Star Media Group: Its Transformation & Future

The Edge reported about the latest changes going on at Star Media Group Bhd.

Below are my three observations:

1. The media group posted revenue of RM1 billion in the years of 2013, 2014 & 2015 respectively. Its 2018 revenue was below RM500 million (https://www.theedgemarkets.com/article/star-media-sees-improved-4q-posts-rm526-mil-annual-net-profit). While it’s challenging to restore it to its heyday as the media landscape has changed drastically, how the media group continually executes its digital transformation plan is pivotal to its future success

2. That The Star launched an OTT service, dimsum, in 2016 was a bold move for a print-focused media group. However, such investment has amounted to RM40-50 million to date, according to this article. How dimsum can grow to be a sustainable business within the next 12 months and thus contribute to its group revenue is one of the key concerns among its shareholders and analyst community

3. International players such as New York Times has grown its digital business steadily last few years (https://www.nytimes.com/2019/02/06/business/media/new-york-times-earnings-digital-subscriptions.html), with online subscription revenue gained nearly 18% growth and digital advertising rose 8.6% in 2018. This has set a real benchmark for the media industry globally. With that, how the media group, and other prominent media players in the region, will play its game in online subscription and digital advertising, will be key development within the next 12 to 24 months

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