The RJR Group profits jumped to $22 million for its June first-quarter 2015 or 44 per cent higher due in part to new revenues from its online media entities.

“The introduction of our new Over The Top Technology (OTT) platform 1Spot Media and 1Spot Events have already yielded new subscription revenues from across the world. In addition innovations and product packaging have increased local demand for our multimedia services,” stated chairman Lester Spaulding and director Carl Domville in a statement prefacing the financials.

The group’s revenues of $516 million for the three months increased over the prior year by 6.3 per cent or $30.5 million due to new income from 1Spot media. Direct costs at $218 million were up 1.9 per cent year on year due to fees associated with 1Spot media and a salary increase, management indicated. During the quarter depreciation charges also increased associated with new capital assets related to “new digital technologies”.

1Spotmedia is the RJR group’s Internet media service, offering the full range of the RJR Group television and radio brands, including TVJ, RETV, JNN, TVJSN, RJR94FM, FAMEFM, and HITZFM, in one spot online. The site allows visitors to browse or pay a subscription to gain full access to content.

Last August RJR managing director Gary Allen told the Jamaica Observer that it would launch Internet subscriber TV as part of what the media group called its OTT technology to deliver content.

A major challenge of traditional media relates to monetising its content online. Many choose instead to offer such content online for free. RJR offers a combination of both free and fee paid content.

The group previously described the industry as suffering from an overall decline in advertising spend due to the austere economy and increased competition.

On August 5, the directors of RJR and the Gleaner Company Ltd signed an agreement that will see the merging of the media business of both companies.