Pay TV in South Africa grows at a phenomenal pace in the last 5 years

May 6, 2011 - PRLog -- Its sales arm, Oracle Airtime Sales (OATS), has also taken a 50% stake in digital media sales company and fellow Naspers member, The SpaceStation.

“The acquisition of Premier Soccer League’s broadcasting rights in 2007 has remarkably sparked an increase in the subscription of black households, mostly for compact bouquets,” OATS sales director Fahmeeda Cassim-Surtee told journalists early today, Thursday, 5 May 2011, in Rosebank, Johannesburg.
“We have experienced a 100% growth in subscriptions during the first 18 months of that acquisition,” Cassim-Surtee revealed, adding that the trend could also be linked to the boom of the middle class in SA.

“Maybe it is a sign that the country is getting richer,” she joked.

Trend satisfactorily gratifying

Recently-appointed OATS CEO Chris Hitchings said the trend was satisfactorily gratifying, adding that total TV and pay TV in SA has seen a 35% increase in the past five years, growing from 8.1% in 2006 to 10.9% in 2010, according to AMPS 2005-2010 households weighting figures.

From a modest 674 000 black households in 2008, 1.017 million and 2009, the Randburg-based channel counted 1.332 million black households in 2010, and the list is growing….

Established in 1996, OATS – formerly 50% owned by M-Net and 50% by SuperSport – has been a key driving force behind the growth of DStv in SA and the brand’s expansion into the rest of the continent. Currently fully owned by MultiChoice, OATS employs approximately 100 employees, and has offices in Johannesburg, Cape Town and Lagos (Nigeria). OATS, which takes about 26% share of TV adspend, flights more than 700 000 commercials per year and represents advertising and sponsorship sales on over 40 local and international channels.

Fifty percent stake in The SpaceStation

In another development, Hitchings has announced that his company has acquired a 50% stake in The SpaceStation, along with 24.com. The SpaceStation is said to be SA’s leading digital media sales company focusing on online and mobile marketing.

“The SpaceStation’s strategic relationship with OATS will enable advertisers to reach DStv subscribers across multiple platforms,” Hitchings said.

SpaceStation, whose business influence spreads across the Internet, mobile, email and interactive TV, represents 27 of SA’s top performing websites, including News 24, Sport24, Fin24, SuperSport, DStv, Beeld and MWeb.

Introducing guaranteed trading

Hitchings also said that OATS will shortly be introducing guaranteed trading – the first to do so in the country’s entire broadcasting industry. “This means that we will be the first to guarantee audience delivery to advertisers.”

“We also are adding some additional channels in our commercial portfolio, namely Food Network, Sony Max, Disney XD and Studio Universal, besides Trace TV, which was added earlier this year.

Furthermore, Hitchings said DStv’s continued subscription expansion across the continent is an increasingly important component of the company’s business going forward.

“We have a growing office in Lagos and a host of sales agents elsewhere across the continent. We will be looking to expand our network of agents and our client base across the continent.”

Source: Bizcommunity

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Fireball SEM is a leading independent television and digital content production company creating content across all platforms of TV, Mobile, Online, Social Media, Print & Music in South Africa and throughout Sub-Saharan Africa.

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