ANNUALREPORT 2013
29
INDUSTRYOUTLOOKANDFUTUREPROSPECTSOFOURGROUP
(Cont’d)
II.
Overviewandoutlookof DOOH transitmedia industry
(Cont’d)
IndustryForecast for theDOOHTransitMedia Industry (Malaysia), 2013(f)-2017(f)
Growth
Adex
Rate
Year
(RMmillion)
(%)
2013(f)
60.4
23.8
2014(f)
76.6
26.8
2015(f)
97.2
26.8
2016(f)
127.0
30.7
2017(f)
165.9
30.7
CAGR 2013(f)-2017(f)
28.7
Notes: All figures are rounded; the base year is 2013
(Source: Digital-out-of-home Transit Media Industry in Malaysia dated January 2013, Frost &
SullivanMalaysiaSdnBhd)
III. Prospectsand futureplansof ourGroup
Our Group is principally involved in delivering information and entertainment programs,
advertisements, community-driven messages and public bulletins in public transport via our
Transit-TVNetworkSystem, installed inmajor city buses servingKlangValley and Johor Bahru,
aswell as luxury long haul express buses servingpeninsular.
Traditionalmedia foradvertisingsuchasTVandnewspapers remainaspopularadvertisingmedia
inMalaysia. With regards to transit advertising, prints such as the vehiclewrap, lightboxes and
in-vehicle panels also remain popular with a relatively longer history of use compared to digital
screen advertising. While DOOH transit media is becoming more popular and viable amongst
advertisers,DOOHmust still competeagainst traditionalmediawhichstill servesasanattractive
advertising substitute toDOOH.
The growth of DOOH transit media industry is facilitated by the price erosion of digital screens
with theaveragepriceof digital screenexpected todecreasebyaCAGRof approximately2.6%
over the period from 2007 to 2014. Additionally, with the Government aggressively promoting
the upgrade of the public transport service in the country, this is expected to further boost the
growthof DOOH transitmedia industrywith theexpected increase inpublic transport riderships.
Combined, these provide uswith significant opportunities for growth and expansion.
In theDOOH transitmedia industry,weare recognisedasoneof threemajorplayers in this industry,
alongwithSimfoni MayaSdnBhd andYTL InfoScreenSdnBhd. There could possibly be other
smaller competitors in the industry, but these threeplayers are themost notableones, providing
digital media services to the three key public transportation channelswith installeddigital media
screens, namely RapidKL Buses, KTMB Intercity trains and express rail link to Kuala Lumpur
International Airport.
(Source: Digital-out-of-home Transit Media Industry in Malaysia dated January 2013, Frost &
SullivanMalaysiaSdnBhd)
Management DiscussionandAnalysis
(Cont’d)
