prima (formerly NSTP Art Gallery). [132]

The company's former assets including English newspaper the Malay Mail (which was sold to Redberry Media Group in 2012), [133] book and magazine publishing company, Berita Publishing (which was part of the NSTP until 2000 when it was sold to Alaf Positif), [134] education arm Malaysia Institute of Integrative Media (MIIM; formerly Akademi TV3; sold to SAL Group of Colleges in 2003), [135] pay-television service Mega TV and Ghanaian free-to-air TV network, TV3 Ghana, which all of these were operated long before Media Prima was established.

Leadership

Board of directors

Senior management team

Incidents

2018 bomb threat

On 28 August 2018, Media Prima's Sri Pentas headquarters was forced to evacuate following a false bomb threat. The police gave an order to evacuate the company's office at 10.30 pm. About 200 Media Prima employees were evacuated from the building. They were allowed to re-enter the building after two hours of inspection. The police did not find anything suspicious. [136]

Following the cancellation of Nightline, TV3 aired the announcement about the incident. Royal Malaysia Police's bomb detector unit arrived at 11.40 pm to handle the case. The Fire and Rescue Department received the phone call from the police at 11.19 pm following the incident. The case was investigated under Section 506 of the Penal Code, and the police found it was a false bomb threat. [137] Two men were arrested in Temerloh, Pahang on 29 August 2018. [138]

Ransomware attack

On 8 November 2018, Media Prima's computer system was locked and hacked by cyber criminals who demanded millions of ringgit for ransom. The attackers are said to be demanding 1,000 bitcoins to give up access to the computer system. It is not immediately known whether the company's data has been breached, and whether the media group will suffer financial losses as a result of the ransomware attack. Media Prima has decided not to pay the ransom. [139] [140]

Awards and accolades

YearAward-giving bodyCategoryResultRef.
2016Minister of Human Resources Awards—Won [141]
2017Marketing Excellence Awards—Won [142]
2018The Spark AwardsMedia Company of the YearWon [143]
Media Brand of the YearWon
Marketing Council Awards—Won [144]
Australasian Reporting AwardsGolden AwardGold [145]
2019Malaysian Digital Association AwardsDigital Publisher of the YearWon [146]
2020Australasian Reporting Awards—Gold [147]
2021MSWG-ASEAN Corporate Governance AwardsIndustrial Excellence Award for Corporate Governance ExposureWon [147]
2022The Edge ESG AwardsSilver Award for Telecommunications and Media CompanySilver [148]
Huawei Developers' Day 2022Best Digital MediaWon [149]
2023Sustainability and CSR Malaysia AwardsCompany of the YearWon [150]
Kinabalu Press Awards—Won [151]
Kelantan Press Awards—Won [152]
MACC Media Awards—Won [153]

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References

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  5. ↑ National Studies on Assessing the Economic Contribution of the Copyright-based Industries. World Intellectual Property Organization. 2014. pp. 159–160. ISBN   9789280520224 . Retrieved 16 April 2020. There are two relatively large integrated media investment groups that carry out commercial broadcasting, i.e. Media Prima Berhad (MPB) and ASTRO All Asia Networks Plc (ASTRO). Both media groups compete for a relatively small but growing domestic market and both have ventured into the international market for broadcasting and entertainment.
  6. ↑ "SC Yes to revamp plans". Business Times. 16 October 2002. Retrieved 5 February 2022. The SC also approved the application for exemption from the obligation to undertake a mandatory offer on the remaining voting shares in The New Straits Times Press (M) Bhd by Media Prima Bhd (formerly known as Profitune Bhd).
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