Sustainable Media Business Models in the Digital

Convergence of Broadcasting, Internet,
and Telecom in South Africa: Today
and tomorrow
Convergence of Broadcasting, Internet and
TelecomInternational Experience and China's path.
8th Asia Media Forum 2010
Asia Media Research Centre conference,
Communications University of China, Beijing
28 November, 2010,
Guy Berger, Rhodes Univ, South Africa
In a nutshell…
1. There is a bad cost-benefit ratio for digital
transition in TV in African countries.
2. So analogue TV is likely to continue to
predominate for up to another decade.
3. This is a technological choke on full
convergence of TV with internet.
4. BUT mobile industry & UGC may be the key
5. Some South African illustrations of all this…
Deadlines & dollars
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ITU deadline for Africa: 2015 -2020
Much confusion on relevance to radio
Much confusion on consequences
Huge expense anticipated:
– Digitising production in broadcasters, incl archives
– Digitising terrestrial signal transmission
– Digitising reception – STB costs
• = Serious disincentives to Digital Migration
Also, a lack of incentives
• NOT a technical shortage of analogue
frequencies for TV in much of Africa
• NOT a major demand:
– by TV stations or entrepreneurs for more channels
– by the public for digital TTV
• Elites already get digital TV (incl HD) via satellite
• Tech standards for DTT keep changing, and…
– While new TV sets will receive digital signals only,
– There’ll be a large market of redundant equipment.
State of play: first steps
• Policy frameworks have been agreed in
African regions & deadlines often pre-2015!
• Regulators have issued papers, licensed some
multiplexes (eg. Tanzania)
• Mauritius BC is first – but there are STB
standards problems, cost of dual illumination
• South Africa: pilot testing using DVB and DVB2
• SABC has piloted extra digital channels, but
sustainability is an issue
Silo scenario, not convergence
• In South Africa, the worlds of digital
broadcasting and broadband internet have
separate policy frameworks.
• In SA, the advisory body for digital migration
(the “Digital Dzonga”) has been narrowly
broadcast-centric, not comms-centric.
• So the set-top box is seen only as a digital
decoder, not as a computer for return path…
Change & African broadcasters
• African broadcasting is driven by stateservices, not market dynamics = S L O W.
• State-broadcasters are under pressure to
change due to pluralistic competition
• Huge obstacles to becoming (a) Public service
(b) Communication (c) (multi)Media. (PSCM)
• To take on digital terrestrial TV broadcasting
on top of this, is a project too far for many…
A personal prediction
• Taking the next DTT steps means $$$, timeconsuming law-making and regulation, plus
licensing of players, & huge tech roll-out.
• It is guaranteed that 90% of African countries
will NOT meet 2015 deadline.
• By then, undersea IP cables will be pumping,
• By then, private sector mobile companies &
users will be using 4G networks…
Broadcasters & new media today
• Broadcasters are indeed already using SMS
convergence for user interaction, and
cellphones for call-in. BUT: not much more.
• Limited use of social media by broadcasters.
• AND little exploitation of cellphones for
distributing audio & AV content, or UGC.
• Example of Vodacom (largest cellular operator
in South Africa)…
Vodacom – 3G offering (1)
• TV: On Demand! (Partnership with UK’s On
Demand group)
• Stop, play or resume functionality
• Selected HBO, MTV and Disney shows: eg. The
Sopranos, Entourage, Sex and the City,
Desperate Housewives, Lost, South Park, The
Hills and music videos.
• R75 a month, no charge for data usage
Vodacom – 3G offering (2)
• Also: DStv Mobile (3G version)
• SuperSport, Channel O, Trace TV, Cartoon
Network, Boomerang, CNN, Africa Magic, E!
Entertainment, SawSee, M-Net, KykNET,
VUZU, MK,HBO, Sky NEWS, E! Entertainment,
Fashion TV (FTV), TellyTrack, UEFA Champions
League, Fox, Ministry of Sound, Chilli TV, Yebo
Entertainment, Yebo 1 and Yebo 2
• R59 a month
Broadcaster DStv using DVB-H
• MultiChoice-owned DStv Mobile
• DVB-H-enabled cellphone or via a proprietary
mobile television decoder, the R599 Drifta,
relays the signal to WiFi-capable laptops,
personal computers, tablets and smartphones.
• SuperSport 1, 2, 3 and Blitz, Africa Magic,
Channel O, eNews, Cartoon Network, Trace
and DStv Events.
• R36 a month from April 1
Mobile and the future?
• *If* there is uptake of mobile offerings (pull &
push signals) to handhelds, cellphones could
become the new STB equivalents.
• The return path is built into the phone.
• If this path is via wireless internet access, then
mobile broadcasting will also need to compete
with internet downloads.
• So, ‘broadcast content’ will also be pulled by
consumers… and they have very wide choice.
Other players in the game
• Grocott’s Mail
mobi site:
• Nîche is
realtime
content
There is traditional news
• Text, photos,
• AND video
• And UGC
• Plus transactions by
realtime “specials”
• Eg. before bananas
go rotten, get them
shifted; create
instant markets.
And direct webcam-casting
Let’s imagine…
• Not just pull & push news about Water issues.
• Not just the individual personal/social news
• But also P2P info AND comms like:
– Where do municipal bosses get their water?
“Send us your video, and let’s talk about it”
– Exams: audio tips (incl from youth!)
– Video footage of Matric dance dresses,
wedding and funeral videos, etc.
Conclusion
• Broadcasting in Africa, especially state-owned,
will increasingly lag behind, rather than lead
or take advantage of convergence.
• Telecom operators will lead the process, but
other media – newspapers and newcomers
(UGC) – will likely get involved, using internet
to communicate via video/audio.
• Logic may be analogue switch-off for wireless
internet rather than digital TV broadcasting….
• Thank you
• [email protected]