If you own shares in local media companies such as the RJR Group or the Jamaica Gleaner Company or any media outlet that offers shares you should seriously consider dumping them right now.
In a very short space of time these shares will not be worth the paper they are written on. Why?
For starters LIME has partnered in the launch of a local newspaper called the Portmore Sun. LIME has hired Dr. McBean from CVMTV and soon will begin offering IPTV to the home and has already launched mobile TV.
Digicel will at some point launch their own version of IPTV and of course there is Flow Cable TV service. With facebook gaining close to 300,000 local Jamaicans. Advertisers will soon have multiple avenues to reach the consumer at a cheaper rate. This will cause an eating away at the already small advertising pie you read about media entities try so had to protect.
In fact Digicel could run a TV station and channel on a LIME IPTV network and on a Flow network and vice versa. So the value that Jamaica Gleaner and the RJR Group and other media groups bring to the market will shrink dramatically.
In addition to this with advertising, that being local ads inserted in foreign channels. The reach will be greater and cheaper for advertisers.
The local ad agencies are also a waste of resources, as a new skill set of graduates will be able and willing to accomplish most ad requirements in house for most companies.
With introduction of low cost Tablet PCs newspapers read online in homes will take the place of print media as already major newspapers are going extinct within the United States. It is only a matter of time before the same applies to Jamaica.
Blogs and online newspapers will rule. They along with low cost Tablet PCs and greater Internet penetration will level the playing field and false sense of invincibility and usefulness of legacy media houses.
So in my humble opinion owning such shares or any form of investment in such media entities is risky and will soon be worthless.