MediaWorks' licence sparks worry

SINGAPORE: SPH MediaWorks' launch of a new free-to-air television

station has been greeted with mixed views by media buyers.

Media buyers said they are concerned amid reports that MediaWorks is

still awaiting a broadcasting licence even though Channel U - its

Chinese language station - is scheduled to launch on May 6 followed by

the English languageTV Works channel on May 20. In the last few days,

Reuters reported that MediaWorks could be forced to delay its launch

because the Singapore Broadcasting Authority (SBA) has yet to issue it

with the necessary licences.

MediaWorks responded with a statement to the Singapore Stock Exchange

the next day, stating: "SPH has been working with the SBA on a licence

for MediaWorks. In the meantime, we will continue to get ready so we can

launch the channels once MediaWorks gets the licence."

But its statement has not allayed agencies' concerns. Tay Tat Jin, FCB

Singapore media head, said: "There's no point discussing advertising if

they don't launch the stations on time. We asked them about the licence

and we're waiting for them to get back to us."

MediaWorks also faces stiff competition from Singapore's dominant

broadcaster MediaCorp, which has restructured its ad sales department to

boost efficiencies. Instead of having sales staff assigned to

advertisers, they are now assigned to media agencies.

Despite these challenges, MediaWorks appear to have won over some media

buyers. Malcolm Hanlon, general manager of Zenith Media Singapore, said

it is worthwhile advertising on the two stations because "everyone will

be tuning in to see what the new channels are like".

Hanlon said the ad packages are cost efficient and advertisers can pay

according to a cost per rating point.