The broadcast industry should be in a frenzy following Icasa’s recent invitation to apply for four new commercial broadcasting licences in secondary markets. It is expected that a further batch of four commercial licences will be made available this year. Outside the community radio sector, it’s the first time so many new licences are on offer at any one time. Without doubt, it is a stupendous process that will bring about major structural change, as well as some unexpected outcomes.
“The core of broadcast regulatory philosophy is centered on the notion that diversity within the marketplace of ideas serves the public interest, convenience and necessity,” as Todd Chambers once asserted. But there are a number of pertinent issues camouflaged in Icasa’s process that are downplayed at our peril.
For a start, there are concerns over the market’s ability to carry additional licences. This point is raised in light of the arrival of multitudes of community radio licences over the last 10 years, which have overburdened the market. As a result, there are fears that saturation levels may be reached earlier than anticipated. Secondly, there is the regionalisation of these licences, which implies that the new licencees have to be content with limited coverage – a problem that has been consistently raised by holders of existing greenfield licences.
Thirdly, there is a worrisome history of abysmal radio performance in at least two of the regions covered by the first batch of licensing this year, Limpopo and North-West. I’m talking here about the post-1994 collapse of Radio Thohoyandou (aka Big T) and Radio Bop. These cases do not augur well for the areas’ new licencees. The negative history is further illuminated by the reliance of existing licencees in those areas on advertising from other provinces, especially Gauteng, Western Cape and KwaZulu-Natal, which together account for over 80% of national ad spend.
Finally, this process will have a major effect on the public and community radio broadcasters that have dominated the secondary markets for some time. It seems, given their fledgling status, that the community stations will be the hardest hit. Although progress is being made, as confirmed by the positive performances of the likes of Jozi FM and Khwezi FM and the establishment of the Media Development and Diversity Agency, community radio is still a relatively weak sector that requires grandfathering. But public service radio is also vulnerable, as there is every likelihood of massive migration by audiences and staff to the new kids on the block.
At the least, it will be interesting to see who gets the licences. The commercial radio heavyweights Kagiso Media and Primedia have made their consolidation intentions clear, but we are likely to see a couple of new players entering the market. Although it would be quite ideal – in terms of diversity of media ownership – for new entrants to operate the majority of the new stations, there are some distinct disadvantages to this. As demonstrated by the first licencing phase (1996/97), newcomers tend to have little experience and limited understanding of the industry’s nuances and complexities. Further, operating only one station does not give an owner enough leverage in the market. Of course while existing players have the know-how to turn these licences into competitive assets with synergistic potential, they bring monopolistic consequences.
And linked to the ownership question is the issue of empowerment. Will local inhabitants be integrated into the equity and staffing structures of the new stations? How?
The process represents Icasa’s commitment to the goals of diversity, investment, access and empowerment. But a process that is oblivious to the dangers raised above could mean a reversal of post-apartheid media policy and an undermining of these very objectives.
Professor Tawana Kupe is away this month. Dr Mashilo Boloka is a Senior Lecturer in the Durban Institute of Technology’s Journalism Department (City Campus).