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" 

The Death of the Jamaican movie house

So, had a discussion Friay night last with Sasha Bowie and host Simon Crosskill on CVM-Tv's "Live@7"  programme on the topic of Jamaica's disappearing movie houses. One might believe its hardly worth comment, in that the economics of the entertainment biz (and of cinema in particular) has changed drastically all over the world.

But when you consider that we've gone from no less than 4 theatres in a 400-yard radius as recently as the 1980s, to 2 locations  for the entire city of Kingston, then one can see the merits of discussing the issue Its interesting to learn that he Palace Amusement Co that today operates as a virtual monopoly exhibitor, was itself originally in a competitive situation and is in fact now owned by persons, the Graham family (and the 150 or so shareholders) who were in competition with the original Palace

The quote from Melanie Graham is taken from a Gleaner article by Tanya Batson-Savage.

The Palace Amusement Company (1921) Limited was formed by Audley Morais, and operated as a Private Company prior to 1921 (silent movie days). He re-formed the company and offered shares to the public in 1921.

Over the years the Company operated Movies, Rose Gardens, and Palace Cinemas. Gaiety and Majestic was subsequently acquired, Odeon (Mandeville) was leased, and other cinemas ( urban and rural) were built. It operated cinemas and distributed films to many of the independent cinemas that existed in Jamaica and Cayman.

In 1938, Cinema Company of Jamaica Limited built the Carib, in competition to Palace.

In 1947, J. Arthur Rank, from the United Kingdom, bought control in Palace Amusement Company.   The Rank Organisation  bought out Cinema Company of Jamaica Ltd. owner of the Carib.    J. Arthur Rank closed the Movies and built Odeon in Mandeville in 1951, and Odeon in Half Way Tree in 1952.

In l949, Russell Graham built the Tropical Cinema Company, and used it as a centerpiece of the competition that he mounted for the movie audience against Palace.

In 1962, Russgram Investments Limited - a Company owned by Russell Graham - bought the controlling interest in Palace Amusement Company from J. Arthur Rank, and Douglas Graham was appointed Managing Director. The new regime purchased the Majestic Cinema on Spanish Town Road, built the Harbour View Drive In as a partly owned subsidiary, and took control of Tropical Cinema Company, which was a 2-cinema company - Tropical and Rialto.

In 1989, Russell Graham sold his Russgram Investments Company to Douglas Graham, who still has ownership of it.

Palace Amusement Company is listed on the Jamaica Stock Exchange and has approximately 150 shareholders. There are l,437,028 issued stock units. Russgram Investments Limited presently owns 62.05% of the shares in Palace Amusement Company.

So Palace has, in effect, become what they initially fought against. A very typical situation with monopolies, at least in the Jamaican context thus far.

Odeon is by no means unique. A drive through Downtown will also reveal signs on now dilapidated buildings which clearly, if not brightly, state that they were once movie houses. However, not all the old theatre buildings bear reminders of what they once were. It has probably begun to slip from memory that there were actually four cinemas in Cross Roads not too long ago (a perspective which may vary, depending on your age).

Sharing space with Carib was the Regal theatre. It used to be housed in the building which Azan's now occupies. The more recent closing was that of the State theatre. Up to last year it was home to the Kingston Church of Christ and, at the end of last year, the seats were up for sale. Its days as a theatre are long over and there is no sign that they will return.

The other, almost directly across from Courts, now also hosts a church.

Movie buff extraordinaire, Orville Clarke, reflects on the days when there were cinemas in every parish. An avid moviegoer since the 1950s, he names several theatres which existed throughout Kingston. Among them is the very famous Rialto (also of The Harder They Come fame), along with Kings, Gaiety, Queens, Majestic, Ritz, Tropical, Globe and Deluxe. The names of the cinemas seem to reek of the glitz and glamour which they used to hold.

Outside Kingston , The Del Mar (Port Antonio), Empire (Morant Bay) and Capri (May Pen) all added to what helped to create the movie culture in Jamaica. The second city, Montego Bay, had four cinemas strand, The Roxy, Palladium and Coral.

It appears that only Carib is left from that golden era. The grand white building still stands boldly defiant in the middle of Cross Roads. Now Carib 5, the cinema has changed from the single screen set-up that could hold well over 1,000 people at once. Devoured by fire in September of 1996, the cinema managed to arise phoenix-like from the flames. It was also able to do what so many others were unable to do. Change.

Ms. Melanie Graham, marketing manager for Palace Amusement Company, attempted to explain why she believes none of these cinemas were able to last. "They all closed because they were the old type of movie cinemas. Not air-conditioned, very sparse seat, and I think with the advent of video... that added to their demise," she said. She went on to explain that in order to continue to thrive, cinemas needed a lot of investment. "I don't think at the time they were willing to spend to upgrade," she stated, also noting that the admission rates were not very profitable.