Vodacom Media
Vodacom has embarked on a comprehensive media and broadcasting strategy which includes launching their own radio station and may even involve broadcast television.
With voice revenues under pressure, many telecoms companies have to re-invent themselves as multimedia providers to ensure future growth and safeguard themselves against the continual changes in the telecommunications environment.
Big Media Plans
Speaking at the recent Vodacom On-The-Line Mobile Advertising launch at Vodaworld in Midrand, Romeo Khumalo, Vodacom SA’s commercial executive director, said that Vodacom has big plans in the media and content space.
“With the launch of mobile advertising, a first for South Africa, Vodacom is entering the media space in line with our strategy to diversify into a multimedia company. It is a huge new market and we estimate mobile media adspend in South Africa could reach R1.5 billion by 2011,” said Romeo Kumalo, Vodacom South Africa’s commercial executive director.
According to Khumalo the new media division has been formed already and a head for this division will be appointed soon.
While the company’s initial focus will be on mobile content and advertising, which is already a fully functional and commercial unit, expansion in the form of radio, television (not only mobile TV) and other forms of media is part of Vodacom’s plans.
“A powerful mobile social network funded by mobile advertising could be established by combining the power of social networking and mobiles. We are also considering mobile TV and video insertions, a Vodacom radio station, as well as voice, text, content and mobile Internet searching funded by advertising,” Kumalo said.
Vodacom Radio
The Vodacom Radio station, which Khumalo said will be a ‘new station’ with original content from Vodacom, will be delivered direct to listeners’ cellular phones through the company’s GSM network. This means that Vodacom does not have to concern itself with legal issues surrounding FM frequency and ICASA broadcasting requirements.
Khumalo made it clear that it wants to give its 25 million strong subscriber base compelling content, which is why the company is investing in its own content and not opting for syndicated content from other stations.
The new Vodacom radio station may be launched as soon as next month.
More than just Mobile TV
Vodacom is already providing subscribers with 22 mobile television channels through their Vodafone Live service, but Khumalo said that the company is looking beyond just mobile.
This gives a strong indication that Vodacom is interested in the lucrative pay-TV market, and with a partnership with Multichoice already in place it may use this channel to expand its growing interest in this arena.
Khumalo further indicated that there may be acquisitions in future to achieve its multimedia and broadcasting goals, but jokingly discounted the possibility of buying the newly formed Telkom Media.
Khumalo said that he expects Multichoice’s recently licensed Pay-TV rivals – which include Telkom Media, e-Sat, On Digital Media and the niche Christian broadcaster called Walking on Water – to have a tough time trying to break DSTV’s dominance in this space. “This is why we rather partnered with them,” Khumalo joked.
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