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New TV channels: Greater variety for the audience, but are they sustainable?
Recently the five businesses that have granted free-to-air TV licenses will be doubling the number of stations competing for revenues in an already fiercely contested world. At the 11th APRIL, the Ministry of Information published the five winning TV licence applications for free to-air channels via the state MRTV.
These are Mizzima and DVB Multimedia Group, the "exile media" company, Kaung Myanmar Aung, Young Investment Group and Fortune International. I would like to comment this weekend on the changes that can be anticipated in the television transmission industry as a result of the inclusion of these five businesses in the network.
There was a big difference between the procedure for selecting and licensing providers of contents from former administrations. Only the only privately owned businesses that were granted TV licenses from the army regime were run by sidekicks and businessmen near the ruling regime. Licenses were granted as part of a collaborative project with the Ministry of Information.
JVs made sure to focus on consumer programmes rather than breaking newscasts and analysing politics, society and the war. Two kinds of licenses were granted to the residential market by previous government. This has been spent on Forever Group and Skynet Media, which generate income from subscriptions based on either annual or quarterly subscriptions charged by spectators installing their satellites as well.
In order to win subscription customers, they have added more TV stations and monopolized reporting on football games. Skynet is the Myanmar pay-TV operator. Other approvals are for free-to-air stations and cover television services connected to the Myawady Group, MRTV-4 of Forever Group, MNTV of Shwe Than Lwin Media (owner of Skynet), Channel 7 and Channel 9.
Its primary means of livelihood is advertisement. You make a profit if your ad revenues exceed the cost of producing and airing. Research shows that TV represents between 80 and 90 per cent of all Myanmar ad spend, with printed publications receiving most of it. The five new licensees, as free-to-air stations, rely on advertisement as their primary means of earning money.
It will compete for shares of the markets with the incumbent channels MRTV, Myawady, MRTV-4, Channel 7 and Channel 9. Whilst expenditure on commercials is likely to increase as the economic growth continues, the entry of five channels into the network leads to fierce competitive pressure and raises the question of whether the emerging companies will be profitable in commercial terms.
The" e-xile media" enterprises Mizzima Multimedia and DVB Multimedia Group each have extensive radio expertise. Producing on-line newscasts in Burma and English since it was founded by a group of New Delhi exiled politicians in 1998, Mizzima has recently started producing documentary films for MRTV. It was the first exiled company to come back to Myanmar in 2012 following the liberalisation of the printing world.
The company launches a week-long paper that appeared every day in 2013 but was shut down in early 2015 in the midst of stiff competitive markets. Miszima, which still publishes a week-long English language journal, has been sponsored by multinational relief organizations. The DVB Multimedia Group, which was also financed by overseas relief organizations, was founded in 1992 by exiled politicians in Chiang Mai, Thailand, and return to Myanmar in 2013.
She started in July 1992 as the Democratic Voice of Burma short wave radios from the Oslo studio in Norway, and began in May 2005 with the provision of sat-TV programmes. Out of the five licensing entities, Mizzima and DVB appear to have the best chance of achieving business results as they have broadcast expertise and are able to raise funds.
Said to want to invest million of US Dollar in their channel, Kaung Myanmar Aung, Young Investment Group and Fortune International will have to work really harder to make a profit in a fiercely contested promotional income markets. Frontier's mother corporation, Black Knight Media, made a TV license offer through a jointventure, but failed in the end.