Neil Bierbaum
Times Media Limited is to transfer its M-Net shares to holding company=20 Omni Media =D1 part of an empowerment scheme which will also free TML=20 to invest in electronic media. The planned transfer of the shares will also clear the way for Omni Media=
unbundling. Inside sources claim that Omni shareholders are prepared to=20 sell their shares in TML =D2down to a 51 percent holding to new South=20 African partners=D3. This could further clear the way for TML to consider involvement in other=
electronic media, depending on cross-media ownership restrictions. The=20 IBA proposals on cross-media ownership will not directly affect M-Net=D5s=
shareholders until the pay channel=D5s licences come up for review in seven=
years=D5 time. But TML is to transfer its shares in M-Net, MultiChoice and=
M-Cell to Omni Media, which currently holds a 92 percent share in TML. The move is being touted as a consolidation by the holding company of its=
television interests. Omni Media absorbed an equivalent shareholding from=
Argus when the latter was taken over by Independent Newspapers. The=20 idea is to =D2free the TML management to concentrate on expansions closer=
to the core of its business=D3. The move could also free TML to invest in media such as radio without=20 being hobbled by the proposed cross-media ownership restrictions, which=20 specify that no person who controls a newspaper may acquire or retain a=20 financial control in both a radio and a television licence. Control is=20 interpreted to mean a 15 percent shareholding in either medium. It is not yet clear whether the Omni Media shareholding will affect TML=D5s=
ability to expand in this direction. IBA councillor John Matisonn stated th=
the companies would have to get legal advice on the matter, which is now a=
parliamentary issue. If the Omni Media shareholding in M-Net is deemed=20 to be a controlling interest, then there would be limits to any TML=20 shareholding in new radio stations.=20 =D2We are still interested in participating in radio and TV as far as possi=
says Neil Jacobsohn, general manager: electronic media. He acknowledges=20 that TML will be considering an involvement in the SABC stations that are=
up for sale. =D2We are happy that the door on electronic media has not been=
closed,=D3 he adds.=20 =D2We have many resources to offer: cash, management, news gathering and=20 an understanding of advertising. We are not setting out to dominate=20 electronic media, we merely want a slice of the pie.=D3 =D2The transfer of the M-Net shares will give [TML management] time to=20 focus,=D3 says Jacobsohn. =D2It does not mean TML is withdrawing from new=
media. Rather we will be looking at opportunities that are more directly=20 related to our core business. Content provision for TV is a natural=20 extension, as is on and off-line publishing.=D3 Business Day Television is =
ten-minute business television programme on NNTV which is produced in=20 conjunction with Financial Times Television in London and plans are afoot=
to make the Financial Mail Top Companies Report available on CD-Rom. In addition, it is proposed that if the newspaper has an average issue=20 readership of 15% or more in a particular area, then the owner of that=20 newspaper may not control either a television or a radio station in that sa=
area. There should be less than a 50% overlap. The owner of the newspaper=
could hold less than a 15% share. According to Matisonn, these figures are=
easily attainable through the South African Advertising Research=20 Foundation. Jacobsohn expresses concern that the formulae for cross-media=
ownership restrictions should be based on circulations. =D2It is a problem=
because circulations are always changing, there could be a simpler way of=
doing it,=D3 he says. The continued focus on print expresses a confidence in the survival of the=
printed word, both on the part of the IBA and TML, although it may be=20 printed electronically rather than on paper. TML has been investing heavily=
in print media. With Playboy now one and a half years old, the TML=20 Magazine Division recently launched a new title =D1 Out There, an outdoor=
adventure travel magazine. TML is also investigating a number of other=20 possibilities, including the possibility of bringing in top women=D5s title=
from overseas and other local opportunities.
Matter of fact An indignant Penthouse magazine editor has pointed out that their=20 circulation (50 000) is ABC-audited, and not simply a publisher=D5s claim a=
indicated in our article last week. Sorry, the ABC misinformed us.