Africa: DTT Transition Progress and Future ChallengesRussell Southwood, Balancing Act

www.balancingact-africa-com

@BalancingActAfr

Market report released

Summary - DTT impact (Aug. 2013)

TV households: more than 100 Million but only 2.5 million of them receive DTT (soon more M. in Tanzania-Kenya)

100 Million African TV households need to get DTT equipt (STB, DTV, antennas)

>500 African TV channels still need to convert to digital.Between now and 2020, almost 50 national terrestrial

networks need to be set upAt least 56 DTT bouquets will need to be created

>need for digital content and digital channels

The new African TV landscapeAfrican Pop. to double in 2050

Source: U.S. Census Bureau, International Data Base, table 1330. Release date: 9/30/2011.

The new African TV landscapeNumber of Analogue TV Channels by country (2011)

43% of countries only have 1-2 analogue channels.

The DTT transition in Africa Key benefits

1 More channels

2 Universal access to information, variety

3 Better sound and image quality

4Free up spectrum for other services (telecoms)

5 Telecoms development

6 Reshape the communications sector

7 Enter the digital age

8 Option: more local content

9 Option: more delivery platforms

10 Option: combat piracy

11 Option: interactive services

12 Option: e-governance

13 Option: extra local jobs

DTT progress so far

Status Number of countries

No announcement of timeline (“Nowhere to be seen.”

11

Policy paper, Task Force, Committee, Training(“Slow adopters”)

17

Pilots 20

Early adopters (Mauritius) 7

Completed (Tanzania?) 1

Key contenders in DTT space Star Times: Chinese company. Work with state broadcaster

as way into DTT and Pay TV market. Also signal carrier licence in Kenya. No content in depth. Low-end bouquets but bigger ambitions.

2 million subscribers but different accounts of what this means.

Presence in 10 countries: Ghana (planned), Kenya, Malawi, Mozambique, Namibia, Nigeria, Sierra Leone (planned), Uganda, Zambia, Zimbabwe. Pilots elsewhere.

GoTV: Naspers-owned Pay TV company.Content in depth and range of bouquet prices.

376,000 subscribers. Same countries as above minus .mz and .sl

Others: All local players (eg TNT in Gabon) with not much scale

Likely shape of Future Landscape - +5-10 years More Free To Air channels even in countries currently with

only 1-2. Still major FTA players but rest fragmented. More thematic rather than time-based channels, Former will

be widely distributed. Increase in Pay TV subscribers. More competition. Triple Play. Satellite “fremium” channel bouquets Advertisers’ perspective: Have advertise on more channels

because behavior less predictable. Impact of data Bermuda Triangle.

Increasing impact of downloads as bandwidth accelerates (LTE). VOD, etc. Both paid and unpaid (iROKO & Buni TV)

Greater level of international content sales The electricity factor.

Spectrum issues - Government strategic choices and impactLow (RW) and Very Low(LR) Occupancy

Red = High; Yellow = Medium; Green = Low

DRC and Uganda (152 MHz) – only high in capitals

Same is true for Medium countries except Ghana

Majority of African countries, analogue TV broadcasting doesn’t use up much spectrum and therefore doesn’t occupy much in the band 790-862MHz

Spectrum Issues – Govt. strategic choices and impactOverview of High, Medium and Low Occupancy

Below the headlines

Spectrum: What is likely to happen

2% of countries will incur increase in spectrum occupancy when digital broadcasting introduced (Ethiopia).

37% of countries no change (Algeria, Libya, Rwanda, Southern Sudan, Zimbabwe, Central Africa Republic, Chad, Comoros, Djibouti, Equatorial Guinea, Eritrea, Gambia, Guinea, Guinea-Bissau, Lesotho, Mali, Mauritania, Mauritius, Sao Tome and Seychelles)

61% of African countries will incur a decrease in spectrum occupancy when digital broadcasting is introduced (Angola, Benin, Botswana, Burkina Faso, Egypt, Gabon, Ghana, Kenya, Liberia, Madagascar, Mozambique, Namibia, Niger, Nigeria, Senegal, South Africa, Sudan, Swaziland, Tanzania, Togo, Tunisia, Uganda, Zambia, Burundi, Cape Verde, Congo-B, DRC, Côte d'Ivoire, Malawi, Morocco, Sierra Leone and Somalia)

What Other People Watch African Film Emerging social media

Emerging Online Digtal Advertising Emerging Technology

Balancing Act Consultancy and research Reports: Analogue to digital migration in Africa-Strategic

choices and current developments (Out now) 3nd edition of African Broadcast and Film Markets (Before end

of 2013)