PAY TELEVISION

Despite slowing consumer spending, the pay-television business in South Africa experienced subscriber growth. The equated base expanded by 178 000 to 1,57 million households, whilst the personal video recorder (PVR) take-up increased from 133 000 to 242 000 homes. The lower-priced DStv Compact bouquet continued to perform well. Two affordable tiers, DStv Select and EasyView, were, respectively, launched and relaunched to broaden the base.

2,1		million pay-television households

DStv, M-Net and SuperSport made several changes to their programming line-up to improve their appeal to lower-income households. This included launching new TV channels, own produced local programmes and the acquisition of additional soccer leagues, bringing more sport to the viewing public. SuperSport is now the prime funder of sports leagues on the African continent as a whole.

The subscriber base in sub-Saharan Africa expanded by 68 000 to reach 539 000 homes. Growth was primarily from the Nigerian and Angolan markets. As in South Africa, the introduction of lower-priced family bouquets stimulated sales. The focus on localisation of programming and a broader base of programme offering is stimulating growth.

Shareholders have been advised that conditional agreements had been reached with ForthNet SA, a leading Greek telecommunications company, for the sale of our stake in NetMed, which holds the Greek and Cypriot pay-television operations. On 14 May ForthNet shareholders approved a rights issue to part fund this transaction.

539		thousand subscribers in sub-Saharan Africa

It is currently expected that the transaction will close later this year. As a consequence of these agreements, the Mediterranean pay-TV business has been a discontinued operation in our financial results.

Mobile television services allow consumers to receive a bouquet of TV channels on their mobile phones. The development of this technology is at an early stage, but worldwide launches are proliferating and business models are evolving. Value-added internet type services on mobile phones are also growing. The group will continue to develop products and services in this area. In the current year R86 million was invested in the development of mobile television services.

In South Africa an unfortunate delay has occurred in issuing mobile television licences. In the interim we continue to make progress with mobile TV trials in several major cities.

For the rest of the African continent full mobile TV services are now operational in Nigeria, Kenya and Namibia. Licences have been secured in a number of other countries.