Media Prima
Media Prima Berhad is a Malaysian media company based in Bangsar, Kuala Lumpur. 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.
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 and began operations a year later after the demerger of Malaysian Resources Corporation Berhad's 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, as well as an over-the-top streaming service, tonton. 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, one of Southeast Asia's leading digital media groups. In 2018, Media Prima became the number one choice for mobile content ahead of Google and Facebook.
Background
Media Prima traced its roots and origins from the Malaysian operations division of Singaporean company The Straits Times Press Group, the forerunner of SPH Media. Prior to its establishment, 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 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 editions of The Straits Times and Berita Harian as well as the Malay Mail, in September 1972. Following the acquisition, Fleet Holdings transferred these assets to the new company, and renamed it as the NSTP on 31 January 1973.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. 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. Subsequently, both of the companies were acquired by Malaysian Resources Corporation Berhad, 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. 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. 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.
History
2000–2009: Formation and early history
Media Prima was established on 27 November 2000 as Profitune Sdn. Bhd., 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 and The New Straits Times Press Berhad, 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. The proposed restructuring scheme was officially announced on 8 October. 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. The company was upgraded into a public limited company status and renamed as Profitune Berhad on 7 November 2001.In January 2002, following the reduction of assumed TV3's debt, MRCB revised the purchase consideration of its debt restructuring scheme. The restructuring was expected to be completed in the third quarter of the year.
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. On 25 November, the company signed a second supplemental agreement with MRCB for another proposal which concerning the NSTP.
In late July 2003, the MRCB obtained a sanction from the High Court that allowed it to proceed the demerger exercise with Media Prima and lodged a court order's copy with the Companies Commission of Malaysia. It also issued a circular to its shareholders on the demerger.
The corporate restructuring of MRCB and the spin-out of its media assets, namely TV3 and the NSTP was formally completed in August 2003, 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, with the launching ceremony was officiated by the then-Deputy Prime Minister, Abdullah Ahmad Badawi. At the same time, the company unveiled its first corporate logo, which saws the word 'Media' placed in the red box, while the word 'Prima' placed outside the red box. On 22 October, the company takes over the listing status of the STMB on the Main Board of Bursa Malaysia Securities Berhad.
Not long after, Media Prima acquired 80% interest in Metropolitan TV Sdn Bhd which had a Content Application Service Provider license which allowed it to open a television station. On January 8, 2004, 8TV was relaunched as a successor of MetroVision which was closed in November 1999. 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. In July, the company entered into a Collaboration and Assistance Agreement with Natseven TV Sdn Bhd, Synchrosound Studio Sdn Bhd, Questseven Dot Com Sdn Bhd and the respective companies' shareholders to provide assistance for the companies to undertake a corporate and debt restructuring scheme. 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.
In November 2006, Media Prima acquires 70% stake in Big Tree Outdoor, followed by the entire stakes in two other outdoor advertising firms, namely UPD and The Right Channel. By December, the company became one of the main components of the Bursa Malaysia's Composite Index.
In 2007, Media Prima launches its over-the-top streaming service, Catch-Up TV, which offers content from the company's television channels and their respective websites. The company also launched an Internet portal, gua.com.my and its music portal, guamuzik.com.my. The company also planned to expand its business operations abroad in order to be the major "regional media powerhouse".
Also in 2007, Media Prima dominates 54% of television viewership market in Malaysia, after Astro and Radio Televisyen Malaysia.
In 2008, Media Prima established its subsidiary in the Philippines, MPB Primedia Inc. in partnership with the ABC Development Corp. to relaunch the TV5 with new image with US$150 million media funding provided by the company. However, in October 2009, the company decided to divest its 70% of its shares in MPB Primedia to PLDT's subsidiary MediaQuest Holdings to prevent the liquidity of profits on the company's behalf. 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.
The company announced in February 2009 that it would enter a partnership with the Islamic Republic of Iran Broadcasting for the television program exchange.
2009–2014: Expansion of business operations
In March, Media Prima was among 6 ASEAN broadcasting companies including Mediacorp, Media Nusantara Citra 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. In October, the company signed a multi-year deal with The Walt Disney Company's integrated distribution subsidiary, Disney-ABC International Television Asia Pacific, which encompasses of ABC Studios programs for TV3, NTV7 and 8TV. 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.The company, through its wholly owned subsidiary Gama Media International Ltd., began to divest 90% of its equity stake in Ghanaian television network, TV3 Ghana in the third quarter of 2011 and sold to Ghanaian media firm, Media General Ghana Ltd.
Media Prima signed a memorandum of understanding with Malaysia Digital Economy Corporation for three-year term to promote initiatives related to the creative industry implemented through the National ICT Initiative via MSC Malaysia.
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.
The company is among of 20 strategic partners of the Universiti Utara Malaysia's Bachelor of Creative Industry Management program which was introduced on 20 August 2013.
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.