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.

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