New TopTV CEO Eddie Mbalo: 'We have made mistakes and not delivered' but there is new thinking at TopTV - it's a new beginning.'

In a very honest, very open, and at times actually painfully frank interview, Eddie Mbalo, the new acting CEO of South Africa's pay TV operator TopTV, exclusively answers every single question put to him by me a week after he took over the reigns of the troubled pay TV service provider from Vino Govender.

Now Eddie Mbalo publicly speaks for the very first time about the pay TV business he took over a week ago, and the challenges that awaits.

Two months after and during which TopTV suffered a widespread and crushing barrage of criticism culminating in the change in top leadership at South Africa's second commercial pay TV service last week, Eddie Mbalo humbly tells me TopTV ''have made some mistakes'' but says that ''there is new thinking at TopTV - it's a new beginning''.

Eddie Mbalo addresses everything. He talks openly about TopTV's much-maligned porn plans, staff morale, relooking at TopTV's content strategy, and reveals that a full review of TopTV's business from top to bottom will be taking place within the next month. And he admits that TopTV will be taking a critical look at its content offering.

Despite the overwhelming number of challenges, the new acting CEO is adamant that there's definitely a place for TopTV and a second pay TV service in South Africa, and that TopTV can and is filling that space. And Eddie Mbalo is promising a more transparent business and more information sharing with stakeholders as TopTV moves into the future.

What message do you have for subscribers, potential subscribers, potential investors, the public about TopTV’s current status, future prospects, current and future health as a company and as a running concern?
Eddie Mbalo: I am of the opinion that TopTV has incredible potential within the pay TV market in South Africa. It's fair to say that we have made some mistakes and not delivered on all of our promises. But the current review we are doing of the business presents us with an opportunity to take a long, hard look at ourselves, to fix what needs fixing, to acknowledge what we are doing right and to improve in those areas where we are performing badly.
Many start-ups face immense challenges like we are currently experiencing, but we still feel like we always did when TopTV started - there is definitely a place for a second pay TV operator in South Africa and we are confident that we can fill that space with fresh programming, innovation and excellent customer service.

Where does TopTV stand with the new package it wanted to introduce? Did TopTV make mistakes in the way it and the process was handled? How has it affected the company and do you think TopTV was victimised by the regulator, the press and the public? Did TopTV underestimate the reaction or what is your view about the whole issue and where is TopTV going next with this?

It was always our intention to offer the three adult content channels as a completely separate package to the current TopTV channel offerings, and we had put in all the necessary security checks and balances to ensure this would be the case. Prospective subscribers would need to prove that they were over the age of 18, they would need to purchase a TopTV decoder if they were not already a subscriber, and they would need to take out a separate monthly subscription for the three channels.
In addition, they would only be available on an encrypted platform with extra security measures such as a secure and unique four-digit PIN number that would have to be entered by the subscriber in order to access them.
TopTV was confident that it had put the necessary measures in place to ensure that non-subscribers would have no access to the channels or their content. We are of the opinion that adults should enjoy freedom of choice, as it is prescribed in our Constitution’s Bill of Rights, to view whatever content they like in the privacy of their own homes. We believe TopTV approached the issue in a responsible manner and is disappointed with the outcome. As is often the case, the detractors to adult content are more vocal – only 13 written submissions were presented to the Independent Communications Authority of South Africa (Icasa) on this issue. However, we await the reasons behind the negative decision before deciding on the future of this niche channel offering.

How substantial is the loss or damage with the carriage agreements with Playboy Benelux UK and what is the financial implication for TopTV which couldn't start the package on 20 January?
Until we know the reasons for the Icasa decision, and decide on the way forward, it is difficult to assess the full financial implications.

Staff in the past week told me of low morale an uncertainty – especially around jobs and such. What can you say about or to workers and about the restructuring? Also, are consultants, or have consultants come in to relook at the business?
I acknowledge that our internal communications have been an area of weakness. We will in the future constantly communicate with our staff and ensure that they are informed and updated regarding our plans for the company going forward.
Yes, we have brought an outside consultancy on board to work closely with us over the next few months to review all areas of the business and help us devise a roadmap for the future.

Where does TopTV stand in terms of subscribers? Many promises with constantly shifting goalposts to always future dates have been made regarding new channels, replacement channels, PVR, HD channels, a sport channel. Where is TopTV and what is the latest that TopTV is busy with or can say is definitely coming or happening this year in terms of roll-out of new channels and services or technological applications?
In the next 30 days, we will conduct a full review of the business. We will look at where we currently stand and from there, we will develop a clear and coherent strategy addressing each area of the business to ensure we are competitive and relevant within the pay TV market in South Africa. We will certainly share this strategy with you when we are ready to do so.

What is for you the most pressing concern, or biggest thing that is getting or going to get your priority and immediate attention first, and what other important although not time-dependant things are there you need or want to give attention to?
The focus for the next month is a full business review. We need to assess our strengths, our weaknesses, the opportunities and threats to the business; we need to look at our service; we need to listen to what our customers are saying: we need to take a critical look at our content offering. I would welcome your input at this juncture in TopTV's history – let me know what you think we need to do at TopTV.

I was told that investors are unhappy about or over TopTV's content in general. How do you feel about TopTV's content?
The business review will determine the content strategy. We have some strong content such as Fox and our movies, we have lost some content due to channels going into liquidation, for example and we were looking to introduce what has become rather controversial content. We need to understand clearly what our content and innovation strategy is and who we are selling to, and then implement it to take the business to the next level.

Anything else you want to say or comment on?
I really think we need to be more communicative going forward. I promise that we will be more open in sharing information about the business with our key stakeholders including our subscribers, the media, advertisers, and our staff. There is new thinking at TopTV – it's a new beginning. I understand content, I understand the market and I am confident about moving this business forward.