Media agencies hit out at SPH, MediaCorp merger

Media agencies have slammed plans by Singapore Press Holdings and MediaCorp to merge their TV and free newspaper operations. The tie-up will see the formation of a new TV company called MediaCorp TV Holdings, in which MediaCorp will own an 80 per cent stake, and SPH a 20 per cent one. SPH Mediaworks' TV channels - Channel U and Channel I - will be absorbed into the new entity, along with MediaCorp's channels. In addition, SPH will buy a 40 per cent sake in MediaCorp Press, which publishes Today, and will merge its own free newspaper Streats with the MediaCorp title. Media industry sources believe that the shake-up bodes ill for consumers and advertisers. "It's a disaster," said one. "We're going backwards. It's not good for the viewership, advertisers, creativity or in building up talent." Added another senior industry source: "It's a very disturbing trend because in every part of the world they are moving in the other direction of trying to upgrade the viewer experience and satisfy viewers but in Singapore we're going in a very backward fashion."