Archive for the ‘Media Facts’ Category

South African Context

The Multi media industry has been identified as a key sector to unlock economic growth potential at all levels of government in South Africa – national, provincial and local. This recognition is manifested in the numerous institutions that have been established to support the SA film and media industry, including the National Film and Video Foundation, Cape Film Commission, Durban Film Office, Gauteng Film Office, the Media Diversity Development Agency (MDDA) and various initiatives in the other provinces and government departments. Whilst primary responsibility for the development of the film industry has historically rested with the national Department of Arts and Culture, a growing understanding of the economic importance of the sector has led to the recent creation of a large film and television incentive, constituting an additional R300 million – to be administered by the Department of Trade and Industry (DTI). The DTI in the meantime has created a local rebate scheme to encourage production of local content. Furthermore the SABC has committed significant capital towards film production.

The introduction of one or more satellite channels, regional channels as well as an explosion of on-line media platforms will place a huge demand on the quality of skilled personnel that will enter the market. Recently 2 feature films were shot in Mitchells Plain and we are aware of a few more that is planned. The MDDA’s projected income over the next three years from various media houses clearly shows a projected increase in revenue from these respective sources. CTV in Cape Town has indicated that they have great difficulty in sourcing product from communities on a consistent and regular basis.

From this information it can be established that The Youth Media Movement will be required to play a very strategic and dynamic role in the development of high quality and innovative skilled personnel that can utilise the opportunities that are being presented in the digital media industry.

There is a growing recognition of the fact that South Africa in general has many of the requirements needed to become one of the top areas for the production of film and television and multi media content. Based on the current opportunities and long term prospects, the creation of The Youth Media Movement comes at an opportune moment.

Competitiveness: The Youth Media Movement is a strong brand that will introduce a strong competitive service in the non profit training and development sector. This is largely driven by the fact that the founders and associate members of YMM have been involved in film production, training and development, media development and activism over the last 15 years.  Our key product namely digital media skills development training is a unique product that have been developed for marginalised communities and mainstream industry as well as emerging media producers in marginalised urban and rural areas. Together with our comprehensive development and innovation strategy YMM will be a very competitive force.

Employment Intensiveness:  The digital multi media sector is highly employment intensive. The average TV production company employs up to five people full time, and between 20 and 50 crew depending on the size of the production. Actors, models and extras can also range between 1 to 300 people. Feature films employ up to 150 people for up to five months. The diversity of production and the demand for digital local product speak volumes for the opportunity to increase employment in the digital media industry. Several other intervention strategies across the country, such as audience development and the introduction of Regional and Community TV service will also contribute significantly to employment. Radio, print and new digital media platforms also has the capacity to contribute enormously to employment in the community. New ventures are required to expand the existing media market. The existing media houses cannot absorb all the graduates from institutions at present, where are they going to have opportunities for youth from marginalised communities. It is therefore imperative for YMM to create opportunities of employment through our media entrepreneurship  programmes.

Sustainability: The projected investments in film, television, video and digital media industry in the country over the next three years is conservatively projected at over R14 billion. The level of skills training required will increase significantly to meet the demands of the various digital media platforms. Through proper, innovative and measured training programmes we intend to drive YMM to sustainability within a 5 year period.  Growth projections for the future augur well for this scenario.

Impact on Poverty Reduction: One of the strong point points of convergence is the need to reduce poverty by half in 2014 in South Africa. The Youth Media Movement through the demand for locally driven goods and services, and the supply of skilled personnel will allow the digital media industry to contribute significantly to poverty reduction, job creation and cultural enrichment in Mitchells Plain and the Western Cape.

Film Sector Summary

According to a report in 2000 by Pricewaterhouse Coopers, the film entertainment industry is one of the fastest growing sectors in the world economy. In South Africa, the term “film industry” is generally used to describe an umbrella of creative industry production activities including film, television (drama and documentary), commercials, stills photography and multi-media. Economically the sector turns over billions of dollars and generates millions of jobs worldwide. In 1997, the global entertainment industry generated US$172 billion. It is estimated that the value of this industry in the European Union is set to grow from R300 billion to R800 billion in 2010. In the US, film is the second largest export business after aerospace. In a recent study Price Waterhouse predicted the growth of various digital media platforms in the Europe, Middle East and Africa as follows:

Filmed Entertainment
Global facts and forecasts:

• “In EMEA (Europe, Middle East, Africa) online subscription services and video streaming services are entering the market. Together they will reach R2.2 billion by 2010 from only R216 million in 2005, averaging 59.1 percent growth compounded annually.”

Television Networks: Broadcast and Cable
Global facts and forecasts:

• “The United Kingdom and Germany are the two largest markets in EMEA, at R10.7 billion and R10.1 billion, respectively, in 2005. Italy ranks third, at R7.8 billion, and we expect it will reach the R10-billion threshold in 2010.”
• “The television network market in Canada will expand at a relatively steady 4.3 percent compound annual rate to R4.5 billion in 2010 from R3.7 billion in 2005.”

Television Distribution
Global facts and forecasts:

• “Italy will be the fastest-growing country in EMEA, with 22.9 percent compound annual growth, fueled by a rapidly expanding satellite market and growing IPTV.”

Recorded Music
Global facts and forecasts:

• “Licensed digital distribution will rise from R653 million in 2005 to R4.9 billion in 2010, a 49.5 percent compound annual increase. From a 5 percent share in 2005, digital distribution will constitute 33 percent of recorded music spending in 2010.”
• “The launch of new digital distribution services and growth in the number of broadband Internet subscribers in EMEA will fuel digital download spending.”

Radio and Out-of-Home Advertising
Global facts and forecasts:

• “We project the radio and out-of-home market in EMEA will expand from R23.1 billion in 2005 to R29.2 billion in 2010, growing at a 4.8 percent compound annual rate.”

Video Games
The video game market reflects consumer spending on console games (including handheld games), personal computer (PC) games, online games, and wireless games. The category excludes spending on the hardware and accessories used to play the games.
Global facts and forecasts:
• “In EMEA the online game market will be driven by increased penetration of the broadband subscriber market as well as by the new consoles, which will emphasize online play.”

Business Information
Global facts and forecasts:

• “In EMEA industry information will total an estimated R9.2 billion in 2010, up from R7.1 billion in 2005, a 5.4 percent compound annual increase.”

Sports
Global facts and forecasts:

“In EMEA sponsorships, merchandising, and other revenue will rise to R10.1 billion in 2010, an 8.9 percent compound annual gain from R6.6 billion in 2005.”

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