1. Parliamentary Indaba: Diversity and Transformation in the Media Presented by Oupa Mopaki MICT SETA 22 September 2011

2. CONTENTS Overview of the South African Media Industry Changes since 1994 Ownership Structure Control Structure Management Structure: Language of the media Viewership / Listenership – Broadcasting – Universal Access to new Media Capacity Building Strategies and Programmes / Skills Development Employment Equity Approach to Gender Challenges in the Media Identifying barriers to entry and proposals for enhancing media diversity Proposals for enhancing media transformation Views on the ICT Charter Conclusion

3. OVERVIEW OF THE SOUTH AFRICAN MEDIA INDUSTRY The media industry can be categorised into three distinct sub-sectors: Broadcast Media - consisting of Radio and Television (free to air and subscription); Print Media - consisting of Newspapers, Magazines and Knock-and-drop; and New Media - which consists of Online Media (Internet) and mobile phone media.

4. CHANGES SINCE 1994 On the social level: According to the DACTS Report on the Cultural Industries published in 1998, electronic media has the potential to foster cohesion through communicating ideas, information and ideology. On a political level: This industry provides a forum for information which is essential for participation in community life. Since the demise of apartheid electronic and new media has been used effectively to deepen our democracy. On an economic level: This industry brought about billions of dollars and generated millions of jobs throughout the world, directly in production and post-production and indirectly through the use of internet/email as the primary means of communication for supporting other industries such as the hospitality industry, transport etc. post 1994. Comparative advantage It was identified in 2008 that South Africa has a comparative advantage in relation to a group of similar countries in creating content which the world would watch, however, to date; it is still not optimizing its comparative advantages. (DTI, 2005b).

5. OWNERSHIP STRUCTURE: BROADCASTING Public Ownership SABC- content generation Sentech- signal distribution Private Ownership (Main players) Multichoice- Content generation E-TV – content generation Primedia Broadcasting – content generation Kagiso Media – content generation Orbicom- signal distribution

6. Public SABC- DoC Minister and Board, Sentech- DoC Minister and Board Private Multichoice- E-TV – Primedia Broadcasting – Kagiso Media – Orbicom- Regulatory Framework Electronic and Communications Act, 2005 (as amended) ICASA Act Broadcasting Act CONTROL STRUCTURE: BROADCASTING

7. MANAGEMENT STUCTURE: BROADCASTING Public SABC- – Representative Board – Representative Management Team Sentech- – Representative Board – Representative Management Team Private Based on the WSP/ATR submissions made in the past five years, there is some progress made regarding issues of transformation, though there is still room for improvement.

8. ELECTRONIC MEDIA OCCUPATIONS

9. ELECTRONIC MEDIA RACE PROFILE

10. ELECTRONIC MEDIA GENDER PROFILE

11. OWNERSHIP STRUCTURE: NEW MEDIA Public Ownership - Telkom (8-ta) Private Ownership Main Players: – Vodacom – Cell-C – MTN – IS, Altech, etc.

12. MANAGEMENT STRUCTURE: NEW MEDIA Telkom: – Representative Board – Representative Management Team Main Players: – Vodacom – Cell-C – MTN – IS, Altech, etc. Based on the WSP/ATR submissions made in the past five years, there is some progress made regarding issues of transformation, though there is still room for improvement.

13. NEW MEDIA OCCUPATION

14. NEW MEDIA GENDER PROFILE

15. NEW MEDIA RACE PROFILE

16. Public Covers the eleven official languages Private English and Afrikaans LANGUAGE OF THE MEDIA

17. VIEWERSHIP / LISTENERSHIP- BROADCASTING There are 11.1 million TV households in South Africa. The SABC has 3 terrestrial television channels (SABC1, 2 and 3) with total viewership accounting for 69.3% of the total television audience E.tv is the only privately owned free-to-air commercial terrestrial television station with audience of 18.1 million, representing 22.3% of the viewing audience MultiChoice owns M-Net (Pty) Ltd which broadcasts terrestrially an M-Net premium channel and the Community Services Network (CSN) which targets special interest communities and Sports; and the digital satellite bouquet on DStv.

18. UNIVERSAL ACCESS- NEW MEDIA access still remains a challenge in rural and township environments due to the low computer literacy rate in South Africa in general and particularly within the black communities. Digital content The advantage of the New Media industry is its ability to rapidly disseminate information to the market place. is dominated by the major media companies such as Naspers/Media24 with their 24.com website/mobisite brand and Avusa with its various news (e.g. the times website/mobisite) and service (career junction website/mobisite) offerings. New media are entering the content provision space with Telkom and Vodacom each having a web presence apart from the fact that they own and provide the technology infrastructure required to access the Internet. Telecommunications companies

19. Capacity Building Strategies and Programmes / Skills development Requires a new way of doing business Requires A CHANGE IN FOCUS From Transactional to Transformational Approach to Skills Development Become a Total MICT Skills Development Solutions Partner with our Stakeholders Seize the opportunity to craft the MICT Skills Development Agenda within the Human Resource Development Strategy of South Africa (HRDSSA)

20. Strategic interventions

21. EMPLOYMENT EQUITY Promote: – Equal opportunity for the Historically Disadvantaged Individuals, – Fair treatment in employment, Through: – Elimination of unfair discrimination, – Implementation of affirmative action measures, – Redressing the disadvantages in employment experienced by designated groups, – Ensuring equitable representation in all occupational categories and levels in the workforce.

22. APPROACH TO GENDER CHALLENGES IN MEDIA Ensure that the equity targets: 85% Black, 54% women and 4% people with disabilities are addressed. Ensure that the MICT SETA is aligned to the MDDA Act and the BBBBEE Act in relation to increasing economic activities, infrastructure and skills development.

23. Perceived lack of skills with regard to designated groups; Inadequate funding for new ventures; Inadequate enforcement and monitoring of the Employment Equity initiatives; BARRIERS TO ENTRY

24. PROPOSALS FOR ENHANCING MEDIA DIVERSITY Improve research capabilities; Workplace skills planning and linkages with Employment Equity provisions; Workplace skills implementation and monitoring to improve credibility of the system; Sanctions for non-performance; Workplace skills evaluation to measure impact of skills development in terms of promoting transformation; Opportunities for further funding.

25. ICT CHARTER IMPERATIVES To address issues such as employment equity, skills development and socio-economic development; To support the objectives of the BBBEE Act and to promote its effective implementation in the ICT Sector; To bridge the “digital divide” by actively promoting access to ICTs; stimulate and support growth in the ICT Sector; To advance economic and social transformation in the ICT Sector; To contribute towards the reduction of unemployment and poverty alleviation; To support skills development and training initiatives; To foster equity and address the legitimate economic aspiration of all South Africans; and To provide an enabling environment conducive to transparency, fairness, and consistency when adjudicating on matters related to BEE in the ICT Sector

26. MICT Seta R400 Million Levy distribution – 1 Year R80M National Skills Fund 20% SETA receives R40M Seta administration 10% R200M Paid back to employers 50% R80M Discretionary 20%

27. ALL SETAs R4 Billion Levy distribution – 1 Year R800M National Skills Fund 20% SETA receives R400M Seta administration 10% R2b Paid back to employers 50% R800M Discretionary 20%

28. ALL SETAs R20 Billion Levy distribution – 5 Years R4b National Skills Fund 20% SETA receives R2b Seta administration 10% R10b Paid back to employers 50% R4b Discretionary 20%

29. CONCLUSION: Data analysis In view of empirical data and other recent information that were reviewed, the indication in terms of transformation in the Broadcasting and New Media is that: 1.There is a disjoint between skills development and employment equity initiatives in workplaces; 2.There is inadequate enforcement of the provisions of the Employment Equity Act by the Department of Labour; 3.BBBEE not making sufficient impact, particularly on control and management ; The MICT Sector Skills Plan (2011) asserts that broadcasting entities are fairly transformed and diversified, this is confirmed in the MDDA’s Trends of Ownership and Control of Media in South Africa. The biggest local barriers to entry is lack of finance for new ventures. Training in research, funding models, setting up Joint Ventures and Consortiums are required to offset the effects of these barriers.