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The spiral and the unfeasible

Wed, 09 Nov 2011 13:03

Two noteworthy situations in the South African broadcasting sector this past week: firstly, mounting calls for decisive action to be unleashed on the spiraling-even-more-into-crisis public broadcaster SABC and on its board chairperson Dr Ben Ngubane. Secondly, the National Consumer Commission's (NCC) unfeasible proposal that would force pay-TV operators to allow subscribers to pick their own channels ΰ la carte rather than subscribe to set bouquets.

On the latter point, TopTV recently reached the 300, 000 subscribers mark while DStv had 3.49 million subscribers at the end of March 2011 (as published in the Naspers financial results). So, if the NCC goes ahead does that mean we will see 300,000 plus 3.49 million separate bouquets in South Africa? Can you imagine the technology costs, billing costs and admin costs of a pay-TV broadcaster having to submit to each and every subscriber's channel whims? The outcome is likely to be much more expensive channels or perhaps even going out of business. Catering to subscriber's whims is a whole other type of business and it's called video on demand (VOD) - done per downloadable programme or film, not per channel.

Both TopTV and DStv offer a choice of packages to subscribers and that's the whole point – packages. Any broadcaster should have the right to decide what it puts in a package and consumers then have the choice whether they want to subscribe or not. Pay-TV is a business after all and it has to be operate from a sound business model. TopTV and DStv currently have sound business models so why stuff it up?

As for the SABC situation – just when you think it can't spiral out of control any more, it does. Truly a wonder of nature, but not in a good way.

The latest spiraling installment, prompted by Ngubane's questionable presentation to parliament, the Justice Ndaba scandal, the controversial reappointment of the controversial Sipho Sithole as head of Strategy, the R20m car lease fracas, and the spat between Ngubane and board member Cawe Mahlati, has seen a spate of industry organisations and unions – SASFED, Bemawu, and SOS: Support Public Broadcasting (and several weeks previously, Mwasa) - call for the SABC to be put under administration and for Ngubane's resignation. I have to agree that the SABC should be put under administration – it needs a total overhaul to sort out all the maladministration and the non-turnaround nature of its turnaround strategy. Obviously it should be independent administration and that's not all that likely, given the government's tenacious hold over the broadcaster, historically one of the sources of its woes. If only Superheroes really existed, because that's what is needed. One swish of the Superhero's cloak and all SABC problems would be solved. If only…

Yesterday the SABC launched its 8th Request for Proposals (RFP) Book – a positive sign indeed but only if something actually ends up being commissioned. Not much happened the last time the SABC launched a RFP book. Thumbs crossed this time though!

Joanna Sterkowicz



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