Star Media Group is closing its video-on-demand service dimsum entertainment by 30 September, The Star reported, after a strategic review carried out by the Group's management team. According to Star Media Group, the management team has pinpointed several new opportunities it will pursue "to further strengthen its position in the industry".
The dimsum team will reassigned within the Group to work on ongoing and new projects, The Star said. Dimsum CMO Lam Swee Kim said while the decision to close the platform was difficult, the team is "excited to explore promising new ventures in the near future". She added that the team is "truly humbled" by the support it received over the years. Star Media Group's spokesperson told A+M that the new ventures will be announced as and when they are ready.
Dimsum was launched in 2016 and has since expanded to Brunei, Malaysia and Singapore. Its library of content includes movies, dramas, documentaries, variety, animations and kids shows from China, Japan, Taiwan, Hong Kong, Thailand, South Korea, Singapore, Thailand, Indonesia and Malaysia.
Separately, the Group witnessed some leadership movements over the past few months. Last month, it appointed Chor Chee Heung as its new chairman, taking over from Fu Ah Kiow who resigned on 1 March. Meanwhile in February, Star Media Group also named Alex Yeow its new group CEO. He was previously group CEO and executive director of Tropicana Corp.
During the fourth quarter of 2020, the Group recorded a loss before tax of RM19.17 million as compared to a profit before tax of RM4.98 million in Q4 2019. The Group registered a loss mainly due to lower revenue from the print segment as well as impairment of assets of RM11.98 million in the current quarter under review. Due to COVID-19, many businesses are holding their advertising spending for other business priorities.
In particular, its print and digital segment recorded a loss before tax of RM20.94 million in the quarter as compared to a profit before tax of RM6.73 million in Q4 2019 due to lower revenue and impairment of assets of RM11.98 million.
Overall revenue for this segment was still down due to softness in Malaysian economy coupled by the effects of COVID-19. However, the Group said in its financial statement that it saw "very encouraging growth in digital revenue" of 17% against last corresponding quarter, which was mainly attributable to the increase in the digital advertorial, branded content, programmatic and paywall subscription revenue.
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