Highway Africa Conference :Highway Africa Conference :

““Media Funding and Sustainability”Media Funding and Sustainability”

Lumko MtimdeLumko Mtimde

Highway Africa 2008

08 September 08 September 20082008

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Reconstruction and Development Programme (RDP) document provided for supporting the media document provided for supporting the media diversity as essential to transform the South African diversity as essential to transform the South African society.society.

In 1995, the community media sector met in Cape In 1995, the community media sector met in Cape Town under the banner of a conference called Town under the banner of a conference called “Community Media 2000”. Among its “Community Media 2000”. Among its recommendations was a formation of an “Enabling recommendations was a formation of an “Enabling Support Mechanism” or “Media Development Support Mechanism” or “Media Development Agency”.Agency”.

Background to the establishment of the MDDABackground to the establishment of the MDDA

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Background and introduction to the MDDA

In 1996, the then Deputy President Mbeki established a Task Group on Government Communications (COMTASK) led by Mr Mandla Langa.The community media sector led by the National Community Media Forum (NCMF) in its submission to the Comtask recommended the establishment of the Media Development Agency.

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Background and introduction to the MDDA

In its report “Communications 2000 – A vision for government communications in South Africa”, COMTASK recommended that government facilitate the process of setting up a statutory recognised media development agency for the dispensing of subsidies to the sector. (Comtask Final Report, Recommendation 79).

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The MDDA mandate :The MDDA mandate :

The MDDA is entrusted with the responsibility of The MDDA is entrusted with the responsibility of promoting media development and diversity in S.A. promoting media development and diversity in S.A. by by providing financial and other support to community providing financial and other support to community (non profit) and small commercial media projects.(non profit) and small commercial media projects.Help create an enabling environment for media Help create an enabling environment for media development and diversity that is conducive to public development and diversity that is conducive to public discourse and which reflects the needs and aspirations discourse and which reflects the needs and aspirations of South Africans.of South Africans.

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Objectives of the MDDA Act – Section 3Objectives of the MDDA Act – Section 3

• Encourage ownership and control of, and access to, media by Encourage ownership and control of, and access to, media by HDC as well as by historically diminished indigenous language HDC as well as by historically diminished indigenous language and cultural groups;and cultural groups;

• Encourage the development of human resources and training, Encourage the development of human resources and training, and capacity building, within the media industry, especially and capacity building, within the media industry, especially amongst HDG’s;amongst HDG’s;

• Encourage the channeling of resources to the community Encourage the channeling of resources to the community media and small commercial media sector;media and small commercial media sector;

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Objectives of the MDDA Act - Section 3Objectives of the MDDA Act - Section 3• Raise public awareness with regard to media development and Raise public awareness with regard to media development and diversity issues;diversity issues;

• Support initiatives which promote literacy and a culture of Support initiatives which promote literacy and a culture of reading;reading;

• Encourage research regarding media development and diversity; Encourage research regarding media development and diversity; andand

• Liaise with other statutory bodies such as ICASA and USA (now Liaise with other statutory bodies such as ICASA and USA (now USAASA).USAASA).

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The MDDA is governed by a Board of Directors, appointed The MDDA is governed by a Board of Directors, appointed in terms of the MDDA Act. It operates as an independent in terms of the MDDA Act. It operates as an independent body, expected through the MDDA Act to be impartial and body, expected through the MDDA Act to be impartial and to exercise its powers, perform its duties without fear, favor to exercise its powers, perform its duties without fear, favor or prejudice, and without any political or commercial or prejudice, and without any political or commercial interference. interference. (Section 4, MDDA Act).(Section 4, MDDA Act).

Corporate GovernanceCorporate Governance

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How is MDDA to be funded?How is MDDA to be funded?• Money appropriated by ParliamentMoney appropriated by Parliament• Money received in terms of agreements with any Money received in terms of agreements with any organization for furtherance of the objectives of the MDDA organization for furtherance of the objectives of the MDDA ActAct• Domestic and foreign grantsDomestic and foreign grants• Interest derived from any investments,Interest derived from any investments,• Contributions from Broadcasting Service Contributions from Broadcasting Service Licensees not exceeding 1% of their annual Licensees not exceeding 1% of their annual turnover in terms of the Electronics turnover in terms of the Electronics Communications Act of 2005 (Section 89), orCommunications Act of 2005 (Section 89), or• Money lawfully accruing from any source.Money lawfully accruing from any source.

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MDDA Act of 2002MDDA Act of 2002

• MDDA Act defines media as all forms of mass communication, MDDA Act defines media as all forms of mass communication, including printed publications, radio, television and new including printed publications, radio, television and new electronic platforms for delivering content.electronic platforms for delivering content.• Media development is referred to as the development of the Media development is referred to as the development of the media environment and infrastructure so that historically media environment and infrastructure so that historically disadvantaged communities and persons have access to the disadvantaged communities and persons have access to the media as owners, managers, producers and consumers of media as owners, managers, producers and consumers of media.media.

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• More than 90 community radio stations are on air,in rural and urban development areas;

• Icasa has granted Community TV licenses to Soweto Community TV, Cape Town Community TV and Bay Community TV;

• Close to 400 grassroots publications across South Africa;

Context for the role of the Agency

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Context for the role of the AgencyContext for the role of the Agency

• Many communities, in particular those in the rural Many communities, in particular those in the rural areas and some peri-urban however still do not have areas and some peri-urban however still do not have access to media;access to media;

• Even when there is some media, in most Even when there is some media, in most communities, there is no varied choice of services. communities, there is no varied choice of services.

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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:Enabling environment,Skills,Content,Format, and business models used

Sustainability in the Media Environment Sustainability in the Media Environment

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Sustainability in the Media Environment Sustainability in the Media Environment

There are several major factors that inhibit sustainability in the media business (to mention but a few):

Lack of capitalPoor financial practicesUnstable business environmentLack of management skills

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Media as Business Media as Business

Business tools to achieve sustainable levels in media businessesS 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 Graeme Addison’s Report for the MDDA, entitled Printing, Distribution, Circulation and Marketing of the Grassroots Press in South Africa. www.mdda.org.za )

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Most media (including mainstream) 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 modeling)Unstable business environment (policy and regulation)Lack of quality content (professionalism and ethics)Capacity building (training)

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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.

Towards a Media Sustainability IndexTowards a Media Sustainability Index

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Possible Solutions to media SustainabilityPossible Solutions to media Sustainability

Prof Banda in his matrix of the Framework for the Development of sustainable and pluralistic media, Aug 22, 2007, talks to:

Constitutional, Policy and legislative solutions.Creating an enabling environment.Skills and capacity buildingProfessionalism and ethicsSustainability thoughtInnovative Journalism

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Funding challenges and optionsFunding challenges and options 1. Creative ways of funding needs to be explored, explore business models

informed by the new media and new technologies, innovation, etc..

2. Support needed for country initiatives like the Media Development and Diversity Agency (in the case of S.A., which is a unique initiative that is a partnership between Government and the media industry),

3. Regional initiatives like the Southern Africa Media Development Fund (SAMDEF, in the SADC region), and

4. Other continental initiatives towards an African driven media development and funding solution.

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ConclusionConclusion

I would therefore end by saying :I would therefore end by saying :

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

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ConclusionConclusion

The era of convergence and digitisation provides for an The era of convergence and digitisation provides for an opportunity for growing the communications industry and opportunity for growing the communications industry and therefore, facilitate economic growth and development, therefore, facilitate economic growth and development, empowerment, people driven democracy and poverty empowerment, people driven democracy and poverty reduction.reduction.

As MDDA (in our small way) we hope –As MDDA (in our small way) we hope –to ensure diversity of media in each and every municipal to ensure diversity of media in each and every municipal district of our country. district of our country. to ensure increased media in different indigenous languages, to ensure increased media in different indigenous languages, reflecting diversity, reflecting diversity, to ensure rural and poor communities are empowered, and to ensure rural and poor communities are empowered, and we have an informed society.we have an informed society.

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Ahsante sanaNgiyabonga

EnkosiKe a lebohaKe a lebogaBaie dankieI thank you

Lumko MtimdeChief Executive OfficerMDDAlumko@mdda.org.zawww.mdda.org.za 08 September 2008

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Questions?