New Pay TV service proposed

ODM manages a comprehensive multi-million rand strategy to develop its own subscription television company, bringing local and international content of choice to a large number of viewers in South Africa by using state-of-the-art broadcast technology. It is committed to contributing to the growth of the broadcasting industry in South Africa.

Wider market

"After extensive market research, we see a big opportunity to service the wider market of South African television viewers that is currently not being catered for through content or price," underline Mergan Moodley and Heather Kennedy, ODM's original founders and promoters.

ODM's ambition is to provide the many South Africans who currently only receive SABC 1, 2 and 3 and e.tv with the ability to choose from a TV offering of around 40 channels with very little overlap with what is currently available in the local market. ODM's strategy will be for consumers to sign up for a basic package of 10 channels for an affordable monthly fee, and then add to this from a wider suite of channel package options.

"ODM will be offering South African viewers real choice for the first time in the way they acquire and experience added value television thereby transforming the South African television environment into a much healthier market place for the benefit of all consumers," say Moodley and Kennedy.

Viewers' needs

"ODM will be broadcasting some of the best local and international channels and will gradually increase the amount of locally produced channels to meet viewers' needs. We recognise the need for local producers to have additional platforms on which to distribute their content and have established close relationships with local producers."

State-of-the-art satellite technology and implementing the latest distribution technology (MPEG-4 compared to currently used MPEG-2 compression technology) are at the heart of ODM's strategy, enabling it to use broadcast capacity more efficiently and introduce high definition television (HDTV) when the market demand arises.

Backers

ODM's South African backers include broad-based BEE partners First National Media Investment Holdings and investment firm Kopano Ke Matla. Keen interest has also been expressed by the Industrial Development Corporation to invest in the business, once a licence has been awarded. The international satellite network operator SES Global Africa also participates in ODM. This participation, in partnership with local industry players, will enable ODM to provide a state-of-the-art digital satellite service to South African viewers.

ODM's capital structure will include one third of debt financing provided by the Development Bank of Southern Africa and Absa.