Radiobiz

Kagiso Media has secured 100% ownership of Urban Brew Studios, an independent production house.

 

Urban Brew Studios is one of the largest production studios in South Africa, which supplies content and channels for the broadcast and entertainment industry.

 

Group CEO of Kagiso Media, Mark Harris, states that this acquisition is in line with its holding company’s, Kagiso Tiso Holdings, strategies of majority ownership in strategic assets and expansion into Africa.

“Urban Brew Studios is recognised for its creative capability and talent in developing content and channels for both local and international markets by using its knowledge of local African languages and culture to develop content suitable to these markets.  Opportunities exist in Africa for a multi-distribution strategy for content.  In recent years, Urban Brew Studios has secured production capacity in Kenya, Zambia, Nigeria and Cameroon,” Harris added.

 

Urban Brew Studios CEO Trish Taylor said, “This development will see us being more closely aligned with Kagiso Media’s strategy of investing in assets that will provide future growth in line with strategic objectives. Both Kagiso Media and Urban Brew Studios will be better poised to play in the content space across all platforms; including TV, radio and digital.”

 

Urban Brew Studios currently runs four channels on DSTV: 1 Gospel, Dumisa, ED, and 1 KZN. The business also produces a range of successful productions for SABC viz. Friends Like These, YOTV, Live Amp, RGB, and Khumbul ‘ekhaya; for etv Gold Diggers and Mahadi – Lobola; and for Mzanzi Magic, Zabalaza.

Kagiso Media Limited has announced the promotion of Omar Essack, the group’s current executive director and CEO of broadcasting, to the position of Deputy Group Chief Executive Officer. Essack will take on this new role with immediate effect, reporting to the Group CEO, Mark Harris.

 

 

Omar Essack, who is the longest serving member of the Kagiso Media group executive, has headed up Kagiso Media’s radio broadcasting assets since 2004. Group CEO Mark Harris says of Essack’s appointment, “He has provided consistency in the leadership of Kagiso Media Limited and continues to maintain the legacy on which Kagiso Media has been built. As Deputy Group CEO, Essack will play a critical role in developing new media businesses in both linear and non-linear video. The Deputy CEO will also build a new business in content and channels.”

 

 

Essack has vast and varied experience within South Africa’s media landscape. While at East Coast Radio he led the station’s strategy to make it the first radio station in South Africa to appeal to audiences across the racial spectrum. He has also been instrumental in helping turn around Gagasi and Heart FM from struggling businesses to viable radio stations. Their audiences grew within one year to 18 months of Kagiso Media’s involvement.

 

 

Reporting directly to Kagiso Media Limited’s Deputy Group CEO will be the CE Radio: Nick Grubb, CE Channels (to be appointed) and CE Content (to be appointed). He will also have Urban Brew Studios in his portfolio. Essack will also provide business direction and guidance to the Chief Innovation Officer, Vincent Maher.

 

 

The Deputy CEO will also be the automatic stand in for the CEO whenever the CEO is not available and will also automatically be included in all group forums and structures.

 

By Helen Phushela

 

In the past year Kagiso Media has managed to purchase chunks of broadcasting and marketing company shares. This was a direct cause of their entire subsidiary. The media giant has since purchased 100% voting rights in Shinake Investments, which has direct shareholding of 24.9% at Kaya FM, the fastest growing radio station in Gauteng. The transaction was effective from the 3 June 2011 and the company’s interest in Kaya FM increased from 22.59% to 47.49%.

 

The growth in radio advertising enabled their broadcasting division to successfully deliver revenue of R575.2 million – this is an 18.3% increase in comparison to the previous year. According to reports by the Radio Advertising Bureau (RAB), the sector has grown 14.1% highlighting great performance from Kagiso Media’s radio stations.

 

In 2012 Kagiso Media managed to acquire a number of shares in marketing as well as rugby companies. This included acquisition of 90% of Kaufman Levin Associates (KML), a leading marketing research company, for R25 million. Included is also an offer to acquire EXP group of companies, which included Trinergy brand connections and 100% of the shares in Blue Bulls Rugby holdings (which owns 50% of the Blue Bulls Rugby Club); this was a R335 million contract with a R10 million loan, as detailed in the SENS report published 5 September 2012. This transaction has strengthened the marketing services of KML. Meanwhile, EXP has operations in 11 African countries, making communication and information distribution a breeze. Shareholders are often advised to tread carefully while trading in company shares.

 

The changes brought by Kagiso Media have brought a new dawn for growth for all radio stations in its stable. After an increased economic interest of 47.4%, Kaya FM’s revenue increased to 24%. It is currently the fastest growing radio station in South Africa with a weekly listenership of 1.4 million. The station scooped two awards at the MTN radio awards. Thabo Mokwele aka T’Bose won Best Music Presenter and John Perlman won the Best News and Actuality award.

 

 

While East Coast Radio’s pressurised revenue saw the station suffer a shortfall in the first half, the second half performance passed expectation of recovering costs and backlog.

 

The following highlights attest to the Durban-based station’s growth:

 

• Overall listenership grew by 13% to over 1,9 million underpinned by a 14% growth within the target market category.

 

• Market share remains dominant in the lucrative LSM 7-10 with targeted age group of 25-49 at 40%.

 

• The station completely revamped its line-up to ensure its long term relevance. Also publishing a cook book called East Coast Tables which is an innovative concept for radio. It sold over 5500 copies.

 

• In effort to pull from below the line revenue, the station in association with Gordon Institute of Business Science (GIBS) launched the executive business breakfast, which has been declared an annual event.

 

• The station also launched Fundzani a long term campaign to re-connect with Kwazulu Natal’s people and the East Coast way of life as well as tapping into urban pride through key events, activations and stunts. The goal was to entrench East Coast FM’s position within its target market.

 

Another station under the Kagiso Media umbrella is Jacaranda FM which has doubled its numbers in Johannesburg as a result of increased marketing investments. Despite their slight drop in profit line as compared to the prevision year, the station remained within expected profit line. Reaching first place in Afrikaans listenership in Gauteng market, with 28.3% increase in share and 9% increase in audience as compared to the previous year; Jacaranda has gained an outstanding 2.2 million listeners. The station achieved 21% growth in Gauteng, 29% in Limpopo, 24% in North-West and 18% growth in Mpumalanga. The station has plans underway to launch a new station at the Emnotweni Casino in Nelspruit; it is strengthening plans to penetrate Mpumalanga. Like most of the stations under Kagiso Media, Jacaranda also clenched a MTN Radio Station Award for best breakfast show in 2011.

 

 

More stations in the media giant’s backyard have produced good figures. OFM delivered on expectations with 9.4% revenue growth with stable listenership.

Heart FM is a commercial radio station attracting 59500 listeners weekly. Play listing predominantly contemporary music, Heart FM has Cape-town Metropolitan residents and surrounding areas bobbing to their tunes. The station’s target market stabilised during the year after they repositioned in the previous year.

 

The Kagiso Media Group reduced its economic stake and shareholding in the station from 33.3% to 20%. It has also reduced its interest in Gagasi FM with the same percentages as Heart FM. Gagasi FM showed a 12.8% revenue growth for the year with a small increase in audience to 1.87million listeners.

 

(The figures in the article were sourced from RAMS August 2011/3 – www.saarf.co.za)

By Radiobiz

 

We all know that the State through the SABC owns three commercial radio stations (namely 5fm, Good Hope fm and Metro fm) and fifteen public service stations. But as to the rest of the commercial stations we don’t seem to know all the details as far as ownership and control are concerned. Lets unpack a few and see exactly who is controlling the information in the country through the airwaves.

 

Talk Radio 702, 567 Cape Talk, 94.5 Kfm and 94.7 Highveld Stereo are all owned by Primedia Broadcasting.  The ownership of these premium brands gives Primedia access to Gauteng, Eastern Cape and Western Cape. I guess KZN is the only primary market where they don’t have footprint however, they do syndicate broadcasting between 702 and 567 Cape Talk on a regular basis.

 

Hosken Consolidated Investments (HCI) owns 64% of 99.2 Yfm; they also own the same stake on eTV. This basically gives them a controlling interest in the radio station, thus HCI can influence the youth (mainly black) of Gauteng and the rest of the country through their media assets.

 

Kagiso Media has interests in quite a few stations across the country, they have minority stakes in KZN based Gagasi 99.5fm , Cape’s Heart 104.9 FM, Orange fm and an economic stake in Kaya FM. They are majority shareholders in Jacaranda FM and East Coast radio; this gives them access to both primary and secondary markets. Some might say the control of these private commercial stations is in the hands of the few, which could be a problem in the long run as far as diversity is concerned. We are hoping that ICASA would take note of this when deciding who to award the primary markets licences to commercial radio stations.

 

Kaya FM does not have a majority shareholder, alongside Kagiso Media there is Thebe Holdings, Shanike Investments, Kaya Investments and Mokgosi Holdings.

 

African Media Entertainment (AME) has a controlling interest in Orange FM of 70%, in Eastern Cape’s Algoa FM they have a 100% stake and 24.9% interest in Mpumalanga based M-Power FM. Orange FM has a footprint in five different provinces namely, Free State, North West, Northern Cape, northern KZN and southern Gauteng making it the regional station with the largest footprint in the country.

 

Up north, Limpopo based Capricorn FM is partly owned (37.5%) by MSG Africa Given Mkhari’s company, Safika Holdings and Limpopo based business people.

 

Makana Radio Communication (MRC) a company founded by former Robin Island political prisoners, they have controlling interests in Heart FM and iGagasi FM.

 

Radio North-west is owned by Direng Investments, SADTU Investment Company and other BEE company. Direng Investments and Mbombela Investments Holdings also have a stake in M-Power FM.

 

Classic FM doesn’t have a majority shareholder; it is owned by Liberty Life foundation, Ingoma Trust. Moneyweb Holdings and London-based Classic FM PLC.

 

Well now that you know, do you think the industry is diverse enough or more still needs to be done? Keeping in mind that there are more commercial radio licences still to be issued by ICASA.