The Broadcasting and Manufacture of Decoders Industry in South Africa 2022

Introduction

This report focuses on the television and radio broadcasting industry and the manufacture of decoders.

South Africa’s much delayed plans since June 2015, to switch from analogue terrestrial television to digital transmission, is now underway. The distribution of free digital set-top boxes, which is necessary for viewers who want to use their analogue television sets to receive digital broadcast to households earning less than R3,500 has still not been completed. New digital platforms have been evolving, and consumer behaviour and preferences are shifting in the way they are consuming content. The TV and radio broadcasting landscape is now made up of many players offering subscription/pay TV, free-to-air, satellite, commercial, and community broadcasters, as well as over the top providers/subscription on demand (internet-based platforms). Over the top providers include Netflix, Showmax, Amazon Prime Video and Spotify, while MultiChoice’s DStv dominates pay TV.

Opportunities

Content creation.

Licence applications for commercial free-to-air television services and radio frequency spectrum. Low cost subscription services. Skills development.

Outlook

The broadcasting industry will continue to change rapidly in line with new technologies which are resulting in new streaming and subscription services, including radio delivered over the internet.

National Association of Broadcasting executive director, Nadia Bulbulia said that “as new digital platforms evolve, consumer behaviour and preferences are shifting from consuming content that is offered to them, to choosing from the many options available to them. ” Local content alone will not be enough to stimulate growth in the South African market, especially with global players eroding local market share. Government’s decision to switch off analogue at the end of March 2022 has been deferred to 30 June 2022.

Report Coverage

This report focuses on the television and radio broadcasting industry and the manufacture of decoders in South Africa.

It includes information on the public and private broadcasters, digital migration, viewership and listenership trends, the performance of major players, regulation and developments. There are profiles of 33 companies including major players such as the SABC and MultiChoice, streaming services such as Netflix and Amazon, set-top box manufacturers including CZ Electronics and community stations including Soweto Community Television and Unitra Community Radio.

Strengths

Broadcasting Research Council can provide reliable audience measurement when there is no interference from loadshedding.

Competent local decoder manufacturing industry. Established local content creators. Support from the Independent Communications Authority of South Africa for community radio licence applicants. Well-established infrastructure and wide terrestrial signal coverage.

Threats

Competition from international players.

Declining advertising spend on traditional TV resulting in less revenue. Government enforced analogue switch off date for digital rollout, will leave millions of people without access. Internet-based services are a threat to established broadcasters. Negative impact of loadshedding. Slow economic growth, high unemployment, and weak rand curtailing consumer spending and increasing costs of imports.

Weaknesses

Financial issues expected to continue at the SABC. Higher cost of subscriptions resulting in fewer people able to afford pay TV. Political interference and corruption at SABC. Quality of local content is sometimes poor. Slow rollout of set-top boxes.