Fire at Sasani Studios injures two crew members working on SABC1's Skeem Saam, damages sets and equipment

by Thinus Ferreira

A fire that broke out on Monday afternoon at Sasani Studios in Highlands North in Johannesburg on the set of SABC1's Skeem Saam and damaged sets and equipment, injured two crew members who were hospitalised.

Sasani Studios belong to eMedia Holdings, with Peu Communication Solutions that is the production company renting space on the lot where Skeem Saam is filmed.

Sasani Studios is also home to other shows like e.tv's Scandal! and kykNET's Diepe Waters.

The cause of Monday's fire at the SABC1 weekday soap is not yet known or when filming will resume.

"The SABC confirms that a fire occurred at Sasani Studios on the set of SABC1's flagship drama, Skeem Saam, resulting in two crew members being injured and hospitalised," says Mmoni Ngubane, SABC spokesperson.

"The fire caused some damage to sets and equipment and the full extent thereof is being assessed. To this end we are working closely with Peu Communication Solutions and Sasani Studios to evaluate the situation.

"Our thoughts are with the injured crew members and we wish them a speedy recovery."

eMedia Holdings was asked for comment and about the crew injuries with the company that responded that "this is an ongoing investigation and we cannot comment at this time".

e.tv takes SuperSport to court over SABC's sublicensed Rugby World Cup TV rights.

by Thinus Ferreira

A court scrum is coming with eMedia Holdings, parent company of e.tv, which is taking SuperSport to court over the inability of its Openview service to show the 2023 Rugby World Cup free on its satellite TV service, after the SABC acquired the sublicensing rights for R57 million.

While MultiChoice and SuperSport years ago acquired the licensing rights for the current 2023 Rugby World shown on SuperSport channels to DStv subscribers, the SABC - with days to spare - last month paid R57 million to SuperSport to acquire the sublicensing rights to show 16 matches of the 48 matches on its SABC TV channels.

While MultiChoice and SuperSport have its own Rugby World Cup sponsors, the SABC - which made another annual loss of R1.13 billion and doesn't have money to pay for the rights - managed to cobble together its own sponsors at short notice like South African Breweries (SAB), Hollywoodbets and insurer Pineapple, to pony up the R57 million to sublicence the sports rights.

The SABC TV channels which are available freely, are also carried on the satellite TV services of MultiChoice's DStv, StarTimes Media SA's StarSat, as well as eMedia's Openview.

The issue is this: MultiChoice is preventing the SABC from showing the Rugby World Cup matches it had acquired from SuperSport, on the versions of the SABC's TV channels carried on Openview.

While SABC2 on DStv will, for instance, show the Rugby World Cup match between the Springboks and Tonga, the SABC is forced to substitute it with other filler programming for the version of SABC2 shown on Openview, since Openview is a direct competitor to MultiChoice.

MultiChoice argues that it doesn't want content that it had to bid and pay for to be available for free - especially not on a competing satellite TV service. 

eMedia argues that the SABC is a public broadcaster and that content on its TV channels should be the same everywhere and be accessible as widely as possible and to all South Africans irrespective of the distribution platform.

After threatening to do so in two acrimonious letters sent last month to MultiChoice that eMedia also made public and gave to the media, eMedia has now lodged papers in the high court and has announced its decision to sue MultiChoice and SuperSport.

eMedia paid for three expensive black-and-white full-page ads in the Sunday Times, Rapport and City Press newspapers respectively. 

In the form of a poem, eMedia in the full-page ad published in Sunday, states that "The court is engaged, the court will decide if digitally migrated Openview homes will get to the Rugby World Cup. The court will decide if Openview homes, who must pay TV licences, get to see the Rugby World Cup on SABC2".

Khalik Sherrif, eMedia CEO, in a statement said "The anticompetitive action is nothing short of domination in trying to prescribe to the free-to-air partner on how to use its broadcasting rights".

"We believe the action should be strongly condemned and opposed. The 3.2 million households which have been affected by the decision should voice their dissatisfaction."

MultiChoice told TVwithThinus in a statement "We are in receipt of the application served on us by eMedia. We consider the application to be without merit and have notified eMedia of our intention to oppose it".

Satellite TV cold war

The frosty relationship between the Hyde Park-based eMedia and the Randburg-based MultiChoice steadily soured over the past decade as it steadily built to an all-out TV war.

The relationship between eMedia and MultiChoice frayed due to eMedia's own growing multi-channel content aspirations which led to its creation of Openview, as well as increasingly contentious channel carriage renewal deals for the eNCA (DStv 403) TV news channel and later other e.tv-packaged TV channels offered to DStv.

In a drawn-out case at the Competition Commission, e.tv's additional TV channels remain available on MultiChoice's DStv which the pay-TV operator wanted to axe at the end of March 2022.

MultiChoice wanted to get rid of eMedia's eMovies (DStv 138), eMovies Extra (DStv 140), eExtra (DStv 195) and eToonz (DStv 311) TV channels but in August the Competition Appeal Court granted yet another extension for e.tv's channels to remain on DStv for the time being.

MultiChoice was again ordered to keep the four TV channels on DStv until the conclusion of the Competition Tribunal's latest decision on case.

eMedia to enter South Africa's pay-TV market in 2023 competing against MultiChoice and StarTimes, will roll out new Openview decoder, Android box and build VFX studio.

by Thinus Ferreira

Sixteen years after it was awarded a licence in mid-2007 to start a subscription television service, eMedia finally plans to enter South Africa's pay-TV market in 2023 where it will more directly compete against MultiChoice and China's StarTimes operating as StarSat.

Besides competing with MultiChoice in the pay-TV market from 2023, eMedia plans to roll out a new, "smarter" Openview decoder, a new Android box, and to construct a new state-of-the-art visual special effects studio at its Hyde Park precinct in Johannesburg.

In its just-released integrated annual report for 2022, eMedia Holdings CEO Khalik Sherrif  reveals that the group has plans to finally enter the country's lucrative pay-TV space.

eMedia Holdings already runs South Africa's sole free-to-air commercial TV channel e.tv, the TV news channel eNCA (DStv 403) on pay-TV, the streaming service eVOD, the free-to-air satellite service Openview and owns support and production spaces like Sasani Studios, Cape Town Film Studios, Moonlighting Films and Media Film Service.

"The 2023 year will also see the group enter the pay television market," Khalik Sherrif notes on page 11 of the report. 

In response to a media query asking about its pay-TV plans and what it would entail, eMedia told TVwithThinus on Monday morning that "eMedia definitely has plans to venture into the pay-TV space".

"It's still early stages so we cannot say too much yet for competitive reasons. As soon as we are closer and in a position to share detail we will," a spokesperson said.

In 2007, eMedia under the header e.Sat was one of the successful applicants of a pay-TV licence from the South African broadcasting regulator, the Independent Communications Authority of South Africa (Icasa).

eMedia however decided against launching its own satellite pay-TV service, opting to become a TV channel supplier to existing pay-TV services instead, fearing that it would be too difficult and financially draining to launch its own pay-TV service given that Icasa handed out multiple other pay-TV service licences.

eMedia has been supplying pay-TV channels like eNCA to MultiChoice's DStv satellite pay-TV service since 2008, while it signed channel carriage agreements for various permutations of its other e.tv-packaged channels with MultiChoice and StarTimes over the past couple of years.

With the longtime frosty relation between Hyde Park and Randburg that further sourced this year when MultiChoice decided to drop and end the channels carriage agreement for a litany of e.tv-supplied TV channels on DStv - a case that ended up before South Africa's Competition Tribunal - eMedia is now clearly adamant to pursue a strategy of creating and funnelling it own pay-TV content directly to consumers.

eMedia already launched its own over-the-top (OTT) video streaming service, eVOD , in August 2021 as well as its eOriginals production banner, while its Openview satellite service continues to grow.

The e.tv-packaged TV channels like eExtra, eMovies Extra and eReality (rebranded as eXposed) - while they were available on MultiChoice's DStv and Openview simultaneously - have been ranking in the top 15-list of all satellite TV-channels available in South Africa regarding audience share, likely providing incentive for eMedia's plan to make a bigger push into pay-TV.

With eVOD already competing for consumer screentime, advertising income and subscriber numbers and revenue against the likes of MultiChoice's streamer Showmax and StarTimes's StarTimes ON, eMedia's plan to enter the pay television market will move eMedia into the crosshairs of these existing local players.

With the free-to-air Openview division already representing 21.9% of the group's advertising revenue, amounting to R468.1 million for the past financial year, and with eVOD that racked up 461 611 subscribers in less than a year, it's understandable that eMedia wants to see if it can derive more revenue from pay-TV content as well.  

2023: Smarter Openview STB, new Android box, VFX studio

Openview is close to reaching the 3 million mark for activated households across Southern African countries (2 774 454 activations by the end of March this year), while eMedia signed a channel carriage extension with MultiChoice to keep eNCA as a DStv exclusive news channel for another 5 years.

The group plans to invest another R100 million in local, original content development spend in eOriginals for eVOD and e.tv, with Openview that plans to launch another TV channel to its existing bouquet in October this year.

In the 2023 financial year eMedia also plans to launch "a new smarter set-top box which which include built-in Wi-Fi and the capability for the group to be innovative with advertising revenue," Khalik Sherrif says in the annual report.

eMedia is also working on "a new Android box which will hopefully hit the market in the second half of the 2023 calendar year".

eMedia will also start construction of a new state-of-the-art visual special effects studio at its Hyde Park precinct in Johannesburg.

"This will further enhance the already premium local content to a level that will compete with international players," the group says.

"The group is forging ahead with numerous technology advances and strategic planning to continue to be the audience share market leader. The investment in Openview provides the group with the strategic flexibility and is the plan to address the challenges of the transition that digital migration brings with it."

eMedia's Openview in South Africa and StarTimes in Kenya adding ZEE's Zee One channel from November.

by Thinus Ferreira

eMedia's Openview satellite service will add the Zee One channel from Zee Entertainment Enterprises from 1 November on channel 111, with China's StarTimes that is also adding Zee One in Kenya from the same date.

The addition of Zee One comes after Openview abruptly removed the Glow TV channel from NisMedia earlier this month without any explanation.

That was followed by a Gauteng court case in which eMedia was ordered to immediately reinstate Glow TV on Openview with the acrimonious channel carriage conflict between eMedia and NisMedia moved to ongoing arbitration.

According to insiders, Openview and NisMedia allegedly had a disagreement regarding a separate advertising sales contract that Openview wanted to introduce for Glow TV that NisMedia refused to sign.

Various Zee channels are already carried on the satellite pay-TV services of MultiChoice's DStv and China's StarTimes, operating as StarSat in South Africa, across sub-Saharan Africa.

Somnath Malakar, Zee CEO for Africa and Indian Ocean Islands, in a prepared statement about the addition of Zee One says: "The corporate positioning of Extraordinary Together – with a vision to provide a unified brand experience and to delight consumers across the world by creating extraordinary entertainment and experiences that inspire to transcend the ordinary and become extraordinary. This is a driving force that enables us to bring authentic and entertaining content to global audiences".

Asked what happened to Hamish Goyal, CEO of Zee Africa and Asia Pacific, who led the territory, Zee Africa told TVwithThinus on Friday that Hamish Goyal "is now based in the USA". 

Mmatshipi Matebane, Openview executive, in the statement says Zee One "is a welcome addition and adds variety to our current bouquet of entertainment".

"Openview is celebrating its 8th birthday this year and we are pleased to offer our viewers an extensive range of local and international content. Zee One adds to our positioning of catering for all audiences."

Zee One will broadcast telenovelas like Guddan, The Heir, Reach for the Stars, Lies of the Heart and Our Perfect Place.

Zee One is a general entertainment channel that broadcasts series, musicals, comedies, drama films, romantic films, family films and music videos. 

A Zee One channel version ran in Germany for 4 years after which it was shuttered in May 2020, with Zee One that also launched in Poland in 2017.

It not yet clear what the exact programming positioning of Zee One will be for Openview and Southern Africa and how the content on Zee One will differ from Zee Africa's other channels on the continent.

Zee channels like Zee Cinema and Zee Magic are available on StarTimes/StarSat, while DStv subscribers get Zee World, Zee TV, and Zee Alem in Ethiopia in the Amharic language.

Zee Entertainment also announced that it's adding Zee One to StarTimes in Kenya on channel 553, where Zee One will be added together with Zee TV and Zee Tamizh as three new TV channels

Zee Entertainment has announced the launch of Zee TV, Zee One, and Zee Tamizh on StarTimes where Zee One will have content dubbed into English and with Zee TV (StarTimes 557) and Zee Tamizh (StarTimes 558) offering content with English subtitles.

Lynn Gaines appointed as Sasani Studios managing director.

by Thinus Ferreira

eMedia has promoted the Imbewu series producer Lynn Gaines who has been appointed as managing director for Sasani Studios in Johannesburg.

Sasani Studios in Highlands North in Johannesburg, one of the subsidiaries in the eMedia Holdings group, houses several of South Africa's large and multiyear locally-produced weekday soap operas, from SABC1's Skeem Saam, SABC2's 7de Laan and Muvhango, to e.tv's Scandal! and until recently its now-cancelled Rhythm City, with studio space for various other shorter local productions.

Lynn Gaines has served as an executive producer for the past 15 years and as series producer for its locally-produced Imbewu on eMedia Holdings' e.tv channel.

"At eMedia we believe in nurturing talent and promoting our own from within. Lynn has been with the group for many years, and we are very proud to have her steer Sasani Studios," says Antonio Lee, COO of eMedia Investments.

"She is talented and the appointment was an obvious choice for us. This is a celebration of the exceptional individuals we have in our midst."

Lynn Gaines says "I have always been passionate about producing and love seeing the final product packaged and delivered to millions of viewers on air".

"I am incredibly excited about my new role as managing director at Sasani and look forward to many new projects coming up. I am also very proud to be recognised by my company and in the industry."

South Africa's TV ratings set to tank in suddenly rushed digital migration plan: TAMS and e.tv warn millions of TV households will be wiped away and lose access, severely damaging TV biz and advertisers.

by Thinus Ferreira

South Africa's TV ratings are set to tank. 

That's the stark warning from the custodian body of South Africa's TAMS TV ratings system, as well as e.tv, raising red flags over the government's suddenly rushed plan to complete its long-delayed digital TV migration plan to switch off all analogue signal transmitters by February 2022.

This suddenly rushed plan will leave millions of TV households without any television access, will severely damage the entire South African TV ecosystem, advertisers, cause TV ratings to crater while it leaves millions of viewers without access to television news content.

On Tuesday, Khumbudzo Ntshavheni, South Africa's latest minister of communications and digital technologies, announced the latest amended rushed plan to flip the kill switch on all remaining analogue signal transmitters in the country's 9 provinces within the next 3 months.

eMedia Holdings that says the plan is not practical and extremely damaging, has now filed papers in the High Court to attempt to stop Khumbudzo Ntshavheni's latest digital terrestrial television (DTT) plan for a 31 January 2022 hard switch-off of analogue signals.

Although the South African government more than a decade ago promised that analogue TV signals in South Africa won't be switched off before all TV households haven't been switched over to digital terrestrial television (DTT), the government will now take television reception away from millions of TV households in South Africa.

These viewers will no longer be able to watch or listen to any content on any SABC TV channels or radio stations, e.tv, or community TV stations in the country as they lose analogue TV signals but don't yet have the means of receiving digital TV signals.

These millions of TV households are part of South Africa's TV ratings system that TV channels use to set advertising rates according to TAMS viewership figures. The result is that these TV households will disappear in large swathes when analogue signals are turned off.

Millions of South African TV households still watch television using analogue TV signals and haven't bought digitally-capable TV sets, or are poor households that haven't received the free government-subsidised set-top box (STV) for DTT because of corruption and incompetence, industry-in-fighting and ongoing delays in the country's digital migration process that had severely hampered and delayed the process for a decade and a half.

Over the past decade, TVwithThinus had reported numerous times - as lately as March this year - about the looming danger that analogue transmitters in South Africa will be switched off before all TV households have been migrated that will inflict massive damage on free-to-air broadcasters who depend on ratings and advertising revenue, advertisers, as well as the TV ratings system.

Analogue signal hard kill: Millions of viewers left in the dark

Khalik Sherrif, Media Holdings CEO, in an interview on eNCA (DStv 403), said Media and e.tv don't agree with the suddenly changed and rushed plan to switch off all analogue TV signals by the end of March 2022 "because we don't believe it's achievable at all".

"Analogue switch-off must happen," he said, "but in the way it's being rushed now, it is absolutely unachievable to do this by January 2022." 

He said there's an STB shortage with decoders that are not available, there's a microchip shortage around the world in all industries depending on chipsets, and that there are big questions around the logistics on installations.

"How is it going to be done? 5.6 million TV households in this country rely on analogue transmission," Khalik Sherrif said. "You need to do 500 000 boxes a month to meet the January deadline. It's not going to happen. Absolutely not." He said that eMedia's plan and suggested for the government's amended DTT plan has not been heard.

"This is an absolute problem for the country. There are people who are going to be left in the dark. There's going to be no television available to many millions of households and that's the problem."

He said that "more than 50% of people in this country watching television are watching it through analogue. 

SA's TV ratings: Warning of severe impact

Gary Whitaker, Broadcast Research Council of South Africa (BRCSA) CEO, warned that South Africa's TV population will decline and that the country's TV ratings will tank if analogue signals are switched off before all viewers have migrated, with massive implications for the TV industry and advertisers. 

South Africa's TV universe is roughly 15.9 million TV households.

The passive TV households forming part of the TAMS panel are just over 3000 TV households that represent the almost 16 million TV households in the country. 

TAMS also measures analogue TV viewing, with 28% of the households in the TAMS panel who are analogue viewers and who represent 5.6 million TV households.

"TAMS reflects what is actually happening in the market. If analogue signals go off, anyone in our panel that loses their signal, we don't throw them out of our panel - they stay on - and they get measured as nil viewing. Zero viewing. Their viewership cannot be traded as a currency. The broadcasters cannot make money."

Gary Whitaker said that "the deadline as it stands now - we know that's there's going to be a severe impact on free-to-air channels".

He said that if there is a hard switch-off of analogue transmitters in South Africa wiping away millions of viewers "we have to abide by what's happening in the market and we will be agile as far as we can. If there is a switch-off by March 2022 that's when we will enact our plan to establish a new TV universe that will take into consideration fewer TV viewers. The TV population will decline." 

DTT: Free-to-air broadcasting in jeopardy

Khalik Sherrif said that the government's plan for a sudden hard switch-off of analogue signals within months will have a massive negative impact on free-to-air broadcasters like community TV stations, the SABC, e.tv and others.

"Free-to-air broadcasters make their money from advertising. Now you switch off everybody on a date. Hard switch-off. Viewers won't be measured. Advertisers will be disappointed. Marketers will pull away. Free-to-air broadcasting in the country stands in jeopardy because we lose our businesses," Khalik Sherrif said.

He said there must be a planned approach with Media suggesting a timeframe of 15 to 18 months - not 5 months.

Khalik Sheriff said that it's not just eMedia that will be impacted but all of free-to-air broadcasting in South Africa. "What is the recourse? We have to go to the court. There's no other way. We're definitely not partnering with the department of communications on this matter".

In the court affidavit eMedia filed in court, Antonio Lee, eMedia COO, states that "very recent events have raised alarm bells regarding the process that the minister and Icasa intend to follow to achieve analogue switch-off".

"The so-called 'fast-tracking of digital migration at a 'rapid speed' - without the preconditions for a lawful digital migration process having been achieved - fundamentally threatens e.tv's ability to continue to reach the majority of its audience".

"It also threatens the rights of the public to have access to free-to-air television from either the SABC or e.tv - both of which use analogue spectrum for the purposes of broadcasting their programmes."

"Around 23.5 million viewers in South Africa watch e.tv on average each month. This equates to approximately 6.7 million households in which e.tv is viewed."

"Given than 58% of these households are dependent on the analogue broadcasting of e.tv's news and programming, an analogue switch-off would deny some 13.6 million viewers in South Africa the opportunity to view the broadcasting of the only source of free-to-air independent television news and information programming."

"Many of these viewers are among those who do not have sufficient economic resources to afford digital subscription platforms such as DStv, and who cannot afford to purchase sufficient data to stream news and programming via mobile networks."

"To comply with constitutional obligations and public promises, before digital migration can be completed, the government must ensure that these 13.6 million viewers are provided with the necessary equipment, be it set-top boxes and/or reception devices, to continue to receive these broadcasts."

"e.tv has calculated that an additional 3.9 million set-top boxes are still to be provided to its viewers to achieve this purpose."

ALSO READ: South Africa's TV ratings system and broadcasters risk damage in new monthly analogue TV hard switch-off approach as signal transmitters are shut down in provinces before all viewers have switched to DTT or received set-top boxes.

ALSO READ: e.tv and the SABC silent over the drop-off danger and the threat of disappearing audiences in South Africa's digital terrestrial TV switch-over.

ALSO READ: South Africa's government now ready to leave millions of poor analogue TV households behind in long-delayed digital migration switch that that gets yet another revised deadline of March 2022 for completion.

ALSO READ: SA'S DIGITAL TV SHOCKER: The 'secret' R800 South Africa's TV viewers don't know they'll have to pay just to keep watching their free television.

e.tv's Openview satellite-TV platform still loss-making but adding 35 000 set-top boxes per month; eNCA still most watched TV news channel; e.tv prime time ratings slightly up, movie slots reduced - eMedia Holdings 2018/2019 financial results.

According to eMedia Holdings' financial results for the  year ending 31 March 2019 its Openview free-to-air satellite-TV service remains loss-making although it's now adding 35 000 set-top-box sales per month, its eNCA (DStv 403) remains the most-watched TV news channel in South Africa, and e.tv's prime time audience share rose slightly thanks to local content as it reduced movie slots.

e.tv's Openview continues to be a loss-making operation although it is adding 35 000 activated set-top boxes (STBs) per month, according to eMedia Holdings that has released its financial results for the year ended 31 March 2019.

eMedia now has 1.57 million "activated" Openview decoders in South Africa and Southern Africa.

eMedia Holdings runs e.tv, the Openview platform and the eNCA (DStv 403) TV news channel on MultiChoice's DStv satellite pay-TV service.

eMedia Holdings on Thursday reported a R117.6 million profit for its year ending 31 March 2019, compared to a loss of R1.5 billion during the previous financial year. eMedia Holdings has an interest of 67.69% in eMedia Investments.

Openview, inclusive of the e.tv multi-channel business, earned advertising revenue of R131.8 million during the past financial year with content costs of R255.7 million.

This content costs of R255.7 million was up from R173.6 million the previous year, with the increase that is attributed to the launch of the new Open News TV news channel, as well as the block of Afrikaans language content on the eExtra channel, and the launch of the eReality channel in November 2018.

According to eMedia Holdings, these content changes have increased the market share on other e.tv packaged channels from 2.6% in March 2018 to 4.6% in March 2019.

Operating costs, including retail subsidies of R55.3 million amounted to R185.4 million compared to R193.6 million in the prior year. The reduction is attributed to a reduction in subsidies of set-top boxes from R150 to R75 per box in October 2018 as well as the exit from the SES contract.

eMedia Holdings says that despite the reduction in subsidies of STBs, Openview set-top box activations continue to grow at an average of 35 000 per month.

At the end of the period, a total of 1 574 395 (compared to 1 149 217 in 2018) Openview boxes have been activated and a total of R55.3 million (2018: R74.5 million) has been spent on retail subsidies.

During the financial year Openview also launched the personal video recording (PVR) functionality for the Openview box although it didn't publicise it widely, and says that in the new financial year it will "launch of a few more technical initiatives".


Tough conditions for free-to-air broadcasting in South Africa
eMedia Holdings says tough trading conditions continue for the free-to-air broadcasting industry in South Africa, with advertising revenue that remains under increased pressure.

Despite this, eMedia showed an increase of 4% in advertising revenue from R1.577 billion to R1.638.8 billion for the financial year.

The cost of sales - mainly e.tv content costs and employee costs at the eNCA channel - increased by 1% from R1.199 billion to R1.211 billion.


eNCA remains most watched TV news channel

While eNCA is only available to top-tiered DStv subscribers and with channels like SABC News (DStv 404) available to a wider potential DStv audience, eNCA remains the most-watched TV news channel in South Africa, with 45% of the overall TV news channel viewership market share.

"Despite eNCA only being on some of the premium DStv bouquets while SABC News is on all the bouquets and the DTT platform, eNCA continues to be the most watched 24-hour news channel in the country with 45% of the market share. While advertising revenue remains under pressure, costs are being well maintained in light of the reduced DStv contract that is in its second year," eMedia said.


e.tv prime time audience slight up

e.tv's prime time audience share rose slightly from 15% to 19.2% during the financial year which e.tv attributes to the telenovela Imbewu: The Seed and the "improved performances" of its two local weekday soaps Rhythm City and Scandal!.

e.tv reduced the number of movie slots after a market analysis of what movies work for the channel which eMedia Holdings says helped to improve e.tv ratings, while e.tv executives are working on ways of further improving the e.tv schedule in the next financial year.

eMedia Holdings says that South Africa's TV market is facing several technology and viewership challenges that means that the group must constantly assess "its strategic alternatives".

"Our investment in Openview provides the group with strategic flexibility and is part of our plan to address the challenges of the impending digital migration transition. We continue to engage government on its digital terrestrial television (DTT) and direct-to-home (DTH) plans."

"With the sale and our closure of certain non-core assets during the year, the group is focused on its core businesses of broadcasting, content creation and a platform and technology provider."

Andre van der Veen quits as eMedia Holdings CEO after just a year, replaced by Khalik Sheriff.

Andre van der Veen is out as eMedia Holdings CEO after just a year, with the executive who had resigned effective from 20 November.

Andre van der Veen was appointed eMedia Holdings CEO from November 2017 and eMedia Holdings didn't bother to give any reason for his resignation.

Andre van der Veen will be replaced by Khalik Sherriff who has been deputy CEO.

eMedia Holdings that is listed on the JSE, owns 67.7% of eMedia Investments.

eMedia Investments runs broadcaster e.tv, the TV news channel eNCA (DStv 403) on MultiChoice's DStv satellite platform, the struggling and still unprofitable Openview free-to-air satellite platform that recorded a net operating loss of R367 million in the financial year to 31 March 2018, and the YFM radio station.

Trying to put a positive spin on Andre van der Veen's quitting and Khalik Sheriff's appointment, eMedia says in a statement that Khalik Sheriff "has worked in the media industry for more than 25 years".

"He is the most experienced television executive within eMedia Holdings, having been with the group for more than 15 years and has been responsible for revenue and the success of the company’s dynamic sales team".

"Khalik’s extensive knowledge of the changing South African media industry will continue to be of immense value as he takes over the reins from Andre," says eMedia Holdings in its statement.

e.tv struggling over SABC's 'subsidised' TV soaps as eMedia plunges to R1.599 billion; writes off R69 million in purchased film licensing as the loss-making Openview still needs to almost double its viewership to reach profitability.

eMedia Holdings that owns e.tv, eNCA and the satellite TV platform service Openview plunged into a loss of R1.599 billion for its financial year ending 31 March 2018, from a profit of R112 million the year before, blaming the "subsidised" SABC for having TV programming that's watched more, and writing off R68.8million in purchased films due to bad content acquisition management, and writing off R31 million of subsidiary Coleske Artists.

Meanwhile the loss-making Openview still has to almost double its viewership ratings before it can become profitable.

eMedia Holdings has a 67.69% interest in eMedia Investments, the company that owns e.tv, eNCA and Openview. Despite the loss, eMedia showed a 5% increase in advertising revenue from R1 505 million to R1 573 million.

eMedia says its results were negatively impacted by its new channels carriage agreement with MultiChoice, with license revenue fees that was cut substantially. Meanwhile eMedia continues to invest heavily in its own free-to-air Openview satellite TV service that continues to be loss-making.

Andre van der Veen, eMedia CEO, says "e.tv's share of broadcast audience remains under pressure, mostly due to the popularity of local dramas commissioned by the SABC. The group has implemented various schedule changes, including the launch of an additional local drama in April 2018".

According to eMedia "while the SABC commissions a substantial amount of local programming, at much higher cost than equivalent international content, our ability to commission additional local drama is limited by our production budget and profitability."

"Our schedule will remain under pressure while the SABC continues to operate under a subsidized regime, however we are confident that our current schedule should arrest any significant decline."

e.tv wrote off R68.8 million in acquired films that was wasted, blaming "reduced movie slots".

"The reduction in the movie slots, and a detailed analysis of the movie inventory, necessitated a once-off write-down of the movie inventory of R68.8 million," says eMedia, noting that "this is included in programming costs and other cost of sales which has shown an 11% increase year-on-year."

"A new revenue and content acquisition system was implemented to ensure better content acquisition in future."

Openview meanwhile incurred operating costs of R255 million, with eMedia saying that Openview set-top box activations continue to grow at around 35 000 per month.

"At the end of the period, a total of 1 149 217 [778 493 in 2017] boxes have been activated, and a total of R74 million has been spent on retail subsidies."

"The group will increase its content investment in the Openview platform during 2019 and recently announced that it will launch a news channel on Openview (OpenNews) during the last quarter of 2018. In addition an Afrikaans block of programming, including news and current affairs, will also be launched during this time."

"While these programmes and channels will be loss-making in the beginning, they are part of the content that is required to promote set-top box uptake and viewership. Openview currently attracts about 3.5% of the television audience in South Africa and break-even is estimated to be in the region of 6%".

"eNCA (DStv 403) continues to be the most watched 24-hour news channel in the country with over 50% of the market share. As mentioned the amount received from MultiChoice has reduced this year, however costs are being well controlled in this entity."

In the past year eMedia sold the company Silverline Three Sixty and finalised the sale of its interests in Lalela Music, e.Botswana and e.tv Botswana. The office bulding in Umhlanga, Durban was sold for R25 million.

eMedia says possible new contract with MultiChoice for eNCA to remain on DStv will likely not be significantly better.

This story and the headline above has been updated at 02:35pm from an earlier version. The earlier version started and stated that "eNCA might go dark within months on DStv". I'm assured that's not the case and won't happen.


It's unlikely that the eNCA (DStv 403) news channel will disappear from DStv but eMedia Investments cautions that a new long term deal to keep eNCA on MultiChoice's satellite pay-TV platform will make the financial performance of owner eMedia Holdings to not be as profitable.

eNCA is by far the most watched TV news channel and most viewed local TV news channel on the entire DStv bouquet with a total news channel share of over 50%.

The long term carriage agreement between MultiChoice and eMedia Holdings, the owners of eSat.tv that supplies eNCA to MultiChoice's DStv, changed on Wednesday at the end of May.

Although the existing long term contract didn't expire at the end of May it is now "terminable", with either side that can now end eNCA's existence on DStv by giving 3 months' notice. Both sides however continue to negotiate about a new possible long term contract.

eNCA launched as the eNews Channel on DStv 8 years ago on 1 June 2008 and has been available exclusively on DStv even though eMedia Investments started its own free-to-air satellite platform OpenView HD through Platco Digital.

A year ago eNCA started to cut its operational costs, downsizing its programming and actuality shows offering, cuting staff and largely did away with its Africa coverage. Despite the changes the channel remains the most watched of all TV news channels on DStv.

eMedia Holdings in its just released annual report says a new carriage agreement with MultiChoice will likely not mean a lot more money than the current contract.

"All indications are that DStv would like to enter into a new agreement to keep the news channel on its platform. It should however be noted that a new deal with DStv will not see the current performance of eSat.tv be sustainable going forward".

In response to a media enquiry, spokesperson Vasili Vass tells TVwithThinus that "the parties continue to negotiate in good faith on a basis for eNCA to continue to air on DStv".

"eMedia Holdings is of the view that a new deal will not be significantly better than our current agreement. However, given that eNCA is the most-watched 24-hour news channel in South Africa with a share of over 50% of viewers who watch news, the company has strong plans in place to ensure the continued success of the channel".

MultiChoice, asked how it feels about eNCA's performance, said "we do not comment on negotiations with channel suppliers".

While eNCA doesn't stream its linear channel online like ANN7, it has started to make its weeknight Moneyline show available online where it can be streamed with the commercial breaks removed. eNCA also started to expand its audio offering in May by offering downloadable radio bulletins and an audio version of the Judge for Yourself legal show.