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Telkom Media's future to be decided

By unknown | Apr 15, 2009 | COMMENTS [ 0 ]

Zweli Mokgata

Zweli Mokgata

Telkom Media's fate will be decided tomorrow when Telkom shareholders meet to vote on the closure of its pay-TV project.

When it was awarded a pay-TV licence by the Independent Communications Authority (Icasa) in 2007, Telkom Media was touted as the company that would give Multichoice a run for its money.

Telkom Media has already eaten up R500million in cash since the company was registered in July 2006.

In March last year Telkom announced its intentions to reduce its R7.2billion shareholding in Telkom Media.

Last month, however, the Telkom Group announced that an investor could not be found and that it would shut the venture down, much to the dismay of the 100-strong Telkom Media staff.

After an initial five subscription television licences were awarded by Icasa, only two have survived to create competition for Multichoice.

In September 2007 Telkom Media along with On Digital Media (ODM), E-TV's E-Sat, Christian-based Walking on Water TV (WOWtv) and Multichoice were each awarded a licence to operate pay television services.

Shortly after the announcement E-Sat bailed out, opting to rather air its E-News service on DSTV. This leaves only WOWtv and ODM as competitors.

While WOWtv is already in production of content, it is not a direct competitor to Multichoice due to its niche targeting.

Satellite operator ODM is expecting to launch in the fourth quarter of this year, and Vino Govender, its chief executive said that preparations were on track.


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