Consumers prepared to fork out for pay-TV

Pay-TV applicant Telkom Media said its own market research shows a high level of willingness to pay for subscription television services by South African consumers.

Pay-TV applicant Telkom Media said its own market research shows a high level of willingness to pay for subscription television services by South African consumers.

Telkom Media's initial concept testing indicates that the market potential for satellite subscriptions could be as high as 2,3million by 2012 - more than double the current number of households with access to pay- TV.

The company publicly presented its application for a broadcasting licence to Independent Communications Authority of South Africa on Tuesday June 12.

Telkom Media chief executive Mandla Ncgobo said the favourable economic climate in South Africa creates the ideal environment for the launch of pay-TV.

"The reason we don't have a higher uptake of satellite television services is that the 'middle market' is not addressed by the incumbent satellite player, DStv, which focuses on high-end consumers," Ncgobo said.

"More flexibility in the structure of packages will pave the way for greater affordability, allowing us to offer bouquets of channels that start at approximately R100 a month."

Shareholders in Telkom Media include Telkom, Anant Singh's Videovision Entertainment, MSG Afrika Media and WDB Investment Holdings.

Telkom Media is currently 41,5percent black owned and has pledged to ensure that for the duration of the licence period its black economic empowerment shareholding will be maintained at a minimum of 40percent. - I-Net Bridge

X