Lai may extend Taiwan footprint with cable TV
Next Media is in talks to buy a Taiwanese cable television channel, a move that could make the company the island's most influential media operator.
Sources said the publisher of Apple Daily and Next Magazine in Hong Kong and Taiwan was eyeing the television operations of China Times Group, a newspaper publisher on the island.
Management teams from both companies have been in touch since early this year but it is understood no agreement has yet been reached.
China Times did not reply to requests for comment.
Industry watchers said China Times owner Albert Yu was urgently seeking to cash out from various investments, with the core newspaper publishing business suffering huge losses over the past decade.
China Times' CTI TV is considered one of the most valuable assets held by the company. The group also owns China Television, a terrestrial television broadcaster.
'Cable television is the most influential media platform in Taiwan and media owners can establish big reputations and awareness once they get into the industry,' a veteran media executive told Media Eye.
Next Media chairman Jimmy Lai Chee-ying had originally planned to introduce a new television channel to Taiwan and hired a head hunter to find suitable executives.
However, the response was cool, forcing Mr Lai to consider acquiring an existing television channel.
According to media monitoring firm Nielsen Media, Taiwan's advertising market grew only 1 per cent in the first half of the year to NT$22.23 billion (HK$5.37 billion).
Cable-television channels accounted for 30 per cent of the pie with NT$6.84 billion in revenue. Newspapers ranked second with a 28 per cent share of the market.
Next Media is one of the biggest listed publishers in the region, printing two newspapers and four weekly titles in Hong Kong and Taiwan.
However, it is facing problems boosting its readership, with young people preferring to watch videos or news online.
Mr Lai believes television could help expand the company's reach in Taiwan, where its Apple Daily, Sharp Daily and Next Magazine are already leading players.
China Times, which will celebrate its 58th anniversary on October 2, is seeking to cut costs amid an adverse advertising market.
The group's flagship newspaper China Times is reportedly planning a second round of lay-offs this year after firing around 500 staff in August.
Pixel ventures into Vietnam
With the local advertising market expected to face tough times next year, online advertising agent Pixel Media is turning its attention southwards.
The British-listed, Hong Kong-based firm said it was establishing a joint venture in Vietnam with 5th Media.
It will open offices in Hanoi and Ho Chi Minh City.
The Vietnam business will be led by Robin Hii, general manager of Pixel Media Vietnam, with a team of business and sales managers.
Sources said Pixel Media would own 49 per cent of the joint venture, the upper limit for foreign firms owning stakes in Vietnam.
Pixel Media is seeking to build strong partnerships with Vietnam website publishers and to develop cross network sales.
According to the Vietnam Advertising Association, the country's advertising and internet industry could be worth US$31 million by 2010, up from US$10 million last year.
Pixel Media is online advertising agent for several popular websites in Hong Kong such as Next Media's flagship portal atnext.com, Commercial Radio's 881903.com and mainland portal Sohu.com.
The company's pre-tax profit rose 92 per cent to US$1.17 million in the first half of the year, with revenue gaining 86 per cent to US$9.14 million.
