HDTV is now in the cards for the RJR Communications Group as described in my Geezam blog article entitled “The
Future of Free-to-Air Broadcasters in Jamaica as Digital Switch Over Approaches
in 2015”. The free-to-Air broadcasters have basically been left with no
choice, as 2015 is the year they should have switched over to HDTV.
Gary Allen, Managing Director of the RJR Communications Group all but declared this during
a the panel discussion on Thursday September 10th 2015 at the
Faculty of Medical Sciences as reported in the article “RJR
needs $750 m to go HDTV”, published Sunday, September 13, 2015 by Steven Jackson, Business reporter,
The Jamaica Observer.
The panel Discussion, entitled “The RJR-Gleaner Merger:
Implications for the Media Business in Jamaica” was produced by the Mona School
of Business Management (MSBM ).
The gathering was basically a pow-wow for commentators on
Traditional Media to comment on the way forward after the RJR Communications Group and the Jamaica Gleaner had surprised us
with a merger on Wednesday August 5th 2015 as reported in the
article “RJR,
Gleaner announce merger”, published Wednesday, August 05, 2015, The Jamaica Observer.
The Merger, basically an equities swap, involved some 1.2
billion shares changing hands so that both entities would become equal partners
in an Umbrella company called GCML (Gleaner Company Media Limited). Each
company, the 180-y-o Gleaner Company and the 65-y-o RJR Communications Group, are 50/50 partners in
this new media entity.
This is similar to Google’s restructuring their various
companies under the name Alphabet almost five (5) days later on Monday August
10th 2015 as explained in my blog article
entitled “@Google
Inc is now Alphabet Inc – Why an Alphabet Soup of Business Structure means
better Engineering Project Success”.
However, unlike Google restructuring, the merger is
basically to weather the coming storm of Telecom Provider entering the
Traditional Media landscape suggested by the article “RJR,
The Gleaner Merge Media Operations”, Published Wednesday August 5, 2015, The Jamaica Gleaner.
Hence, it's not surprising that the focus of the discussion
seemed to center on whether or not the Merger would allow them to whether this
growing storm of the Telecom Providers increased push into Traditional Media.
But are the Telecom Providers going after Traditional Media or is it just a
side effect of their expansion as they ramp up to 4G LTE?
RJR considering
HDTV - How Telecom Providers 4G LTE Plans is affecting the Broadcasters
Let's do a quick review as to where the players are.
Digicel has basically purchased SportsMax and seems to be
planning an islandwide Sports Cable Network as reported in my blog article
entitled “Digicel
purchases SportsMax – Why No Games, Just Sports on Digicel's Streaming Cable TV
over Bigger, Better Network 4G LTE and FTTH”.
They've also purchased Telstar Jamaica, a local Cable
company, which I assumed was to provide Fiber Optic Backhaul for their 4G LTE
(Long Term Evolution) Network as reported in my blog article
entitled “ Digicel
officially acquires Telstar Cable – Why Digicel is launching IPTV Streaming
over 4G LTE using 20 Years of Cable TV History”.
However, it looks to be more than just building out a Fiber
Optic Backhaul Network as based on a tip-off from an insider within Digicel, I
soon realized that they're also doing FTTH (Fiber to the House) in a direct
assault on fellow competitor LIME as I'd explained in my Geezam blog article entitled “Digicel
Sportsmax NBA deal means fiber and 4G LTE coming this year”.
This makes sense, as with the excess Capacity that building
out a Fiber Optic Backhaul for their 4G LTE Network will create, there will be a time of low occupancy. With Voice and SMS (Short Messaging Service) usage
trending down due to IM (Instant Messaging) apps and the uncertainty of how
Jamaican customer will react to paying for pricier 4G LTE, providing Streaming
Cable TV, specifically Sports event from SportsMax, will fill in the Traffic
Void on Digicel's New Caribbean-Wide Fiber Optic Networks.
It'll make the Transition to a more Data centric company
easier, helping Digicel to achieve their target of 25% of Revenue from Data
services, be it 4G LTE or Fiber Optic Broadband that their Digicel Underground
Fiber Optic Network in the next five (5) years as reported in my blog article
entitled “Digicel's
First Phase of Underground Fiber Optic Network completed - How Digicel's Tier
III Data Center, FTTH, VoIP and Streaming possible in Year of the Sheep 2015”.
If true, it explains why LIME has not only purchased the
operations of FLOW Jamaica but has also taken on their name. This in order to
curry favour with potential Cable Customers and prevent them from defecting to
Digicel SportsMax as per my analysis in my Geezam
blog article entitled “LIME
Jamaica Goes with the FLOW thanks to Caribbean-wide Survey”.
The inevitability
of Streaming HDTV over 4G LTE – Jamaicans getting into Content Streaming
Already, Both Telecom Providers have been providing
Streaming Radio Services in the form of Deezer and Rdio, basically challenging
the Free-to-Air Radio Industry as explained in my blog article
entitled “@Digicel_Jamaica
and @LIMEJamaica sign Streaming Deals - How HD Audio Streaming, 4G LTE and
Caribbean Artiste means Streaming Revenue Bad Blood”.
So their Streaming Cable TV and FTTH with sports content,
which is to stabilize their Fiber Optic Backhaul Networks with traffic as
customers and businesses are introduced to 4G LTE Wireless Broadband, will
affect the Traditional Broadcasters. This as the provision of Streaming Cable
TV via FTTH means HDTV and other Broadband relate services are coming, forcing
the now newly merged entity to have to consider going that route.
When 4G LTE is finally launched, it'll take some time for
many Jamaicans to adjust to paying higher prices for Data Services. But given
the addictive nature of the initial sampler, that being Digicel Zero as
reported in my blog
article entitled “Digicel
launches Digicel Zero - How @Digicel_jamaica is testing VoLTE vs @WhatsApp's
Free Voice Calling to boost smartphone sales”, they'll soon jump on board.
Jamaicans will slowly get hip to Steaming Full 4K Video
wirelessly as well as via FTTH. Eventually as the economy improves in the next
five (5) years, many might even begin to have improvements in income.
This'll translate to more buying power and thus an increased
tendency to shop online with their Scotia VISA Debit Card and CIBC VISA Debit
Cards. And this spells trouble for both the RJR
Communications Group and Gleaner Company
GCML IPO on the
NYSE to raise capital coming - Why cheaper Tablets, Video Streaming, content purchasing
and 5G on the horizon
So in the future among Jamaicans, buying digital Streaming
content, be it Video, Music or apps may become a more common place activity.
This makes it necessary for Jamaica to develope an ICT Industry based on
Programming Apps, Video Games as predicted in my blog article
entitled “Computer
Programming the Future of Jamaica – How Paul Buchanan plans to jump start the
ICT Revolution”.
We will also have to develope the Computer Programming capacity to
design drones as well, now that companies such as Qualcomm are making SoC
(System on a Chip) Controller Boards for Drones such as the Snapdragon Flight
as reported in my blog article
entitled “Qualcomm
Snapdragon Flight for Drone design - Why US$300 DIY Drones with 4K Video and
connectivity options coming in 2016”.
By then, Tablets, which have been falling in price globally
as well is in the US of A due to heavy competition from the Chinese “White
Label” Tablets as evidenced from the low-cost US$50 Amazon Fire Tablet as
reported in my MICO Wars blog
article entitled “US$50
Amazon Fire Tablet and US$50 Amazon Fire TV Stick makes Christmas bright”.
Throw 5G on that bonfire by 2020 as predicted in my blog article
entitled “ITU
publishes 5G IMT-2020 Roadmap - Why US Telecom Providers, @Digicel_Jamaica and
@LIMEJamaica like to travel off the beaten Path”, which is mainly coming to
the US of A and other Developing World Countries.
If it does come to Jamaica by 2020, it will not end well for
the RJR Communications Group and the Gleaner.
Cheaper Tablets, 4K smartphones, the purchasing of Digital Content, some made by
Jamaicans and even locally made Drones will be common place in 2020.
Many will wonder why they'll even need to watch local
content from the RJR Communications Group
when they can stream 4K content via 4G LTE using a VPN (Virtual Private
Network) as explained in my blog article
entitled “Cable
Providers comply with BCJ Cable Channel Removal - How to install a VPN to
Stream American Cable Channels on your
Roku”.
The GCML (Gleaner Company Media Limited) therefore has no
choice. As soon as the Merger gets approval, they need to set in motion plans
to float an IPO on the NYSE to raise the capital needed to go HDTV, with a
Caribbean wide push.
Otherwise, they'll be swamped by the Telecom Providers, who
in transitioning to 4G LTE and eventually 5G, will erode their marketshare by
introducing better quality content which Jamaicans in the future will be more
than willing to spend their disposable income via their Scotia VISA Debit and CIBC
VISA Debit Cards.
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