Prime Media reveals “one app to rule them all” strategy

Prime Media Holdings [PRIM 3.26 1.24%] [link] revealed a long-term strategy that appears to be centered on a “one app to rule them all” approach that will blend multiple channels of content delivery (TV, radio, streaming, pay-per-view) with an e-wallet functionality to allow users to pay for PRIM content, send and receive money, and pay other bills.

PRIM was recently taken-over by RYM Business Management Corp., which is owned and controlled by the Romualdez Family, and this update detailed progress on the memorandum of understanding (MOU) between the PRIM and the Romauldez-controlled Philippine Collective Media Corporation (PCMC), which expects to begin radio broadcasts in several large, new markets this year, including: “Cebu, Pampanga, Mindoro, Romblon, Puerto Princesa, Nueva Viscaya, Sorsogon, Iloilo, Bohol, Siargao, Cagayan de Oro, General Santos, Cotabao, Quezon and Albay”.

PRIM said that it plans to acquire additional “free TV and radio” frequencies, and will air content from “independent content providers”.

PRIM also said that it is “studying” the launch of a digital platform to “support” its television and radio channels.

The digital platform could feature streaming, on-demand, pay-per-view, and other content delivery services.

PRIM also said that it is already in discussions with “several tech firms” about implementing an e-wallet functionality to the PRIM digital platform that would allow locked-in users to “receive cash, purchase goods, and pay bills”.

The company is also in talks with tech firms about user surveillance monetization schemes, like “data mining and storage”.

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There’s no avoiding the elephant in the room, which is that PRIM’s stock is up 123% so far in 2022, potentially due to a general feeling that this Romauldez-dominated play will receive favorable weather from a Marcos-dominated government.

The MOU between PRIM and PCMC is really just the formalization of the working relationship between the infrastructure (PRIM) and the content provider (PCMC) of the growing Romauldez media empire.

Perhaps it’s not a coincidence that ABS-CBN [ABS 9.17] was EJK’d, as its absence from the media scene paves the way for new players like PRIM/PCMC (with its likely pro-regime content) to fill that “last mile” delivery gap to the far reaches of the country.

It will be interesting, though, to see how PRIM’s potential strategy shakes out. It’s basically saying that it wants to be a major cable network, and then something like a PH-version of Netflix, but then also like a PH-version of GCash, but all rolled into one massive ecosystem.

That’s a lot to execute. That’s a huge amount of complexity and customer-facing process to make, test, market, and grow.

Is PRIM up to the task?

I don’t know, but the market really seems to be taking a piece just in case they can figure it out.

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