Gordon Patterson comments on Icasa licencing

"It creates a false sense of expectation and prospective media owners must be aware that the promise of a licence, does not guarantee good business and profits," says Gordon Patterson, Managing Director of specialist media agency, Starcom.

"The broadcasting industry is highly competitive, frequently addressing small niche audiences. Icasa [The Independent Communications Authority of SA] should be identifying spaces potential investors can fill, rather than merely competing directly with already well-established platforms."

Icasa's intent is surely to widen the door to Black Economic Empowerment in broadcasting. "Irresponsible licensing will lead to an unforgivable loss of empowerment resources. Empowerment companies need to do their homework and think their strategies through. Broadcasting requires not only a great deal of skill and experience, but capital as well.

Yes, the broadcasting arena should be made more accessible and affordable, but Icasa has the responsibility to increase accessibility, without putting potential buyers at great risk. It's no use opening the floodgates if those downstream are going to be drowned."

Food for thought for anyone in the industry.