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.
Telkom Media is the only player promising to compete not only at the lower end of the market — rivals On Digital Media (ODM) and Walking on Water Television (WOWtv) both plan to target market segments that don’t already have pay-TV — but also at the top end against MultiChoice’s premium DStv bouquet.
If Telkom Media doesn’t make it, the result may be that SA won’t see TV delivered over Telkom phone lines for some time. Known as IPTV, this technology offers more interactivity than traditional broadcasting. Similarly, consumers may have to wait longer for video-on-demand.
Though Telkom Media says it may be ready to make an announcement about its shareholding in two weeks, the focus is shifting to ODM and the Christian-focused WOWtv.
Unlike ODM (see story), which will offer 50 channels at launch, WOWtv will offer only one — at R49/month. Much of the programming will be religious in nature. In a country where 80% of the population identifies itself as Christian, it hopes to do well.
Meanwhile, another battle is shaping up, this time between e.tv, Telkom Media and the SABC. All three plan to launch 24-hour news channels this year. E.tv’s channel will be carried on DStv while the SABC is in talks with MultiChoice and international broadcasters to carry its channel, to be known as SABC News International. It seems unlikely the market can sustain all three. Unfortunately for the commercial operators, the public broadcaster is able to fund its channel through licence fees and government subsidies.
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