This article first appeared in The Edge Financial Daily on August 7, 2017 - August 13, 2017

PETALING JAYA: Media Prima Bhd’s Primeworks Studios Sdn Bhd has found a new channel to promote its locally-produced content to an international audience.

Primeworks recently started supplying content to global streaming network Netflix that will be aired on the latter’s platform soon, according to sources.

Primeworks is the content production arm of the public-listed Media Prima, while Netflix is an over-the-top (OTT) content provider that streams on-demand TV shows and movies instantly in over 190 countries.

“Primeworks will have five of its Malay and Chinese titles rolled out when Netflix makes them available on its service starting Aug 7 (today),” said a source familiar with the matter.

“The feature films and drama series that will be rolled out on the global streaming service include Sejoli: Misi Cantas Cinta, KL Zombi, Rembat, Hati Perempuan and Chinese drama series Persona,” the source told The Edge Financial Daily.

It is not known how much revenue Primeworks could fetch from the supply of locally-produced content to Netflix. However, sources said the company aims for international sales to make up 20% of its revenue by 2020 from the current single-digit percentage contribution. Revenue from the content-creation business stood at RM20.5 million in the financial year ended Dec 31, 2016.

Primeworks annually produces more than 6,000 hours of content annually for television, cinema and digital platforms here as well as abroad. It has been producing content for television since 1984 and feature films since 1994. It added digital platforms into its portfolio in 2011.

Some of its original content under Primeworks’ belt include Anugerah Juara Lagu, Majalah 3, Nona, Jalan Jalan Cari Makan, Mentor and Jejak Rasul, while box-office content include Ada Apa Dengan Cinta 2, BoBoiboy: The Movie, and Upin & Ipin Jeng, Jeng, Jeng!

In 2016, Primeworks — through its distribution division, Primeworks Distribution — distributed over 42 titles to iflix which include popular hits from television dramas to blockbuster movies.

In its annual report 2016, Media Prima stated that Primeworks also secured sales to JaiKon TV, an OTT service operating in Cambodia, in its list of regional customers selling 17 titles in various genres including travel, dramas and animation.

For the financial year 2016 (FY16), the content-creation business segment reported a net profit of RM10.4 million compared with RM14.1 million a year earlier.

The content-creation business was one of five profitable segments for Media Prima’s first quarter ended March 31, 2017 (1QFY17) while three other segments were loss-making. The content-creation division generated RM1.4 million profit compared with M3.2 million a year earlier.

For 1QFY17, Media Prima registered a net loss of RM38.5 million compared with a net profit of RM17.2 million a year earlier.

For the content creation business, Media Prima revealed in the result announcement that the division “will be exploring potential new IPs for animation and co-production with external broadcasters while expanding the current content sales in overseas markets”.