Asha Speckman
MultiChoice activated a fourth market for its new GOtv platform in Zambia last week, as the South African subscription-based television broadcaster seeks greater control of the pay-TV markets across the continent.
Nico Meyer, the chief executive of MultiChoice Africa, told guests at the launch in Livingstone last Thursday that “as GOtv grows we anticipate we will spend in excess of $300 million (R2.55 billion)”.
MultiChoice, a unit of JSE-listed Naspers, already offers its satellite pay-TV platform DStv in 50 countries on the continent. But in August last year, it began the roll-out of GOtv, a digital terrestrial television (DTT) platform, with the first launch in Uganda.
The event was followed in successive months by launches in Kenya and Nigeria and the roll-out of GOtv in Namibia last month.
In Zambia, GOtv is already available in Ndola, Kitwe and the capital, Lusaka.
MultiChoice has won influence not only through its dominant position as the only pay-TV provider in the country, but it has also secured a 51 percent interest in a DTT venture with the state-owned Zambia National Broadcasting Corporation (ZNBC).
Chibamba Kanyama, the director-general of ZNBC, told Business Report that the Zambian government had even amended its requirement that 75 percent of the venture be owned by the Zambian government to enable MultiChoice to assist the government in kick-starting its DTT migration.
Zambia aimed to complete its switchover by December 31, 2014, Kanyama said.
Globally, broadcasters are converting over the air analogue signals to digital signals by 2015 as a requirement by the International Telecommunications Union.
The move is expected to release more radio frequency spectrum, as a digital signal requires less spectrum than analogue signal and carries more broadcasting channels. It will also pave the way for new entrants in television and radio broadcasting.
South Africa’s own process is yet to kick off due to policy delays within the government.
Meyer said: “In the next 12 months we (MultiChoice) will continue to bring more services. The African market is ready for that. The technology has started to mature.”
Meyer declined to comment on the company’s future strategy. However, he said while further growth of DStv services across the continent would continue, MultiChoice would “in the near future” introduce services for GOtv subscribers that included enabling customers to interact with the company directly via smartphones and feature phones.
In the year to March, MultiChoice said it had added 684 000 subscribers to reach 5.6 million households on the continent.
GOtv provided two bouquets of either 22 or 32 channels and priced at between $6.50 and $9 a month, Meyer said. This is over and above the purchase of a set top box.
He said the company expected to realise returns over the next three to four years.
“Any new business venture goes along a J-curve that starts to turn in three to four years from now,” he said.
Meyer said the introduction of DTT opened up new opportunities for the company, particularly in providing region specific content and advertising.
“As you bring more and more local content into play, that sector of the market is going to grow. It is going to become more targeted.”
MultiChoice has traditionally succeeded in Anglophone and Lusophone markets, where it has been operating for more than 20 years.
Meyer said the company intended to keep its focus in these markets rather than pursue customers in Francophone countries.
Asked about the group’s agreement with ZNBC, Meyer said the parties had been in partnership for a long time.
Asha Speckman was a guest of MultiChoice at the GOtv launch in Zambia.