Presentation made by:
LUMKO MTIMDE
Chief Executive Officer
Media Development and Diversity Agency

SUSTAINABILITY: definition

According to Oxford University Press Geography Dictionary sustainability can be defined in two broad terms as follows:

Ecological sustainability – Sustainable Development:
sytematic approach to achieve human development to sustain planetory resources (WSSD, 2002)

Sustainability can be defined in two broad terms as follows:

Profitable sustainability –Economic and financial sustainability.
Explores the relationship between economic benefit and financial sustainability / independence – there are issues of market environment and financial dependency on subsidies

Sustainability in the media environment means an ability to sustain the media business (e.g. newspaper, magazine, TV or a radio station)
Sustainability is linked to the following factors:
content,
format and
business models used

There are several major factors that inhibit sustainability in the media business (to mention but a few):
Lack of capital
Poor financial practices
Unstable business environment
Lack of management skills
Media as business
Business tools to achieve sustainable levels in media businesses
S Curve model (a central analytical tool) to observe media business progress from start up to long term sustainability and to identify problem areas for business growth. (Prof Graem Addison’s Report for the MDDA, entitled Printing, Distribution, Circulation and Marketing of the Grassroots Press in South Africa. www.mdda.org.za )
Five stage business growth model:
Early start up
Continuing start up
Survivalists
Early sustainables
Sustainables

Business life cycle


Business life cycle

Business life cycle


Business life cycle

African Media Development
Most African Media Business still experiences sustainability problems
The following factors account for lack of sustainability:
Lack of access to capital (media support facility)
Business management (business planning and modelling)
Unstable business environment (policy and regulation)
Lack of quality content (professionalism and ethics)
Capacity building (training)

Towards a media sustainability index
According to IREX Media Sustainability Index (http://www.irex.org/about/index.asp ) – there is a need to assess five “objectives” to establish whether there exist a sustainable media in a given context:

1. Legal and social norms protect and promote free speech and access to public information.
2. Journalism meets professional standards of quality.
3. Multiple news sources provide citizens with reliable and objective news.
4. Independent media are well-managed businesses, allowing editorial independence.
5. Supporting institutions function in the professional interests of
independent media.


African Framework for Sustainable and Pluralistic Media
(Prof. F Banda, Rhodes University, Framework for the Development of a sustainable and pluralistic media, Aug. 22, 2007)
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Click To InLarge

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New Media Platforms

Newspapers
Magazines
Internet
Online newsletters, newspapers, magazine
Blogs
Radio and Television
Analogue terrestrial, digital, satellite and cable broadcasting
Cell phones
Convergence of technologies
Etc.

Broad categories of media

State
Public
Commercial / private
Community

Media landscape in South Africa
Broadcasting
Television
3 Public National Free-to-air Broadcasting Services (SABC)
1 Commercial National Free-to-air Broadcasting Service (e-tv)
1 Terrestrial Subscription Broadcasting Service (M-net)
1 Community Television Broadcasting Service (TBN, which was grand-fathered) and (a few others from time to time on special events / temporary licenses, Soweto TV (currently on air), Grahamstown, Cape Town, Durban)
2 Public Regional Television Broadcasting Services (SABC – not operational yet)
SABC Africa
In addition to these licenced services there are 2 satellite based television broadcasting services (Vivid and DsTV) which are not licensed yet, but which do have permission to continue broadcasting until their applications have been dealt with by the Authority.
As I understand, ICASA is currently conducting a press conference announcing the new Subscription Broadcasting Service licensees in Sandton, 12 Sept 2007.

Media landscape in South Africa
Broadcasting
Radio

18 Public Sound Broadcasting Services
13 Commercial Free-to-air Sound Broadcasting Services
Approx. 100 (of which around 82 or so are currently on air) Community Sound Broadcasting Services
Broadcasting
Radio

3 secondary market private radio stations
Capricorn FM (Limpopo), M-Power Radio (Mpumalanga) and Gospel Station (North West)
In addition there is 1 satellite based commercial sound broadcasting service (WorldSpace) which has permission to continue broadcasting until its application has been dealt with by the Authority.


Media landscape in South Africa

Print Media

“GRASSROOTS: Roughly 238 independent grassroots community-owned, small commercial, advocacy (NGO, rights-based, faith-based, etc) & other hybrid publications.
CONGLOMERATE: Roughly 221 neighborhood & regional publications operated by large corporate & conglomerate media.

Media landscape in South Africa

Print Media

STATE MEDIA: An estimated 40 state-funded publications operated by national, provincial, municipal and parastatal agencies.”

(Association of Independent Publishers, AIP, presentation made by Justin Arenstein at MDDA Roundtable, 17 May 2006)

Media landscape in South Africa

Print Media
Its worth noting though that:
Over the past two years, newspaper penetration in the KZN region has grown from 33.7% to 39.6%, Gauteng figure is 59%, Western Cape 66%, etc.
Circulation of isiZulu newspapers have also increased

(according to AMPS 2006 RA)

Competition for audiences, readers, viewers, etc

Advertisers need to think beyond the usual convectional media
Catch up with the growing and evolving economy
Creativity, innovation, responsible and ethical journalism is more needed than ever before, as people have more choice.

Challenges and obstacles

There are obstacles on the way in terms of access to advertising, frequency spectrum availability (in terms of terrestrial broadcasting), escalating printing costs and distribution of their newspaper.
Start up capital.
Skills.

Possible solutions

Prof Banda in his matrix referred to above, talks to:
Constitutional, Policy and legislative solutions. Creating an enabling environment.
Skills and capacity building
Professionalism and ethics
Sustainability thoughts.

Innovative Journalism

Innovative Journalism
Prof David Nordfors (Stanford University) says;
“Innovation Journalism” is the intuitive name for journalism covering innovation. It is valid as a concept, but there is no such journalistic discipline or community today. Therefore, a programme has been designed to develop the concept and test the possibilities for Innovation Journalism as a journalistic discipline, a new reporting “beat”.

Innovative Journalism
Prof David Nordfors continue to say;
“It’s innovation time for journalism! Traditional news media are being challenged by innovative sources of news on the Internet, such as blogospheres, or citizen journalism. Traditional journalism struggles when covering innovation as a topic. While innovation pivots society it is not a key news word. Traditional news beats – such as technology, business or politics – chop up innovation processes to fit their news slots, missing the bigger picture.”
http://www.innovationjournalism.org/

Funding
Creative ways of funding needs to be explored.
Support needed for country initiatives like the Media Development and Diversity Agency (in the case of S.A., as you may know, this is a unique initiative that is a partnership between Government and the media industry), regional initiatives like the Southern Africa Media Development Fund (SAMDEF, in the SADC region) and other continental initiatives towards an African driven media funding solution.

Conclusion
New media poses new challenges and therefore requires innovative and creative solutions.
Media will remain a necessary medium of communication in order to deepen democracy and ensure community participation in the democracy.
Diversity of media is essential for the sustainability, as it will encourage more choice, more demand for quality of content and professionalism.

Ngiyabonga
Enkosi
Merci boko
Ke a leboga
Baie dankie
I thank you
Asante sana

Lumko Mtimde
lumko@mdda.org.za
www.mdda.org.za
12 September 2007