State of the Broadcasting Industry Report 2015 – 2018 (Second Edition)

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State of the Broadcasting Industry Report 2015 – 2018 (Second Edition) STATE OF THE BROADCASTING INDUSTRY REPORT 2015 – 2018 (SECOND EDITION) 25 YEARS OF FREEDOM IN BROADCASTING Research contributed by August 2019 About the NAB The NAB is a voluntary association that was formed in 1993 to foster and promote the development of a sustainable and robust broadcasting system in South Africa. It established the Broadcasting Complaints Commission of South Africa and supports the principles of democracy, freedom of expression and the diversity of voices. As the leading representative of South Africa’s regulated broadcasting industry, the NAB has over the last 25 years responded to policy and regulatory processes toward an enabling environment that strengthens the industry. The NAB is funded entirely by its members and delivers on a broad range of needs for a vibrant and viable industry. Advocacy | Innovation | Knowledge . Research contributed by FROM THE CHAIRPERSON’S DESK August 2019 • Associate members - The Media Connection, Mediamark, Association of Christian Media, It gives me great pleasure to present, on behalf DStv Media Sales, NEMISA, Telemedia, of the members of the National Association of Globecast, LM Radio, United Stations and Broadcasters (NAB), the second edition of the NAB MDDA Report on the State of the Broadcasting Industry in South Africa. NAB members wanted to reflect on industry progress since 2014 whilst considering key issues facing this Our first report was presented in 2014 as our regulated sector in an age of digital disruption and country celebrated 20 years of democracy. We governments’ championing of the Fourth Industrial thought it timely and appropriate to develop a Revolution (4IR). We commissioned PwC to second edition of our report to track developments compile data supplied by our members to assist in in the broadcasting sector as this year, 2019, we developing this second edition of the NAB report. mark both 25 years of democracy and 25 years of independent regulation of the sector. When reading this report, please bear in mind that it makes no claim to be a definitive study of every Since its inception almost 27 years ago, the aspect of the broadcasting industry in South Africa NAB has emerged as the voice of South African – the report builds on the 2014 baseline data as broadcasters. This is reflected in the positive collected from the membership of the NAB. The engagement across government and key industry intention is that this report (as well as the 2014 stakeholders and in the wide range of policy and edition) will be used as a critical resource through regulatory submissions made. It is also reflected which the progress of the broadcasting sector can in the membership of the organisation which has be tracked. grown steadily and includes: Notwithstanding the many challenges in the sector, • The 3 television services and 19 radio services we are very proud of what has been achieved by of the SABC; the broadcasting sector over the past 25 years. The democratisation of broadcasting has enabled • Licensed commercial radio broadcasters, the public to enjoy and engage with more services, including media groups: Primedia, Kagiso channels and programmes, in more languages and Media, MRC Management/Tsiya, AME and more genres than ever before. Overall, the story of MSG Afrika, as well as Kaya FM, Smile FM, broadcasting in our democracy is a good one. Classic FM, NWFM and YFM; My thanks to the NAB members who contributed to • All licensed commercial television this report and to the PwC and NAB team for their broadcasters - e.tv, MultiChoice, M-Net, tireless work on this project. StarSat; Philly Moilwa • A host of community radio broadcasters and a community TV service, Faith Broadcasting CHAIRPERSON Terrestrial; • Both the licensed broadcast signal distributors and the selective and preferential broadcast signal distributors, Sentech and Orbicom; and 1 State of the Broadcasting Industry Report FOREWORD In 2014 the NAB developed its first State of the broadcasting regulations and instituted a public Broadcasting Industry Report. At the time, a National process to assess the state of competition in the Integrated ICT policy review process was unfolding subscription broadcasting market. ICASA renewed and then State President Jacob Zuma split the commercial and community radio licences and is in government Department of Communications (DoC) the process of reviewing the sports broadcasting into two ministries, namely the Department of regulations. Notwithstanding multiple delays Telecommunications and Postal Services (DTPS) regarding the digital terrestrial television migration and the DoC. project, ICASA licensed a commercial television broadcaster for Mux 3 on the digital multiplex. Toward the end of 2018, State President Cyril Ramaphosa announced that the two departments Government recently established a Presidential would be reintegrated and a new department would Commission on the Fourth Industrial Revolution be established post the 2019 national elections. (4IR) and the sector regulator, ICASA, established It is expected that this new department in the 6th a 5G Forum to begin to develop input into ITU administration of government, will usher in a new standards on 5G. The 4IR and 5G initiatives are dispensation that includes the digital economy. aimed at economic growth and will require clear policies on future spectrum usage. The NAB participated in the previous administration’s National Integrated ICT Policy Review process. The NAB consistently makes contributions The review initially included broadcasting issues; to policy development and regulation making however, as a result of the creation of a ‘new’ DoC processes toward a sustainable, vibrant and and DTPS, the ICT White Paper, as published in diverse industry. Regrettably, there has been a 2016, (under the DTPS), excluded broadcasting lack of policy harmonisation across government matters. Attempts were made by various DoC departments and the NAB had to petition the ministers between 2014 and 2018 to progress a State President on the Department of Trade and broadcasting policy review - this was referred to in Industry’s Copyright Amendment Bill - given the government documents as an ‘Audio-visual White dire impact of this Bill on the future viability of the Paper’. The NAB participated in all iterations of this broadcasting sector. The NAB also participated process, including an industry-wide engagement on in the amendment process of the Films and the future of the public broadcaster during the last Publications Amendment Bill regarding content quarter of 2018. However, at the time of completing classification. Having spearheaded self-regulation this report, a holistic broadcasting policy review through the Broadcasting Complaints Commission remained uncertain. of South Africa (BCCSA) - 27 years ago, the NAB members are at the forefront of innovation in In addition to growing policy uncertainty, the protecting children from harmful content and using broadcasting sector finds itself competing with digital technologies in both radio and television to unregulated content platforms and services. There that end. is also growing concern about whether the analogue switch-off (ASO) date of July 2020 will be met, as Despite the last 5 years of policy uncertainty, the television broadcasters are yet to migrate off the slow pace of enabling regulations and disruptive 700 and 800 MHz bands for the digital dividend to content platforms making inroads into the broader be realised. media and ICT ecosystem, there have been impressive strides by the NAB members, who In the intervening years between 2014 and collectively make up the bulk of the public and 2018, the DoC focused primarily on the public commercial broadcasting sector in South Africa. broadcaster’s funding and governance, whilst the They are also substantial revenue contributors regulator, ICASA, prioritised a review of community to the Media Development and Diversity Agency State of the Broadcasting Industry Report 2 (MDDA), which in turn funds community and small This publication has been prepared for general commercial media. NAB members have also led guidance on matters of interest only, and does not the sector in trialling digital audio services and constitute professional advice. You should not act are supportive of robust policy and regulatory upon the information contained in this publication processes toward future digital audio licensing. without obtaining specific professional advice. No representation or warranty (express or implied) is With the support of PwC, the growth and given as to the accuracy or completeness of the development of the sector since 2014 are unpacked information contained in this publication, and, to in this report. It provides clear indicators of the the extent permitted by law, neither the National contribution made by broadcasters to the economy Association of Broadcasters (‘the NAB’), PwC, nor through job creation, local content creation and any of the other NAB’s contributors/subcontractors investment in infrastructure. It presents reliable accept or assume any liability, responsibility or duty data to inform and shape future broadcasting policy of care for any consequences of you or anyone and identifies gaps for ongoing industry research. else acting, or refraining to act, in reliance on the information contained in this publication or for any This second edition of the NAB State of the decision based on it. Broadcasting Industry Report is the culmination of a detailed survey engagement with the NAB membership, without whom
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