Simon Segal
WITH cellular telephones now virtually passe, satellite television is set to become the next yuppie symbol. Behind the scenes an intriguing corporate battle is unfolding between M-Nets Multichoice and SABC. There is potential for substantial losers and winners.
The big question is whether SABCs decision to go analogue makes commercial sense in a world moving towards digital technology.
Multichoice is confident SABC will fall behind and that it has already lost the broadcast rights to key stations and programmes. SABC is betting it will be able to enter the digital world with better and cheaper technology.
Four months into its launch of digital TV, Multichoice claims 14 000 subscribers (some dealers feel it could be less) and is confident of reaching its 100 000-target by year-end.
After initial problems 26 000 decoders have been distributed by Pace. Panasonic decoders, whose production was hit by a fire in December, will be back in business in April and cost R4 300 against R3 999 for a Pace. Add to this about R700 for a dish and R300 for installation and the total is R5 000 to R5 300. The monthly subscription is R175.
So far 19 TV channels and three audio channels are on-air at Multichoice. Among the TV bouquet are news channels BBC, CNN and Sky on a 24-hour basis. On the audio channels, 702 tuned in last week. The other channels are the BBC, Voice of America and DMX, which offers 40 musical sub-channels. Multichoice is talking of 30 TV channels by the end of the year. The next channels to be launched are a science-fiction one and its first optional-cost channel Zee-TV.
David Niddrie, manager in charge of SABCs TV satellite project, expects the free-to-air rebroadcasts of SABCs three channels, extended in the second quarter, to include an entertainment/information channel (ultimately with 20% local content) and possibly an open democracy channel that will cover public institutions such as parliament, provincial legislatures, the courts, the Truth Commission and even public hearings.
In the third quarter, six pay channels are expected to be launched general entertainment, family entertainment (with four hours Afrikaans TV as an additional subscription), music, news, movies and sports.
The cost of the analogue package _ decoder, dish and installation is expected to be R1 800 (most dishes are compatible with analogue and digital). The monthly subscription will be R75 for four channels, an additional R35 for the movie and sports channels and another R35 for the Afrikaans broadcasts.
SABC projects one million decoders will be sold within three years, of which analogue will comprise 800 000.
Niddrie defends the public broadcasters decision to go analogue. Analogue will be around for a long time yet. He notes that Rupert Murdoch will retain analogue technology in Britain to the end of the century. As the worlds largest owner of pay-TV this must say something.
He notes that pay-TV sells around movies, sport and pornography. Of these, neither SABC nor Multichoice offers pornography. He suggests SABC will be stronger than Multichoice in sport and feels that in movies the SABC can tie up very competitive packages.
So when will SABC go digital? This depends when it becomes cost effective to the consumer.
Multichoice does not think prices will drop. So this could take some time.