Wednesday, May 4, 2016

DStv Media Sales,Media24 and Caxton change their rate cards; eliminate agency commission in line with Competition Commission investigation.

DStv Media Sales, Media24 and Caxton are changing their rate cards, eliminating agency commission and changing the discount structure following an investigation by the Competition Commission.

DStv Media Sales, the commercial airtime sales division selling TV commercials and sponsorships across M-Net's and MultiChoice's various DStv channels, has changed its rate card effective from 1 May 2016 regarding the settlment discount structure for media agencies booking ads on DStv channels.

DStv Media Sales says in a statement that its rate card was changed "to address any legal uncertainty regarding their compliance with the Competition Act. DStv has reduced its rates to reflect this amendment".

In DStv Media Sales' previous rate card worked according to the structure where media owners pay a 16.5% commission or early settlement discount to media agencies. DStv Media Sales says it "is a long established practice in many parts of the world and has been in existence for considerable time".

This practice is being investigated by the Competition Commission and DStv Media Sales says it's working with the Competition Commission regarding its investigation "and will continue to do so with a view to resolving this matter".

"As from 1 May 2016 and thereafter all rates will be published nett of any agency settlement discounts".

Media house Media24 in a statement says it is also changing the way it operates and will no longer follow "the industry-wide practice" that's been used for decades.

"The industry-wide practice of making available a 16.5% early settlement discount or commission to media agencies which book advertising with Media24 properties – including all newspapers, magazines and online platforms – has been in existence for decades."

"In order to avoid legal risk or regulatory exposure we have revised all our rate cards from 1 May 2016 and are in the process of communicating the changes to all media agencies. New rate cards will exclude any agency commissions or early settlement discounts."

Media house Caxton says it will  operate "on the basis of a 15.5% advertising agency fee for accredited advertising agencies, with a further 1.5% settlement discount, where payment is effected within 45 days".