Tag: Competition Commission

BMOA Welcomes MDDA Report and Calls for Permanent Media Sustainability and Transformation Fund

BMOA

The Black Media Owners Association (BMOA) warmly welcomes the release of the Economic Development Fund (EDF) report.

An event was held at the Sandton Sun Hotel in Johannesburg on Tuesday, May 6, a gathering of media stakeholders including media owners and organisations supporting media development.

Stephen Seakgwe, Executive Director of the BMOA, said the association is encouraged by how the Media Sustainability and Transformation Fund has been implemented and concluded with professionalism and accountability.

“We commend the MDDA for this crucial work in highlighting both the challenges and opportunities within the South African media landscape.”

Stephen Seakgwe executive director at the BMOA speaking during the Q&A Session at the Launch of the MDDA Economic Development Fund in Sandton on May 6.

The Economic Development Fund (EDF) was established in 2017 from an agreement between the MDDA – Media Development & Diversity Agency and the The Competition Commission South Africa which is meant to redress the anti-competitive behaviour by mainstream media and advertising companies.

This report underscores the urgent need to address the long-standing anti-competitive practices of major media companies that continue to impede the growth and sustainability of black-owned media enterprises.

For too long, these practices have stifled diversity and hindered the true reflection of South Africa’s democratic and demographic realities within the sector.
The BMOA firmly believes that the EDF has demonstrated the potential to be a powerful catalyst for transformation and a vital instrument in leveling the playing field.

The report highlights that the EDF has supported over 37 SMMEs, with a significant 60% being youth-owned, and has also contributed to gender empowerment within the sector. Furthermore, the EDF has provided bursaries to over 80 students, investing in the future leadership of the industry.

The success stories showcased in the report, featuring beneficiaries like Touch SA Marketing, which launched one of the first digital billboards in the township of Soshanguve, and community publications like Pondoland Times and Empuma News, demonstrate the tangible impact of targeted funding in empowering black media owners, fostering innovation, and creating much-needed employment opportunities.

The Deputy Minister in The Presidency, Kenny Morolong, delivered the keynote address and hailed the partnership between the MDDA and the Competition Commission in administering the fund successfully.

However, the need for support is ongoing and systemic. Therefore, the BMOA strongly advocates for the establishment of a permanent Media Sustainability and Transformation Fund.

This dedicated fund would provide consistent and reliable resources to:

  • Redress the historical imbalances caused by anti-competitive behaviour, enabling black media businesses to compete effectively.
  • Drive genuine transformation within the media sector, ensuring ownership, representation, and content that truly reflects the diversity of South African society.
  • Act as a catalyst for mass employment, fostering the growth of a vibrant and inclusive media industry that contributes meaningfully to the nation’s economy.

“We have seen the positive impact on youth empowerment, gender equity, and the growth of black-owned media businesses. A permanent fund is now essential to build on this foundation and secure a sustainable and equitable future for the South African media landscape.”

The BMOA stands ready to collaborate with the MDDA, government, and all stakeholders to ensure the establishment and effective implementation of this permanent fund.

We believe that by working together, we can build a media landscape that is equitable, sustainable, and truly representative of the South African people.

Download the report here. 

Economic Development Fund Project Report Final RSDownload

BMOA Position on the Release of the Media and Digital Platforms Market Inquiry (MDPMI) Provisional Report

BMOA

The Black Media Owners Association (BMOA) welcomes the release of the Media and Digital Platforms Market Inquiry (MDPMI) provisional report on 24 February 2025.

This report is a significant step in addressing the challenges faced by South African news media, particularly black-owned and community-based media entities. It brings to light the monopolistic practices of dominant digital platforms that continue to restrict fair competition and limit the growth of independent media in our country.

Key Findings in Simple Terms

The MDPMI report highlights several critical issues that have long impacted black-owned media:

Tech Giant Dominance: Large digital platforms have monopolized online advertising revenue, prioritizing international content over local news. This reduces audience reach and weakens revenue streams for South African publishers.

Unfair Revenue Distribution: Despite generating significant local engagement, community media outlets struggle to access a fair share of digital advertising revenue, leading to financial instability.

Financial Compensation Proposal: The report recommends that global tech companies allocate between R300 million and R500 million annually to South African media over the next three to five years. This would help balance the unfair revenue gap and provide much-needed sustainability for local publishers.

Strict Penalties for Non-Compliance: If digital platforms do not comply with these measures within six months of the final report, they could face penalties of up to 10% of their advertising revenue.

Black Media Owners: The Most Affected

Black media owners remain at the greatest disadvantage due to these monopolistic practices. The digital space should be an opportunity for growth and transformation, yet it has instead become another barrier to inclusivity. Local and township-based media struggle to survive because they are deprived of fair exposure and financial support.

BMOA’s Call to Action

While we support the findings and recommendations of the MDPMI, the BMOA demands immediate action to ensure fair competition and the growth of black-owned media in the digital space:

1. Direct Business Deals: Government departments and advertisers must engage directly with black-owned media instead of using intermediaries that exploit community publishers.

2. Black-Media Development Fund: We call for the establishment of a dedicated fund to provide financial resources, training, and technology support for black media owners to fully participate in the digital media economy.

3. Transparent Revenue Sharing: Digital platforms must ensure fair compensation for local content creators and publishers, ensuring that advertising spend is distributed equitably.

4. Capacity Building and Skills Development: Access to digital tools, resources, and training must be made available for community publishers to effectively transition into the online space and remain competitive.

5. Policy and Regulatory Reforms: The government must enact strong policies to prevent monopolistic behavior and create a level playing field for all media owners.

The BMOA remains committed to advocating for a fair and inclusive media environment where black media owners can thrive. We believe that the implementation of the MDPMI’s recommendations, coupled with direct government support and industry reforms, will pave the way for a sustainable and diverse media landscape in South Africa.

We stand firm in our demand for direct engagement, fair business practices, and the establishment of long-term solutions that will empower black media entrepreneurs to compete in the digital era. The future of South African media depends on inclusivity, transparency, and equitable access to resources.