MultiChoice And SABC Settle Dispute With eMedia Investments Regarding Sports

As some have already read, eExtra alongside eMedia's other Openview channels such as eMovies, eMovies Extra and eToonz won't be exiting DStv anytime soon as MultiChoice and eMedia Investments have come to an agreement. Although, the finer details of this transaction have yet to be known by the media.

Another topic that was addressed within eMedia Investments annual results for 30 September 2024 was the matter of the Rugby World Cup. This was something eMedia Investments had been battling to get onto Openview after MultiChoice denied other platforms aside from that of SABC's DTT the right to view the content.

This led SABC to change transmission for these channels once these games come on through platforms outside SABC's DTT and DStv which is what prompted this battle. MultiChoice accused eMedia Investments of free riding and wanting to broadcast the content without paying a cent.

eMedia Investments had pitched a sum in which MultiChoice deemed too low and from what other sources mention SABC's bid was a lot higher. It took local legislation to pressure these broadcasters into reaching an agreement which saw these games getting reduced even further.

When MultiChoice blocked other platforms from getting rugby it was so that SABC could pay less and get the bulk of content associated with a free-to-air broadcaster. Then after eMedia Investments came into the picture it has been theorised that MultiChoice had to reduce the amount of games given to the SABC.

Now all three parties have settled the matter of course it's not really known how they managed to settle the matter but it isn't something that they can keep secretive forever. MultiChoice has been in such disputes with both parties several times and this isn't something you'd expect to go away that easily.

eMedia Investments And MultiChoice Silently Settle Dispute Over e.TV's 4 Channels On DStv

As some readers may have remembered from the last time we had posted eMedia Investments' 4 TV channels namely eExtra, eMovies, eMovies Extra and eToonz were all slated to be removed from DStv by August 2024. Several months had already passed and these channels continue to distributed on DStv.

MultiChoice made the decision by March 2022 that they didn't want to include these channels on any of their platforms which led to the discontinuation of e.tv's African feed eAfrica. At the time, eMedia Investments had stated that they're changing their distribution strategy for these consumers while in South Africa they took the matter to court.

According to MultiChoice, eMedia Investments 4 TV channels had a lot of duplicate content and also the matter of transponder constraints led to the decision to terminate these services. The free-to-air broadcaster stated otherwise as they showed 2 out of the 4 channels had local content and that MultiChoice had plenty of space for more channels.

To top it off, MultiChoice forged ahead and allocated several placeholders on each DStv package: Movie Room (Access), DreamWorks (Compact), PBS KIDS (discontinued, Easyview) and KIX (Access). They even ramped up a rival offering to eExtra's Kuiertyd with the addition of Turkish dramas on KykNet & Kie.

In the financial year results ending 30 September of this year, eMedia Investments had confirmed that they've reached a settlement with MultiChoice after two and a half years. This means eExtra, eToonz, eMovies and eMovies Extra will remain on DStv but what's odd about this is the lack of engagement by both parties.

eMedia Investments didn't want these channels removed now they're getting what they asked for but still you'd think they'd be a celebratory mood. But questions amount to what prompted MultiChoice to suddenly join hands as eMedia Investments mentioned paying significant costs in legal fees.

In a couple of days, MultiChoice will be reinstating WildEarth to their platforms which served as one of the 12 TV channels to exit the company's platforms in the year. If one had to guess maybe the transaction to have Sanlam acquire majority stake in NMIS Insurance Services helped them build up their capital.

Another could as well be the onslaught of TV channels to have exited their platforms during the year with One Freestate Televisual, NWTV and People's Planet being based in South Africa. Maybe eMedia's 4 channels are being used as leverage for the fallen either that or the drastic takeover by Canal+ which is awaiting approval.

SABC And e.TV Are Likely To Be Reliant On DStv As Millions Of Households Still Recieving Analogue Signals Will Be Left In The Dark

As some readers have been made aware, SABC 1-3 will be transitioning away from analogue TV on 31 December 2024 a process that had been delayed the government for more than a decade. They put up various banners addressing the situation with e.tv that has yet to do so as they opt to once again delay/scrap the switch off.

Several countries had already turned off their signals as this current method of watching TV has been deemed outdated for sometime. As you can rely on a smart TV for these channels and best part pick up additional channels even the likes of Openview and DStv can help combat this situation.

Trust me when I mention that the government should have never opted to delay the switch yes there was millions still reliant on their aerial but this problem could have lessened by 2024. MultiChoice was always accustomed to catering for a selection of consumers and now free-to-air operators will have to adjust to this current structure.

Having SABC 1's viewership minimised as some households will probably be watching SABC Sport or eReality and with MultiChoice having SuperSportBET, DStv Insurance and Namola to obtain some revenue. These operators are now going to have to find other means to recover this lost revenue.

If there's anyone that's going to suffer more from this it's the SABC while eMedia Investments went ahead and launched Openview ahead of the switch off were able to garner some income and grow their fanbase. Although SABC had followed similar routes with SABC Education and SABC Lehae on DTT very little income is being generated.

Now SABC is trying to make a DStv a cash cow by trying to make its parent company either pay for SABC 1-3 or help in collecting TV licence despite making R500 million in advertising. These are just ideas that have been in development hell for more than a decade alongside the rest of the public broadcaster.

This was something that TVWithThinus had mentioned from time and time again the government had failed the SABC. If it didn't SABC News wouldn't be financed by MultiChoice and I believe if they were more involved they would have tried improving the SABC's financial situation.

At this stage, the public broadcaster can't survive in its current structure without some financial backing maybe they could look into minimising the amount of local content on SABC 1. There's already DStv and a global player like Netflix even e.tv has increased its local investment in recent years.

If there's anyone that can survive in SABC's shoes it would be MultiChoice as consumers are paying for the content being viewed on Mzansi Magic and Moja Love alongside Netflix.

Sentech's Freevision Delists eMedia's Openview Channels From Their Platforms

Sentech's Freevision which serves as one of the various rivals for eMedia Investments' Openview platform alongside PremiumFree TV started its services back in 2015. Similar to DStv's Easyview package, it mainly consisted of religious and provincial stations alongside various SABC and e.tv channels.

According to several consumers, e.tv channels had been ousted from the platform and this would include eExtra, eMovies and eToonz which serve as the initial offering on the platform. This would only leave mainly SABC channels particularly SABC 1-3, SABC Sport, SABC Education, SABC Lehae and SABC Variety.

eMedia Investments is already running through a similar hurdle with MultiChoice after they made the decision to exclude these services from DStv by 2022. Unlike Sentech's Freevision, these channels have a lot more viewers there of course with its pending demise one could say eMedia Investments is under siege.

With MultiChoice betting their odds on Showmax, Sentech had made similar pursuits with Freevision Play featuring a range of local content from various provincial stations some of which like Cape Town TV were exclusive to DStv.

Freevision Play taps into the same market as SABC+ and eVOD which is free and if we had to compare the three they're all winners in some way. Freevision Play has a catalogue of local content and TV channels, SABC+ is good for sports and local news and eVOD offers a mixture local and international content.

But the reality to all this only one out of three favour eMedia Investments and it's sort of this scenario of them being less reachable by fans. Right now, they're fighting to prevent analogue signals from going off the deep end as there's still households dependant on them for content and contribute to their ad revenue.

SABC Fails To Launch Additional Channels To Openview, Could There Be More To The Story?

As some of you may remember, SABC and eMedia Investments held hands to announce a new partnership that would see SABC Sport alongside SABC's 19 radio stations on Openview. This would join the existing SABC 1-3 channels with more expansion plans said to be underway with the inclusion two new channels.

These channels were non-exclusive brands meaning it could as well be distributed on SABC's DTT or MultiChoice's DStv platform with plans to spread the existing lineup from SABC 1-3 on these channels. At the time, the SABC had stated that when these channels would get enough exposure that new content could be curated specifically for them.

Similar to what we've seen with SABC's DTT channels, this content will likely be allocated on SABC 1-3 cause with more exposure means more advertising income. Although Ouma Sarie was able to pull 1.8 million viewers on e.tv that's not the case with eExtra as it's estimated to be under 500000.

These new channels had been in development hell for 3 years which means they could have been working on some ideas and that's where it's stands. Often when something is in development hell it's likely to get the axe look what happened to BBC UKTV's launch on Openview that went to DStv and consumers are reliant on SABC 3 for their offering.

Let's remember, SABC had continued adding further channels SABC Lehae and SABC Variety maybe one or both of those could be something they were looking to include on Openview. Then something behind the scenes happened with either eMedia Investments or the SABC which led to its cancellation or delay.

They are technically insolvent and need funding in order for these channels to survive. At this stage, they wouldn't really launch channels without knowing they'd be compensated in some capacity. 

Another possible outcome would be structure of this deal, when SABC Encore was distributed on MultiChoice's DStv what happened there was that SABC had a deadline (missed it) but eventually launched with the money coming from MultiChoice. Could the same have been outlined with eMedia Investments agreement with SABC?

This is a non exclusive deal unlike that of SABC Encore so SABC could have benefitted from this as there was no given timeframe by eMedia Investments on when these channels would go live. Probably because the payments eMedia Investments had given to SABC Sport matched that of SABC 1-3.

This means that SABC would be the one covering most of the costs for these channels cause with the financial constraints of eMedia Investments there's no way they could fund all 19 radio stations. This is the reason you don't get SABC News much less eNCA on those platforms due to constraints in livelihood.

How DStv Easyview Tries To Compete With Openview When It Comes To Sports?

Despite MultiChoice attempts to lure consumers to their most cheapest package this has proven to challenging as Openview has over 20 channels which incorporate telenovelas, movies, reality shows and drama series. Easyview is still reliant on provincial and news brands despite the inclusion of TNT and Real Time.

One of the main factors that drive people away from Easyview would be sports as eMedia Investments distribute SABC Sport on Openview and all Easyview has got is Blitz their news channel. One could as well establish that Blitz is superior for its news coverage for which SABC Sport lacks but from a consumers perspective live sports is a necessity.

Openview draws over 3 million households of course when it comes to viewership particularly sports it is estimated to reach 50000-100000 viewers and although MultiChoice hasn't mentioned Easyview consumer numbers their lower mass market which include Access and Family amount to 4 million.

When it comes to sports, MultiChoice injects a lot of funding there which is the main factor to the inflation rates on the Premium to Access packages. If or when MultiChoice decides to offer sports on the Easyview package full-time they'd be various challenges awaiting them one would be keeping the rates intact.

DStv Easyview was R39 per month before it dropped to R29 as MultiChoice was struggling to retain consumers and part of the blame went to Openview. As mentioned, despite the package seeing an increase in content is under threat and although being the most affordable it isn't the most attractive of packages.

One way Easyview is able to give a channel like SABC Sport a run for their money would be provincial stations. Despite being the reliant on when it comes to premium entertainment has seen a number of events under their wing including DStv Diski Challenge, World Wrestling Professionals RPT and Mixed Martial Arts (MMA).

During certain sporting events, SuperSport either launches a dedicated TV channel or temporarily opens up an existing channel to their consumers.

Heck even the movie channel TNT had opted to offer sports with the inclusion of wrestling promotion, All Elite Wrestling. If anything, I think the only other way MultiChoice can help Easyview compete even further with SABC Sport is by licensing some of its content from SuperSport to Magic Showcase. 

Magic Showcase broadcasts 16-18 hours a day and one way they could help extend those hours would be the inclusion of sporting event like Betway Premiership and compliment this with Jambo WWE. The content would broadcast on Magic Showcase weekly and could as well help them minimize costs.

Could Openview Get More Subscribers Than DStv?

As some people may have already seen, DStv has lost over 400000 in the last financial year leaving their consumer base to plunge from 8 million to 7.6 million. This is due to the current economic climate which has the average consumer having to wind down on expenses which has becoming an epidemic in other parts of the world.

Netflix would release an entire season of Wednesday or He-Man And The Masters Of The Universe and consumers would try to stream as much of it within a short pan of time. This has even splashed onto DStv when consumers would resubscribe when a major sporting event is on or Big Brother Naija.

Even with Canal+ having to acquire DStv's parent company MultiChoice this wouldn't necessarily improve these numbers but rather lead MultiChoice to rationalize on things like TV channels. These numbers are anticipated to decline which could lead other competitors such as Openview to edge out DStv numbers.

Openview is operated by e.tv's parent company eMedia Investments and has since seen a lot of growth in recent years with its activations reaching over 3.5 million homes almost half of DStv's consumer base. This does lead some to wonder if Openview could eventually have an advantage over DStv with numbers.

Free-to-air broadcasters already dominate the viewership spectrum I mean e.tv pulls over 5 million households and MultiChoice had already been accustomed to not having these figures on any of their brands but DStv was one way to exercise their dominance. So with Openview having close to half these figures could this edge out DStv.

Free viewing hasn't really slowed down in most parts of the world of course that doesn't mean its dependency remains under siege as Netflix continues to be a money grabber. In the UK, Freeview which serves as a free tier has its services in over 18 million homes while Sky the pay-tv counterpart has only 12 million.

Content wise you find that Sky continues to be a dominant player if you're used to getting the freshest content but if you're more prone to a selection of this lineup then Freeview is the best option.

Why Openview Consumers Are Now Able To Watch Games Exclusive To SuperSport And DStv?

A few years ago, SuperSport which serves as one of the largest sports broadcasters in Africa offering a wide range of sports ranging from football, rugby, tennis, boxing and wrestling formalised an agreement with the SABC for Betway Premiership. Initially, these games could have been viewed on rival broadcasters like Openview alongside SABC:s DTT.

In recent years, SuperSport decided to add some restrictions to these agreements when licensing them to the SABC that included blocking transmission from being received to Openview consumers. This benefited the SABC as they would be paying much less for these rights and it prompted eMedia Investments to take legal action.

Several punches were thrown during this time with eMedia Investments accusing SuperSport of an abuse in power while they accused them of "free riding". eMedia Investments' didn't need to pay for these games as they were being broadcast on SABC 1 so this was basically burdened to the SABC at the time eMedia Investments lost this battle.

They built up another case this time pertaining to the restrictions put up by SuperSport and they took this matter to the Competition Tribunal who deemed such agreement "unlawful" or "unethical" and requested both SABC and SuperSport make their games accessible to Openview. SuperSport did warn in advance that if this were to be the predicted outcome the whole agreement would be scrapped which is exactly what happened.

Several months later, both broadcasters are able to hold hands and announce a new agreement for PSL but what caught the media's attention is the number of games being offered on the table. When SuperSport would offer 240-260 PSL games SABC would offer almost half of that but that wasn't the case here as the offering was lessened to 51 games.

In short, when SuperSport and SABC were told to lift the veil from Openview these matches became expensive and following increased pressure by several governing bodies SuperSport couldn't just refuse to sell the matches to the SABC. So rather whatever amount SABC was willing to put on the table would determine how many games they'd get being 51.

In light of this one could say that SuperSport's free-to-air rights had been limited to the amount of games a broadcaster can carry of course they can't oppose who can or cannot use the exact platforms for the same offering.

Why Impact Wrestling (Now TNA Impact!) Failed On Openview?

After losing rights to WWE a few years ago, eMedia Investments opted to rather put their focus in their remaining lineup which ranged from international movies and series to local content. By 2021, they made a strategic move by supplementing this with Impact Wrestling (now TNA) after SuperSport opted to discontinue carriage of the wrestling promotion from their platforms.

The news of TNA's inclusion on e.tv wasn't met with the best responses from wrestling and sporting fans with some making comparisons to rival WWE. This showed as TNA failed to chart in e.tv's top 20 watched shows likely due to the poor scheduling choices another being competition from both SABC 1 and SuperSport weirdly enough only of the two offered wrestling on the same day as TNA.

If there's another thing, eMedia Investments handled poorly when it comes to TNA was how they'd distribute this content while WWE's flagship shows and PPVs were all allocated on e.tv with eExtra serving as a catch-up platform. With TNA, most of its catalogue was burnt off to Openview while the flagship show was in an on/off relationship on e.tv before moving to Openview exclusively.

If anyone had to guess it's possible that TNA's viewership was rather low on e.tv and they were changing its timeslot consistently in the hopes to attract more viewers but that proved to be challenging. When they decided 4pm would be its permanent timeslot it's likely the viewership continued to plummet that it led to them burning what little was left.

StarTimes eventually snatched those rights from eMedia Investments for their consumers in the African market (including South Africa) which would give TNA's extensive lineup of content more exposure compared to when it was on Openview. 

Now the problems pertaining to TNA have nothing to do with the wrestling promotion as it is one of those top 10 wrestling promotions in the world but rather eMedia Investments. WWE had been gone for so long and viewers who couldn't afford to get DStv were forced to move on and TNA was viewed as the enemy to e.tv's extensive history with WWE.

Viewers weren't accustomed to change and ignoring it was the only way they knew this problem would fade away and eMedia Investments wasn't sports oriented like the SABC so you could say that also played a factor. Again these consumers weren't accustomed to alternative methods this is what happened when Bleach was switched for Yu-Gi-Oh on SABC 2.

Before Naruto and Bleach, SABC once held to Pokémon and Yu-Gi-Oh but this part of their lineup was discarded for a decade with one being picked up by e.tv so when this format was revived it received very little notice from fans. Dragon Ball was able to rank in the top 10 watched shows on SABC 2 yet Yu-Gi-Oh an old placement long forgotten by fans couldn't even chart in the top 20.

Openview: "The Challenges Of Establishing A Competitor To SABC News And eNCA"

MultiChoice remains a dominant player in the African landscape against the likes of Zuku TV, Azam TV and StarTimes with their DStv offering but in recent years this has been under threat against the likes of Disney+ and Netflix. They (or in particular MultiChoice Africa) is currently in the process of being acquired by the French broadcaster after serving as a competitor in the region.

SABC News, eNCA and Newzroom Afrika serve as those leading destinations for editorial news and throughout their existence hpas only been packaged within MultiChoice's offering. This is because the pay-tv company had been allocating funds for content and staff and unlike some brands like BBC News hadn't received much funding from a third party.

It is one of those reasons that SABC News had been removed from DTT platforms and replaced by SABC Lehae and why eNCA is not seen on eMedia Investment's Openview. There was a whole debate about tandrying to get these brands onto more platforms outside of MultiChoice's reach but the trail had since then been dried out of course there were multiple attempts at launching a competitive offering.

Sometime after StarTimes had acquired TopTV, they had explored the idea of launching a local news channel within the South African market but deemed it too expensive and abandoned those plans. eMedia Investments became the second broadcaster with OpenNews (before becoming News And Sports) and the channel wasn't financially sustainable which led to it's demise.

SABC became the third broadcaster with SABC Lehae the only problem was that the channel is accessibility as SABC had reported that DTT had only accumulated around 400,000 activations by 2020. Yet, eMedia Investments had accumulated over 2 million subscribers by then despite rolling out their STBs years after they were made available to the market.

The fact that SABC News is not on Openview doesn't mean the chances of acquiring it for the platform is unlikely. eMedia Investments could as well look into licensing SABC News but from what was speculated from some insiders the costs to acquire such a channel might not came in their favor cause eMedia. relies on advertising while MultiChoice offers a pay-tv service.

eExtra, eToonz, eMovies And eMovies Extra Continues On MultiChoice's DStv As eMedia Investments Looks To Take Legal Action Over Their Pending Demise

Since 2022, eMedia Investments and MultiChoice have been embroiled a carriage dispute regarding eExtra, eMovies, eMovies Extra and eToonz. These channels are also allocated on the Openview platform with eExtra that is available on StarSat in a separate agreement. 

A hearing was scheduled for this August but according to a report it has been delayed once again with a date that has to be finalized. 

eMedia Investments is looking to take legal action against MultiChoice over the impending demise of these money grabbers. These channels ranked first, fourth, seventh and tenth serve as additional revenue stream to aid in the distribution and licensing of content. 

Other disputes these two parties engaged in revolved on the 2023 Rugby World Cup where SABC and MultiChoice reached an agreement worth R57 million. Of course, this agreement restricted these matches from being allocated on Openview and StarSat as they failed to obtain free-to-air rights.

In a court ruling, MultiChoice wasn't allowed to make such restrictions forcing the SABC to have their current agreement set in place scrapped. Following SABC’s absence from these events, sports minister warned a warning to these broadcasters for their failure to come into terms with a new agreement. 

How Openview Is Edging Out DStv Compact?

DStv is a pay-tv platform operated by MultiChoice that offers movies, series, sports, documentaries and kids shows. It is currently Africa's biggest entertainment provider operating in 50 countries which is currently in the process of being acquired by French broadcaster, Canal+.

Earlier in the year, MultiChoice had shuttered both M-Net's Me and 1Magic in an attempt to boost their streamlining endeavors which led to the inclusion of 1Max. Similar to 1Magic, this channel was only applicable to Compact+ and boasted a selection of local content. 

The channel embraces and explores dynamic, authentic African stories with an edge, kicking off with titles such as Tracking Thabo Bester and Red Ink. It also features content from other parts of Africa and the world such as The Real Housewives Of Lagos, Ted and The Good Doctor. 

This was also the channel set up to replace Me but MultiChoice has been reluctant to answer consumers with questions of such regard. Consumers have been moving like headless chickens wondering how they'll able to view The Block and America's Got Talent with the SABC struggling to stay afloat.

Outside of Showmax there's eReality which offers these series alongside other shows already viewed on DStv like Impractical Jokers, Catfish: The TV Show and MasterChef. With dramas like The Walking Dead and Blue Bloods and even sitcoms like The Goldbergs viewable on eSeries.

Although DStv already offers a competitive offering for eSeries with Universal TV and Comedy Central there's no Blue Bloods or The Goldbergs all of which were viewable on Me. While eReality shows some ounce of energy with DStv its mainly reruns to Judge Judy and Keeping Up With Kardashians. 

With DStv consumers actually paying for their content you'd expect MultiChoice to make some effort but that's not the case here. Although MultiChoice can speak highly about this content on Showmax end result is that consumers on Openview are paying a once off fee.

eMedia Investments Unveiled Annual Performance From 31 March 2024 And Plans Ahead For Their Platforms

eMedia’s financial performance

eMedia presents a satisfactory financial performance for the 2024 financial year given its mitigation against continued loadshedding, which had a negative impact on overall viewership and saw a further decline in television advertising spend of approximately 1%.

The actors and writers’ strike in Hollywood at the beginning of the financial year also had a severe negative impact on one of the subsidiaries in the Group, Media Film Service, which made R31.5 million less in profit after tax when compared to the prior year. The Group also continued its legal battles against Multichoice during the current financial year spending R8.8 million more in the current year when compared to the prior year.

Notwithstanding all the negative impacts to business operations in the macro-economic environment in South Africa, the Group was able to return favourable results and further continues with the declaration of dividends to its shareholders with a dividend of 16 cents per share at the close of the financial year.

Revenue and market share

The Group’s revenue for the fiscal of R3.1 billion is only 2.1% less than the previous year which can be mainly attributed to the decreased revenue earned by Media Film Service as mentioned above. This was further underscored by television advertising revenue ending on R2.165 billion an increase of 3% despite the television advertising cake declining by 1%. This is the highest television advertising revenue earned by the Group in its history.

The Group once again outperformed the market in terms of advertising revenue in the television market. This benefit in advertising revenues can be attributed to the Group maintaining prime-time audience market share at 33.5% in March 2024 from 34.5% in March 2023, a slight decrease year on year.

Further analysis of the Group’s market share reveals an increase in both shoulder and prime time. The share ended at 33.0% and 33.5% respectively, making the Group the biggest broadcaster in audience share in prime time and second to DStv in shoulder time in South Africa.

e.tv

The prime-time market share for e.tv has shown a slight decrease of 0.7% to 20.7% audience share. Of interest, however, is that e.tv is now the biggest channel during both prime time and shoulder time surpassing SABC1. The continued loadshedding saw a change in viewer patterns and this saw an impact on some of the shows. Scandal (19:30 to 20:00) and House of Zwide (19:00 to 19:30) continues to have a demanding market share in their respective timeslots with Scandal, however, coming into some competition with SABC1 moving Skeem Saam from its 18:30 slot to the 19:30 slot.

During the year, e.tv launched new dramas, Smoke and Mirrors at 21:00 to 21:30 and Isitha at 21:30 to 22:00. Both these dramas command the number one position in their timeslots. The 18:30 drama, Nikiwe was withdrawn from the schedule as it was not commanding a satisfactory market share and was replaced by a new drama, Isipetho, which has more than doubled the market share.

e.tv now spends approximately R600 million annually on local drama series and again shows the dedication of the Group to grow the local television industry.

e.tv continues to face the impact of the uncertainty of the imminent analogue switch-off facing the country but the Group is confident that the audience share will be carefully managed. At present the Group is once again engaging with the Department of Communication in relation to the switch-off date regarding e.tv analogue transponders. The Group is firm in the belief that too many ordinary South Africans will remain without TV in a hard switch-off environment.

Openview and multichannel

The non-linear eMedia channels continue to improve their ratings with eExtra, eMovies Extra and eReality which rank in the top 15 of all satellite channels available in South Africa. A few more channels will be launched on the Openview platform in the new fiscal year.

The rest of the eMedia channels, available on multiple platforms accounted for 26.9% of the advertising revenue amounting to R610.6 million which is up from R501.3 million in the previous year. Profitability in this unit has been maintained with content costs for the fiscal year being pegged at R325.6 million.

The distribution of the four eMedia entertainment channels on Multichoice, which contributed to the Group’s audience and revenue share, is still under investigation by the Competition Commission after non-renewal of the channel carriage agreement. At the time of this report, the channels remain on the Multichoice bouquet, and the court case is set down for August 2024. As mentioned, this has attributed to the year-on-year increase in legal costs.

The set-top box activations for Openview for the year amounted to 377 916 taking the amount of activated set-top boxes to 3 428 523 activated at the end of the period. Technological advancements being the focus of the business will bring in the next upgraded phase of the Openview set-top box, a smarter set-top box which will have memory facilities and Wi-Fi capability.

eNCA

eNCA continues to perform satisfactorily in its targeting of the discerning news viewer. In an attempt to engage the viewer, the channel has changed its positioning from ‘No Fear, No Favour’, to ‘Question, Think, Act’. It also continues to be the leading advertising revenue generator in the news market.

Other subsidiaries

All of the Group’s subsidiaries, with the exception of Media Film Service, have performed exceptionally with Y ending the year on a profit after tax of R16.8 million, an increase of 6% year on year.

Costs

Administrative and other costs were well maintained, increasing by only 2.35% year on year. This increase is mainly due to marketing activities returning back to normal, increases in legal fees as previously discussed and the adverse impact of the rand fluctuation.

Cost of sales, which mainly consists of the cost of content, in the case of e.tv, employee costs in the case of eNCA, and cost of the Openview decoder sales, decreased from R1 629.4 million to R1 584.8 million. A significant portion of the decrease can be attributed to close control of content costs across the channels and the retrenchments to create efficiencies within eNCA.

Profitability

The only asset of the Group is a 67.69% interest in eMedia Investments, the company that owns e.tv, eNCA, Openview, eVOD among other businesses.

eMedia Investments ended the year with a net profit after tax of R353.2 million, compared to a profit of R404.7 million in the prior year. The above profit should be viewed in light of the continued loadshedding and the impact this had on the advertising cake, foreign exchange rate and the impact of diesel usage on the business, as well as the increased legal and marketing costs together with the impact of the actors and writers’ strike in faraway Hollywood.

Earnings before interest, taxes, depreciation and amortisation (EBITDA) for the Group ended on R628.3 million compared to R667.2 million in the prior year.

Conclusion

The Group is forging ahead with numerous technology advances and strategic planning to continue to be the audience share market leader. The investment in Openview provides the Group with the strategic flexibility and is the plan to address the challenges of the transition that digital migration brings with it. The Group also intends to launch a number of digital developments to enhance its revenue generation capabilities and take advantage of our highly in-demand content.

The Group remains focused on its core business of broadcasting, content creation, platform advancements and a granular focus on technology that improves the broadcasting process.

eMedia Investments Outlines Plans For eVOD, Unveils Viewing Figures For The Platform

eMedia outlines plans for streamer eVODeMedia Holdings, the parent of e.tv and Openview, has disclosed viewer adoption figures for its eVOD streaming service, which it launched three years ago.

In eMedia’s annual report for the 2024 financial year, published on Monday, the group said some 1.13 million users have registered to watch the service since its introduction in August 2021.

Although the group hasn’t disclosed how many active users eVOD has, it claimed a 19% increase in watch time over the 2023 financial year, reaching 1.3 billion minutes.

Plans for the current financial year include expanding the available applications for smart TVs

The service, which has both free and subscription components, was launched in response to other streaming services available in South Africa, including Showmax and Netflix. It includes a range of local programming, including original eMedia series and movies.

eMedia disclosed the most popular content available on eVOD. These programmes are:

• Local series: House of Z Wide; Smoke & Mirrors; and Isitha: The Enemy – Blood and Betrayal

• International series: Elif, Annekan die Swa Kry and Doodsondes

• eVOD originals: The Umbrella Men: Escape from Robben Island; Yolanda is Swanger and Piet’s Sake

Growth plans

The broadcasting group said its plans for the current financial year – to March 2025 – include expanding the available eVOD applications for smart TVs, offering new content via Openview’s new set-top box (which can connect to the internet), and offering new advertising “innovations” that include the introduction of live-stream advertising and display banner ads in programming.

In the annual report, eMedia described eVOD as the “Netflix of South Africa” – MultiChoice-owned Showmax and Netflix itself might beg to differ – and offers a platform “primarily filled with e.tv’s local content in a video-on-demand format”.

Openview Dumps Power UP! Pop-Up Channel

With recent improvements in power stability, Openview announces discontinuing the Power-Up! Channel (Channel 114 on Openview) from Monday, 8 July 2024. Launched as a beacon of light during the challenging times of load-shedding, Power-Up! provided 18 hours of daily entertainment, ensuring South Africans never missed their favourite shows. Now, uninterrupted entertainment will continue on e.tv.

Power-Up! was an innovative solution to help e.tv viewers stay entertained despite the power outages. With load-shedding no longer affecting our lives, viewers can continue to enjoy their favourite shows as they air, experiencing the excitement of live viewing with friends and family. 

Marlon Davids, Managing Director of Channels: "We are thankful to our viewers for their ongoing support. Your engagement has been invaluable, and we are excited to bring you an even more thrilling prime-time experience. Our commitment to providing nonstop entertainment has always been unwavering and will continue to be so."

Openview is SA’s first free-to-air satellite service, offering a variety of TV and radio channels catering to all ages, races, and genders across South Africa. Openview is currently in more than 3.5 Million Homes in South Africa. The decoder is purchased as a once-off cost and has no monthly payments, affording millions of South Africans access to world-class entertainment.

Pending Court Verdict Keeps Kuiertyd And The Rest Of eMedia's Offering On DStv Until August 2024

Since 2022, eMedia Investments and MultiChoice have been embroiled a carriage dispute regarding eToonz, eMovies, eMovies Extra and eExtra. These channels were initially slated to go dark by the end of March of that year but got an extended stay on DStv for 2 years.

eMedia Investments had accused MultiChoice of anti-competitive behavior resulting in the removal of the channels. MultiChoice on the other based the removal on transponder constraints and also the load of DStv content viewed on eMovies and eToonz.

These offering was supplemented by DreamWorks and Movie Room as KykNET&kie launched its rival offering to eExtra's Kuiertyd. Other channels that formed part of this expanded offering to select DStv consumers include PBS Kids and KIX.

As seen in the start of the year, MultiChoice had removed at least 11 channels in under 4 months. These included People's Weather, B4U Movies and WildEarth with M-Net's Me and 1Magic that merged to form 1Max and was the only channel to be replaced.

If there's no further delays this time, the number of channels to have departed DStv would increase to 15 should no other channel exit prior. Of course, with the rate of TV channels to have exited without a replacement MultiChoice could lose more DStv customers. 

Despite these channels residing on the Openview platform with eExtra on StarSat in a separate agreement. eMedia Investments would see a reduction in revenue for these channels and viewers as e.tv, eNCA and eNuus on KykNET remains on DStv.

After eMedia Investments Fails To Acquire T20's Cricket World Cup Final On Openview Runs To Competition Commission To Remove Ban By SuperSport And The SABC

Last month, SuperSport and the SABC came into agreement to televise the ICC T20 Men’s World Cup final live as well as two Springbok Test matches on a delayed basis. The final two Springbok matches are scheduled for broadcast on Saturday 6th and 13th July. 

According to eMedia Investments, the agreement restricts the SABC from airing the matches on its channels that are carried on their free-to-air satellite platform Openview. The SABC is also restricted from making the matches available on SABC+.

eMedia Investments has filed an urgent application with the competition appeal court, alleging that the SABC and SuperSport entered into a “contemptuous” sports sublicensing agreement in contravention of an April ruling by the Competition Tribunal.

Described it as a “sham tender process”, alleged that MultiChoice withheld crucial information such as its intention to split the rights between terrestrial and non-terrestrial broadcasts or that the bidding process was competitive.

SuperSport in a separate statement had mentioned that the SABC’s proposal was 50% higher than eMedia’s proposed fee. Having failed to acquire remaining matches run to the Competition Tribunal to force both parties to give up the rights freely. 

If eMedia were to be successful, the result would be that no SABC viewers at all would be able to watch the Irish tests. eMedia therefore seems to take a scorched earth approach – which says that if it cannot transmit the Irish tests free to air, no one can.

Development Alert: People's Weather To Become People's Planet From 1st July On Openview

After being known as a weather service throughout its existence, People's Weather will dumping the iconic trademark for ⁰something more earthly known as People's Planet. The channel is set to go live on Openview channel 115 from the 1st of July.

People's Planet is described as the definitive destination for nature, adventure, eco sport, wildlife, science and sustainability enthusiasts. It will basically be rivaling with BBC Earth, National Geographic and Curiosity Channel all of which are on MultiChoice's DStv. 

Details of the content have yet to be announced but if we had to guess SafariLIVE will be on People's Planet alongside most content from People's Weather. Any weather related shows like Today's WX and Waking Up With Nature will likely fall out of the schedule. 

Despite People's Planet distancing themselves from anything weather related on Openview. People's Weather will continue as an online service and if anything will likely appear on People's Planet for promotional purposes. 

The news of People's Planet comes months after the channel was axed on MultiChoice's DStv. It joined over 11 channels to have exited the platform in under 4 months including SafariLIVE's parent company WildEarth, Ginx TV and B4U Movies. 

Recap To The Decade: Canal+ Owned/Funded Channels Currently Seen On eMedia Investments' Openview And StarSat

As some readers are aware, Canal+ intends to merge their operations alongside MultiChoice which would create an African powerhouse. This would need approval from local legislation including the Competition Commission and ICASA.

Since then, there's been a lot of concern of the implications awaiting this deal should it move forward. Canal+ serving as the new owners of MultiChoice would likely decrease the workforce on top of minimizing production and licensing agreements. 

Although Canal+ doesn't offer any services within in South Africa they had producing content for M-Net. On top of licensing the entertainment channels FilmBox Africa through StarTimes platforms with France24 seen on the Openview platform. 

There has been a lot of concern from consumers that Canal+ may opt to scrap these agreements and make these channels exclusive to DStv consumers as seen with SABC News. Some even fear that StarTimes could opt to scrap FilmBox as they'd aid a competitor. 

But that may never be the case here as such would prove to be anti-competitive or unethical on StarTimes part. If anything, these assets won't be treated differently once Canal+ acquisition of MultiChoice is complete. 

It's possible that part of this offering may never see the light of day on DStv.

Take for instance, Timeless Dizi Channel which serves as one SPI International's most popular entertainment channels in Africa is already seen on StarTimes. But not on any of Canal+ platforms within Africa so if anything this offering could operate more independently. 

Of course nothing can be set in stone on what DStv consumers would get out of this acquisition in terms of additional services. But from what we've seen in recent months with the closures of Me and Ginx TV it's likely these services will lead to more content changes. 

eMedia Investments Won't Be Able To Offer The T-20 World Cup To Openview Consumers

eMedia has said in a statement that it will not be broadcasting the T20 World Cup in June because of a constrained bidding time frame provided by MultiChoice.

This comes after MultiChoice, which acquired exclusive rights to the World Cup, only opened a tender for free-to-air broadcasters to bid for sub-licensing rights five weeks before the tournament’s start.

As a result, eMedia said bidders are “unlikely” to receive confirmation of broadcasting rights until less than two weeks before the event.

eMedia said it hasn’t submitted a bid, as there will not be enough time to secure sponsors, arrange advertising, and adjust programming schedules.

Due to this conduct, the broadcaster believes MultiChoice has violated the Electronic Communications Act and the Sports Broadcasting Regulations, which mandate prompt notification to free-to-air broadcasters.

“eMedia views the issuing of these late invitations to tender by MultiChoice as undermining fair competition and ignoring a recent Competition Tribunal order designed to prevent such restrictive practices,” the broadcaster said.

“This behaviour is not only unfair to E-tv’s dedicated viewers but also detrimental to the South African broadcasting industry as a whole.”

This is not the first time eMedia has called foul on MultiChoice’s behaviour around sports rights.

Last year, MultiChoice and the SABC concluded last-minute deals allowing the public broadcaster to show key matches from the Rugby and Cricket World Cup tournaments.

This included all matches featuring the Springboks and Proteas, as well as the semi-finals and finals, regardless of who was playing.

However, the deals explicitly blocked the SABC from broadcasting the matches on any channels carried by eMedia’s Openview.

eMedia claimed that these restrictions were anti-competitive and launched legal action against MultiChoice as a result.

The Competition Tribunal recently granted eMedia an interdict forcing MultiChoice to allow the SABC to broadcast live sports sub-licensed from SuperSport on Openview.