[Kabar-indonesia] Trans Corp takes 49% stake in TV7 to create strategic partnership

[Joyo at aol.com]

The Jakarta Post 
Saturday, August 5, 2006

Trans Corp takes 49% stake in TV7 to see off competition

The Jakarta Post, Jakarta

Trans Corp, the owner of TV station Trans TV, has purchased a 49 percent 
stake in TV7 television from Kelompok Kompas Gramedia (KKG) to form a strategic 
partnership between the two firms.

The two companies said Friday that the move was aimed at improving their 
competitiveness against the country's other nine television stations.

"We hope that this partnership will bring TV7 in a better direction," said 
Trans Corp president director Chairul Tandjung during a ceremony to mark the 
signing of the agreement Friday at Trans TV headquarters on Jl. Kapten Tendean, 
South Jakarta.

Chairul said the two stations would not compete with each other as regards 
program content, and that well-established programs on Trans TV could also be 
broadcast by TV7.

TV7 would focus on sports and entertainment, while Trans TV would continue to 
concentrate on entertainment and lifestyle programs.

TV7 enjoys a 6 percent share of the country's television audience, while 
Trans TV has a 13.8 percent share.

Following the deal, TV7 management is set to undergo a number of changes.

Current Trans TV deputy president director Wishnutama will replace TV7 
president director Lanny Rahardja, while Trans TV sales and marketing director Atiek 
Nurwahyani will replace TV7's deputy president director.

KKG president director Jacob Oetama said the deal was essential to providing 
good-quality TV programs.

"The two TV stations will offer healthy and educational entertainment," said 
Jacob.

Information and Communications Minister Sofyan A. Djalil said recently that 
ideally there should be no more than five TV stations broadcasting nationally, 
compared to the current 11, if healthy competition was to be sustained.

Most TV stations in Indonesia are experiencing a drop in revenue and profits 
due to tight competition and sluggish advertising growth.

Publicly listed Indosiar, for example, recently reported a drop in its 
operating revenue to Rp 144.7 billion during the first quarter of 2006 from Rp 239.6 
billion during the same period of 2005.

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Joyo Indonesia News Service
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