Read all about it

The past decade has seen a remarkable transformation take place in media consumption: while newspapers, magazines, radio and television remain, the manner in which the public access, contribute to and select their media is changing fast. And most of this change has been introduced through technology, from content access via the Internet to highly complex software on satellite television decoders.

Turn on the telly

For MultiChoice, the evolution has been in technology development, specifically decoder manufacturing. Close partnerships with manufacturers have seen services evolving and options expanding, according to Jackie Rakitla, GM of corporate affairs for the local company.

"The first decoders on the market had limited capacity; today, however, customers have options of dual view decoders - allowing different channels on two TVs - and the personal video recorder (PVR), which facilitates video on demand and pause/rewind of live broadcasts. We are also currently testing digital video broadcast handheld technology (DVB-H) and high-definition TV (HDTV), which could dramatically alter the manner in which content can be viewed," he says.

Like Telkom 18 months ago, MultiChoice is facing the entry of new competitors. Nevertheless, Rakitla says the company is not concerned as competition will ensure more choice and diversity in content and will ultimately be good for the pay-TV industry. In the meantime, the group is more interested in building on the success of the 2006 soccer World Cup and leveraging its learning for the 2010 tournament.

Radio not dead

Radio broadcasting is far from dead. Instead, radio still has the greatest penetration of all the media types in South Africa, according to results from the 2001 Census. And while the core business of radio is still broadcasting, that`s not to say it hasn`t taken advantage of new technologies to grow its offering.

Primedia Broadcasting GM Ryan Till explains: "About seven years ago, we initiated a Web site project for our Highveld station. It was supposed to be a brochure for the station and we never considered how big it could actually get. Today, our Web sites are extensions of our on-air offerings, where news, classifieds, streaming media, podcasts and specific information can be found. We are even developing additional sites specifically for access via cellphones."

All the same, Till is quick to point out that any technology adopted by the group is to support and grow its core business - radio.

"There really is an onslaught of technology for media, but you can`t form your strategy around available technology; you`ve got to look for technology to support your strategy. That`s not to say we reject technology; rather, we see technology as an enabler. In this light we are open-minded about the benefits of IT - we believe you either see the light or feel the heat," he explains.

The fine print

The addition of online news portals to traditional newspaper offerings has been readily accepted by the Internet-accessing public. Nevertheless, South Africa`s biggest news portals - IOL and News24 - prefer to keep their cards close to their chest. Despite their reluctance to discuss technology adoption, a quick scan of company information reveals that News24 received 1.7 million unique users during January, while the Online Publishers Association reports that IOL received an average of 1.3 million unique users between October and December.

Both companies have also been quick to build on their online successes, adding e-mailed newsletters, RSS feeds, e-zines for cellphones and syndication options to draw visitors to their sites.

The question, of course, is whether online channel adoption has hurt traditional print offerings. IOL`s parent group, London and Irish-listed Independent News & Media PLC, reports in its latest interim results that all South African titles have shown growth in the circulation figures audited and certified by ABC. News24 parent, Naspers, similarly reports an 18% increase in revenue from its newspapers, magazines and printing division, which is separate from the group`s online company.

Just an oasis?

Although local media companies may be pleased with the technological progress made, industry commentator Jeremy Maggs says that it`s not nearly enough.

"I don`t believe [the media] are embracing technology quickly enough. We are far behind international standards and, while I acknowledge that broadband is an issue in South Africa, I think it is a feeble excuse," he says.

Another hot button for Maggs is the emergence of technology adoption in preparation for the 2010 World Cup. To his mind, media companies should be adopting technology despite of the World Cup and not because of it. He explains: "Local media often take an ad hoc and reactive approach to new technologies and channels. We need to have the notion of technology elevated to exco level, where it can be dealt with formally and strategically."

Room to deliver

Naspers MD Koos Bekker would probably beg to differ with Maggs - if he were in the country. He is currently on a year-long sabbatical to take a closer look at the latest developments in international markets. Bekker last year told TalkRadio 702 that the world of media was being turned upside down, but South Africa couldn`t keep up because of the high cost and low availability of broadband in the country.

"You know, in 2000 [South Africa] had 50% all the Internet connections on the continent, now it is below 25% and dropping every month. We`re just way behind in the Internet while in other respects - like cellular adoption - we are far ahead," he noted.

With Naspers` interests growing outside of South Africa, Bekker is seeking to get a handle on those trends yet to meaningfully penetrate the local market.

"[There are] these social networking developments which we are hardly conscious of in South Africa, things like YouTube and MySpace. People are setting up networks that cross boundaries and the primary relationship of a person`s life is actually on the Internet with a group of people. The reason we are so far behind is simply our lack of broadband," he said.