September started out with a bang in the media with the release of the Independent Broadcasting Authority's recommendations to Parliament on radio and television services. While a large part of the report was devoted to the SABC, there were a couple of recommendations affecting more than just the SABC.
These included the recommendations con cerning local content on radio and televi sion and the issuing of commercial radio and television licences. On the former, the IBA recommended that all music-based radio stations should have a local music quota of 20%. This will have to rise by 40% for private stations by 2000 and by 55% for national public radio stations.
These recommendations were immediately praised by people in the local music industry while there was hardly a sign of protest from any of the radio stations. The only protests came from across the ocean - from America. According to Danny Kotlowitz writing in the Business Day, the quotas have been seen as illegal in terms of the General Areas Trade Treaty or GATT. However, it seems no action will be taken since the issue of cultural quotas was left unresolved at the Uruguay round of GATT.
The IBA was criticised, however, for postponing the issuing of commercial licences four times. For radio, the IBA has not set a date since parliament has yet to ratify its report: this will be done once the report is ratified and once public hearings are held on how these licences should be issued. T his delay has raised the prospect of a rebellion in the ranks of potential commercial broadcasters. Tony Sanderson of the Independent Broadcasting Committee - a coalition of various independent commercial broadcasters - was quoted in the press as saying that nobody could blame any station from going pirate now. Members of the IBC had threatened last year already to switch on illegally if the IBA continued to drag its feet over the issuing of commercial licences.
The issue is particularly contentious in the light of the IBA's proposal that 10 publicly owned stations be sold, including eight regional SABC stations, Radio Bop and Capital Radio. The delay in the issuing of commercial licences could be seen as a means of unfairly increasing the value of these stations in a market that is far from open and with hardly any competitive edge.
And television licences? These will only be con sidered in January 1988. In addition, private groups will be largely restricted to satellite broadcasting. This has raised the question of elitism and protection of the SABC, since the majority of local television viewers will not be able to afford satellite television. hile these arguments are valid in certain respects, the IBA has gone a long way to ensuring the dismantling of the monolithic broadcasting structure which is the SABC. Foremost amongst this are the recommendations that the corporation sells 10 of its stations, including the very popular Radio Good Hope in the Cape and Radio Lotus in Natal/Kwazulu, as well as the reduction of SABC's three television stations to two by 1988.
The release of the IBA recommendations comes within the context of growing media diversity of South Africa's airwaves. By July this year, the IBA had granted 81 radio stations community licences. With "community-oriented" broadcasting being the focus, many of these stations are still finding their feet, and are concentrating on finding funds. Their continued existence in terms of servicing the needs of their particular community is vital for the cultivation of a culture of freedom of expression in the new South Africa and the equitable distribution of the airwaves. It will be very difficult for these community stations to stay afloat during this early period of their lives if they find themselves in the midst of a plethora of commercial stations who actually have advertising backing and the skill and expertise with which to run a radio both efficiently and professionally. The delay in the issuing of commercial broadcast licences is to be welcomed therefore within the broader context of media diversity in South Africa, but the IBA should not be allowed to drag its feet in this regard. Commercial broadcasters also have a right to the airwaves and only once these broadcasters are allowed to operate freely can we talk of true media diversity of the airwaves.
The print media was not ignored by the IBA and the recommendations pertaining to this sector involves cross media ownership. The IBA proposed that newspaper owners be barred from owning controlling shares in radio or television stations. According to the IBA, 15% shareholding would constitute control. More specifically, the recommendation states that a newspaper owner should not be allowed control in an area where the publication has more than 15% of total newspaper readership, and the circulation substantially overlaps with radio or television licence target audiences. In other words, the newspaper will still be allowed to acquire or retain a financial interest in a radio or television licence, but may not be in a position of control over such licences if its readership exceeds the prescribed figures.
This regulation comes at a time when the print industry itself seems unable to shake off a monopolistic grip. Earlier this month, it was reported that Times Media Limited was poised to secure a deal that would see it take over East London's Daily Dispatch newspaper. The Daily Dispatch is the Eastern Cape's largest daily newspaper and if bought out by TML, the TML will be in control of four of the Eastern Province's six newspapers. While this was happening, Irish businessman Tony O'Reilly was poised to increase his share in Independent Newspapers to 60%.