So Digicel is exiting the media business, shutting down Sportsmax and Loop News.  It’s the end of an era!  But what happens next?

More than 100 journalists and media workers in Jamaica have lost their jobs after Digicel announced it was scrapping the media arm of its business.  This also includes CEEN TV, where I worked for two years from 2012 to 2014, so I personally know a lot of the people who are affected.

Digital news outlet Loop News, which was established in 2014, was shut down with immediate effect.  While SportsMax, the region’s leading sports broadcaster since 2002, will cease operations on August 8. 

Digicel had purchased SportsMax from Verticast in 2014.  Verticast is owned by Oliver McIntosh, who later went on to purchase, and now operates, CVM TV.

But Digicel has reportedly been struggling to keep the media outlets financially sustainable. In 2024, they tried internal restructuring to try and stem losses, but the platforms continued to underperform. 

It is a big blow to regional journalism, with some commentators calling it part of an ongoing existential crisis in Caribbean media.

Now let me tell you, this media business is not easy.  We’re all out here competing for the same advertising dollars from a few large advertisers.  Viewership is down because people are spending more time on social media, and advertisers are diverting their spending to Facebook and TikTok ads.  Not to mention the impact of influencer marketing, where advertisers are also spending big bucks to get the endorsement of popular social media personalities.

But still, I always thought Sportsmax was one of the few viable traditional media left, because if there’s one thing people still watch on live TV, it’s sports.  But even that has gone digital, with Netflix entering the live TV space.

I mean, it’s noteworthy that Digicel isn’t even trying to sell Sportsmax, a company with a 23 year legacy.  They’re just shutting it down completely.

Digicel said it will be focusing on the more scalable technology and cybersecurity industry. 

The company entered court-supervised restructuring talks with creditors in 2024, and has been actively refocusing its business strategy. It recently acquired Symptai Consulting, a cybersecurity firm, and is planning to expand its business-to-business offerings in cloud computing, digital advertising, and compliance services. 

However, they’re still holding on to Trend Media, its digital ad and content management arm, and will incorporate it into a broader suite of business solutions.

 The company says it’s confident that its future lies in scalable, high-demand ICT services rather than the increasingly challenging media landscape.

For my investors, this is a signal to re-evaluate your media holdings.  Meta is listed on the NASDAQ.  Digicel is not publicly listed, but does have several bonds on the market.

And that’s the bottom line.