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The
Media
Report
Is SA entering a research wasteland? >< The battle between TV &
#1
Digital >< PowerFM’s power punch >< Sailing on the good ship
SA media >< Maslow’s internet hierarchy >< Meet the ‘Oprah’
of Africa >< Newspapers under pressure >< Start training now or
go live in Orania. >< All this and more in The Media Report, a first
from Ornico & The Media Online
The Media Report CONTENTS
November 2013. Issue 1.
The Media Online and Ornico bring you The Media Report - an overview of
#1
the year that was and a look into what’s on the radar for 2013. The Media
Report is an annual that will tell you what you need to know about what’s
happening in the media right now. It is a celebration of technology, the
possibility of digital, the magic of mobile, but also investigates the challenges
that SA and Africa’s media face as they move towards a new year.
14
Radio’s power
punch
By Joanna Wright
03 18
TV – Is SA Radio news
entering a
research 19
wasteland? Sailing on the good
By Oresti Patricios ship SA Media
By Glenda Nevill
05
Jail.
Cartoon by By 23
Khalid Albaih Newspapers under
pressure
06 24
Television Bezos buys The
Networks vs. Washington Post
online. The battle 25
begins Reading habits of
By Jon Pienaar tablet users
08 26
Kagiso gets its glow Mxit maintains social
on loyalty
09 27
Four new channels for History of the hashtag
eTV Maslow's internet
10 hierarchy
Twitter & TV – How 30
do they measure up? Start training - or
11 go to Orania
Online TV to generate By Gordon Muller
$35 billion by 2018
13 34
Television News The Media Report
toolbox
Ornico & The Media Online THE MEDIA REPORT 02
TELEVISION
TV – Is SA
entering a
research
wasteland?
There’s been a bust-up
between media owners and the
official foundation mandated
to forge a common currency
for media audience
measurement. Oresti Patricios
(CEO of Ornico) says even
though broadcasters walked
out of the South African
Audience Research Foundation
(Saarf) many months back, it
doesn’t mean the debate
shouldn’t be kept alive.
Ornico & The Media Online THE MEDIA REPORT 03
Is SA entering a research wasteland?
The writing could be on the wall Fragmenting to the point where Credible research houses the
for independent research that there is no foundation to world over have thrown their
determines SA’s audience oversee an independent and weight behind neutral and
measures after the National holistic view of market independent industry solutions
Association of Broadcasters measurement is incredibly to the measurement of
(NAB); the SABC and eTV quit short-sighted, and smacks of television audiences. Nielsen –
Saarf in June 2013. The exit is extreme self-interest on behalf a global giant in the sector
effective December 2013 and of the broadcasters who have states: “As consolidation
followed a discrepancy about quit the industry research body. continues to sweep through the
TV audience figures. television advertising industry,
and more and more companies
The move brings fragmentation
Saarf has had its establish a global footprint, the
to audience research in this problems and is need for homogeneous
country because Saarf has, to multinational audience research
date, been the independent gold faced with the will continue to grow.”
standard. Saarf oversees challenge of
audience measurement for all The shame for South Africa is
traditional media, including splintering that the fragmentation of
TAMS, the Television Audience media platforms audience measurement won’t
Measurement Survey. Despite help the industry at all. Let’s
TAMS being subject to an in the wake of put self-interest aside for the
international audit with a view common cause of growing
to improving any shortcomings, convergence, but South Africa’s media sector
the broadcasters walked out of allowing the de together. Let’s work through
the research foundation after a the challenges we have without
dispute about the credibility of facto measurement abandoning Saarf, which would
Saarf TV data. have serious, long-term
for media in SA to consequences for SA’s
This isn’t the first time there crumble without a advertising landscape.
have been disputes at Saarf,
which has a fairly long and fight doesn’t make
acrimonious membership sense. Read more:
history, but it is the most
damaging to date. At its heart, Broadcasters going off into their Attitudes soften on media
Saarf research is all about own cartel to do own audience research dispute, by Tony
underscoring efficiency of research doesn’t make sense - Koenderman in Finweek.
media advertising investments. what advertisers need is
By finding a common currency independent, credible research Saarf announces new
that enables the comparison of that offers a global view of the benchmark for media
disparate media, Saarf enables media landscape. They don’t consumption at The Media
marketers to compare the need more partisan research. Online.
efficacy of advertising
investments in different media. Regardless of the digital
Saarf has had its problems and television revolution, TAMS
is faced with the challenge of remains a standardised global
splintering media platforms in measure, and a common
the wake of convergence, but currency to measure the
allowing the de facto effectiveness of investments
measurement for media in made in TV campaigns.
South Africa to crumble without
a fight doesn’t make sense.
Ornico & The Media Online THE MEDIA REPORT 04
Jail By Khalid Albaih
TELEVISION
TV Networks
vs. Online.
The Battle
Begins
They call themselves
“cord cutters”, and it’s
a trend that has US
television networks
worried. How long until it
happens here?
By Jon Pienaar
Ornico & The Media Online THE MEDIA REPORT 06
TV vs Online. The Battle Begins
The young adult demographic, Yes, it’s illegal, both to post (The name ‘cord cutters’ is
who have grown up with what videos and to download them, perhaps a misnomer, as much
can only be called a glut of but many people do it, and if US domestic broadband is
entertainment, now perceive US you want current series and delivered via fibre, so in fact the
cable television as too Hollywood blockbusters, all you only thing being cut is the
expensive, and not providing need is a broadband connection subscription to the TV bouquet.
much that they can’t obtain and some client software on Well, it does have a nice ring to
elsewhere. In fact, unless you’re your computer. Oh, and some it!)
big into news or sports, it’s good firewall and anti-virus
possible to get just about software won’t be amiss, as Admittedly, broadband internet
anything you want online, security experts warn that P2P access is relatively cheap in
either legally or illegally. software could open up ‘holes’ most US centres, compared
in your system. with SA, so it’s a trend that is
If it’s quick entertainment or yet to catch on here in any great
even catch-ups on reality numbers. Only the tech-savvy
television you want, there’s Torrenting have figured out how to bypass
YouTube. For movies and series copyright media the DRM restrictions that lock
there’s Netflix, Hulu, and a out most other countries. But
couple of other new services. is illegal, but that it’s a trend that will grow, and
Netflix currently streams to local broadcasters need to be
37,6 million subscribers hasn’t stopped aware.
worldwide. Hulu has over 4
million subscribers, and claims millions of people As broadband rolls out in SA,
to have streamed over a billion the trend will grow, and many
videos in the first quarter of from doing it. people will join the growing
2013. Hulu subscribers have group of local ‘cord cutters’ —
doubled in a year, although that Currently, 5% of all US or should we call them “dish
is small fry compared to the 5 broadband subscribers ditchers”? Netflix and Hulu
million-plus subscribers that exclusively use these online offer subscriptions at US$7.99
Netflix gained in the same video services for their TV per month (around R70.00),
period. viewing, according to a survey payable by credit card, and the
commissioned by the Fiber to BBC iPlayer provides free
Then there’s the “dark side” - the Home Council. access to all BBC TV and radio
peer-to-peer (P2P) file-sharing, programming for the past week
whereby sites like Piratebay Some 40% of broadband users (although certain programming,
host software that allows get at least some of their TV like “Match of the Day”, is not
computers to create a from online sources. The survey available due to rights issues,
worldwide network that hosts found that the swing away from even in the UK). With a little
files in the form of torrents - conventional TV is more proxy-bypassing software,
large files broken down into marked in the under-35 age- anyone with a broadband
smaller pieces and shared in a group, with 70% of broadband connection of 4MB/s or over
somewhat haphazard manner. subscribers getting some of can get streaming video content
Last year, the mini-series Game their TV from online sources, superior to what local
of Thrones was downloaded and 13% having ditched cable broadcasters can provide.
3.9-million times, via torrenting and broadcast TV entirely.
site Piratebay.
Ornico & The Media Online THE MEDIA REPORT 07
Kagiso gets its Glow TV on
The black owned media company Kagiso
launched a new free-to-air channel in October
2013 on OpenView HD, a satellite sister
company of the free-to-air e.tv. Speaking to
Business Report Kagiso Media CEO Mark
Harris said: "It’s the logical next step for Kagiso
Media. We’ve been successful in other media
channels. We’ve created very successful African
language television channels for our partners,
but this is the first time we’re making an
investment in creating our own channel." A
commercial channel, Glow TV will seek
sustainability through advertising revenues and
will show content primarily from India, as well
as Brazil, the UK and the US.
READ MORE:
Kagiso Media launches free-to-air channel Glow
TV in Business Day.
Find Glow TV online.
Ornico & The Media Online THE MEDIA REPORT 08
Four new channels for eTV
Free-to-air broadcaster, eTV, has launched four new themed entertainment channels in October,
carried by satellite offering, OpenView HD. This platform is managed by Platco Digital, a sister
company of e.tv. The new channels offer local viewers an assortment of home-grown content through
the eKasi+ channel, African content on the eAfrica+ channel, movies on the eMovies+ channels and
children's programmes on a channel called eToonz+.
eKasi+ boasts a high percentage of new South African content targeted specifically at "the inhabitants
of South Africa's lively townships," parent company eTV said. "Viewers will be privy to fresh faces and
concepts through shows such as Ekse: Let's Talk With Masechaba Lekalake, Number Numba, Kasi My
Kasi, Gumba Gumba, Kasi-licious, Shadows and Behind the Gospel.
Socialite Khanyi Mbau, Chef Katlego Mlambo, singer Ntombi Mzolo and radio host Masechaba
Lekalake are some of the familiar faces that the eKasi channel viewers will get to see and interact with
on a weekly basis. eKasi+ will also carry daily Nguni news at 8pm, soapies, African drama series,
African American movies, sitcoms, reality and game shows."
READ MORE;
eTV boosts local content in Screen Africa.
Ornico & The Media Online THE MEDIA REPORT 09
Twitter & TV – How do they measure up?
There is a mutual relationship of influence between Twitter and television says global research
company. In August 2013, Nielsen released findings that provided statistical evidence of a “two-way
causal influence between broadcast TV tune-in for a program and the Twitter conversation around
that program.” This is the first time that the global research company has released this kind of
survey, which it calls Nielsen’s Twitter Causation Study.
Analysing minute-to-minute trends in Nielsen’s Live TV Ratings and Tweets for 221 broadcast prime-
time program episodes using Nielsen’s SocialGuide, the findings show that Live TV ratings had a
statistically significant impact in related Tweets among 48 percent of the episodes sampled, and that
the volume of Tweets caused statistically significant changes in Live TV Ratings among 29 percent of
the episodes. “Using time series analysis, we saw a statistically significant causal influence indicating
that a spike in TV ratings can increase the volume of Tweets, and, conversely, a spike in Tweets can
increase tune-in,” said Paul Donato, Chief Research Officer, Nielsen.
"These results substantiate what many of our TV partners have been telling us anecdotally for years:
namely, that Twitter drives tune-in, especially for live, linear television programming,” said Ali
Rowghani, Twitter’s Chief Operating Officer. “As the world's preeminent real-time social
communication medium, Twitter is a complementary tool for broadcasters to engage their audience,
drive conversation about their programming, and increase tune-in,“ he said.
Get the full research study online.
Ornico & The Media Online THE MEDIA REPORT 10Online TV to generate $35b by 2018
Global online TV and video revenues (over fixed broadband networks) will reach $34.99 billion in
2018, a massive increase from the $3.98 billion recorded in 2010 and the $15.94 billion expected in
2013, the Online TV and Video Forecasts reported. A Digital TV Research survey, the research
indicated that by 2018, 520 million homes in 40 countries will watch online television and video
(both paid-for and ad-supported), up from 182 million in 2010.
The report authors said the over-the-top [OTT] TV sector is on the brink of a huge take-off because
key players had expanded internationally while broadband penetration increased, technology
advanced and as new partnerships were announced on a daily basis.
Online TV and video advertising has been the key driver for the OTT sector, with revenues of $7.4
billion expected in 2013, up from $2.4 billion in 2010. Rapid advertising expenditure growth will
continue, to reach a global total of $16.4 billion in 2018. However, advertising’s share of total OTT
revenues will fall from 60.6% in 2010 to 46.9% in 2018.
READ MORE;
Get further research insights from Digital TV Research.
Ornico & The Media Online THE MEDIA REPORT 11How TV Is Changing Our World
TV Is Changing Our World was brought to you by
www.direct-ticket.net Download a large version of this
infographic.
Ornico & The Media Online THE MEDIA REPORT 12Television news
News from Channel24 is that TopTV as been Read Anton Harber’s take on the SABC’s 24 hour
put on hold indefinitely. Meanwhile Duncan news channel . Writes Harber: “Some suggest the
McLeod of TechCentral reports that SABC was rushing to get a propaganda machine in
government business funding agency, the IDC place before the 2014 elections, but I doubt such a
is suing shareholders of TopTV for over conspiracy. This channel is not going to be a factor
R750m. It looks like the beleaguered in the voting. More likely, the reason is something
broadcasters are in a heap of trouble, but this like the SABC needing to justify itself in its
hasn’t stopped CEO Eddie Mbalo from telling negotiations with Treasury over their R1,5-bn
TimesLive that he’s “never considered walking bailout.” Read the full column here. Harber
away from the biggest crisis of his management directs the Journalism and Media Studies
career, despite continuing problems at parent Programme at Wits University, and is former
company On Digital Media.” editor of the Mail & Guardian.
Meet Mo Abudu, Africa's answer to Oprah Pay TV to expand: South Africa’s pay television
Winfrey. The host of the first talk show to be sector looks set to become more competitive, with
syndicated across Africa, Mo Abudu is the host of a handful of license applications being heard by
a TV show called Moments with Mo. After the Independent Communications Authority of
ditching a career in HR the woman who calls South Africa (Icasa). Icasa heard proposals from
home the UK and Nigeria tried her hand at Close-T Broadcasting Network, Siyaya TV, Kagiso
television, with significant success. Guests on TV, Mindset Media and Mobile TV, all of whom
Abudu’s talk show include Hillary Clinton, are looking to enter SA’s subscription television
Christine Lagarde and Diane von Furstenberg, market. The market sectors and interests these
and now the continental TV star is making eyes at potential paid TV operators want to present
Hollywood. Read the full story at the UK include local soccer, education and Gay TV. Read
Guardian. more.
Ornico & The Media Online THE MEDIA REPORT 13Television news
Facebook wants to cut into Twitter’s market share in terms of
interaction during TV shows by adopting hashtags and opening
its data cache to media channels. Read the full story at Inside
Facebook.
SABC aims for yearly revenue of over R10bn. Business Day reports
that the SABC says it plans to increase its annual revenue to more
than R10bn within the next five years as it enters into distribution
partnerships with private sector companies.
State-owned Sentech announced the launch of Freevision at the
end of September 2013. The effort is all part of government's bid
to bring communication to "the poor" (just before elections).Read
about the Freevision Limpopo launch on ITWeb.
Forget what you've read about cinema's dominance over the
small screen. Television has plenty to teach the movies about
characterisation, storytelling and breaking new talent. Read the
full story in The Guardian.
IB Times reports that TV ads will be unrecognisable in a decade's
time as second screens "becoming ubiquitous" and "the birth of
hypermedia taking shape“. Theses are the predictions of zeebox
CE Ernesto Schmitt. Read the whole story.
From Forbes comes the news that brands are moving their budgets
from television to online. The business journal reports that
marketers are following customers as they wander off from TV. Read
the article on Forbes.
Ornico & The Media Online THE MEDIA REPORT 14Radio’s Power Punch
Delivering
a Power
Punch
Three months after it
launched, Gauteng’s first
black radio talk station
has become one of the
country’s most influential
media
By Joanna Wright
Ornico & The Media Online THE MEDIA REPORT 15Radio’s Power Punch
Just three months after it Capricorn was the largely rural Lord says, however, that Power
launched, Gauteng’s first black province’s first commercial FM could lure away some
radio talk station was among station, whereas Power FM is listeners from the competition,
the country’s most influential up against Talk Radio 702 and as long as they are doing
media, according to another ‘black’ station, Kaya something fresh. “I think Kaya
independent research. Talk FM, in a metropolitan market. is the station that is most
station Power FM launched in Advertising spend in radio is similar to Power in terms of
June, heralded by much social currently almost R1.5 billion, who their listeners are. It’s their
media hype. With a solid line- according to a report in listeners that Power is after. But
up of talent (some of it poached the Mail & Guardian, about we mustn’t forget that 702,
from the competition, Talk R500 million of which is spent though it is positioned as a
Radio 702), and despite some with Radio 702. high-end station, actually has
glitches and gaffes, Power made quite a significant proportion of
a much more impressive debut emerging market listeners.
than did certain other broadcast Power FM was While their core is LSMs eight,
media this year. among the most nine and 10, there are a number
of LSM six and seven 702
In late August, Media Tenor quoted business listeners. If Power can provide a
found Power FM was among the more relevant offering, they
most quoted business media, media, even more might attract these listeners,”
more quoted than Business says Lord.
Day. While it was too early for quoted
the station to have any In Power’s favour is its great
listenership figures, Power
than Business line-up, says media strategist
chairman Given Mkhari says
there has been strong uptake by
Day. Virginia Hollis, who consults for
Power through her company
listeners, judging by the Magnetic Connection. She says
station’s interaction with its Richard Lord, associate media Power’s smart hiring of already
audience on social media, the director of The Mediashop, says established talent will help to
number of unique browsers to he does not think the landscape migrate listeners. “They have
their website and the volume of will change much with the good people. Take someone like
calls they handle. advent of Power FM. “Power Eusebius [McKaiser, former
FM will provide a station for a 702 presenter and political
Power FM’s initial success may different audience and will analyst] – he had a great
still be momentum from the provide a new opportunity for following on 702 and he will
hype of their debut. But will advertisers. take this following to Power.”
they have a lasting impact on
the radio advertising “But the radio advertising The new station has also
landscape? Mkhari’s landscape is quite static, with attracted the likes of veteran
consortium, MSG Afrika stations that have been around broadcaster Tim Modise, spin
Investments, successfully a long time and have doctor Chris Vick and TV
launched Capricorn FM in entrenched relationships with presenter Pabi Moloi.
Limpopo in 2007. Within its advertisers. They won’t grow
first year, It had 1.5 million the pie. If advertisers want to Kaya FM welcomes the advent
listeners and it remains strong. spend with them, they will have of Power FM, says the station’s
But Gauteng is not Limpopo. to take budget away from other head of sales, Tyron Sharnock.
stations,” says Lord.
Ornico & The Media Online THE MEDIA REPORT 16Radio’s Power Punch
It’s not a question of competing “Do you listen to one station? “For a station that hasn’t
for advertising, but rather one No, of course not. Ten years delivered Rams [Radio
of growing the profile of the ago, people listened to stations. Audience Measurement Survey
black middle class, he says. And Five years ago they listened to figures], we are doing very well;
any quality black media will presenters. Now they listen to we are 250% ahead of our
help raise their profile with features.” In terms of the sales targets.”
advertisers. “We don’t feel environment, Power FM may
threatened by Power FM,” he have an effect, say Hollis and Mkhari told M&G when Power
says. “Though I’m a little Sharnock. For Hollis, any new launched that he was aiming for
offended by the way they came entrant into the media means a 500 000 listeners by the end of
at us hard in the beginning, stretching of capacity at media the year. But he tells The
saying they’d like to take agencies. Media that the station will not
listeners away from us. Black be focusing so much on
media has to stick together!” “Having yet another station, as numbers. “We are now leaning
well as all these new TV more towards showcasing the
But their strategy of creating stations, complicates the sales quality of our listener,” he says.
hype on social media was environment. You need a lot “We have first-time callers to
brilliant, says Sharnock – and it more people to handle the any station phoning in and they
benefited Kaya too. “The volume of work – and there are the founder of this or the
advertising pie is big enough… aren’t any! The environment chairman of that.”
The black middle class is four gets more and more
million strong and rising. It has fragmented, and you need Hollis says that even if Power
overtaken the white middle better people. But you can’t FM does not have an impact,
class in terms of consumer train people quickly enough.” radio advertising is changing.
spend,” says Sharnock. “One thing the industry needs
For Sharnock, there is the to accept is that there will be
White men are still making potential for any new station to change. The community
significant business decisions, sell to clients at massive stations are offering
says Sharnock. “So we have to discounts (though he adds that competition now too! MixFM is
change perceptions about who he has no reason to suspect fantastic at the moment.
our market is. The launch of Power FM of doing this). “What There’s just so much going on in
Power made a big noise, which I worry about is rate card that space.”
helps us a lot. They will increase integrity… When you are a
interest in the black market and brand new player, this is a Whether or not Power FM
that’s great.” difficult thing. It’s a buyer’s makes a huge dent on the
market and your rate card is advertising front, there is a shift
Sharnock points out that radio going to be very low.” because of new competition.
listeners don’t necessarily Mkhari says Power FM is not And competition is good on all
choose between stations, but struggling to attract advertising. fronts, and can only benefit the
rather tune in and out of a consumer.
range of channels. Competition “Four of South Africa’s top
is not the cut-and-dried thing it brands are already with Power.
might be in print, for instance, We have all but one of the READ MORE:
where consumers may choose cellphone networks, as well as
not to buy one title at the automotive, fast food, fast A view of Power FM’s first 100
expense of another. moving consumer goods and days on air at The Media
retail advertisers,” he says. Online.
Ornico & The Media Online THE MEDIA REPORT 17Radio News
Kaya FM wins top accolade: Hats off to Kaya FM, which was recently
voted the best commercial radio station at MTN’s 2013 Radio Awards.
Kaya FM says that the award reflects “an indicator of a fundamental
change in the South African radio market, by breaking the hold of long
established players in the SA radio industry.” The station said that the
market had become staid, and that for too long “black commercial
broadcasters were viewed as the third cousin of the of the radio
industry.” You can find the full winners list of the 2013 MTN Radio
Awards here.
Radio station gains ground in
KZN: A new Durban-based radio
station called Vuma, which is
available on the frequency 103 FM,
has quietly increased market share
in KwaZulu-Natal. Writing for
Journalism.co.za, the journalism
and media site run by Wits
University, Gill Moodie discovers
that Vuma has been building a
growing audience with a staple of
Gospel music, pure Zulu and
inspirational content. You can read
the full story on Journalism.co.za.
SABC radio news podcasts: As of the
beginning of August 2013, SAfm’s hourly
news bulletins have been available as
podcasts at the URL iono.fm, as part of the
public broadcaster’s push to embrace new
technologies. Internet surfers wanting to
listen to the podcasts can simply go to
www.iono.fm/go/sabcnews.
Ornico & The Media Online THE MEDIA REPORT 18PRINT MEDIA
Sailing on
the good
ship SA
Media
A leaky, but
adventurous
journey
By Glenda Nevill
Ornico & The Media Online THE MEDIA REPORT 19Sailing on the good ship SA Media
In the space of just one week, Nkomo clearly believes the task The report has six chapters:
two pivotal reports on the state team, led by Mathatha Tsedu, Media Landscape; the Legal,
of South African media were met its mandate, and that Regulatory and Political
released. Both showcase an transformation is not complete. Framework; Race and Gender;
industry fraught with He says the report “will be a Digital First; the Ombudsman’s
challenging issues, but which catalyst to a transformed print Rulings; and Training.
shows great will to explore new and digital media”.
territories in and conquer Professor Anton Harber and
obstacles in its way. Wits “Retrenchments Professor Franz Kruger, in the
Journalism’s Dr Glenda preface, talk of turmoil in the
Daniels, puts it succinctly when and restructuring is news business as a result of
she says, “So a leaky ship, technology and new business
perhaps, but a tough one and taking place daily models in the way news is
with an adventuring spirit.” in newsrooms gathered, produced, presented,
distributed and sold. Added to
First, the long awaited Report across the country” this are the “complex issues” of
on the Transformation of Print transformation. “Our news
and Digital Media by the Print The country’s main media industry is engaged on two
and Digital Media groups participated (not fronts, which makes this both a
Transformation Task Team without a few hiccoughs) and difficult and tremendously
(PDMTTT) was handed over to were scrutinised. Fifty-six other exciting time, demanding a
the industry body that entities, from trade unions and balance between boldness and
commissioned it, Print and political parties to individuals, thoughtfulness, innovation and
Digital Media South Africa gave input. The result? The task convention,” said Harber and
(PDMSA). The task team’s team says while the industry Kruger.
mandate was to investigate “failed to transform itself
ownership, skills development, sufficiently” in certain areas, Daniels says the media sector is
management control and these failures are in the “direct meeting its challenges “head
employment equity, digital empowerment areas of on”, and that included massive
media and skills, all through the ownership and management changes in ownership. Avusa
prism of transformation not just and control, as well as in skills was bought by the Times Media
in terms of race, but gender too. development and employment Group, and Independent News
equity with particular reference and Media SA was bought by
PDMTTT chairman, Nkwenkwe to women and the disabled”. Iqbal Surve’s Sekunjalo
Nkomo, said the print industry Independent Consortium,
“has not come to grips with the The second State of the bringing ownership of the
transformation of its business Newsroom Report: Disruptions group back to SA.
side”. It said this fact, coupled and Transitions (SoN) was
with pressure from parliament, researched and compiled by Retrenchments and
led to the formation of the task Glenda Daniels for Wits restructuring are taking place
team whose findings would help Journalism. It, too, looked at daily in newsrooms across the
create a real blueprint for transformation, but as one country, as digital impacts on
transformation. pillar out of six others that peoples’ consumption of news,
explored the country’s media how advertisers place ads, and
landscape as a whole. how much they’re prepared to
pay.
Ornico & The Media Online THE MEDIA REPORT 20Sailing on the good ship SA Media
Then of course there are the Wits’ SoN report said the digital “Stop seeing
outside pressures of an first newsrooms they looked at -
increasingly secretive BDlive, Mail & Guardian, digital media as a
government that is trying pass Eyewitness News and City Press
laws such as the Protection of – all reported accelerated high-brow, middle-
State Information Bill (‘secrecy digital and social media class medium but
bill’) and a president who strategies in 2012 and 2013,
believes in sunshine journalism which, they admitted, “seemed as the great leveller
and ‘patriotic’ reporting. a bit haphazard and chaotic”.
But they stressed they were
that can transform
Both reports stipulate that going through a transitional access to info for
digital media will be South process with no particular end
Africa’s game changer. The task point.
team said the focus of its report fundamental way.”
was on print media, not least “Interestingly, many noted that
due to the fact that concerns senior journalists were adapting These “significant” findings
raised by parliament, academics better to change than juniors,” showed the impact of digital on
and other stakeholders “focused the report said. “All the the mainstream media industry.
on print and not on digital”. It newsrooms concerned were They highlighted “declining
said print, and particularly grappling with business models print readership along with a
newspapers, “still enjoys and the concept of how to drop in advertising revenue and
strategic influence on society generate revenue from online the need for the traditional
despite falling circulation”. journalism. Only the M&G had media industry to take its place
a social-media policy up and in the digital landscape.”
But, the task team said, digital running; most other newsrooms
is the “medium of the future”. It were drafting theirs,” it noted. The PDMTTT said the total
was their view that once number of internet users is
inhibitions such as costs of Referring to research by New forecast to increase at 27,3%
connectivity, access to hardware Wave, the SoN report said one compounded to 29,8 million in
and literacy were resolved, in three adults now has access 2016, mainly led by the
there will be “an explosion of to the internet. In 2007, one in explosion of mobile broadband
digital usage”. seven adults accessed the via smartphones.
internet. Other findings:
“With growing usage will come - 17% of all adults read a It said research showed it was
advertising, and with it newspaper daily; time to “stop seeing digital
profitability. Digital already - 22% used the Internet daily; media as a high-brow, middle-
draws 3% of the total R34- - 47% listened to radio for at class medium but as the great
billion ad spend in SA, least one hour a day; leveller that can transform
compared to print taking 29%, - 62% spent more than R1 per access to information for all
television 47%, radio 15% and day on mobile phone usage; and classes, in rural as well as urban
out of home 5%,” the report - 71% watched TV for at least areas, in a fundamental way”.
said. one hour per day.
Ornico & The Media Online THE MEDIA REPORT 21Sailing on the good ship SA Media
But, said the task team, while
leaders in politics and other
“Print still exerts
spheres acknowledge the huge influence in
importance and penetration of
digital, “many are still locked in public opinion
to seeing print as the major
arena of the struggle for through its
transformation”. This, it said,
was partly because “print still political
exerts huge influence in public
opinion through its political
coverage.”
coverage”.
The PDMTTT clearly believes Glenda Nevill is the Editor of
that digital will help drive The Media Online.
transformation, and that mobile
phones will be the instrument
to connect the masses to the Sources:
internet. “Mobile access will be
the game changer, translating - State of the Newsroom
into unprecedented reach, even Report: Disruptions and
at grass roots level where basic Transitions (Wits Journalism,
handsets are shared,” the task authored by Dr Glenda Daniels)
team reported.
- Report on the Transformation
But, and it’s a big but, the high of Print and Digital Media
turnover of ministers in the (Print and Digital Media
communications portfolio and Transformation Task Team
the delays in the roll out of (PDMTTT) led by Mathatha
broadband have “stunted” the Tsedu)
growth of digital.
The task team recommends that Read more:
PDMSA “actively advocates”
that government meets the Media gets transformation
2020 deadline for 100% deadline in Business Report.
broadband penetration.
Transformation in news
In a nutshell, says the PDMTTT, boardrooms doesn't match
“By giving expression and newsrooms in Mail &
providing news and information Guardian.
to all people in all languages
and by concentrating on
transforming the media
through digital, South African
media can grow in line with the
developing world trend in the
market”.
Ornico & The Media Online THE MEDIA REPORT 22Newspapers under pressure
Business Day reports that local print news was feeling the pressure after figures from the Audit
Bureau of Circulation (ABC) for the second quarter of 2013 showed an overall decline. Newspapers
dropped circulation some 3.2% from 3.8-million physical copies during the first three months of 2013
to 3.68-million copies between April and June 2013. The figures include daily and weekly sales for
major commercial newspapers.
Writing for BDLive.co.za, Zweli Mokgata states that the “year-on-year drop from the corresponding
period in 2012 was even more dramatic, showing a decline of 10.5% from 4.1-million. Out of 20
newspapers only The Sowetan and The Times showed both quarter-on-quarter and year-on-year
improvements, although marginal. While The Herald increased 0.6% year-on-year, it had a sharp
quarter-on-quarter decline of 4.8%. The Cape Argus was up 0.2% on the quarter, but fell 5.8% on the
year.”
Mokgata writes that overall, dailies fell 2.7% quarter-on-quarter and 8.4% year-on-year. Weekly
newspapers fell 2.2% on the quarter and 7.7% on the year, while weekend newspapers fell 3.4% and
12.5%, respectively. Read the full story on the ABC figures at Business Day.
Ornico & The Media Online THE MEDIA REPORT 23Bezos buys The Washington Post
The Pew Research Center's Project for Excellence in Journalism offers a back story on the surprise
sale of The Washington Post to Amazon founder Jeff Bezos. The Post has been owned by the Graham
family for 80 years. But recent years brought steep revenue and circulation declines and as chief
executive Donald Graham put it in a letter to the staff, “the newspaper business continued to bring up
questions to which we had no answers.”
In Bezos, The Post—and a handful of smaller papers owned by the company—get an owner who is
considered one of the most successful business and technology entrepreneurs in the country.” Read
the full article at the Pew journalism research centre, online.
Ornico & The Media Online THE MEDIA REPORT 24Reading habits of tablet users
Mid-October, Hearst Magazines UK, the UK’s largest digital publisher, unveiled research that showed
magazine readers consume digital editions in a similar way to print, but have much higher
expectations of interactivity. The research, explored attitudes and reader experience across both
advertising and editorial content on digital editions. The survey also showed that tablet users prefer
articles and ads on digital editions that are enhanced with clickable links. 90% of respondents said
enhanced features had to be relevant and genuinely add something.
The research also looked at how users interact with advertising on digital editions and found 60% of
users said they would browse an advertiser’s website directly from an ad on a digital edition. Key
research highlights:
· 64% would spend more time with a digital ad they could engage with
· 78% like to able to tap the ad to find out more
· 8/10 like ads that link directly to the advertised product
· 88% of tablet users prefer to read basic stacked articles and linear format
· 70% enjoy the ‘fun’ format of digital editions
· 7/10 think ads in digital editions are impactful and sharp
· 55% feel more favourable towards a brand as a consequence of seeing an ad in a digital edition
Hearst, which publishes brands like Harper’s Bazaar, ELLE, Esquire, Good Housekeeping, Men’s
Health and Cosmopolitan, surveyed more than 500 tablet readers. Respondents were targeted
through an in-app questionnaire in various Hearst UK digital edition titles including Cosmopolitan,
ELLE, Esquire, Harper’s Bazaar, Men’s Health and Red, and had a median age of 37. Of those
surveyed, 48% were subscribers, 23% were first time buyers and the remaining 29% bought a copy at
least every other issue.
Ornico & The Media Online THE MEDIA REPORT 25Mxit maintains social loyalty
South Africa’s home-grown instant messaging service, Mxit, may have been supplanted by Facebook
as the country’s biggest social network, but it has succeeded in maintaining the loyalty of its user
base. This emerged from the final analysis of the SA Social Media Landscape 2014 research study,
released in October by World Wide Worx and Fuseware. Headline findings issued last month showed
that the Mxit user base had fallen significantly in the past year. However, when taking into account a
change in the way the service measures active users – from being on the network over 90 days to
being on in the last 30 days – Mxit appears have turned a corner.
In July 2012, a 30-day active measure gave Mxit 6,2-million subscribers. A year later, in July 2013,
the active subscriber base had grown marginally to 6,3-million. In August, this number had grown to
6,5-million. This means that, despite a high churn rate among pre-paid cellphone users, which
comprise most of Mxit’s base, the network is winning back enough users and attracting enough new
customers every month to make up for that churn. It suggests that a high proportion of those who
change their pre-paid phone numbers return to register on Mxit again. “This finding provides
fascinating insight into the willingness of outgoing FNB CEO Michael Jordaan to take on the role of
chairman of Mxit,” says Arthur Goldstuck, MD of technology market researchers World Wide Worx.
“Rather than coming in to rescue a dwindling brand, he has arrived to build on a relatively solid
foundation.”
The SA Social Media Landscape 2014 report describes the decision by new Mxit CEO Francois Swart
to clean up how Mxit reported its numbers as a turning point for the network. However, this does not
mean its survival is guaranteed. “Mxit is holding its own, but at a time when Facebook has grown by
more than half and Twitter has more than doubled,” says Mike Wronski, MD of social network
analytics company Fuseware. “That is enough of a challenge, but then you also have local instant
messaging service 2Go overtaking Mxit in active users across Africa, and WhatsApp in turn
overtaking everyone, including Facebook.” Mxit currently has 7,4-million active users across Africa,
while 2Go has 10,5-million.
Ornico & The Media Online THE MEDIA REPORT 26History of the hashtag
Meet Chris Messina – The Godfather of the
Hashtag: Elana Zack of the Wall Street
Journal reports that hashtags are so
ubiquitous now that even Jimmy Fallon and
Justin Timberlake are mocking them.
Following in Twitter’s footsteps, Facebook
incorporated the hashtag this year. And a
March 2013 survey by RadiumOne found
that more than half of mobile-device owners
regularly use hashtags. So it’s hard to
believe that at one time, hashtags weren’t a
part of the Twitter lexicon. Not only that,
but Twitter initially rejected the idea of
hashtags.
Read Zack’s story about the invention of the
hashtag (which is credited to Chris Messina,
a 32-year-old developer and UX designer
who left the digital giant in August to join a
US startup NeonMob.)
Maslow’s internet hierarchy
A "theory of human
motivation" remixed for web
users by Dave Duarte. An
entrepreneurial educator,
working on developing more
web savvy leaders in SA,
Duarte is the Principal at
the Ogilvy Digital Marketing
Academy, Programme
Director at UCT Graduate
School of Business, and
Trustee at Mxit Reach.
Ornico & The Media Online THE MEDIA REPORT 27FEATURE ARTICLE
Start
training
…or go live in Orania
By Gordon Muller
Ornico & The Media Online THE MEDIA REPORT 15Start training now
In a recent blog I suggested that For a moment though, let’s just They have lead us into the
the best way to deal with the assume that there will be an erroneous belief that all we
latest media insurrection would outbreak of sanity in the coming have to do in order to be
be to take the ringleaders and weeks. That the various winners, is to just pitch up for
stick them in the naughty industry bodies will play the the game. Our recent sports
corner. Isolationism certainly long game and do what’s best history has told a different story
works with little kids but for the entire media economy, and it’s not easy to listen to …
unfortunately when you use and not start printing their own let alone watch. Madiba magic
child psychology on adults it banknotes. is just not enough anymore!
seems to have the opposite
effect. It stimulates delusions of If we want to be world beaters
independence rather than then there is only one way to do
acting as a socialising agent.
“The Ora has the it … by being better than the
same value as rest of the world. If we want to
Take Orania for instance. We command the respect of our
all know about the little town Monopoly money. international opponents on the
somewhere in the Karroo that sports field and our global
has been created as a last Probably less media colleagues and clients,
bastion of Afrikaner identity. then we have to do more than
But how many of us know that because if you just show them the titles
it has its own currency? The printed on our business cards.
Ora! First issued in 2004 the have nobody to
currency is not recognised
anywhere outside Orania itself,
play with.” We need to show them that
when it comes to media in
nor is it sanctioned by the SA South Africa and Africa, we
Reserve Bank. know more than them. We need
Let’s assume some form of to show them that when it
So basically, the Ora has the unitary single source comes to investing advertising
same value as Monopoly establishment survey actually funds in this part of the world,
money. Probably less because if survives and that the local there is no substitute for
you have nobody to play with, market continues to have access consulting professional media
you won’t even bother taking to a free media trading planners and strategists right
the Monopoly board out the currency. That currency is here in Mzansi. In the local
box. called Data and unlike the Ora advertising and media industry,
you can trade with it globally. we need to recognise that we
So good luck all you exponents live in a pretty small village …
of the “stuff the media industry Arguably our nation’s first- interesting but small … in a vast
it’s our money” school of attempt triumphs at the World global community. You don’t
thought. I hope you find Cup Rugby in 1995 and African have to sit in Durban to plan an
someone to play board games Cup of Nations the following advertising schedule for
with other than yourselves. year are collectively the worst Durban. You don’t have to sit in
Otherwise you might end up thing that has ever happened to Johannesburg to plan a
celebrating “Bittereinder Dag” South African sport. campaign for South Africa or for
on 31st May with the rest of Africa. Ask the media planners
Orania. in Nairobi and Lagos!
Ornico & The Media Online THE MEDIA REPORT 31Start training now
Give a professional media Employment is not It is time to put aside the
planner online access to a empowerment any more than squabbles and start developing
database, and the necessary buying a pair of running shoes the talent. The whole FET SETA
rates and any planner worth makes you an athlete. It’s just set-up has been a dismal failure
their salt, using globally the first step that signals your and as a result, industry
standardised media planning intention. What empowers any initiatives are failing to match
software, can plan for any individual in the commercial the need for skilled media
market, anywhere in the world. arena is the ability to do the job. decision-makers.
That plan will probably lack
frontline creative insight but it We need an urgent consolidated
will get the job done. effort, under one umbrella body
“What makes to tackle the issue of skills
You can have all the data in the world class development in the media
world but if you don’t have the industry. And we need to make
right people to interpret the athletes is it our number 1 priority.
data then you’re no better off.
natural ability, Otherwise you’ll have to take
All you’ll have is an Excel your new media currency and
spread sheet full of numbers guts and go live in Orania. At least they
In South Africa, we have understand Monopoly money
become so preoccupied with our commitment. there.
own internal standards and the Funnily enough,
shape and composition of the
local industry that we are very that’s pretty Read Gordon Muller’s blog
close to losing sight of the real
performance issue, which is much what Gordon Muller’s columns at
demonstrating our ability to The Media Online.
deliver against increasingly makes great
demanding international Find Gordon Muller
standards of media planning media planners @mzansimedia on Twitter
and strategy. as well.”
We don’t have a right to be
listened to when we protest that
when it comes to media South So while we argue about AMPS
Africa is different. We have to and SAARF and “whose money
prove to global clients that it is is it”, the industry continues to
in their best interest, neglect the biggest challenge of
strategically and financially and all. The growing skills shortage
that nobody understands this in media!
process better than the media
planners in South Africa.
Ornico & The Media Online THE MEDIA REPORT 32SOCIAL MEDIA Ornico & The Media Online THE MEDIA REPORT 33
THE MEDIA REPORT TOOLBOX
.za media influencers on twitter media organisations online
Oresti Patricios @Orestaki - CEO of Ornico fesmedia Africa is the media project of the
Friedrich-Ebert-Stiftung (FES) in Africa.
Glenda Nevill @GlendaN - Ed, The Media Online
Online Africa - Tracks and supports Africa's
Ferial Haffajee @ferialhaffajee - Ed of City Press Internet progress.
Africa Check @AfricaCheck - Fact-checking site The Impact of the Internet on Africa – The
Dalberg Report.
Pepe Marais @pepemarais - Founder of Joe Public
Media Institute of Southern Africa .
Dion Chang @dionchang - Trend analyst
The West African Media Foundation.
Mike Wronski @mikewronski - MD @Fuseware
Freedom House - an independent watchdog
Peter Bruce @Bruceps - Editor-in-Chief, Business dedicated to the expansion of freedom
Day & Financial Mail & Bdlive
Print Media South Africa
Adriaan Basson @AdriaanBasson – Beeld editor
Magazine Publishers Association of South Africa
Patrick Conroy @PatrickConroySA – eNCA head
Newspaper Association of South Africa
Tim Cohen @tim_cohen – Ed of Financial Mail
Advertising Standards Authority
Nathan Geffen @nathangeffen – Ed of GroundUp.
Press Council of South Africa, the Press
Chris Roper @ChrisRoper - Editor-in-Chief M&G Ombudsman and the Press Appeals Panel
Amanda Sevasti @AmandaSevasti - Head of Social Broadcasting Complaints Commission of South
Media @Native VML. Africa
Charl Blignaut @sa_poptart - Pop culture critic. National Press Club of South Africa
Future Journalism @The_FJP - Exploring media World Association of Newspapers
disruption, opportunity and innovation
Index on Censorship
Martin Welz @Martin_Welz - Ed, Noseweek
American Journalism Review
@Journ_SA - Journalism in Southern Africa
American Press Institute
Franz Kruger @franzkruger Director, Wits Radio
Academy Poynter
Ferdinand Mabalane @FMabalane - PowerFM Pew Resource Center’s Project for Excellence in
Station Manager Journalism
Ornico & The Media Online THE MEDIA REPORT 34The four letter word we most often use
Along with our smart Brand Intelligence™
service that delivers real value, Ornico’s
reputation and media analysis research is
exacting, independent and timeous.
Make informed decisions that give you
the know how to grow. Call Ornico today
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