Telkom Media and the Wow factor

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Telkom Media and the Wow factor

The fact that Telkom will pull out of the pay-TV business is bad news for those consumers who had been counting on it to shake up the industry and take the fight to MultiChoice. Though its subsidiary, Telkom Media, is not out for the count, analysts say it must urgently find a new shareholder — one with deep pockets — to survive.
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Bring it On, say contender

Quote from the Financial Mail : Article by Dunceon McLeod - "ODM appears a more formidable business. ODM targeting a market of 3,5m people. It enjoys the backing of labour federation Cosatu's investment arm, Kopana, as well as that of the Industrial Development Corporation (IDC), and European satellite group SES Astra. ODM plans to build a full-service pay-TV offering, though it won't initially compete against MultiChoice at the top end of the market, says CEO Vino Govender. In his first interview since ODM was licensed, Govender says the company has identified a potential pay-TV market of about 3,5m households in middle-income living standards measure (LSM) categories 6-9. He says this is not being adequately served by DStv, despite recent moves by Multi-Choice to offer lower-cost channel bouquets. The company has raised R1bn in financing — R8OOm in equity provided proportionately by the shareholders and R200m in debt from the Development Bank of Southern Africa. It's a fraction of the R5,3bn Telkom Media has said it plans to spend — the figure was recently reduced from R7,5bn — but Govender says it's not necessary to spend that much building a feasible pay-TV venture. He points out that Telkom Media plans to launch its own 24-hour news channel and offer broadcasts not only via satellite but also using Telkom's broadband lines. ODM will offer a satellite pay-TV service only. "
 
esat are now going to be a content provider. 24hour news channel available to the satellite broadcasters.
 
The fact that Telkom will pull out of the pay-TV business is bad news for those consumers who had been counting on it to shake up the industry and take the fight to MultiChoice. Though its subsidiary, Telkom Media, is not out for the count, analysts say it must urgently find a new shareholder — one with deep pockets — to survive
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No big loss for me, although this just shows us how Telkom is failing!
 
sigma said:
Quote from the Financial Mail : Article by Dunceon McLeod - "ODM appears a more formidable business. ODM targeting a market of 3,5m people. It enjoys the backing of labour federation Cosatu's investment arm, Kopana, as well as that of the Industrial Development Corporation (IDC), and European satellite group SES Astra. ODM plans to build a full-service pay-TV offering, though it won't initially compete against MultiChoice at the top end of the market, says CEO Vino Govender. In his first interview since ODM was licensed, Govender says the company has identified a potential pay-TV market of about 3,5m households in middle-income living standards measure (LSM) categories 6-9. He says this is not being adequately served by DStv, despite recent moves by Multi-Choice to offer lower-cost channel bouquets. The company has raised R1bn in financing — R8OOm in equity provided proportionately by the shareholders and R200m in debt from the Development Bank of Southern Africa. It's a fraction of the R5,3bn Telkom Media has said it plans to spend — the figure was recently reduced from R7,5bn — but Govender says it's not necessary to spend that much building a feasible pay-TV venture. He points out that Telkom Media plans to launch its own 24-hour news channel and offer broadcasts not only via satellite but also using Telkom's broadband lines. ODM will offer a satellite pay-TV service only. "
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Yup, that'd be extracted from this:

http://www.fmtech.co.za/broadcasting/bring-it-on-says-contender/

:-)
 
Known as IPTV, this technology offers more interactivity than traditional broadcasting. Similarly, consumers may have to wait longer for video-on-demand.
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Why do many assume realtime IP delivery is the only way to do VoD?

Since hard drives are so cheap, most VoD enabled STB will have 0.5-1 TB of storage capacity on them. A satellite provider can easily trickle the content down to the STB's HD in encrypted (locked) form and then use a light-weight back channel (IP or GSM/SMS) to process the unlocking/payment when the subscriber wants to view.
 
IPTV really needs ADSL2+ to truly compete. You can do it on a 4mb line but I suspect percentage of those don't meet the economies of scale.

I think Telkom were overly optimistic about the timelines of their ADSL2+ plans. Its not a simple question of upgrading DSLAMs, in many cases they need to roll out an order of magnitude more DSLAMs at the street distro level. Means digging more fibre everywhere too. Its a bigger operational and technological challenge than they anticipated. Of course its also going to be a long time before they can see a ROI on that equipment given our population densities.
 
iptv can not run on the current crappy infrastructure that is telkom
 
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