Page 17 - Demo

ANNUAL REPORT 201416Print remains a high cost operation so whilst just over 50% of the revenue to our top line was generated by print, it contributes just under 40% to the Company%u2019s profitability. Many modern digital companies have inevitably revised their business models. GML is no exception and we are aggressively pursuing avenues that will rationalize our operations and make us more efficient, whilst continuing to produce top class journalistic content.ELECTRONIC MEDIAAcross our electronic media arm and more specifically our radio division, we have invested in technology and talent. Whilst all stations benefitted through these initiatives, our urban station, SLAM (100.5FM) boosted its operations with the acquisition of JW and Blaze. We also launched our versatile mobile app to ensure access and user generated content amongst its core target demographic. Again our investment in Radio has yielded positive results in the MFO survey. TBC Radio, the country%u2019s biggest radio network, can boast of a 14% rating in evening drive-time in three major segments that show the wide range of its stations and hence audiences: Slam 100.5 FM%u2014our lively young station%u2014Vibe CT 105.1FM, and Aakash Vani 106.5FM.But the survey also showed that Adult Contemporary listeners make up 32% of the radio audience, and here it%u2019s our 95.1FM, the Right Mix, that is in the lead, among the morning drive-time audience, with a 7% rating. We also laid the foundation to transition this country%u2019s first AM radio broadcast station launched on August 31st 1947 to a new HD Digital FM frequency. This required the acquisition of another frequency to facilitate this. As the curtains closed in 2014, our plans materialized with the recent launch in April 2015 of SKY 99.5FM. This allowed us to expand the scope of our 7.30AM frequency which had been made redundant by the lack of available technological support for the AM Band. Whilst all six frequencies (The Right Mix 95.1FM; SKY 99.5FM; SLAM 100.5FM; VIBE CT 105.5; Sangeet 106.1FM and Aakash Vani 106.5FM ) currently have their designated online space, the recent launch of SKY 99.5FM ( like SLAM 100.5FM) also delivers its content via %u2018live%u2019 streaming from our studios. This is like having web TV where audiences can listen but also view the station live online, not just in T&T but across the globe. In 2015, we also plan to expand our radio footprint regionally.TV had another strong year of performance but like other arms of the media business faces great competition. As such we recognize the need to create new stations catering to different demographics, which will expand our target markets. Part of that market expansion will necessitate the development of more local content. In that regard, we will be investing in new studios to produce such content. In order to expand our reach we will be investing in big sporting events, like the Olympics, Football World Cup and Caribbean Premier League cricket. We are happy to announce that we have successfully negotiated to have another year of CPL 20/20 in 2015, in a year when the competition for sports is far less aggressive, and as such we expect a better contribution to our bottom line. Radio also secured World Cup Cricket across the Region until 2020 and for the first time in the history of our media group we had taken the decision to acquire content with a view to reselling those across the region. We are equally proud to have secured the television rights for World Cup Football in 2018 and will continue to seek out content that audiences will gravitate towards. The MFO survey showed that CNC3 news is matching its closest rival neck and neck, with the gap between them measured at 3%. This figure falls into the survey%u2019s margin of error. In addition, CNC3 had 6 of the top 10 shows with Crime Watch continuing to lead in its time slot. In order to expand our digital advertising capability and reach we have invested significantly in digital billboards. We recently launched two such digital billboards, both 40ft. x 16ft. (the largest in Trinidad and Tobago) in Chaguanas and Caroni. These are the first of an acquisition strategy that will result in the largest electronic billboard capability in Trinidad and Tobago, totaling 15 P10 outdoor full colour LED screens capable of broadcasting live television, playing videos and displaying pictures. There will be 7 (40ft x 16ft) Boards and 8 (32ft x 12ft) Boards located in the most trafficked areas in Trinidad and Tobago.In this new era we will pursue two primary monetization paths. The first will be audience based/ad funded. We will continue to deliver audiences via TV, PRINT, RADIO and DIGITAL, and we will add value via deeper audience insight and targeting which will drive premium pricing. The second will be Services based. We will continue to develop a portfolio of individually monetized businesses, whether by building, buying or partnering. Fees or subscription based pricing will be the primary revenue target stream, with ad funded revenue as a secondary option.