Broadcasting in the 21st Century October 2017

Digital Coverage (Overview) DTT Coverage Signal 74.5 % DSTV Coverage (100%) 100 % SADC Target coverage per country; 2015 67 % Source: NBC Technology, 2016 & 2017

Broadcasting Outlook in Namibia Transmitters in operation (analogue switched off) (dual illumination) Transmitters installed but not on air (hard switch-over required, or regulatory issues) Analogue sites still to be converted to DTT New and upgrade sites 33 DTT Transmitters on Air 7 DTT Transmitter installed and ready for switch on Coverage: 74.5% Source: NBC Technology Reports, 2017

Audience in Namibia (Radio) 46 percent of the population are using Cell phones as mode of listening to Radio. 39 percent are using Hi-fi system, 33 percent; Car Radio, 23 percent DTT/DSTV and 5 percent online. 24 percent of audience spend more than 4 hours per week on Radio. 20 percent spend between 2 to 3 hours, and 19 percent spend between 1 to 2 hours spend time listening to radio. Source: NEPA, Audience Research, 2017

Audience in Namibia (Television) 55 percent of the population are spend more than 4 hours per week on TV. 21 percent are spend between 3 -4 hours per week on TV. Source: NEPA, Audience Research, 2017

Audience in Namibia (Radio) ‘NBC National Radio’ dominates the category being the most frequently heard radio station. It also is the listener’s favourite station followed by ‘NBC Oshiwambo’ and ‘Fresh FM’ ‘Frequently heard’ % age is primarily driven by listeners from ‘other regions’ (those not from Khomas) ‘Favourite Station’ % age is primarily driven by ‘females’ and ‘story telling’ listeners ‘Frequently heard’ % age is primarily driven by ‘Females’ Spontaneous recall is primarily driven by ‘Females’ ‘Favourite Station’ % age is primarily driven by higher age group (30+) Frequently watched : Please select which of these stations you listen frequently: Favourite channel : Which of these is your favourite station? Or the station you listen most often? Source: NEPA, Audience Research, 2017

Audience in Namibia (Television) Frequently Watched / Favourite Channel Frequently watched % age is primarily driven by ‘females’ and younger age group (16-24) Primarily driven by ‘males’ and higher age group (30+) Primarily driven by ‘males’ and higher age group (30+) Frequently watched % age is primarily driven by ‘males’ ‘Frequently watched ’ % age is primarily driven by males Frequently watched % age is primarily driven by ‘males’ and younger age group ‘Favourite Station’ % age is primarily driven by viewers from ‘Other regions’ (those not from Khomas) Primarily driven by higher age group (30+) Primarily driven by higher age group (30+) Frequently watched : Please select which of these channels do you watch frequently. Favourite channel : Which of these is your favourite channel? OR the channel you watch most often? Source: NEPA, Audience Research, 2017

Broadcasting Outlook in Namibia Namibia is one of six African countries that migrated from analogue to digital television broadcasting before the deadline of 17 June 2015; other countries were Malawi, Mauritius, Tanzania, Zambia & Rwanda. The DTT Coverage current stands at 74.5 percent for Television and 78 percent for Radio The DTT Multiplex currently accommodates 8 Television Channels, and 9 Radio stations The Multiplex is housing 1 Commercial Television (One Africa TV), and a religion channel owned by Trinity Broadcasting Network. Multichoice Namibia is the current pay-tv broadcaster in Namibia. The Namibian Broadcasting Industry is very competitive and consist of +-49 (commercial and community radio stations) 9 Radio stations belonging to the Namibia Broadcasting Corporation. Namibia Source: ITU, 2016, NBC Technology Department, 2017

DTT Outlook (SADC Countries) In SADC, Namibia was the first country to migrate from Analogue to Digital. Currently, DTT Covers 74.5 percent on Television and 78 percent radio coverage. The NBC Platform currently hosts 7 Television Channels and 9 radio stations to an average audience of 1.6 million daily. Nearly a year after the ITU deadline mandated analogue switch-off across most of the continent, just six African nations managed to complete the turnover to DTT. These were as follows: Namibia, Zambia, Rwanda, Malawi, Mauritius, and Tanzania SA has been planning for digital migration since 2008 but missed the June 2015 International Telecommunication Union deadline to switch from analogue to digital television. South Africa was the last country in Southern Africa to migrate from Analogue to DTT. South Africa began broadcasting on digital transmissions towards the end of December 2015, kicking a period of dual illumination before switching of analogue signals. DRC Tanzania Angola Zambia Mozambique Zimbabwe Namibia Botswana South Africa Swaziland Lesotho Source: ITU, 2016, NBC Technology Department, 2017

2017-2018 Broadcasting Outlook in Africa Video-on-demand is dominating the Media and Entertainment industry. This is prompting distributors to come up with different ways to bundle and disseminate content, creating new revenue models, and opening up all kinds of opportunities to push the envelope on content creation. Millennials spend more time streaming content than watching it on television, and more than 20 percent of them are viewing content on their mobile devices. Streaming services are growing rapidly, with around 60 percent of consumers using them monthly. Video-on-demand viewers are expected to reach 209 million by 2021, up from 181 million in 2015. Content creators have a relationship with the end consumer like never before The derived insights about users allow for content and ads to be more personalized. The Over the Top Players specifically companies like Netflix, Hulu and Showmax have already started to create original content, and have started to collaborate with broadcasters in Africa. Source: Ovum, October 2016

Trends in Broadcasting (Global) The worldwide broadcasting sector has developed into a mixed economy in which companies generate revenues from three major sources: Advertising, Subscription fees and, Public revenues (Subsidies through the shareholders) Pay TV accounts for 69.81 percent of revenue contributed by the broadcasters in the world. Advertising accounts for 56.21 percent of revenue contributed by broadcasters. Source: IHB, 2016

Global Pay TV In 2016, Global pay-tv Revenues (Cable, DTH, pay DTT, IPTV) contributed $ 215 Billion (85 percent) compared to OTT video revenues (purchase, rental, subscription and advertising) at $ 38 Billion (15 percent). In 2020, OTT Video will grow almost double to $ 72 Billion (22 percent of total revenue share). Source: Ovum, October 2016

Trends in Broadcasting in Africa Terrestrial TV services rely on a network of transmitter towers spaced around a given region. About 12 percent of Africa and Middle East are still on Analogue. From 2009 to 2014 global pay TV revenues increased at a compound annual growth rate (CAGR) of 7.3%. And continues to grow by 9 % annual growth rate (CAGR) until 2018. Over the last five years, the fastest growing regions in pay TV revenue have been the Middle- East and Africa and Central and South America, which grew at a CAGR of 22% to 26% respectively from 2014 to 2016

Global Overview of OTT Services Advertising VOD (AVOD) is the most successful OTT monetisation model contributing 47 percent streaming market revenues. AVOD will overtake paid-for OTT after 2017, grow to $39 Billion (55 percent) in 2020 AVOD revenue is driven by inclusion of advertising on social media short-form content, e.g. clips, whether Facebook, Twitter, Instagram or other services. Source: Ovum, 2017

Global Overview of OTT Services In 2016, North America is the world’s largest OTT Video market at 60 percent of global paid-for OTT Video revenues in 2016 Europe is at second place at 22 percent, Asia is third with 13 percent and Latin America at 4 percent Middle East and Africa account for 0.9 percent and 0.3 percent respectively. Developed Markets settle at <20 percent growth annually, developing markets grow much faster in next 5 years. Source: Ovum, 2017

Global Overview of OTT Services OTT services like NETFLEX, HULU, HBO & Showmax are evolving very fast, as a result consumer behaviour are shifting faster. NBC is in the process of launching its own Over the Top Services.

OTT Services: NBC NBC to launch Over the Top Player in Q4. All NBC Business Channels (TV and Radio) will be available. Demo.

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