Sunday, October 24, 2010

The SABC's sad decline: The broadcasting behemoth's sad slide of shrinking market share and advertising revenue.

At the end of last month I showed you the latest viewership figures of the various South African TV channels as well as DStv and how SABC viewership is slowly eroding.

The SABC's annual report for 2009 / 2010 contains some pretty sad figures, hiding the actual, shocking and every-steady decline of the South African public broadcaster's market share, and because of that, advertising revenue. The SABC's advertising revenue is shrinking mainly because of viewership decline (less viewers, means you have to lower your ad rates). (Other factors like the SABC's self-induced, heavy advertising rate discounts are also a major contributing factor to ad revenue decline, but that's a whole other story.)

The SABC continues to get hammered by e.tv and DStv where the SABC's loss of viewers and ad revenue is e.tv and DStv's gain. Half a decade ago in 2005 MultiChoice's DStv only had half the market share (and by implication roughly half the advertising income) of SABC3. E.tv's market share then stood at 17%.

In 2005 / 2006, SABC3 held 15% of advertising market share, e.tv 17% and DStv about 8%. Now SABC3 and DStv are completely level with 11% (and DStv is growing; while SABC3 is flat). Meanwhile e.tv has grown to 21%. That means that DStv has about as much market share and advertising revenue as SABC3. E.tv is steadily growing as well, and is now only behind SABC1 when it comes to overall market share and the the number of eyeballs watching TV in South Africa. (E.tv, incidentally also has 21% of the news market share now as well in that ultra competitive 19:00 timeslot on weekdays.)

SABC1 only has a market share of 36% left. That's still over a third of the total, but down from 2008/2009's 37% and SABC1 keeps losing viewers although its still a massive TV channel. SABC2 is down from 19% to 18%. SABC3 has managed to at least stop the bleeding (for now) to remain flat at 11%. (M-Net by the way has fallen from 6% in 2005/2006 to only 2% currently but that's due to the pay broadcaster's forced closing of its Open Time window, as well as as its dwindling number of analogue M-Net subscribers.)

ALSO READ: South Africa's total television viewership grows; biggest gains made by e.tv.