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Mediacorp, SPH application to
merge mass-market television operations approved |
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The Media Development Authority (MDA) has given
the approval for MediaCorp and Singapore Press Holdings (SPH) to merge their
mass-market TV operations. |
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No regulatory approval is needed for the proposed
merger of the two companies' free newspapers, TODAY and Streats, as this move
does not amount to a consolidation. |
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The approval for the merger of MediaCorp and SPH's
TV operations is subject to their acceptance of the following conditions,
which are introduced to encourage and ensure the continued growth of the local
production industry while meeting the viewing interests of local audiences by
providing quality, diversity and choice in local programming. |
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MediaCorp TV will be required to outsource at
least 285 hours a year of local content production work to independent
production companies. |
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This requirement will create jobs for local firms
and help raise production standards, contributing to the overall growth of the
local independent production sector. It will also help to increase the
diversity and quality of local programming, by tapping into the diversity and
experiences of the growing independent production sector. |
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In addition, MediaCorp TV will be required to
continue to provide local content on its free-to-air TV channels to cater to
the diverse interests of the audiences. The MDA will ensure that the
broadcaster continues to meet its public broadcast requirements. |
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Additionally, the MDA will be reviewing the
sharing of rights in relation to programmes which it funds, and will work with
companies to realise the maximum commercial potential of such programmes. |
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The MDA will also engage in further discussions
with the broadcaster and the industry to examine new models of broadcasting
technology, standards or business rules that can add to the choice and
diversity of programming and grow the local production sector. |
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The application by MediaCorp and SPH was for the
formation of a joint holding company that would run the mass entertainment TV
channels, with MediaCorp holding a 80 per cent majority and SPH the remaining
20 per cent. |
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At the same time, SPH would acquire a 40 per cent
stake in MediaCorp Press, which publishes the free newspaper, TODAY. MediaCorp
would hold the majority 60 per cent in the company. |
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While MediaCorp is selling 40 per cent of its
shareholding in MediaCorp Press to SPH, it will continue to have Board,
management and editorial control over TODAY. No regulatory approval is
required for this as the arrangement does not amount to a consolidation under
the Media Market Conduct Code. |
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Post merger, the media landscape for newspaper
operations is expected to remain similar to the current, pre-merger situation.
MediaCorp and SPH will continue to operate their newspapers independently and
in competition with each other. |
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The application by the two companies was assessed
in line with the Code of Practice for Market Conduct in the Provision of Mass
Media Services. In evaluating the application, the MDA took into consideration
the impact of the merger upon the media industry as well as public interests
and also reviewed the efficiencies that will result from the consolidation. |
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The MDA hopes that the consolidation will lead to
better quality programmes and services for local audiences as well as markets
overseas. The synergies created will benefit MediaCorp and SPH and allow both
to work towards regionalisation. |
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MediaCorp and SPH had jointly announced the
intended merger of their TV and free newspaper operations on 17 Sep 04 and the
complete formal application was submitted to the MDA on 5 Nov 04. |
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Prior to that, the companies had sought and
received in-principle approval from the Ministry of Information,
Communications and the Arts. |
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Source:
Media Development Authority Press Release
6 Dec 2004 |
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SPH and MediaCorp welcome MDA's approval of merger of mass-market TV
operations |
MDA approves MediaCorp, SPH merged mass-market TV operations
