Media Prima has announced that it will make progress with "technological-based changes" amidst the challenges in the media industry, according to the New Straits Times.
Datuk Kamal Khalid (pictured), group managing director, said that technology has resulted in its cost-base strategy becoming irrelevant and that Media Prima has to be "bolder" in the choices it makes, as well as revamp its business strategy to remain relevant.
The report added that Media Prima has stopped circulation of the New Straits Times, Berita Harian and Harian Metro in Sabah and Sarawak. This comes after the group announced in May that it was looking to grow its digital and non-traditional revenue streams through strategic business initiatives.
According to group chairman Datuk Seri FD Iskandar, the new initiatives were created to enable new revenue streams and put the focus back into its advertising revenue. The inflow of revenue is set to come from platforms such as home shopping platform, CJ Wow Shop; mobile gaming and digital lifestyle app tonton; and its acquisition of REV Asia Holdings which was completed in July. The acquisition allows Media Prima to reach a digital audience of up to 10.4 million, making it the third largest digital media company in Malaysia after Google (15.7 million) and Facebook (14.1 million).
The group reported a 21% growth in second quarter revenue for the financial period which ended 30 June 2017, as its core advertising began to gain momentum following a slow start earlier this year. Media Prima recorded a revenue of RM601 million for the six-month period of 2017, which can mainly be attributed to changes in consumer behaviour and digital disruptions that have impacted the media industry in general.
A+M has reached out to Media Prima for comment.
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