“We are still on track and we will deliver according to our plans. We made some minor changes to our model in certain areas; this, however, has had no significant impact on our overall strategy,” Govender said.

In August 2008, Govender told Bizcommunity.com that ODM will begin broadcasting in June - July 2009. Unfortunately, the company will no longer meet that deadline due to undisclosed reasons. This time, however, he said broadcasting operations will only be launched in the third quarter of 2009.

Economic climate

But some observers believe that the postponement might have something to do with the current hostile economic climate, which requires that one makes the right decisions now to avoid long-term consequences of bad planning and ‘rush-hour decisions'.

Govender would not be drawn into the debate of the current economic climate, let alone say whether these conditions are affecting ODM's operations in any way. Nevertheless, he said, “Like any other company we continuously evolve our business strategies to accommodate changing market conditions.

“ODM supports the view that people should be spending their disposable income more efficiently during tough economic conditions.

“These conditions support the opportunity for pay-TV operations to start introducing more flexible packages into the market to ensure that there is no channel wastage in terms of the consumers monthly spend.”

Given the option

ODM said consumers should be given the option to pay for exactly what they want to watch and not the usual one size fits-all package that is available in the market today.

The company received its broadcasting licence in July 2008, and said it will offer consumers an affordable service and real choice.

Christian network Walking on Water Television (WoWtv) and e.sat - e.tv's sister company - could not be reached for comment. e.sat COO Bronwyn Keene-Young and spokesperson Vasili Vass were still overseas and WoWtv co-founder Luyanda Mangquku did not return calls or emails by the time of going to press.

Telkom Media is still without a soul. Spokesperson Chris van Zyl declined to comment, except to say that a ‘major announcement' is on the cards.

Competition

In September 2007, the Independent Communications Authority of South Africa (ICASA) awarded four pay-TV licences to new entrants, setting off a ‘deadly' competition and delivering a massive blow to MultiChoice's ‘dictatorial reign'.

While ODM and WoWtv are busy sharpening their knives to spar against giant DStv, e.sat signed a ‘peace agreement' with MultiChoice, preferring to sleep with the enemy and supply it with programmes.

In 2005, global TV revenues reached more than US$240bn, with advertising revenues scooping half of that amount and subscriptions getting 41%. But dwindling consumer spending and companies' marketing budgets cuts have seen these revenues free-falling over the years and are likely to get worse in 2009, as the global financial meltdown slows down the world economic activity.

Richard Collins, Link Centre visiting professor at Wits University, predicted that the SA pay-TV market will become more segmented and mature, and will attract advertising and content to detriment of free-to-air market.