TV CRITIC's NOTEBOOK. The closure of Caxton's magazines amidst Covid-19 is catastrophic for South Africa TV industry - here's why.

by Thinus Ferreira

It's the best analogy I could think of to describe my feelings and everything I felt today, so here goes: In Star Wars Episode III: Revenge of the Sith there's a scene where the Stormtroopers, after Order 66 turn on the Jedi, ambush and kill them.

Grandmaster Yoda could feel the death, the anguish - the lives extinguished across the galaxy, as he dropped his walking stick, put his hand on his heart, touched his head and sank to his knees. The devastation was too much to bear.

If you know the scene, you'll know immediately what I'm talking about. Sometimes you have a moment where you can just sense the terribleness of something without a word that needs to be said.

On Tuesday the Caxton group, through the board of directors of Caxton & CTP Publishers & Printers, announced that it's the end for its print magazines Bona, Country Life, Essentials, Food & Home, Garden & Home, People SA, Rooi Rose, Vrouekeur, Woman & Home and Your Family.

Another 150 people in its magazine division suddenly out of jobs in South Africa because of the Covid-19 coronavirus pandemic sweeping the country and the world.

Caxton said it will try to "accommodate" - meaning to keep printing-  Living & Loving and Farmer's Weekly. It will presumably also try and find other publishers to take over the titles although it's highly unlikely.

To be clear: The Caxton print implosion wasn't brought on by Covid-19 but the virus was these magazines' coup de grâce.

The board said that the magazines shutting down is due to the "steady and continuous" reduction in advertising spending in the media sector". Covid-19 coupled with "already difficult trading conditions for magazine publishers" made the final decision unavoidable in terms of shutting all of these titles down.

Caxton's shock follows after last week's shock when Associated Media Publishing (AMP) announced that it's abruptly shutting down, ending Cosmpolitan, House & Leisure, Good Housekeeping and its Afrikaans version Goeie Huishouding.

This is 14, possibly 16, magazines that each took up shelf space at your local shop, bookseller and supermarket ... gone.

Firstly, my thoughts are with these magazine workers. Over many years as a journalist I have written and contributed articles for some of these magazines and others in their stables long gone already.

Al lot of these publications also had journalists - writers, editors, and even online whiz kids - who would travel as part of the press pack from Cape Town, Port Elizabeth, Durban and elsewhere to mostly Johannesburg to attend media junkets, press previews, launches, upfront presentations and all kinds of media events of various TV channels and TV shows.

Over the years many would come, and many would go, and several I got to know over many years.

I would end up sitting next to or opposite someone at a same table - or I would end up standing next to someone with a drink in hand as we did breakfasts, brunches, lunches or dinners, often sharing gossip, thoughts on the latest news or entertainment biz scandal, or just chatting and catching up among ourselves as members of the press.

Almost always when we're together as a press gaggle because we have been invited by publicists and PR companies to press conferences where we would ask questions, or would do roundtable interviews with local and international TV stars.

Over the last few years some influencers, bloggers and other new media have been added into the cooky-crazy eclectic mix that makes up and represents South Africa's press pool covering TV.

But today, after the printing presses on these magazines' Saddle Stitch and Perfect Bind printing runs are switched off, the South African press group covering the TV world will be smaller.

It's incredibly sad.

What's worse than the feeling which is already horrible, is that beyond the emotion and sentiment of it all, is that it is also terribly bad for South Africa's TV industry itself (and dare I even say it, the PR industry).

Magazines - especially print magazines - do an incredible job in aiding content discovery.

They carry TV schedules, they have TV listings, programme highlights, they have glossy covers with TV stars, interviews with TV stars, articles about TV shows, and gossip about celebrities.

Magazines help readers -who are also viewers as multi-media consumers - to discover a new show or a new personality by being exposed to them. A reader will very often tune in to now watch something they didn't know was on TV or didn't know the starting date or time of, because they have now read about it.

Whenever the world returns to whatever the "new normal" will be, the press conferences, round table interviews, TV upfronts, and the theatre seats inside preview screenings will be smaller and emptier.

There will be less stories about TV shows and TV stars that appear in print, and less different articles.

There will be less print places where the SABC, e.tv, and channel collection providers like M-Net, Mzansi Magic, kykNET, BBC Studios, NBCUniversal, Discovery, FOX, Disney and all the others carried on MultiChoice's DStv can get those beautiful double page spread feature articles, profile pieces and interviews about their shows and on-air personalities.

There will also be less chance for ordinary people in South Africa to read about and to discover new shows on TV.

In other words, the magazine closures will indirectly have a very negative impact on content discovery - something that in turn, almost imperceptibly, can impact TV ratings through boosting interest in a specific show or person for instance.

And the PR people? Well, less available press, less titles and less physical bodies in the press corps mean smaller attendance at media gatherings and a room at an event that looks (everything's always about how it looks) "less full" for the client.

Although not a real indicator, a lot of clients still (eye-roll) measure "success" of an event by how many warm press bodies that a fatigued publicist could pull into a room, instead of focusing on the earned media during and afterwards an event instead of attendance.

With less members of the media covering television, there will be even less questions - and less availability of potential coverage in print pages.

In as much as TV is its own medium, print and magazines have a very symbiotic and mutually beneficial media relationship with television.

Because of Covid-19 yet another precious chunk of that media ecosystem in South Africa is now gone.

South Africa's private media who 'just want to report scandals' will be forced to transform say minister of communications, Faith Muthambi.

The minister of communications Faith Muthambi again lashed out at South Africa's press - especially private media - for not reporting on "the good" government is doing, saying that the government is planning to transform private media in the country that's only interested in reporting "scandals".

A rambling Faith Muthambi proclaimed that the Gupta owned The New Age newspaper and the ANN7 news channel on MultiChoice's DStv satellite pay-TV platform are the only media telling government's "good" stories and that president's Jacob Zuma's "biggest crime" is that he has not dealt with South Africa's media monopolies.

Earlier this month in her budget speech in parliament, Faith Muthambi lashed out at South Africa's media, saying "to some media houses their main mission is simply to paint this government as corrupt, hapless and inept", warning that transformation of private print media ownership and the ownership of printing presses are on the cards.

Faith Muthambi, speaking as a panelist at the latest The New Age breakfast briefing in Sandton done in conjunction with the SABC and broadcast on SABC2's Morning Live,  had glowing praise for the SABC, ANN7 (DStv 405) and The New Age newspaper's good coverage and criticised other media who, according to her just want to scandalise "this black-led government".

"Given the current status quo - with regard to these big 4 mainstream media - they've taken a particular position towards government to say then what they're interested on, it is report on the scandals. The good thing that government that is doing they're not interested on reporting that," said Faith Muthambi.

Faith Muthambi also said this "problem" is an issue of private media ownership in South Africa.

The "big 4" private South African media conglomerates Faith Muthambi is referring to are Naspers, Caxton-CTP, Independent News and Media SA (INMSA) and the Times Media Group.

"This black-led government, if its not scandalised, there is noting good that they are doing."

"There are people that of the view that [the Gupta owned] The New Age and ANN7 must be dealt away with. And I can say this the biggest crime this government led by president Zuma has done to deal with this monopolies."

"ANN7 and The New Age they are the only newspaper amongst a group that are able to report the positive thing that's government is doing. So for then, the private media ownership that becomes a problem."

"Now they are not able to reign, in terms of the consumption of the news. And then our people then they get empowered," said Faith Muthambi.

"We want to go to the offensive. It is time that we transform this sector. It's time. So that our people then have options. The right to choose. Unlike what they have been fed with all the time."

Faith Muthambi said "I think we have been talking a lot. It's time for action now".

"The 90% [local radio airplay] one also, that is the route. We are the policy makers.  We had to make sure that SABC does 90%. That should also come across when it comes to community media."

"I want to commend the SABC because through their 19 radio station at least people are able to be empowered, informed and then they're being educated, entertained, and also they understand the type of ... they need to take this or that."

Faith Muthambi reiterated that "we are going to go to the offensive now" and that "when it comes to ownership you see, you will find these black journalists that are there. But for them to progress to own, who own printing companies now?"

"It is time to transform this media industry," she said.


DTT: 'The focus shouldn't on us missing the deadline'
When asked about South Africa's long-delayed switch from analogue to digital terrestrial television (DTT) and how far the government is, Faith Muthambi said "the focus shouldn't on us missing the deadline. We shall just talk about the project. The project is here."

The billion rands project is years late and mired court battles, embarrassing scandals and confusion with South Africa that missed the internationally agreed to deadline of June 2015 to complete the switch-over process.

The government admits it doesn't have enough money to supply all poor families earning less than R3 200 with the government subsidised set-top boxes (STBs) TV households will need to keep watching the existing TV channels and planned new ones the SABC wants to start at a cost of R2 billion.

"As a department I think we have made inroads in make sure that the project moves within the very short space of time. So we shouldn't be focusing much on the delays," said Faith Muthambi.

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".

SABC's archive access and SABC Encore and SABC News channels provided to MultiChoice's DStv is not a merger rules Competition Tribunal.

The Competition Tribunal of the Competition Commission of South Africa has found that the exclusive deal between the SABC and MultiChoice for archive access and creating public broadcaster TV channels for the DStv service is not a merger.

Caxton, the public pressure group SOS Support Public Broadcasting Coalition and Media Monitoring Africa (MMA) brought the case to the Competition Commission.

MultiChoice pays the SABC millions of rand to provide the SABC News (DStv 404)  and SABC Encore (DStv 156) channels to the DStv platform and the group argued that the mega-millions deal between the public broadcaster and the pay-TV behemoth constituted a merger.

The Competition Tribunal found that the contract entered into on 3 July 2013 "did not give rise to a notifiable merger in terms of the Competition Act".

"It was a major part of Caxton's case that the SABC had given up the rights to broadcast its valuable archive to its own viewers, not to mention precluding itself from licensing it to other broadcasters," says the Competition Tribunal.

The Competition Tribunal found that the original contract was changed three times and lessened the constraints from MultiChoice in regards to SABC archives access and diluted certain rights mentioned in the original contract.

"The agreement is too limited in scope to justify a conclusion that MultiChoice was assuming control over the SABC's business".

In a statement the SABC's chief operating officer Hlaudi Motsoeneng says "we are delighted by the ruling of the Competition Commission of South Africa on this matter, as it negates the malicious allegations that were doing the rounds that the SABC has sold the SABC archives whilst this was not the case".

"The SABC remains committed to continuously establish cordial and mutually benefitting relations with key stakeholders as well as other broadcasters for the benefit of the SABC audiences".

ANC: 'The SABC and MultiChoice deal is not in the best interest of the people of South Africa', keeps SABC 'a junior broadcaster to pay TV'.

The ANC is upset with its minister of communications Faith Muthambi and will meet with her today as the ruling political party in South Africa is now hugely concerned about about the highly controversial channels deal signed between MultiChoice and the SABC, saying "the SABC and MultiChoice deal is not in the best interest of the people of South Africa".

The ANC says the controversial deal forces the SABC to remain "a junior broadcaster".

The ANC also wants answers from Faith Muthambi and is hugely concerned about the minister's abrupt policy about-turn of non-encryption for the SABC in the looming switch to digital terrestrial television (DTT) in the country, saying the bad decision by Faith Muthambi will force the SABC to remain "a junior broadcaster to pay television" in South Africa.

On Monday night Jackson Mthembu, ANC National executive committee member and spokesperson, appeared on Justice Malala's The Justice Factor on eNCA (DStv 403), saying the ANC wants answers from Faith Muthambi on the controversial deal between MultiChoice and the SABC.

In the deal worth hundreds of millions of rand, MultiChoice pays the SABC to provide the SABC News (DStv 404) channel, now running just in English on DStv and no longer including other indigenous South African languages, as well as exclusive access to the SABC's archives for the library rerun channel SABC Encore (DStv 156) with old SABC shows.

The controversial MultiChoice and SABC deal is currently before the Competition Commission's tribunal, in a case brought by the public pressure group SOS Coalition, Media Monitoring Africa (MMA) and the media group Caxton arguing that the mega-millions deal between the public broadcaster and the pay-TV behemoth constitutes a merger.

"Why did the SABC agree on non-encryption in set-top boxes (STBs) for digital terrestrial television (DTT) with MultiChoice?" asked Jackson Mthembu on The Justice Factor.

"There's this agreement that is sitting between MultiChoice and the SABC. That agreement I can tell you is not in the best interest of the SABC itself."

"Because then the SABC will not have premium content, will not be able to compete at the same level with MultiChoice. Therefore the SABC will be a junior broadcaster to pay television. And I think that's not in the best interest of the people of South Africa. We don't," said Jackson Mthembu.

Although the embattled Faith Muthambi denied in a hastily released statement last week that it was discussed, Jackson Mthembu reiterated Monday night on eNCA that encryption of set-top boxes (STBs) was discussed and "extensively" at the recent ANC's NGC as well as the issue of digital TV migration.

"Definitely. It was discussed extensively," said Jackson Mthembu. He repeated that "equally the difficulties and challenges that the SABC is faced with" was also discussed.

Jackson Mthembu said earlier that the ANC had not been consulted by Faith Muthambi on the non-encryption aspect of the digital migration policy.

"If you don't have the instruments to assist you to protect those [content] rights, you won't get those broadcasting rights. You won't get wonderful films from Hollywood, you won't get wonderful rights to air sports. Therefore you will be a junior broadcaster to those that are able to protect their content," said Jackson Mthembu on Monday night.

"The government has been pursuing encryption [for free-to-air digital television signals] for some time, including the 2013 policy that government itself took," said Jackson Mthembu.

"After elaborate consultation with the industry where MultiChoice, e.tv and the SABC were consulted, those consultations concluded with a policy that said as government, on all those set-top boxes that we are going to subsidise, they will be encrypted. No question about it."

Also on Monday night Marian Shinn, the Democratic Alliance (DA) member of parliament tasked with telecommunications, appeared on Insig on kykNET (DStv 144) to discuss the same topic of the beleaguered Faith Muthambi and the ongoing quagmire of the South African government's acute and embarrassing failure with digital TV migration, calling it "a cesspit of intrigue and incompetence".