Media Business: "Who Really Owns Rio?" and other lessons from the RJR-Gleaner merger forum

At one of several high-wattage parties announcing its transition, executives of the former LIME, which is now operating its consumer telecoms biz as FLOW, trumpeted the new entity as " the exclusive broadcaster" of the much anticipated 2016 Summer Olympic Games in Rio, Brazil.

expectedly, this sent no small shocks through the media fraternity as a whole and the conventional broadcast media in particular. CVM and TVJ had consistently battled to secure the rights to such tentpole sporting events (Olympics, World Cup Football tournament) that have clear demand for Jamaican audiences and thus represent a boon in seeking the all-important ad revenues.

Now, the rights to Usain Bolt's possible swan song (and other potential show-stoppers) has gone to what has conventionally been a cable TV provider, an outsider if you will.

But hold on. At a public forum hosted by the UWI's Mona School of Business and Management (MSBM) on Thursday night, it was revealed that while Cable and Wireless Communications, parent of the new entity FLOW/LIME (LIME really no longer exists, at least in the Jamaican context) has actually signed on as broadcast sponsor - and exclusive telecoms partner - to the real rights holders:

CANOC

Who? The acronym essentially pools the national Olympic Committees of the Caricom region, who have formed a unique media entity of their own, dubbed CBI, will managed the feed served through sports powerhouse ESPN to 33 regional territories, including Jamaica. Pollster and veteran Jamaican Olympics official Don Anderson, who 'happens" to be a board member of CBI, made the clarification during the Q & A session that followed five panel presentations (including his own) on the implications of the RJR-Gleaner (Media) alliance.

The deal, which RJR Group CEO (and CEO-designate of the new entity) Gary Allen says is in  the process of clearing regulatory and shareholder approvals hurdles, is expected to be fully ratified by year-end. Even though Extraordinary General meetings will be required on both sides, RJR shareholders will almost certainly raise the issue come next week when they gather at the Pegasus for the Annual General Meeting. 

The papers covered a fair range of issues, from the stock complexities attending the deal, to the audience/consumption picture against which it was contemplated. Former TVJ CEO, now Media Consultant Kay Osborne delivered a sobering framework of the advertising market which had healthy doses of diatribe against the telecoms giants Digicel and FLOW/LIME for wading into what may have been perceived as "hallowed space" . Is it really "proper" for tech-heavy, deep-pocketed telecoms firms, who formerly partnered with free-to-air TV (and still do, to varying extents) to now become direct competitors to conventional broadcast media in a low(no)-growth economy, with ad revenues in flux?

Weighty question and still up for debate. But what's not debatable is that a major shift has taken place in the media landscape, the effects of which will surely be felt through the remainder of this decade.

As they'd say in Rio, "Ate breve"