/ 9 May 1997

IBA sets local TV limits

Jacquie Golding-Duffy puts faces to the names of the applicants vying for the private television licence and gives a sneak preview of the IBA’s final policy paper on private television

INDEPENDENT producers will be displeased with the Independent Broadcasting Authority’s (IBA) final private television discussion paper as it proposes that the new television channel, to be awarded at the end of the year, only has to provide 20% of local content programmes – a 10% drop from the original quota in the first document.

It emerged this week that the IBA was compelled to decrease the quota from 30% to 20% as the SABC has admitted it is unable to meet its local content obligations.

Owing to this, the IBA has instructed the SABC that it cannot have less than 25% local content on each of its three channels.

While advertisers may be pleased with the drop in local programming on the new channel, independent producers, seeking more regulation and intervention, will be unhappy.

Insiders at the IBA have argued that it would have been inappropriate for the regulator to insist on a commercial channel fulfilling more of a local content quota than the SABC and its public service mandate.

While there is a need for a private television station that promises to serve viewers with a good mix of programmes, local and foreign, there are differences of opinion between advertisers and independent producers on what would rescue South Africa’s beleaguered television industry. Independent producers want more local programming, while advertisers are vying for increased Audience Ratings.

The final policy paper also redresses the population percentage that should be catered for when the licence is awarded.

Originally the IBA stated that the new channel would cater for 50% of the population when starting up. This would increase to 75% within three years and 85% of the population would be able to receive broadcasts within the licence’s eight-year lifespan.

However, the final document caters for 50% of the population when starting up, and 75% within three years and the rest of the licence’s life.

Available without decoders, subscription or licence fees to most South Africans with television sets, the new national television station will compete head-to- head with the SABC for viewers.

Fears are rife that the IBA’s insistence on carving out quotas for local content and wanting to force the new channel to fulfil some of the public service mandate will stifle the commercial opportunities for the potential licence-holder.

The private television document is based on the assumption – accepted by financial experts – that the new station will not only draw on existing revenue now going to SABC stations, but also on advertising revenue that will expand the television advertising cake.

This has been disputed by the SABC which wants to delay the licensing of a fourth channel.

THE FACES BEHIND THE APPLICANTS

* MLULEKI GEORGE (49) is chairman of the Free-to-Air consortium and a non- remunerated director of the company.

George admits he has no television experience but says his expertise in business stands him in good stead. Currently an African National Congress whip in Parliament and senior vice-president of the South African Rugby Football Union, George was a personnel manager for an Anglo subsidiary in East London for 13 years until he took up his post in Parliament.

If Free-to-Air is awarded the licence, George says it will be important for the consortium to maintain a balance between commercialisation and pleasing the person in the street. “We aim to reach all viewers and cater for their needs, but at the same time we have to be deeply involved in commercialisation in order to raise funds. One of our main tasks will be geared at being financially self-sufficient so that we can be sure that the ordinary person’s pocket is not affected.”

Free-to-Air, he says, is keen to explore regional television and “specifically cater for the needs of people in outlying areas”.

On what the SABC is doing wrong, George says it is not Free-to-Air’s philosophy to criticise the SABC, but adds that there is a need for other television channels to be created.

“The country is gradually moving towards free enterprise where strong competition will prevail. New competition can only benefit the public broadcaster.

“We cannot say the SABC is not doing its job as a public broadcaster because it has inherent limitations just like a private broadcaster has its own limitations.”

Tight-lipped about its partners, George says the consortium is “far too big” to start mentioning names.

It is, however, believed that several black-owned companies have been approached for further investment. Primedia (part owner of Radio Highveld and sole owner of Radio 702) has also been tipped as a possible partner.

George is married with three children.

* RAPITSE MONTSHO (43) is the CEO of Vula Television. He also owns and is MD of a production house called RM Productions.

Montsho says television is his life: “It is all I know. Although I’ve been in television for more than 14 years it is not long enough.”

Experienced in all aspects of television from production to editing, Montsho worked for Worldwide Television News, one of the biggest foreign news agencies. He was also a cameraman for United States-based ABC News.

He then co-founded Video News Services, before breaking away and establishing RM Productions.

RM Productions is one of the largest black- owned studios and has gathered some of the most exclusive “struggle footage”.

Registered in 1986, it is also one of the oldest black-owned companies. Reluctant to divulge any information on what the consortium plans to offer the viewer, Montsho was only willing to say that it would “offer exciting alternative television that will be viable and sustainable”.

On the SABC and its public service mandate, Montsho says he “cannot condemn” the SABC.

“I think they have a tall order to have to provide public service broadcasting in an environment that is undergoing transformation. Often SABC staffers committed to change have to work with personnel that do not want to see change, which results in a lot of sabotage.”

Montsho says if Vula Television is awarded the private television licence it will have to face the challenge of securing advertising from an industry which is controlled by mostly white middle-aged males. “It is not going to be an easy road, but as we are committed to delivering maximum audiences, advertisers will be forced to respond to this by purchasing air time.”

Montsho is married with no children.

* VANESSA DU PLESSIS (44) is the company CEO of Community Television Network. She also owns her own public relations and marketing consultancy – Vanessa du Plessis Promotions – and has been involved in public relations and marketing for 22 years.

Du Plessis says she has been researching the South African viewership market for the past eight years and has concentrated on matching the needs of viewers with that of advertisers and marketeers.

At the same time, Du Plessis has been involved in niche television with her company CTN Direct TV – where she provides direct television channels for selected markets.

“We provide footage tailored to the needs of several markets, among others, the stokvel market and tourism markets.

“By providing entertaining, niche programming to selected markets, we ensure that viewers are watching the television that interests them while at the same time we are providing advertisers with an opportunity to penetrate this market of potential consumers.”

If Community Television Network is awarded the licence, it promises “good entertaining viewing which will inform without being boring, as well as providing a growth potential for marketeers through the medium of television”.

On the SABC, Du Plessis says the public broadcaster is confusing both the viewer and advertiser.

She refused to reveal her local and international partners, but has previously been quoted as saying that the foreign investor will be involved in training locals, mainly people who were previously disadvantaged, in television production.

She is married with one child.

* GLADWIN MARUMO (32) is the executive director and project manager of Station for the Nation.

His experience is diverse, ranging from advertising and printing to teaching in a classroom, being involved in film production and theatre.

Marumo worked in the advertising industry for just more than three years as a media buyer and later as a copy writer. The recipient of several awards, Marumo received the first Darryl Phillips scholarship award for advertising; the John Houk award for a short film Masemb’Enja! [Dogshit]; and the Amstel award for a prize-winning stage production at the Grahamstown Festival called No Good Friday.

He has also lectured in the communications department at Pennslyvania State University in the United States and was involved in several television projects abroad. Marumo headed up the Independent Broadcasting Authority’s radio unit.

If awarded the licence, Station for the Nation, he says, hopes to provide a “comprehensive television service that will stimulate the growth of the independent production sector and meet the cultural needs of the diverse South African Community”.

Marumo was previously quoted as saying that black empowerment and human resource development are key elements to a successful bid.

Station for the Nation’s partners include Thebe Investments’s subsidiary, Moribo Investments; film and entertainment company Interlesiure; and Nine Network Australia.

On the SABC, Marumo says he would like to reserve judgment, adding that he does not think it healthy to criticise a rival.

Marumo is single.

* MATTHEWS (MK) MALUFANE (39) is chairman of Rainbow Television. Since 1986, Malufane has lobbied the government, international aid organisations and the broader community for support in broadcast deregulation and extending black empowerment to electronic media ownership.

Malufane has extensive television experience covering more than 10 years and has studied film production abroad. He was trained at several institutions including the University of California, Los Angeles, but had to return to South Africa for fear of losing his citizenship. Vying to become South Africa’s first black television network owner, Malufane founded Broadcast Interest Group (Big), a lobby group aimed at empowering black people in the media, in 1991.

In Rainbow Television’s presentation to the Independent Broadcasting Authority which was compiled by Malufane, he says that the consortium supports the proposal for the first free-to-air private terrestrial service “to be a national service with provincial obligations and not a regional station that may be networked”.

Malufane says that the consortium’s national network, if awarded the licence, will “effectively deliver local and regional access television for differing number of hours region to region”.

In their submission, Malufane argues that South African broadcasters and the general film and television production industries are not mature enough to produce a constant supply and quality product that can fulfil the local content quota. Instead, Malufane says the first three years of the new private TV licensee will be to successfully attempt to transfer the creative and management skills of Hollywood to South Africans in an effort to generate much- needed revenue to plough back into the local industry.

Malufane is married with three children.