Characteristics of African media

marketsGuy Berger

Workshop by Forum Media and Development, 15.-16. September, 2006

Academy Eichholz Castle, Germany: “Money matters. How Independent Media Manage to Survive

”,

From whence comes this talk?

- taught media management- founded Sol Plaatje Institute- managed South newspaper

Mapping which Markets

• Finance, facilities (newsprint, PCs, etc)• Audiences• Promotions and events• Pipes/deliveries/frequencies/cable/

masts• Distribution outlets• Advertising• Skills (editorial, business)• Services (eg. Market research),

business intelligence, auditing, etc.

1The big picture

Africa: the

practicevs the Theory:

First world: follow market

Third world: build market

Western media economics … → Editorial ↓ ↑ Audiences ↓ ← Advertising ←

+… ADVERTS at the top

African media economics:

add POLITICSEditorial here is driven by:

government & opposition

Objects notconsumers;

“Subjects”, not “citizens”

!As for

Audiences:

Adverts in

broadcasting, incl “public” broadcast.

But print relies on cover price

ContinentScale &

Languages

Cross-company

Cross- platform

+ Cross-

country

Challenge: Websites in Africa are just add-ons:

brand-building or diaspora service role.

Small – but strategically vital & forerunner to

mobile web

2IssuesFor AfricanMedia (4)Development

Deepening density

“More” media = >prospects for + impact.

Africa: Info underload

Schechter: more you watch, the less you know.

Berger: the more there is,

the more our chances to learn!

Deconstructing density:

–Media Provision•More media in the society

– growth, expansion, new titles,– Media Consumption

•More use of the media–Access, awareness, devices, costs

Puzzle: - Does supply side drive demand, or vice versa?

- Where should we concentrate energies?

Complex linkage• Consumers can increase time with media,

or share– So demand can increase, with static supply.

• And, increased production does not necessarily mean more consumption!– You can put inserts in a paper, no-one reads.

But whichever leads: expanded supply is needed if media

density is really to show an increase

Is African media just young and merely needing help to grow?

Question…

HOW?FinanceSkills

Is African media just young and merely needing help to grow,

or are there also obstacles

such as oligopoliesand

oligarchs?

Question again…

HOW?FinanceSkills

ENVIRONS

3SomeDetail

Against generalising

• Kenya, South Africa, Namibia, Nigeria –

relatively developed – Audience consumption data available– Can withstand govt advertising boycotts– Nigeria has privately-driven Nollywood

• Botswana, Lesotho: hand2mouth– Mokgosi “killed” by govt competition– Basotho pluralism: a diff paper a day

Can’t generalise too much

Lifecycles

–Waves: Rise, & decline (SA alternative press)- OR

–Transition (Namibian, Post)•Succession is an issue

–OR: politically-tied, not really “independent” (Malawi)

Politically driven

Ouch!

•Media freedom: Zim – don’t invest your savings in independent media!

•Access to information•Insult law•Taxations

States – another side• SA: MDDA – finance and support • SA: Skills development levy• SA: local content for

broadcasting• SA: foreign investment

facilitated (%) Yes!

4TotalMultiplexStrategy

•Media in USA was never > 5% GNP

•Media spend per family also 5% max

McCoombs’ Constancy Factor

•New media must take from old.•Re-slicing of ad & audience pie.

•People don’t increase total media consumption, instead they switch between “Functional Equivalents”.

Meaning that….

But…

• We come off a low base – room to grow.

• Also have export potential (Nollywood).

• In the Info Age, industry has to grow! (incl even the tabloids!)

African specificity:

• Unlike the USA, Africa is open to role of extra-market resources for growth – eg. –volunteers in community radio; – State/donor subsidy for public

broadcasters or grassroots media.

(But cf Kasoma theory on the “donor-dependent”

press)

Mixed market economies

•Community outreach is a necessity not a luxury – for Devt, Visibility, Relevance

•Show good returns on adspend.Note: which ad markets? new ones? classifieds, supplements?)

•Stop anti-competitive activities by large companies

•Cease threat of Municipal newspapers. - SPI

Conditions of success…

• Success means papers run by people with marketing or financial management history or training.

• Family members feature strongly.

• Definite role of women leaders/owners.

• Owners are “strong”, high tenacity and resourcefulness, many are charismatic.

• High degree of multi-tasking.

More “plus” factors…

Innovation 1

Aids: doing good and

doing well(NIE too)

Innovation 2

Partnershipswith cellphonecompanies on

SMS

SMS news tips, letters service costs $45 a month, covered through the revenue share.

One paper has accumulated many thousands of phone

numbers which it can use for promotions.

Good for building

interactivity

Innovation 3 Phoenix

radio, Lusaka:

Traffic report;Interview technique

Innovation 4

Convergence: IPP, Nation

5Ideasanew

SA: stimulating small media• National ad procurement agency.• System for circulation verification•Printing procurement• Discounted connectivity• Networks need strengthening•Technology plan.

(Hadland & Thorne)

• Merger, acquisitions, ownership, alliances, jvs.

Collaborations: Marketing Content-sharing

Research Purchasing inputs

• Cross-language publishing – eg. Naspers• Fusion – eg. Business Report• Piggy-backing – eg. Sun• Newsroom convergence – Cape Newspapers• Audience data-mining & sale – Sunday Times

Density as destiny – scaling up:

Microfinance neededSystematic training

Mentoring Open Source

ALSO

6Addingit up

Situate:Africa

(not homogenous) Focus on:

Politicsas a motor or

as a roadblock!

States: can be positive.Density issue & our

specificity, Small successes

Looking ahead:Newspaper, TV markets shrinking in First World.But huge potential for all

media in Africa…

“The lion wakes tonight”?

Thankyou

• Hadland, A and Thorne, K. 2004. The People’s Voice. HSRC: Bellville.

• Milne, C et al. SPI: Grahamstown