The IBA favoured new players against the print media giants, writes Jacquie Golding- Duffy
THE media industry has taken giant steps to greater diversity with the sale of the South African Broadcasting Corporation’s (SABC) six regional radio stations.
The Independent Broadcasting Authority (IBA) illustrated its commitment to a varied industry when it denied the two major English-language publishing groups, Times Media Limited (TML) and Independent Newspapers, entry into radio.
The Independent group, with a print monopoly in Durban (it owns The Daily News, The Mercury and Sunday Tribune, among others), lost the bid for East Coast Radio to a consortium which bid R20-million less, despite having linked up with black partners in its Moribo Consortium.
Also, in Cape Town, where it applied for KFM Stereo, the Independent group`s R36-million bid was rejected by the regulator as it controls The Cape Argus, Weekend Argus and Cape Times. TML only applied for Radio Algoa in the Eastern Cape, where it owns a large chunk of the print media. It too was turned down.
The IBA’s resistance to the “big boys” – even when they linked up with black partners (such as Thebe Investments in the Moribo consortium), has prevented them spreading their dominance in print into broadcasting, and should prevent the emergency of a Rupert Murdoch or Ted Turner multi-media empire.
With three new AM and five new FM licences to be awarded at the end of the year, South African broadcasting will be transformed into a diversified industry with a wide variety of choices available to listeners countrywide.
A FM format allows for more music and entertainment, while AM allows for specialised broadcasting and talkshows; hence applicants for AM have suggested formats ranging from sports and scientific radio to Afrikaans talk. According to the IBA Act, no applicant can “control” more than two FM and AM licences.
The sale of the SABC radio stations, the first completed privatisation effort, will forever change the face of a media industry from one entirely controlled by the apartheid government to one which reflects change in the country and is alive to different cultures.
Black media groups are also emerging, such as Kagiso Trust Investments and New Africa Investments Limited (Nail) – the former finalising talks with Afrikaans stable Perskor, the latter a joint owner of the Sowetan (with the Independent) and new owner of TML. A Kagiso-led consortium won two radio licences, East Coast and Radio Oranje, and Nail was part of the group which won Radio Jacaranda.
Some critics accuse the IBA of double standards as the new black groups’ print interests did not block their access into broadcasting.
But, as one IBA staffer said: “These critics seem to forget that the previously disadvantaged communities have only in the last two years been allowed entry into the media and pose no threat to major print stables who still own printing and distribution centres and have economic clout and expertise.”
Critics also point to Gauteng, where a single player, Primedia, owners of 702 and financier of the consortium which won Radio Highveld, now dominates both regional talk and music radio.
With a large range of new owners and media players, sales and marketing departments will expand, creating more jobs. With heightened competition, newsrooms will grow and radio adspend will increase.
The faces behind the winning bids
* KUBEN PILLAY (36) is chairman of Africa on Air, the consortium which successfully placed a R320-million bid for Highveld Stereo.
Approached by the empowerment partners in the consortium to lead the bid for the broadcast licence, Pillay was responsible for the presentation to the Independent Broadcasting Authority.
Pillay is also involved in the Mineworkers Investment Company, one of the black partners in the Primedia consortium.
The former head of the National Union of Mineworkers’ legal department in the mid- Eighties, Pillay left the union in 1988 to become a partner in Cheadle, Thompson & Haysom law firm.
In his capacity as director, Pillay aims to develop policy on skills transfer and play a key role in ensuring that the future ownership of media assets are reflective of the country’s diversity.
Pillay will also be driving a strategy “where electronic media assets will be placed in the hands of more black South Africans”. The joint control of Highveld Stereo with Primedia has given impetus to the future plans of the black partners, he said.
With Primedia again a partner, but in a completely different consortium, an application has been made for an AM licence in Cape Town.
Pillay is married with two children.
* DELISIWE DLUDLU (38), chairman of Newshelf 71 and a director on the board of New Africa Investments Limited (Nail), secured Radio Jacaranda for R70-million.
Dludlu has a string of degrees behind her name, including a Masters in Management and Clinical Psychology. Her experience in radio includes having hosted a talkshow called Women in Business on SAFM and she has also been a regular guest on various radio shows countrywide.
Dludlu, a senior lecturer at the University of South Africa (Unisa), runs her own four- year-old consultancy firm where she hones in on corporate strategic planning and human resources development.
She has also been a principal consultant for Ernst & Young International and is pleased with her involvement in Radio Jacaranda as she feels there is “a lot of potential than can be nurtured” at the radio station.
Dludlu is unperturbed by the move by Naledi consortium to challenge the IBA’s decision on Radio Jacaranda. She said the IBA has assured Newshelf 71 that it will stand by its decision of awarding the licence to Nail despite Naledi’s higher bid at R90-million.
Dludlu said Newshelf 71 had no plans to apply for an FM or AM licence. She added that Nail may have formed another consortium in an effort to make an application, but she was unaware of any such plans.
Dludlu is divorced with three children.
* TONY MALLAM (33), a chartered accountant by profession, has a passion for radio. He led the Crescent consortium bid for KFM radio (R65-million).
Mallam previously spent six years as the South African Broadcasting Corporation’s financial manager for commercial radio (5FM, Highveld Stereo and Radio Metro) and as the financial manager of Radio Active for two years.
Mallam says he wants to make KFM Stereo the best radio station in the country and will be concentrating heavily on training people.
The format of the KFM will be maintained as is, he said, adding that the consortium hopes to contribute towards building the radio broadcasting sector into a booming and healthy industry.
The new board of directors will consist of consortium members with Mallam and Kevin Savage being the only two members who will be actively involved in the day-to-day running, as well as the financial and administrative management, of the radio station.
Crescent consortium is not applying for an FM or AM licence and will be exerting all its energies into KFM radio.
Mallam is divorced with one son.
* ARCHIE NKONYENI (60) is the chairman of Umoya Communications, the consortium which successfully made a bid for Radio Algoa (R10,1-million).
Nkonyeni said the format of Radio Algoa will not change in the short term as the due diligence conducted on the radio station indicated that its current format worked well for listeners.
A businessman and twice former national president of the National African Federated Chamber of Commerce and Industry (Nafcoc), Nkonyeni said the board will be taking “a hard look” at what improvements need to take place at Radio Algoa, but as entrepreneurs the consortium will grow all talents currently active within the station.
The leaders of Umoya Communications are largely from previously disadvantaged groups and are therefore “alive” to the need for transferring skills, Nkonyeni said.
A portion of the budget for Radio Algoa has been set aside to train people. Plans to link up with Rhodes University`s Faculty of Journalism was on the cards for the future, Nkonyeni said.
The consortium was also aware of gender imbalances and would strive to increase the number of women active in both the newsroom and management areas of the radio station.
Nkonyeni is married with six children and said there are no plans to vie for an AM or FM licence.
* FANI TITI (34) is executive director of Kagiso Trust Investment Company, the financial arm of Kagiso Trust.
Titi played a key role in leading the bid for Radio Oranje (R11-million) and East Coast FM (R45-million) on behalf of New Radio Consortium.
Titi’s history in the media has been limited to publishing with an educational slant. A mathematician with degrees from the University of Fort Hare, Wits University and the University of California, Titi says a single board of executives will be established for the two radio stations.
The format of the stations will not be changed, but expertise will be brought in from the private sector in the areas of financial management, sales and marketing, among others. Current affairs, news and general information will be improved and training will take place on a massive scale – not only in the newsroom but also in management.
For the past two years, Titi has been also involved in talks with Perskor, in a bid for substantial shareholding in the Afrikaans stable.
KTI has applied for an FM licence in Durban but after acquiring East Coast, the application was withdrawn. However, an application has been made for AM licences in Cape Town and Gauteng.
Titi is married with one daughter.