Rupert Murdoch could become a partner in the SABC’s satellite venture in a deal involving the rights to southern hemisphere rugby. Niel Bierbaum reports
THE SABC could be considering media mogul Rupert Murdoch as an international partner for its satellite venture. Such a deal could see the SABC exchanging an ownership share for exclusive rights to southern hemisphere rugby, which are held by Murdoch.
Although no deal has yet been signed, Murdoch’s representatives have been in the country this week on a ”fact-finding mission”. They have held talks with prospective broadcasters, with the Independent Broadcasting Authority and, according to SABC chief operating officer Gert Claasen, were given free rein at the SABC to ”ask anybody whatever questions they liked”. Called at his Sandton hotel room this week, a Murdoch representative, Richard Dunn said, ”There is nothing to say. We are a long way from making any
Claasen insisted that ”no deal would be possible until we have decided how to structure our consortium”. This consortium will involve foreign interests, but he reiterated that Murdoch is not the only player to whom they have spoken.
Others in the industry believe that an ownership share in exchange for rugby rights would give Murdoch a foot in the door in the South African market to the detriment of other players. One industry player proposed that South African channels should collectively agree to buy the rights from Murdoch rather do an ownership exchange with him.
According to David Niddrie who is heading up the SABC satellite initiative, ”Just about everbody in the country is talking to Murdoch. South Africa should have access to broadcasters of international importance.” Claasen seemed to have no problem with the fact that other commercial operators might see such a deal as treading on toes. ”At the end of the day, it will be a commercial decision,” he said.
Some have questioned whether the SABC as the public service broadcaster should be getting involved in satellite television at all, particularly as the decision about its third channel has not yet been taken. The original idea behind the satellite service was to compensate for the expected revenue losses that the SABC claims would occur if it was to lose its third channel. The SABC has instead asked to retain its third channel, it has asked Parliament for R496-million and it wants to make money off a satellite service.
Jonathan Procter, managing director of potential satellite broadcaster Retcorp International, believes that the process should happen the other way around. ”The SABC would be an attractive partner in a local satellite initiative. It could offer terrestrial access to cross-market the satellite channels and so would warrant a
M-Net CEO Gerrie de Villiers points out that if the SABC were in the private sector they would first ask whether they could afford to do this. ”As a taxpayer I find it worrying that my public broadcaster could end up making losses of hundreds of millions of rands.” De Villiers believes that such losses were likely as ”the SABC has problems making profits terrestrially.”
Niddrie would not comment on the SABC’s plans except to say that the satellite initiative would cost ”significantly less than a third” of the R800-million quoted by this newspaper two weeks ago.