My understanding of the whole situation is :
- Digital migration is a worldwide directive from the International Telecommunication Union (ITU) that was agreed upon long ago with ample time-lines; we're just displaying our usual 'last-minute' element. (FYI : ITU deadline is June 2015 and Tanzania is on-course to 100% compliance)
- Advertising revenue is the cash-cow for the traditional media houses. In the past, this pie was safeguarded by the inherent heavy CAPEX associated with setting up the transmission equipment needed to achieve substantial coverage. You wouldn't just wake up one day and threaten the revenue stream of these established entities.
- The way this digital migration is structured poses a direct threat to the bottom-lines of the traditional media houses since the CAPEX barrier to entry will be lifted, leaving the players to compete on content other than coverage (read financial muscle). The traditional media houses are feeling the heat and will not take this lying down. They will throw a good fight using facts, fiction and half truths - I can't blame them for a moment.
- The media houses are contorting their grievances to make it appear like they are being unjustly crucified. They have had opportunities in the past to counter the unfolding events but they took up a gamble that seems to be blowing up in their faces.
- All said and done, it's the lawyers who are reaping big in this stand-off. You may recall my exasperation some time ago when I stated that the same excuses that were being peddled in court then would still be ones to be peddled now.
I find it really hard to sympathize with the four media-houses. In my view, they're simply trying to resist change. Remember, it's always about the bottom-line!Tony.
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