The Independent Communications Authority of South Africa (and its predecessor the Independent Broadcasting Authority) has gone about regulating the broadcasting sector and redressing the wrongs and imbalances of apartheid in ways that are passing strange. There seem to be two strategies: one is primarily ideological and the other is primarily economic, each to the exclusion of the other.
We experienced the first in the 1996 round of granting licences to greenfield stations. Then the criteria were primarily ideological. Applicants had to satisfy stringent empowerment criteria regarding staffing, vision and programme content. Whether the radio stations were going to be financially viable, whether their footprint was realistic and whether local content quotas were possible were of secondary importance.
So, for example, after their credentials and promises of performance were examined and found to be acceptable, the Gauteng greenfields stations, Classic FM, Yfm and Kaya FM were granted licences and given footprints that barely covered central Johanneburg. There was no way that the stations could be sustainable with such small listenerships. No one at the Independent Broadcasting Authority had actually sat down and asked questions about the sustainability of niche stations. It was only through unremitting pressure for an extension of the respective footprints to include Pretoria and parts of the East and West Rand, that the stations have managed to survive.
Now, the second strategy — economics without principle — can be seen in the position paper released on Tuesday by the Independent Communications Authority of South Africa (Icasa).
At first glance it appears to relax many of the regulations that are holding back the development of the radio broadcasting sector. But the position paper is supporting financial growth and income generation (particularly of black economic empowerment companies) at the cost of principled issues like diverse audiences, niche channels, and cultural programming.
The broadcast environment has virtually doubled. Six new commercial licences have been assigned to secondary areas in the six provinces of Limpopo, Mpumalanga, Northern Cape, Free State, Eastern Cape and North West. In addition more commercial stations will be created in Gauteng, Western Cape and KwaZulu-Natal in 2006.
This is good for black empowerment, will create jobs and will stimulate economic activity up to a point.
At present the situation is that no company may own more than two FM and two AM stations. This now changes because ‘no company may own more than 35% of the number of licences issued”. By relaxing restrictions on the number of radio stations any one company can own, it is obvious that the usual suspects like New Africa Investment Limited, Kagiso and Primedia will be able to own up to eight radio stations. One may ask just how good this sort of monopoly will be for the broadcast industry.
Still if one tries to put a positive spin on events one sees that the new regulations will also allow existing commercial stations to set up a second networked station in one of the secondary broadcast areas, thereby creating a bigger listenership. Arguably Classic FM could apply for a licence in the George and Port Elizabeth area, increase its audience and through that attract more revenue.
But, after ploughing through the position paper, there are four nasty questions that must be asked:
Will this new legislation increase diversity of programming?
Will the existing radio ad-spend be able to stretch to deal with the new stations?
How does the public broadcaster get off scot-free in terms of its public service obligations?
Why is community radio marginalised in this restructuring of the broadcast environment?
Let’s talk diversity. Or even more seriously, let’s talk new audiences.
It is doubtful whether the increased number of stations will add special-interest or niche stations to the menu.
At the same time, the permitted percentage of foreign investment in a commercial radio station has been increased from 20% to 35%. As foreign capital will always try to maximise its investment, it will also go for the easy option. More of the same, much more of the same.
Would it not have been a good idea to allocate ideologically some of the new stations to new audiences? There are so many special interests that are not catered for — gay issues, education, children, health, or the elderly. The history of the BBC shows clearly how new channels and new producers can create audiences that never existed before. That’s the opposite of always conservatively playing it safe
Let’s talk ad-spend. While excessively high rate-cards are maintained by the SABC stations and some of the Primedia stations, agencies are just not going to have enough cash to spread to so many stations. To expect the radio ad-spend to expand in relation to the number of new stations is unwise. The regional stations are going to take away the little revenue that community stations manage to generate.
Let’s talk SABC. The new legislation allows it to retain its nationwide monopoly as a national broadcaster. It also allows it to retain its excessively powerful transmitters and to continue neglecting its public-broadcasting mandate.
The SABC shows little interest in fulfilling its obligation to provide cultural, informational and minority language and taste programmes. Why not create space among the new stations to take over some of these programmes?
Finally, let’s talk community radio. It could be that the creation of all these new stations will sound the death knell for community radio. It will divert local ad-spend away from community radio, it will poach staff, and it will compete for listeners.
Instead of providing some sort of linkage or mentorship or partnering in terms of local news and informational programming, Icasa has chosen to chase community radio even further into the wilderness.
In any democracy there must be a public sphere, a forum where the electorate can express their opinion of the government they have elected. With the evolution of mass-based democracy over the last few centuries, the role of the mass media as the most important institution of the public sphere is obvious.
Community radio can play a critical role in creating the first steps towards a public sphere. It can do this by stimulating, and then making audible, local voices engaged in a dialogue. Programmes that promote human rights or debate the nature of a good society provide an agenda for rehearsing the role of being a citizen.
But this is the last thing on the mind of Icasa.
John van Zyl is Managing Director of ABC Ulwazi and was one of the founders of Classic FM. He is the editor of Community Radio: The Voice of the People