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The 1st Broadcast and Film Africa Conference

The 1st Broadcast and Film Africa Conference. Russell Southwood Balancing Act www.afridigital.net. Prospects over the next 3 years. Cycle of growth: audiences, consumer spend and advertising spend Interest from intl players: Orange, GTV, ATMT, Visabeira, Vivendi, Star TV and others

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The 1st Broadcast and Film Africa Conference

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  1. The 1st Broadcast and Film Africa Conference Russell Southwood Balancing Act www.afridigital.net

  2. Prospects over the next 3 years • Cycle of growth: audiences, consumer spend and advertising spend • Interest from intl players: Orange, GTV, ATMT, Visabeira, Vivendi, Star TV and others • Regional players: DStv, eTV, Telkom Media, Nation Media, WBS, AIT/Daar • Fragmentation as devices and channels proliferate (PVRs, mobiles, PCs, etc) • Liberalisation matters: jobs and skills, local production and diverse expression

  3. Fragmenting media landscape North Africa: Most used info sources (%) Source: African Broadcast and Film Markets

  4. Growth in ownership • No reliable up-to-date data but… • TV: Clear link to electricity supply. WB: 2002: 20% to 29%. Rwanda: 5% Earlier data: Kenya 7.9% av vs 1% in rural areas. TV still largely urban but changing…. • Senegal: Dakar(83%), Togo (28%) and Rwanda (6%) • Radio: widely distributed and almost universal in urban areas. • E Africa: Disagreements between media owners over TV ownership levels

  5. Pay TV - change of ecology • Total Pay-TV subs: 2.56 m DStv: 2.1 m • This year will see higher levels of competition in all mkts: GTV, Wananchi, Hi-TV, Daar, etc • IP-TV - Orange Senegal: 6% of DSL subs • Feeding back into local content - Africa Magic Channel and others • Bidding wars for rights, particularly football • Advertising: Pay TV may attract share out of proportion to its audience size

  6. Made in Africa? Local content & Intl rights • The local production conundrum: Most programming costs on av US$300-500 per hour Expensive end: $1-2,000. Cost of locally produced drama by TV channel: $9,000 Less if produced independently. US$10-15,000 in-house. Between 20-80% of TV is local. • With some exceptions, lack of independent production sector, low levels of post-production facilities • Formats: Big Brother, Soccer Academy, etc • DIY content - Nollywood, Riverwood, etc, etc • Creating a cycle of local production? Economies of scale? Missing elements?

  7. A missing element?

  8. Digitalisation and HD • Production and transmission. • ITU deadline: 2015. Private sector running ahead: DStv, Metro TV, Star Africa, London Satellite Systems and other tests (RTNC-Teleconsult in DRC) • Policy leaders: South Africa (2010), Kenya, Tanzania and Nigeria??(2012) CRASA • HD - DStv, this year in time for World Cup 2010. AIT/Daar on Pay-TV offer.

  9. Advertising - the main economic underpinning • Ad spend as % of GDP (2006): Europe 0.8% Africa: Est 0.1-0.7% South Africa (0.58%) • Growth of service rather than producer economy. Example: mobile operators • Above av. Economic growth. Growth of MC: Kenya’s ABC1s 1% of total pop (3 m). C1s and C2s in Uganda similar amount. • Broadly 2 types of market: Mass market commodities like coco and beer (urban and rural) and MC consumer goods and services (urban). Impact on media?

  10. Current state of liberalisation • 17+ out of 40 African countries have licensed private FTA TV channels. Many more have additional Pay-TV channels. 140+ FM stations in Uganda, 80 in Senegal. Community radio and TV (CT) • Initial toes in the water were state channel JVs with private sector (Ghana, Kenya and Senegal) • Wider liberalisation (East Africa) vs narrow opening (South Africa)

  11. Regulating liberalisation • 27 out of 40 countries: some form of regulatory body. 10 have no body at all: all decisions made by Govt. 14 have a body but powers are limited. 13 have active policy and give licences. • Increased convergence (from TRASA to CRASA) • In the main, broadcasting regulators made less impact than telco colleagues.

  12. The end of Your Excellency TV? • Public/Government obligations: local content, languages and signal coverage • Heavily reliant on politicians for licence fees (where they exist) and capital costs. • But largely reliant on advertising so needs audiences. Competing for ever-smaller ad cake. • To get audiences it has to be trustworthy for major commercial event in programming cycle, the news • Private FM radio mostly gets better audiences: Walf FM (48% listened yesterday)

  13. The trust factor Source: African Broadcast Markets, Balancing Act and Intermedia

  14. The tower of babel - languages • The rise and rise of vernacular radio • Local language TV content (Inspeckta) 2000+ Languages But…

  15. The commercial break • Free fortnightly e-letter: African Broadcast, Film and Convergence • Pay-for report: African Broadcast and Film Markets • Consultancy and research • Contact: info@balancingact-africa.com

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