Digital Migration in South Africa

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Digital Migration in South Africa

• January 2009
• Save Our SABC
• Libby Lloyd

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What does it mean to you?What does it
mean for broadcasting in South Africa?
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Why Digital Migration

• International Telecommunications Union ruled that
  analogue television frequencies will not be
  protected anymore after 2015
• Reason?
• To free up frequencies for new services
  (including mobile services)
• The Digital Dividend

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What does it mean for broadcasting?

• More channels can be transmitted on each
  frequency (in SA proposing eight channels in
  digital for every one existing channel)
• Better pictures, sound etc
• More flexibility (e.g. can have multiple sound
  tracks and can choose the language want)
• Interactive possibilities

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How it works

• Digital Terrestrial Television System
• Production

STB
TV
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DTT changes the nature of television

• PROS
• More channels allows more choice
• Bouquets for specific interests greater viewer
  differentiation
• More capacity to deal with specific needs

• CONS
• STBs are required
• Complex decoders
• DTT requires upgrades on transmitters

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DTT Impacts on Broadcasters on Different Levels
Signal Distribution and Transmission

• Content Production, Packaging and Programming

Signal Reception and Devices

• Transmitter Network rollout
• Costs of signal distribution will rise

• Broadcasters need to digitize archives, studios,
  and production networks
• Broadcasters will need to develop and test new
  DTT channels

• Design of Electronic program guide (EPG) needs
  to be undertaken may require co-operation of
  different broadcasters
• STB specs to be developed which will determine
  what kind of services can be offered
• Revenues and business models will be impacted
  licence fee collection, interactive service
  revenues

DTT migration therefore requires the co-operation
of multiple stakeholders
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History in SA

• 2005
• Minister sets up Digital Migration Working Group
  (DMWG) including all industry players
• 2006
• DWMG submits recommendations to Minister

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DWMG key recommendation

• That government should establish a joint body
  with industry to develop an action plan for the
  switch-off of analogue television broadcasting,
  to monitor the switchover process and promote
  consumer awareness.

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Background cont

• 2007
• Cabinet announces in Feb digital signal will be
  switched on 1 Nov 2008 switched off 1 Nov 2011
• Three year dual illumination period

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Dual Illumination

• When analogue and digital signal running together
• Purpose
• to test signal,
• to persuade viewers of benefits and to get ready
  for switch-off
• Very expensive for existing broadcasters

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History cont

• March 2007
• Government issues a draft policy and strategy doc
• Asks for comment within two weeks as urgent

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Promises, promises, promises

• Government repeatedly states policy will be out
  shortly, next week, next month

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No policy but

• May 2007 Budget speech Minister announces Digital
  Dzonga
• Butonly in next budget speech in 2008 details
  who will sit on Council
• Includes broadcasters, signal distributors,
  unions, consumer bodies.
• Responsible for consumer awareness and
  education, liaison with the regulator and
  monitoring of implementation

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Finally

• Finally almost 18 months later
• Digital Migration policy is launched

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But

• Very broad

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policy

• Repeats switch on 1 Nov 2008 - Switch off 1 Nov
  2011
• Phased increase in transmission coverage
• On 1 Nov major urban centres (50 of population)
• By 2010 80 coverage
• Promised by switch off everyone will be able to
  receive

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Distraction. Signal distribution

• All transmitters need to be converted
• Sentech (signal distributor) says needs R950m for
  conversion
• R917m for dual illumination
• BUT only awarded R600m

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Policy which broadcasters

• All existing terrestrial tv channels will be
  accommodated during dual illumination period
• SABC
• E-tv
• M-Net
• No new players licensed during dual illumination

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Where are we now - 2009?

• Do we have digital TV?
• NO
• Broadcasters launched pilot on 1 November 2008
  testing decoders
• But have no SABS approved decoders
• Have no regulations (ICASA issued draft
  regulations in October)
• No frequency plan
• No digital licences

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Broadcasting during dual illumination

• Government Policy does not state how many
  channels each will get
• DWMG suggested
• SABC five (3 existing and two regional)
• E-tv two
• M-Net three
• Costs high for broadcasters new content and
  double transmission

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ICASA draft regulations

• Reserve two multiplexes for existing
  broadcasters
• One multiplex for public and community television
• One for commercial
• Each multiplex can carry 8 channels.

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What this means

• Presumption that commercial and public split
  continues
• No query of if model works
• Issues of fair competition

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What it means cont

• Propose
• 2 commercial channels for SABC (SABC 3 and
  another)
• Five channels for public section (SABC 1, 2, 3, 4
  and 5)
• 1 for community
• 2 e-tv and 4 m-net

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How propose allocate?

• Authorisation of channels for public
  broadcasting will be subjected to a public value
  test and may be subjected to a public process

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These are just proposals

• Submissions were made in December
• ICASA will consider and decide
• Many different proposals

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Content

• More channels More content
• Costly for broadcasters
• What will local content quotas be?
• Is there capacity in independent production
  sector?

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Content development

• DMWG
• Need government support for content development

• Government policy
• Vague
• Digital Content Generation Hubs will be developed
• But When?
• Any financial support?
• No clarity on plans as yet

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Consumer Issues

• STBs R700 (estimate)
• 5 million will not be able to afford this
• Government subsidy Scheme for Ownership Support
  (SOS)
• 70 of cost for those on government grants
• Estimated 5million people

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Subsidy scheme

• R2.45 bill
• BUT
• Not clear where funds will come from
• NO CLARITY ON HOW OR WHO WILL MANAGE SUBSIDY

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Consumer Issues

• Need clear rules on subsidy system
• Need to know how will roll-out
• Need massive awareness campaign
• Need to have campaigns to show how to use STB

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What does it mean to broadcasting in SA?

• Need to review entire broadcasting policy and
  legislation
• Need to review laws SABC public and public
  commercial
• Need to review funding for public broadcasting
  increased costs without new income?

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Public broadcasting issues

• SABC has been given R700m by government
• SABC will need more money for more channels and
  for dual illumination
• Need to rethink funding model
• Government funding required for digital will
  there be any left over for PBS?

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PBS cont

• Public and commercial division not worked still
  all commercial could get more so with
  digitisation
• SABC previously raised potential for using STB to
  monitor payment of licence fees
• UK relooking at public broadcasting funding in
  light of multi-channel environment

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the introduction of new channels will fragment
audiences drive down advertising rates. It is
unlikely that advertising spend will increase
it is more likely that the available spend will
have to be shared across more channels. As more
channels mean higher costs for broadcasters, this
will have an adverse affect on incumbent
broadcasters.Marcel Goldinge-tv CEO