To Live By Changes

Published Mon, 6 May, 18:37

Yevhen Liashchenko, Director, Media Group Ukraine, has given an interview to Focus speaking on the Group business evolution, in house content production, advertising rates and relevant pricing policy, television-online rivalry, switch over to HD.

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F.: Media Group Ukraine is actually a vast multimedia environment subject to permanent changes. What are the changes aimed at? Has your company turned the corner?

Ye.L.: Let’s start by saying that any business practice model calls for permanent adaptation and that’s in effect a vital need. Besides, it is a key instrument for meeting our goals. An approach to strategizing is ever changing. That’s what happens today. Long term strategies meant for a few years become outdated and obsolete. You draw some figures on paper and all of a sudden everything shifts in a few months and the strategy so well-thought–out does not seem to work at all. There is the only one way out: to draw up a rather flexible model for business as such, its management and decision making so that you might keep pace with changes, get adapted and meet new challenges. It is worth noting that, on the one hand, transformation is a permanent process and on the other hand results are to be attained at each stage of the process. As for the transformation it has been under way for the last four years with the aim to switch over from the holding’s top-down structure to a more flexible model based on cooperation of businesses within the Group and interaction with external environment.

F.: How did it all begin?

Ye.L.: At the very beginning we were basically aimed at incorporating all media assets within System Capital Management (SCM) and namely nationwide and regional channels and digital projects. Then new assets appeared. At the primary stage we built up a classical holding structure with a matrix management system and centralized business support functions. We distinguished a few groups within the holding and in particular: terrestrial TV Channels, regional media group, print media holding, sports group, digital projects. So the holding was established in 2012-2014. Why did we do that? First and foremost, to have all assets administered and coordinated according to common rules and standards thus giving rise to a clear - cut understanding of being incorporated within a single business structure. Strategically we were sure aiming to improve effectiveness as per each business area but not only that. We made an effort to find additional synergies among them so that any prospective and potentially independent business area had its own position within a bigger business.

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F.: You mean that production was separated from broadcasting in both, TV and digital spheres?

Ye.L.: At the end of 2016 we became aware of the fact that content production is supposed to be a separate business line and TV channels and the said content distribution should develop quite independently. At the first transformation stage we used to design the content production model by in-house productions and also in cooperation with external companies. At the second transformation stage we were intent to restructure the links among business areas to change the processes and introduce new administration and coordination rules so as to produce multimedia content ensuring revenues not only on classical TV but also on other platforms. New projects development and launch is an offspring of cooperation between production companies (in-house and external) and creative teams of TV Channels, such as Ukraine and NLO TV. The next transformation stage intensified synergy among various businesses. We’ve started to distinguish new products and services which resulted in new business areas arising. On top of terrestrial group and content production unit a new independent area turned up – monetization of our own content – sale of rights not only in the Ukrainian market but also in the foreign ones.

F.: Would you dwell upon the MGU prospects?

This year we are going to consolidate our new teams, to work on their interaction, so as to improve its quality and intensity. And, sure thing, proceed with activities aimed at raising effectiveness and increasing revenues.

 

Read the full interview by reference to https://bit.ly/2DRw7wL