Showing posts with label Discover Digital. Show all posts
Showing posts with label Discover Digital. Show all posts

Sunday, July 7, 2024

FIRED. SABC axes COO Ian Plaatjes and head of video entertainment Merlin Naicker over secret SABC+ ad revenue kickbacks.


by Thinus Ferreira

The South African public broadcaster has fired both its suspended chief operating officer (COO) Ian Plaatjes and suspended head of video entertainment Merlin Naicker who were both found guilty following disciplinary hearings, of failing to disclose that the external company running its SABC+ streaming service would get an advertising revenue kickback.

Ian Plaatjes and Merlin Naicker were both suspended in February after shocking revelations that Discovery Digital - the company running its SABC+ video streaming platform for the public broadcaster - is profiting from and getting an additional 7.5% of the advertising revenue made through SABC+.

Ian Plaatjes and Merlin Naicker originally told SABC executive committee members in November 2022 in their business plan that the SABC would get 100% of the advertising revenue generated by SABC+.

An investigation found that Ian Plaatjes and Merlin Naicker deliberately failed to disclose that Discover Digital would get 7.5% advertising revenue from SABC+ and hid the secret profit-sharing agreement that they had signed without the knowledge of the then-SABC CEO Madoda Mxakwe.

The 7.5% payment to Discover Digital is on top of the R35 million the SABC had to pay to Discover Digital to manage SABC+.

The SABC projected that SABC+ would make between R150 million and R200 million a year in advertising revenue - of which 7.5% goes to Discovery Digital.

SABC+ as a streamer is the platform that the public broadcaster bought and took over from Telkom that got rid of its Telkom ONE streamer, and which was rebranded as SABC+.

In response to a media query, Mmoni Seapolelo, SABC spokesperson, confirmed to TVwithThinus that both the COO and head of video entertainment have both been fired "with immediate effect" after disciplinary hearings.

"The SABC board of directors have resolved to terminate the employment contract of Ian Plaatjes, following a disciplinary process. The board has duly considered the findings and recommendations of the report by an independent chairperson and decided to release Ian Plaatjies from his duties as the SABC's chief operating officer (COO) with immediate effect."

"The SABC can also confirm that Merlin Naicker, the group executive for video entertainment, is also released from his duties with immediate effect following a disciplinary hearing."



Monday, November 9, 2020

Telkom launches its TelkomONE video streaming service including linear TV channels with free package and R7 per day subscription; plans more bouquets and says 'we're here for the long run'.


by Thinus Ferreira

Telkom that initially promised to do so on Thursday last week, on Monday launched its new TelkomONE streaming service, offering some linear TV channels in its offering, with a free version as well as a TelkomONE Amp subscription package that will cost R7 per day or R49 per month.

While currently only offering the free package that will carry advertising and one AMP subscription package, Telkom says it will expand over time to offer various different subscription fee packages.

The TelkomONE video-on-demand (VOD) service was built by Discover Digital and Telkom signed a 5-year contract with the SABC to carry SABC1 and SABC2 as linear TV channels, as well as a package of library content from the SABC archives for its video-on-demand service. 

TelkomONE however carries more than just SABC content. The heavy local catalogue curated along the genres of lifestyle, comedy, music and reality TV content is flavoured with some international shows from Hollywood and independent overseas studios, and well as from South Africa locally.

TelkomONE is available through downloading it as a mobile app, internet browsers at telkomone.tv on personal computers, Android TV and Telkom's own Telkom LIT set-top box. Payment for TelkomONE can be done with Telkom airtime, adding it postpaid to fixed and mobile Telkom contracts, credit and debit cards, vouchers or cash.

Telkom declined to answer when TVwithThinus on Monday asked what the financial investment in rand has been so far in establishing TelkomONE as its video-on-demand service and for what period it will definitely be running it before evaluating its prospects and return on the investment to the telecom's bottom line.

Linear TV channels that will be streaming on TelkomONE include SABC1, SABC2, Kaya TV, SABC Sport, SABC Education, Mindset, Al Jazeera, africanews, Deutsche Welle, euronews, France24, RT, GOD TV, Hope Channel, Inspiration TV and SonLifeBroadcasting Network (SBN).

The SABC's 19 radio stations will also be streaming on TelkomONE including MetroFM, RSG, Umhlobo Wenene, 5FM, Thobela FM and Ukhozi FM. 

Included in the TelkomONE AMP package users get an additional 30 curated audio playlists that is done by a Canadian service provider packaging and distributing African content.

Notably absent from TelkomONE is SABC3 because the streaming licensing rights for international content on the channel couldn't be cleared, as well as the SABC's own TV news channel SABC News. 

Neither Telkom nor the SABC explained why SABC News isn't available although it's likely that although it is a public broadcaster channel, it was commissioned and is being paid for by MultiChoice for its DStv service.

The SABC will receive an annual channels carriage licensing fee for its linear TV and radio channels, as well as for the on-demand archive content, 10% of which the SABC will cycle and change monthly to keep it fresh. This deal includes 1000 of hours of VOD content. 

The SABC will also share in the TelkomONE advertising revenue.

The SABC placing its content on TelkomONE is separate from the SABC's plan to launch its own SABC iPlayer video streaming service in 2021.

Sipho Maseko, Telkom CEO, says "TelkomONE will make it possible for subscribers to pause, go back into the electronic programming guide and time-shift, and instantly watch a scheduled TV show they may have missed. Telkom is making digital TV functionality available to all".

Madoda Mxakwe, SABC CEO, says "We believe that the transition to digital broadcasting and over-the-top (OTT) is a key strategy for the survival and relevance of the South African public broadcaster".

Stephen Watson, founding managing director of Discover Digital that built TelkomONE, says it contains technologies and functions that are first in the African market.

On the AMP package a subscriber can download 5 titles and a user have 48 hours to start watching. 

Users can record content and shows from the live linear TV channels which will be recorded in the could and then appear in the account section under "my recordings".

Interestingly, if you've missed a show, users can now go back into the past with the free package on the EPG for 24 hours and select a show that was already broadcast, and it will play immediately. On the AMP package a TelkomONE viewer can scroll back on a specific linear TV channel as far as 3 days and still watch a specific show.

With TelkomONE the time-shifted PVR function is therefore no longer limited to consumers who can afford a set-top box with a hard drive.

TelkomONE will also offer a 4K channel broadcasting music festivals and says it will build out its 4K content offering over time. Within the free package TelkomONE will offer talk shows and music artists performing live, streamed in 4K resolution, which will be available to Telkom LIT box users.

After Telkom last week said "we're ready" and will launch on 5 November, Wanda Mkhize, Telkom's executive for smart home and content, told TVwithThinus about the postponement that "with us delaying the launch and actually launching today we had some technical and connection challenges on Thursday and unfortunately couldn't launch the platform and as such we made sure that we could at least deliver as soon as possible and that's why TelkomONE is launching today".

TVwithThinus also asked whether the TelkomONE app will also be added to MultiChoice's latest DStv Explora that will carry and offer a carousel of different VOD streaming services like Netflix, Showmax and Amazon Prime Video, or in terms of set-top boxes it will be limited to Telkom LIT.

Wanda Mkhize said that "Telkom and MultiChoice have had a longstanding relationship, we currently carry the DStv application on our Telkom LIT box, and relationships with regards to services and what we produce we would definitely continue having those conversations".

With the South African VOD landscape already littered with failures like VIDI, Altech Node, PCCW's OnTapTV, Kwesé Play and Kwesé TV and most recently Cell C black that sucked up hundreds of millions of rands without a return on investment, Wanda Mkhize, when TVwithThinus asked for how long TelkomONE will definitely be running, said "we're here for the long run".

"We've looked at the strategy, we've framed it in regards to introducing two bouquets right now. We have a future-view of introducing more bouquets, opening up and create greater access specifically to our fixed-line customers."

"We also believe and are following the strategy of being a super-aggregator which means that we believe that our customers need to have choice in regards to the services that they like to take up. Therefore we will be introducing more services onto the platform and giving our consumers- both mobile and fixed - more access."


Tuesday, April 18, 2017

Discover Digital to launch a new South African video-on-demand (VOD) streaming service, says 'viewers today want freedom of choice'.


Yet another video-on-demand (VOD) service is set to launch in South Africa next month with Discover Digital that will be making another service available in the country's overheated streamer services arena.

It's not yet clear what exactly Discover Digital's a new video-on-demand content hub will be called, but its Digital Entertainment on Demand (DEOD) service will very likely be offered as a straight-to-consumer service, and also as a flow-through service to other interested operators.

Discover Digital's to be launched service is the latest rival that will compete with video fighters like Naspers' Showmax, the global streaming service Netflix, MTN's limp-along VU, PCCW Global's ONTAPtv.com, and PrideTV all battling for users.

South Africa's cash-guzzling SVOD sector that has seen breathless millions spent since 2016 on content acquisition rights and marketing as streaming services all try to secure a bigger foothold in the door, has already seen spectacular failures like Times Media's VIDI and Altech's Node that both imploded.

While VOD and subscription VOD services are only being used by an extremely small part of the South Africa viewing audience - the latest Television Audience Measurement Survey (TAMS) update used from April 2017 pegs it at only 1% of the total South African TV viewer universe - it is growing fast.

Discover Digital's new on-demand content hub that will have its media launch on 4 May, will be offering a broad bouquet of premium local and international entertainment and educational content and linear channels.

Discover Digital says it is taking its new VOD service to market in partnership with existing mobile operators as well as big consumer brands that may opt to offer its new service as a value-add, or add their own branding to the service.

Now Discover Digital's managing director Stephen Watson says the specialist on-demand company is aggressively entering the African market with a plan to bring fully converged linear on-demand news and entertainment streaming services to viewers across the African continent.

"South Africans will begin to take up paid for on-demand services in greater quantities and I believe this will then start to significantly shift broadcast ad budgets and spend," says Stephen Watson.

"Audiences no longer want to be prescribed extensive, expensive bouquets of channels that they may only watch a small percentage of, or that overwhelmingly do not speak to their interest; they want to be able to choose and so smaller packs of niche focused content or channels is becoming more readily available."

"Viewers today want freedom of choice. They want customisable, affordable access to movies, news, sports, music and TV series wherever they are," says Stephen Watson.

"Disruptive new models are breaking the traditional broadcast and pay-TV moulds by letting viewers choose what packages and genres they want, what subscription models they prefer, and even how they'd like to pay. VOD delivers."

Naspers is reported to be seeking partnerships with mobile operators across sub-Saharan Africa to boost ShowMax and has already concluded a partnership with Safaricom in Kenya with talks underway with other telecommunication operators.

Meanwhile MTN Nigeria recently announced its over-the-top (OTT) VOD service for subscribers, while Ericsson is securing content deals for its NUVU VOD service.