Showing posts with label Sabido Investment Limited. Show all posts
Showing posts with label Sabido Investment Limited. Show all posts

Thursday, November 6, 2014

BREAKING. Sabido, e.tv admit problems with the processes of eNCA's eyebrow-raising infrastructure documentary series.


Sabido the parent company of broadcaster e.tv and the independent 24-hour TV news channel eNCA (DStv 403) on MultiChoice's DStv is now admitting that there were problems with the processes of, and that "lines blurred", with the South Africa infrastructure documentary series shown on eNCA earlier this year.

Although the documentary series is not an "infomercial" and the government paid for separate TV commercials on eNCA, the department of economic development has been using the documentaries as commercials, clearly being very happy and of the opinion that it reflects very well on the government's infrastructure development initiatives.

Sabido, e.tv and eNCA are mired in scandal the past two weeks, with huge brand and reputational damage which has been inflicted following a bitter management meltdown behind the scenes.

It saw both its CEO Marcel Golding and then its COO Bronwyn Keene-Young abruptly quit last week amidst shocking allegations of  government and corporate interference in the eNews and eNCA news divisions.

Emails and court documents laid bare how badly e.tv's eNews and eNCA had been allegedly compromised in terms of news integrity, credibility and brand reputation.

That happened due to alleged pressure on the broadcaster to do legitimate news coverage on the one hand, and on the other hand to do positive government news coverage as a result of corporate lobbying efforts to get the South African government to side with e.tv on the issue of set-top box (STB) control and e.tv favouring an encryption system for digital terrestrial television (DTT).

In a statement today - following an earlier statement when Sabido's chief operating officer (COO) Mark Rosin didn't answer specific questions put to Sabido over the documentary series specifically - Mark Rosin now admits that "there were problems which should have been foreseen" with the documentary series and that Sabido, e.tv and eNCA are "reviewing the process internally and what transpired".

It's now clear that the South African government did pay money to eNCA for TV adverts which ran on eNCA - commercials that ran separately from the documentary series.

What is not clear is whether the documentaries series would have been commissioned, would have been broadcast, and would have existed at all if the government didn't pay for adverts or didn't take a commercial ad campaign on eNCA.

Questions about this, specifically made to Sabido last week in a media enquiry, remain unanswered.

It creates a murky situation where, whether real or perceived, viewers and media experts no longer know for sure, in terms of the eNCA editorial content, what came first: the chicken or the egg as far as this documentary series is concerned.

Mark Rosin, in today's statement, says "lines appear to have been blurred between an undertaking to report on infrastructure development in South Africa and a commitment by [the department of] economic development to spend advertising on the channel".

"The perception that the news was paid for is deeply regrettable and we wish to assure our audiences that eNews remains an impartial and independent news outlet," says Mark Rosin.

Patrick Conroy, managing director of news at e.tv and eNCA says "the news division should have been more directly involved in the discussions at the time".

Although the government paid for commercials on eNCA - and it being unclear whether the documentary series would have made it to broadcast if the government didn't advertise on the channel as well - Patrick Conroy now says that "boundaries of editorial control were not clear" but that "at no point did our editors surrender control".

Today's statement now also signals that eNCA executives knew there were problems with the documentary series before problems with it were revealed, as collateral damage, by Marcel Golding in his court documents two weeks ago to try and prevent his suspension.

Patrick Conroy, using past tense in the today's statement says that "news management agreed afterwards that in future clearer rules and policies were needed to avoid confusion between commercial messages and editorial ones".

Patrick Conroy says that "as a result of the issues we have not entered into any similar agreements subsequently. It was open to misinterpretation and could be confused with advertorial content. Work on clearer policies and guidelines began once these issues were raised".

Patrick Conroy says: "Viewers should at all times be comforted in the knowledge of the fact that what they're watching is independently produced by our news division. Where necessary, disclosures should be included to reinforce this."


Correction 17:43 : This story was changed, amended and updated from a first posted version at 14:33 to more accurately reflect the issue. The first version of this article stated that the government paid for the documentary series on eNCA. The government paid for separate TV commercials, on the eNCA channel. - Ed.

Wednesday, November 5, 2014

Sabido claims eNCA positive government documentary series didn't compromise the TV news channel's integrity and credibility.


Sabido Investments, the owners of e.tv and the South African 24-hour TV news channel eNCA (DStv 403), says that a positive government documentary series broadcast earlier this year didn't compromise the TV news channel's integrity and credibility which is now sitting with a heavily tarnished reputation as a news brand.

e.tv and eNCA are mired in scandal after a bitter management meltdown which saw both its CEO Marcel Golding and then its COO Bronwyn Keene-Young abruptly quit last week claiming news interference.

The public in-fighting behind-the-scenes and shocking revelations of alleged editorial news interference through government as well as corporate executive pressure on the e.tv and eNCA news divisions has laid bare how the eNews and eNCA brands were badly compromised in what South Africans viewers thought were an independent TV news offering.

e.tv executives revealed that they came under increasing pressure to cover positive government news spin regarding infrastructure development due to and in exchange for e.tv's behind-the-scenes lobbying efforts to get the government to side with e.tv in the contentious debate over whether set-top boxes (STBs) for South Africa's digital terrestrial television (DTT) switch must include an encryption system (which e.tv wants and the SABC and MultiChoice don't) or not.

Earlier this year eNCA suddenly broadcast a glowing documentary series about South Africa's infrastructure development. eNCA didn't indicate at the time to viewers whether the series was paid for in full or in part by the government. The department of economic development is however using the documentary series as commercials, calling it "PICC TV adverts".

Sabido Investments - asked whether the documentary series is an advertorial or commercials, and whether the government paid for these documentaries and funded it or whether eNCA and e.News produced these out of the broadcaster's own budget - didn't answer the specific questions, but says "government officials were not involved in determining the content of the reports" and that "the news department retained full editorial control of the series".

In a statement given to TV with Thinus instead of specific answers to a series of questions, Mark Rosin, the group chief operating officer (COO) says the series "is not documentaries as has been erroneously reported" but that it's part of a broader project to reflect on 20 years of democracy which eNCA has done throughout the year.

Mark Rosin says that "at the time it was agreed to sell advertising airtime to Brand SA, and these adverts ran independently of the news reports" and that "news management were not involved in the sale of advertising. This was done by the commercial time sales department. It was the job of the news team to produce the series only and they were instructed to report impartially".

Mark Rosin says "it is understandable and also regrettable that perceptions were created of editorial influence and control" and that "as a result of the above, Sabido will do its utmost to avoid that such perceptions are created again in the future".

Wednesday, May 21, 2014

Pay-TV in sub-Sahara Africa set to hit revenue of $3.6 billion in 2014; region will have have 13.1 million pay-TV subscribers by the end of the year.


Pay-TV revenue across sub-Saharan Africa is expected to reach a whopping $3.6 billion in 2014, according to a new report from Digital TV Research.

The Digital TV Middle East & Africa Databook report is for the Africa and the Middle East (MEA) region and projects pay-TV revenue for this region to reach a massive $8 million this year - up from $4.84 billion in 2010.

Sub-Saharan Africa is expected to have 13.1 million pay-TV subscribers by the end of 2014 - more than double the total in 2010.

Strikingly, 113 million homes (or 46% of all households in this region) will not have a TV set yet by the end of 2014.

Digital television penetration in sub-Saharan Africa is expected to reach 57,1%.

Interestingly, free-to-air satellite TV - the type of service offered for instance by Platco Digital's OpenView HD (OVHD) which is part of the Sabido Investment Limited stable in South Africa - is set to become the most popular TV platform in Africa.

In the MEA region there is projected to be 89.3 million digital TV households by the end of 2014 - up from the 32.4 million since 2010.

Satellite pay-TV will be the top contributor to pay-TV revenue in the Africa and Middle East region, with its share of total revenue rising from 77.5% in 2010 to 78.8% in 2014.

According to the report, the use of IPTV in Africa and the Middle East is rising rapidly.

Monday, April 28, 2014

BREAKING. eNCA goes off the air on DStv; cause of the blackout of 24-hour TV news channel is unknown.


You're reading it here first.

eNCA (DStv 403) is off the air; the 24-hour TV channel from Sabido Investment Limited went dark and experienced a blackout on Monday morning on MultiChoice's DStv pay-TV platform.

The reason of the blackout is unknown; eNCA didn't say why the news channel disappeared, and e.tv and eNCA didn't immediately respond to a media enquiry made asking about the channel. No press release was issued.

eNCA's screen is completely black and blank, with only an eNCA channel logo displayed in the bottom left corner of DStv subscribers' TV screens.

eNCA is the most watched in South Africa of all of the available 24-hour TV news channels, local and international channels included.

The loss on Monday morning of eNCA marks the second major broadcasting interruption of the eNews service, co-incidentally again on a Monday.

On Monday 24 October 2011 the eNews Channel - the former name of eNCA- froze and cut out on DStv leaving viewers and DStv subscribers clueless as to what happened to the channel.

The loss of eNCA on Monday morning also marks the second major TV channel loss and interruption incident occuring on MultiChoice's operated satellite pay-TV system this month.

Earlier in April DStv subscribers lost SABC1, SABC2, SABC3 and SABC News (DStv 404) due to a "complete failure of MultiChoice head-end equipment" with the back-up which failed too.

eNCA came back on at 10:32 on Monday for about one minute, after being off air for 20 minutes, and then went back to black - this time with no eNCA channel logo displayed.

At 10:37 eNCA went to blue screen, displaying the static "Cape Town Studio 201 NewsDay/UEFA".


At 10:38 eNCA started displaying the static message: "NOTE: APOLOGIES ALL. We're experiencing technical difficulties which we are working to solve".


At 10:42 the on-screen note apologising and telling DStv subscribers that the channel is having technical difficulties disappeared, showing just a static eNCA channel logo. The note reappeared from 10:47.

At 11:08 eNCA started with a repeat of Judge for Yourself after trying for several times to start the episode and viewers hearing the theme song playing several times unsuccessfully over another sound track with no visual.

eNCA gave no live anchor made apology when the news channel resumed, nor explained what happened and Judge for Yourself played out with no bumpers, promos or commercials - indicative of the ongoing systemic problems behind the scenes at the channel.

At 11:25 eNCA tells TV with Thinus that a power surge knocked eNCA's news system at its Hyde Park headquarters causing the channel blackout. eNCA said it hoped to be back on-air with live news programming and reporting by noon on Monday.

At 11:56 eNCA NewsDay anchor Andrew Barnes welcomes DStv subscribers and viewers back to the channel saying "Good to be back on-air after some gremlins have been weeded from the system".

Thursday, April 10, 2014

On Digital Media's StarSat no longer getting Sabido's set of new e.tv+ TV channels.


On Digital Media (ODM) will no longer be adding Sabido Investment Limited's new e.tv "+" ("e.tv plus") set of TV channels which the relaunched StarSat, formerly TopTV, included in its new brochure in November 2013.

At the end of 2013 ODM promised that it would "have over 100 channels on air by 1 January 2014". StarSat currently has 99.

ODM was to add three of e.tv's four new e.tv+ TV channels - eKasi+, eMovies+ and eAfrica+ to StarSat following the bailout of China's StarTimes which came to ODM's rescue with a capital injection to save the South African satellite pay-TV operator. 

Out of the set of new e.tv channels, only eToonz+ was not to be added. 

eKasi+, eMovies+, eAfrica+ and eToonz+ are the new e.tv branded, linear TV channel extensions available on Platco Digital's free-to-air satellite TV platform, OpenView HD (OVHD). Platco Digital is a Sabido subsidiary.

In December 2013 StarSat removed the three e.tv channels from its marketing materials and channels listing on its website where it was already included, but said negotiations for the channels are still underway. 

StarSat said that "the ODM content team is still in negotiations" and that the company removed the channels until a contract is finalised. 

StarSat will however now no longer be getting or adding these channels. It's not clear why negotiations failed.

Following requests from StarSat subscribers asking about the e.tv+ channels, a StarSat spokesperson told TV with Thinus in response to a media enquiry that StarSat "did issue a Facebook post some time ago to say that StarSat will not be getting these channels for now, and we apologise in this regard".

Friday, January 24, 2014

BREAKING. OpenView HD (OVHD) adds 3 further TV channels to its platform: Bi-Cars, Ekurhuleni TV and UCBN.


OpenView HD from Platco Digital, a division of Sabido Investment running the OVHD free satellite TV platform service in South Africa, is adding 3 further TV channels - Bi-Cars TV, Ekurhuleni TV and the Christian TV channel United Christian Broadcasting Network (UCBN) to its existing line-up of 15 TV channels.

Ekurhuleni TV is a community TV station carrying local news, music, educational, health and religious programming.

Bi-Cars TV is a new reality street motorsport lifestyle channel. Bi-Cars TV on OVHD will showcase motorsport news, fashion, celebrity riders and real-life stories of street Moto-sport lifestyle, entertainment and music.

According to OVHD biking enthusiasts will like Bi-Cars TV, covering Moto-sport trend setters, spinners, drifters and dragsters. "This is a market that shares one of the most expensive sport, with professionals from different sectors and love spending money on, and are passionate on their hobby.

Bi-Cars shows will include Mzansi Celebrities Bikers, Bi-Car make over, Battle of crews, BC league, Championships of Speed and Sound, and Torque Talk.

United Christian Broadcasting Network (UCB Network TV) is a Christian based channel providing religious content.

UCBN programming include shows such as Men of Honour, Women in me, Pastor's Corner, Africa Talent Show, It's not over yet (Another chance), Nuggets of Wealth and Leadership, U kids.

Wednesday, November 27, 2013

BREAKING. e.tv steaming over a satirical article announcing Zuma's Housewives; says e.tv will take 'legal action as soon as we are able'.


Broadcaster e.tv plans to take legal action "as soon as we are able" over a funny, satirical article which e.tv claims is "defamatory" and which says, tongue-in-cheek, that e.tv is doing a new reality show just before the elections, entitled Zuma's Housewives and following the wives of president Jacob Zuma.

The South African free-to-air commercial broadcaster which should be championing freedom of speech, now appears as if e.tv can't handle a satirical joke when that joke is on e.tv.

e.tv is slamming the piece "announcing" Zuma's Housewives as coming to e.tv as "malicious, false and mischievous" and says e.tv will be taking legal action - although its a satirical news story which isn't real and isn't meant to be taken as real.

E.tv appears clueless about the nature of the article on website Lifestyle Tabloids which first appeared yesterday - although its marked "satirical" at the end of the article, and also states that "the publication of this article is protected by our disclaimer policy".

Lifestyle Tabloids says in that disclaimer policy that its satirical articles should be viewed as "only a parody" and that these articles are "written to highlight the state of nations, celebrity and current affairs and should therefore be regarded as humour".

Lifestyle Tabloids does satirical news stories similar to The Onion in America.

In the satirical article, it is said that e.tv will be doing a "housewives reality show set against the backdrop of president Jacob Zuma's Nkandla village "profiling the pleasure and pressures which four women encounter as wives of a South African president" and that it will start on e.tv just before 2014's general elections.

Media savvy readers, industry experts and qualified journalists know that no broadcaster anywhere in the world would ever do a show with high political exposure just before an election of specific people linked to that election out of fear of possible favouritism.

In the funny article, Lifestyle Tabloids' breathlessly report on what is to become "Africa's most watched television show", with creator and series producer Shaka Sisulu promising that "the dramatics, footage of the housewives' jealous rivalry and jaw-dropping cat-fights will remain unedited, reassuring Bonang Matheba and Kelly Khumalo that they are not the only straatmates alive."

e.tv, which seems unaware that the article is satirical in nature is blasting the article - incorrectly calling it Lifestyle Tabloid without the "s" in an official statement - and saying "e.tv is not associated with a programme such as this".

e.tv says the article is "defamatory and also undermines the channel’s integrity". 

e.tv is currently broadcasting shows such as Cheaters in which people are shown who cheat on each other, Ripley's Believe it or Not, Totally Outrageous Behavior Caught on Tape well as Playboy Playmates and Bikini Babes. 

e.tv appears to have taken the article on the website at face value, thinking that it is real reporting on a website where other articles carry headlines such as "Editor arrested for publishing photos of Nkandla", "President Robert Mugabe's son reveals his homosexuality" and "Quick & Easy Mobile Abortion Clinics Proposed" - all stories which are clearly satirical in nature and marked as such.

"We do not understand the motive for its publication and do not wish to speculate," says e.tv in a statement about Zuma's Housewives

"We do not know if it is a publicity stunt with an ulterior motive or whether it was published with a more malicious intent, but e.tv wishes to express its disappointment and concern at the publication. e.tv will seek to find the company or individuals responsible for the publication and will most certainly take legal action as soon as we are able." 

The broadcaster also feels it necessary to say in its press statement that an e.tv press conference didn't take place in Craighall to announce the show. The satirical article says e.tv held a press conference in Craighall to announce the housewives of Nkandla reality show.

E.tv declined to respond to specific questions TV with Thinus made in response to e.tv's media statement, asking what e.tv sees as defamatory, who exactly is being defamed and whether e.tv regards such a possible show about presidential housewives as bad.

TV with Thinus also asked whether its correct to say that e.tv plans to take legal action against a satirical article. 

Legal action against any form of satire from e.tv in South Africa would be strange, given that e.tv's sister channel eNCA, the 24-hour news channel on MultiChoice's DStv platform has the satirical TV news show Late Nite News with Loyiso Gola which features Nkandla on a weekly basis in its own satirical references.

TV with Thinus also asked e.tv why the broadcaster says that "we do not understand the motive for its publication" if the Lifestyle Tabloids site clearly states that it does political satire under the "About Us" category. Anyone can quickly access what the site is about to find out more about the website. 

Did e.tv research the site before e.tv issued the press statement on the article? The broadcaster didn't answer.

Did e.tv read the disclaimer which is published at the end of the article where it says no party should rely on the information and act on the contents of the stories, especially satirical stories?

E.tv's spokesperson Matla Ragoasha tells TV with Thinus in a general response that the article in question "was not being seen as satirical by a number of journalists who were asking questions regarding the show."

"Given this, the channel felt that the article could be easily misinterpreted as genuine. The e.tv publicity department received numerous queries from journalists throughout the day. The reader of the website would need to look into other pages to work out that it is satirical," Matla Ragoasha tells TV with Thinus. "e.tv feels that the article misrepresents our brand and content strategy."

Lifestyle Tabloids' editor-in-chief Kenneth Bassito Mahloane, didn't respond to a media enquiry made regarding e.tv's reaction to the satirical piece. 

It's unclear whether e.tv contacted or tried to contact Kenneth Bassito Mahloane and Lifestyle Tabloids before the broadcaster released today's press statement.

Tuesday, November 19, 2013

BREAKING. e.tv's new e.tv+ channels - eKasi+, eAfrica+ and eMovies+ - to be added to ODM and StarTimes' new StarSat channel bouquet.



e.tv's newly launched "e+" TV channels are being added by On Digital Media (ODM) and China's StarTimes to its TopTV - soon to be called StarSat - satellite pay-TV platform.

Sabido Investment Limited's eKasi+, eAfrica+ and eMovies+ channels are being added to ODM and StarTimes.

eToonz+ will however not be added. Although the channels are broadcast in high definition (HD) they will not be seen in HD on StarSat at launch.

Sabido launched eKasi+, eAfrica+, eMovies+ and eToonz+ in mid-October on Platco Digital's new OpenView HD (OVHD) platform.

The channels will remain on OVHD but will now also become available on ODM and StarTimes' StarSat pay-TV platform as part of StarSat's new channel bouquet offering, according to StarSat's website.

e.tv, asked for comment about the additional e.tv channels to be added to StarSat as well, says "e.tv's policy is platform-neutral and we aim to be on as many platforms as possible."

e.tv says "a media statement will be issued as and when e.tv becomes available on new platforms."

Thursday, April 4, 2013

e.tv set to expand with online channels; e.tv Online and eNCA Online to launch in the first half of this year in order to remain competitive.

The South African free-to-air commercial broadcaster e.tv is set for major online expansion, with plans to roll out and make available a vast quantity of of its locally produced television content from e.tv and the eNCA available online as the broadcaster fights to remain competitive.

The plan for major online expansion and boosting its online presence through video output on the internet has been in the works for the past two years and picked up steam towards the end of last year when e.tv rolled out the new eNCA website and started a new, beta version of the e.tv website with richer content.

e.tv now reaches 16,5 million viewers and the 24-hour South African TV news channel eNCA (DStv 403) on MultiChoice's DStv remains the most-watched of all the TV news channels on that pay-TV platform.

The holding company Remgro which has an interest of 31,6% in Sabido Investment Limited, the owner of e.tv, says e.tv is looking at a multi-channel strategy to enhance its revenue streams. This multi-channel strategy include the start of online channels.

"The focus of the group for the forthcoming months is the ongoing development of a multi-channel strategy to enhance its competitiveness across a multiplicity of platforms and provide opportunities for new revenue streams," says Remgro in reporting its interim results. "This includes the launch of e.tv Online and eNCA Online in the first half of 2013."

"Despite aggressive growth in pay television, which is impacting on audience share for free-to-air services, e.tv has managed to hold its own against the increasing competition."

Remgro says e.tv's audience and advertising share remains increasingly under pressure from pay-TV due to the ongoing delay in the launch of digital terrestrial television (DTT) in South Africa which is effectively preventing e.tv from launching more TV channels within a digital television broadcasting environment in South Africa.

"The future of free-to-air television in South Africa, including e.tv, is critically dependent on the availability of a free-to-air platform which can compete effectively with the dominant pay-TV player," says Remgro, meaning MultiChoice's DStv.

Remgro says advertising sales on e.tv and the eNCA remain under pressure, while programming and operating costs at the channels remains stable.

Saturday, March 30, 2013

CCTV News and CCTV Africa hard at work at building positive perceptions through television news of China and Africa.


China is flexing its media muscle in Africa and continues to grow its influence on Africa's television viewers and strengthening Sino-African perceptions through its CCTV News (DStv 409) channel which is giving constant, and overtly positive coverage to, and of, African stories.

It's also visible through bigger profile coverage on other TV sources such as South Africa's eNCA (DStv 403) channel.

Other 24-hour international news channels and international media platforms have remained slow and reluctant to cover Africa - or mostly keep with outdated stereotypical images of starving African children beset with flies, poverty, war and hopelessness.

CCTV News's African division, CCTV Africa is now pro-actively busy with changing the television news agenda of how Africa's stories and coverage is framed.

CCTV Africa, with its headquarters based in Nairobi, Kenia, is working hard on a transformative television news experience when it comes to covering the continent and by showing mostly positive profiles and TV news stories which are more balanced and less negative.

A year ago CCTV in partnership with MultiChoice, the Africa continent's biggest pay-TV platform, started the Great Wall bouquet - a separate Chinese channels bouquet with channels provided by China's state-run China Central Television (CCTV).

It was also a year ago that CCTV News started the daily dedicated hour long show Africa Live, providing viewers across Africa on CCTV News with news coverage, profile stories as well as breaking and leading news stories of the day of about what is happening in Africa as the CCTV Africa production office came into operation.

Besides the daily Africa Live, CCTVN has Talk Africa, the weekly talk and current affairs show with presenter Beatrice Marshall.

There also the documentary strand, Faces of Africa, on CCTV News which is a profile documentary series chronicling African leaders and positive role models like a female pilot in Ghana for instance.


Although CCTV Africa is headquarted in East Africa with a production staff of now almost 70 people, CCTV Africa and CCTV News has aggressive expansion plans. CCTV Africa is on an ambitious roll-out plan for new news bureaux across the continent.

Guy Henderson who worked for the BBC and was at Al Jazeera is for instance already based in South Africa as a correspondent for CCTV Africa.

South Africa's 24-hour news channel eNCA (DStv 403) also got into the act with extremely positive Sino-Africa media relations, marked by breathless reporting this past week with eNCA's John Bailey who conducted an "exclusive" interview with China's new president Xi Jinping.

The eNCA was quick to stress that it was "granted the first international TV interview" with Xi Jinping "ahead of other 24-hour news networks".

Th e.tv and Hosken Consolidated Investments (HCI) publicity machine also went into overdrive to show Marcel Golding, the CEO of Sabido Investments (owner of e.tv and the eNCA) getting facetime with (and a photo-op!) with Xi Jinping in Beijing two weeks ago.

China which is heavily investing in Africa in order to secure energy and oil contracts as well as other resources for its own booming economy, is now ramping up its media relations, media coverage of Africa, and its media intercontinental ties with the continent, as part of that economic growth strategy.

As China's hunger for African resources grow to help supply its own energy demands, CCTV News is helping by building and fostering a positive image of China through not only portraying China positively through the state-run television news organisation, but also putting more of Africa's untold stories in a positive light.

That has the double-barrel effect of not only making Africa look good and China look good, but strengthening the overall relationship and business ties between African countries and China.

It's also giving viewers stories - and framing the continent - in a way never really seen before on television news about Africa before, interestingly being told by China and not by Africa itself.

Thursday, May 31, 2012

South Africa's free-to-air commercial broadcaster e.tv more profitable thanks to ongoing growth in advertising revenue.

e.tv, through the media subsidiary Sabido Investment Limited which is owned by Hosken Consolidated Investments (HCI), has increased it profitability, with gross profits climbing 17% to R766 million for the year ending March 2012.

Sabido revenue is up 18% to R1,9 billion for the year to end March, mostly attributed to advertising revenue growth.

ALSO READ: Porn takeover battle heats up as Longkloof Limited - an e.tv sister company - increases its bid for New Frontiers Limited.

e.tv as the media and television part of HCI continues to be a star performer since the broadcaster started turning a profit in late 2003 for the first time after e.tv started in 1998. e.tv receives no TV licence fees and income is derived from sponsorships and advertising.

According to HCI's consolidated results on 21 July 2011 Sabido acquired Powercorp International Limited, a London based global content distributor of films and television series.

An interest of 80% and 90% respectively were acquired in September 2011 in Media Film Equipment Services and Media Film Services Incorporated - both of them sell and rent specialised equipment.

What could impact e.tv and Sabido's profitability in the not-too-distant future would be South Africa's switch-over to digital terrestrial television (DTT), a process known as digital migration. Both the hard switch-over in terms of infrastructure and signal distribution costs, as well as the massive amount of more programming and programming costs, make this a very capital intensive compulsory exercise for all South African broadcasters.