mapping which markets
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Characteristics of African media markets Guy Berger Workshop by Forum Media and Development, 15.-16. September, 2006 Academy Eichholz Castle, Germany: “Money matters. How Independent Media Manage to Survive ”,. - PowerPoint PPT PresentationTRANSCRIPT
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