Merger of Vigor and the Chimney group will bring industry-leading content creation and distribution capabilities to APAC
Following its merge with California-based content distribution and media solutions leader Vigor, CVG expects to double in size in APAC within 12 months, positioning itself as a serious contender in the global content production and distribution industry. Existing Chimney offices in Singapore and Sydney, as well as Vigor’s Seoul office, will now also offer both content creation and distribution and management services.
Operational from Q3 2019 with full implementation by March 2020, CVG will become one of the leading privately-owned content studios in APAC. Combining Vigor’s tech experience of managing masses of content with Chimney’s communications creative solutions, CVG will become fully equipped to create, manage and distribute thousands of content assets per month, and expects to double its revenue and client base in the coming years.
As technology becomes increasingly fine-tuned, so are global brands’ target market segments. WARC reports that between 2019 and 2024, online video advertising and subscription revenues in the APAC region will double from US$26 billion to $52 billion, with a compound annual growth rate (CAGR) of 15%.
Vigor operates the biggest and most advanced content distribution network and monitoring system in the broadcast industry, delivering nearly 75% of syndicated TV content in the US, with clients including giants CBS, Fox and Warner. Founded in 1996 in Sweden, The Chimney Group built its reputation as an innovative global creative studio with offices in four continents, using a unique mix of creativity and smart content management and distribution. Its client roster includes Netflix, Facebook, H&M, and Atlas Copco, among hundreds of others.
“All trends are pointing in the direction of the need for ever-increasing quantity and quality, storage, tech solutions, and adaptable ways of creating personalized content for target groups,” said Group CEO Henric Larsson. “Clients today typically seek hundreds of outputs for a single campaign, compared to just 5 years ago when they might have been able to get away with a 30-second spot and a handful of cut downs,” he added.
“Bringing the benefits of a marriage of creativity and tech to the APAC market is very exciting,” said APAC MD Camilla Andersen. “We are removing complexity, implementing governance and providing centralised, transparent control. The result is reduced costs, improved collaboration, and simpler workflows. We’re gearing up for the future, but our biggest clients are already here, so we need this now. We expect to double our size in the region within 12 months given the dynamic of combining Vigor with Chimney—technology with creativity.”
Employing nearly 500 people, CVG expects to gain significant control of this explosive video market, continuing to service existing as well as new multinational and larger local clients.
“Chimney and Vigor’s combined strengths place us as pioneers in the future of media, entertainment and brand solutions, catering to the key need for faster and more efficient brand development and management—combined with a strong base in creativity,” Larsson added.