In less than 14 days the IBA will award the coveted free-to-air TV licence, writes Ferial Haffajee
Most of the seven television bid companies were on tenterhooks this week. Many have invested millions of rands in the bid that will attract millions more in foreign investment. No matter who wins, the spin-off from the new licence will be excellent for t he industry: it will mean better programming, place a premium on skills and see the production of new local programmes.
One winner in the process has been the Independent Broadcasting Authority (IBA) which has been roundly congratulated for its structured and thorough hearing.
The Mail & Guardian’s whip-round of bidders and industry-watchers provided the following assessment of each bid.
Afrimedia
Pluses: Broadcasting skills in the shape of its chief Cawe Mahlati who runs Bop Broadcasting Corporation (BBC). Mahlati says the bid is homegrown; it has no foreign partner. It can go on air two months after licensing because it has proposed leasing the existing BBC facilities.
Pitfalls: There have been no negotiations with government or the SABC about proposals to lease BBC facilities. The lack of foreign investment may prejudice the bid both in terms of expertise and capital, while Community Television Network (CTN) said that Afrimedia’s business plan was defective. An example: it budgeted for only 44 salaries when it envisaged a staff complement of 129.
Community TV Network
Pluses: Bid leader Vanessa du Plessis said CTN’s was “the best presentation of all”. It was unique, with its promise of nine regional and 30 local broadcast windows. Its Canadian partner, United TV Holdings, had a daily audience of 200-million, while CTN already operated five direct television channels.
Pitfalls: The bid came in for a drubbing from competitors who said costs had been underestimated, revenues overestimated and that its broadcasting plans were “pie-in-the-sky” that had not been substantiated at the hearing. Free to Air also said foreign ownership would be higher than the allotted 20% if it were granted the licence because of its projected financing arrangements.
Du Plessis said a letter to the IBA had sought to clarify that ING Barings, the group that will bankroll CTN if it is successful, will place shares with a local institution.
Free to Air
Pluses: A favourite in the race. Bid leader Brenda Koorneef credited her company’s bid with being “the only consortium that met all the minimum requirements that could show the IBA the kind of programming we’re intending”. This bid’s schedules were best -prepared and showed knowledge of how programming leads to sustainability. Its revenue projections were modest.
Pitfalls: It was criticised for being an elite bid, featuring shareholders like Anant Singh, Dali Tambo and Primedia, all of whom have cornered lucrative corners of the broadcast market. Some felt that it had too much sport for a channel which must be f ull spectrum and Koorneef said the IBA questioning had showed up areas where its schedule could be improved.
Island TV
Pluses: Strong on empowerment, this bid featured the investment company of the Congress of South African Trade Union as well as former political prisoners.
Pitfalls: Numerous. The media research group, Media Initiative Africa, assessed Island’s chances as having a “high sympathy vote, but too short on expertise to be taken seriously.” Competitors complained that Island submitted crucial business information – like details of its corporate funder – well after the closing date and that they did not have the time to scrutinise its business plans because
of this.
Midi TV
Pluses: Its tie-up with Time Warner Entertainment was something of a coup for this consortium, which also has substantial trade union backing. Bid leader Jonathan Proctor said its biggest plus was its “broadcaster view”. It also has significant expertise among its staff – innovative programme buyer Pat Thekisho from Bop Broadcasting first brought Arsenio Hall, the Cosby Show and Oprah Winfrey to B
op TV. Proctor adds that the shareholding agreement with Time Warner is “an insurance policy. In the event of a pricing war, we would be able to sustain ourselves”. He adds that Time Warner’s distribution network would help the showcasing of local talent . Midi, if successful, will commission a local soapie.
Pitfalls: Competitors criticised its application to declare sections of its agreement with Time Warner confidential. They also criticised other elements of this agreement which they believe will grant too much power to the foreign partner.
New Channel
Pluses: Analysts call this bid “the dark horse that shouldn’t be discounted”. With French partner, Television Francaise 1, it has crafted a bid of big names, including veteran journalists Arthur Maimane and the SABC’s former head of news, Joe Thloloe. Th is bid has an innovative approach to local content which includes production, training and co-productions.
Pitfalls: It’s a dark horse. Its commitment to 40% local content may be too ambitious for the first years of broadcast.
Station for the Nation (SFTN)
Pluses: Another favourite. This Thebe Investment Corporation-linked bid is seen to have strong financial backing. Its training plans are particularly impressive and its extensive audience research to measure support for a new station and to plan schedule s have won a thumbs-up. Media director Faizal Dawjee highlights the bid’s news and current affairs plans as well as its innovative empowerment tru st.
Pitfalls: At the hearings, SFTN’s bid was criticised for ceding too much management control to Kerry Packer’s Nine Network International, the foreign partnerthat has taken a 20% shareholding. Dawjee says the licence hearing also showed up gaps in its pro gramming plans which the consortium has now filled. He adds that should they win the bid, all SFTN’s senior management will be local.