Telecoms16.03.2010

On Digital Media launch date confirmed

For many years MultiChoice had a monopoly on pay-TV services in South Africa, but this monopoly is set to come to an end before mid-2010.  Incoming pay-TV competitor On Digital Media (ODM) CEO Vino Govender has confirmed that the company will commence broadcast services in May this year.

During a recent interview with MyBroadband Govender revealed that ODM would announce its full channel offering on Thursday, adding that it had “signed over fifty channels based on a thematic offering [which had] been confirmed by pooling resources from around the world”.

“We’ve done a fantastic job on our content and we’ve got a full package offering,” Govender added.

ODM has further confirmed that pricing of their pay-TV packages will range between R99 per month and R249 per month.  This is a downward adjustment from their previously planned pricing models which ranged from R149 to R349 a month depending on the choice of channels selected by the subscriber.

New subscribers will have the following choice of content:  Movies, Series, Documentary, Children, Music, Religion, News, Sport and Local Content.

Although users will be able to use current DStv satellite dishes to receive ODM’s signal upon launch Govender urged potential customers to invest in an 80cm dish to ensure optimal picture quality. Existing units will need to be realigned from MultiChoice’s 5 degrees East positioning towards a more Northerly direction.

Govender also confirmed that ODM would launch commercial services nationally with the partnership of “key retail stores” but could not confirm any further details.

On Digital Media roadmap

Initially ODM plans to launch a basic service aimed at the lower LSM markets which currently have access to SABC 1, 2, 3 and eTV.  Govender believes that this sector of the population is currently being “underserved” with regards to pay-TV services.

At a later stage the broadcaster intends to look into PVR, On Demand and High Definition services adding that it is part of ODM’s roadmap. Govender was however quick to point out that these services will not initially serve the needs of the company’s early customer base, adding that the majority of these subscribers do not own high definition televisions.

Govender added that the company has no plans to broadcast on South Africa’s upcoming Digital TV multiplex, saying that “we are purely a satellite broadcasting company”.

IPTV services are also not on the cards for ODM in the short term with Govender adding that telcos should “put fibre into the home and then come talk to us”. He predicts that this will take roughly five years.

ODM’s backbone

On the technical side Govender explains that ODM has secured three transponders on the Sirius 4a satellite which will offer a capacity of 62 channels upon launch. The company will have two direct uplinks, one from Munich, Germany and another locally based, which will provide channel offerings.

ODM will be utilising the Seacom cable system for broadband uplink support.

Decoder

Govender also confirmed that the ODM decoder would be part of Altech UEC’s DSD 400 range and would be far more compact than what most current pay-TV subscribers are used to. At this point the units have reached a stage of mass production although pricing details are not yet available.

In addition the decoder will feature a USB port which will enable users to insert a flash drive or portable hard drive to give early PVR functionality.

Sport

In response to a question regarding sports coverage and broadcasting Govender commented that “we did a lot of research. 40% of our respondents were sports fans, the remainder were simply looking for general family entertainment”.

Initially ODM will broadcast niche sporting content such as martial arts. Govender added that although MultiChoice currently holds the rights to most premier sporting content for South Africa, ODM will involve itself in the bidding process when those licenses are due for renewal.

ODM in a year

When asked where he expects ODM to be in twelve months Govender responded that “our first goal is to stabilise the platform. It’s all about service, service, service and the customer must remain on top”.

In addition to this the CEO hopes to break even by that point adding that this would require “between 350 000 and 380 000 registered subscribers”.

On Digital Media << discussion

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