Shape of the Print Media Industry

Shape of the Book Industry

Shape of the Print Media Industry
Prepared by Adrian Hadland, Human Sciences Research Council. Feb 2004

1. Introduction

Like many cultural and industrial sectors in South Africa, the print media industry’s development has closely mirrored the prevailing political and economic environment. From the publication of the first newspaper in Cape Town in 1800 through to the 1990s, companies and their products have generally been differentiated by the choice of their language and of the race and location of the majority of their readers. Thus, from early on, South Africa developed a black press, an English-language press and an Afrikaans press. Though these lines have been blurred to some extent at the start of the 21st Century, traditional patterns of ownership and of readership persist.

As one media analyst has argued: “State-sponsored or market-led changes … have not on the whole resulted in the expected opening up of the media. In fact, the public sphere remains in many ways the same: reflecting the same inequalities of access as well as power, and also introducing new ones as media changes coincide with the narrow political and economic transition that is currently unfolding in South Africa” (Jacobs, 2003: 1).

There are currently just over 500 print media titles registered with the South African Audit Bureau of Circulations (ABC). Of these, 51 are urban daily or weekly newspapers, 47 are community newspapers, 103 are of the ‘knock-and-drop’ freesheet variety (usually owned by larger media houses) and 314 are magazines. Not all print media titles are registered with the ABC. A recent study found just over 100 community media newsletters and newspapers currently in existence (Hadland & Thorne, 2003). Some of these are very small operations with changing addresses, one or two proprietors and few resources. The universe of the South African print media industry comprises, therefore, a total of around 600 titles.
Together the various titles of the sector face a number of severe challenges, some unique to South Africa and some commonplace in the global print media environment. These will be considered below, following a brief history of the South African print media industry.

2. History of the South African Print Media

South Africa’s print media industry has been in existence since the first edition of the Cape Town Gazette and African Advertiser hit the streets on August 16, 1800. Bolstered by the interest and backing of mining capital, the English language newspaper industry boomed almost immediately. By 1910, 13 English-language daily newspapers and one Sunday newspaper were being published in South Africa for a literate population numbering barely 400,000. (Hadland, 1991: 8).

The first Afrikaans newspaper, Die Afrikaans Patriot, was published in 1876. But it was only after South Africa’s Act of Union in 1910 that Afrikaans began to gather momentum with its recognition as an official language. The first major Afrikaans newspaper company, Nasionale Pers, was established in 1910. It catered for 300,000 readers, almost all of whom (90%) lived in the rural areas.

Publications aimed at African readers and “focusing mainly on devotional and evangelical matters of interest to Christian converts” emerged from the mission stations on the Cape frontier in the 1830s and 1840s (Switzer & Switzer, 1979: 1). These, in time, led to a mission-educated elite producing independent, sophisticated, though often conformist, newspapers such as JT Jabavu’s Imvo Zabantsundu and John Dube’s Illanga Lase Natal. From the turn of the 20th Century, papers supporting particular political groupings began to emerge. These included the African National Congress’s official organ, Abantu-Batho (founded in 1912); MK Gandhi’s Indian Opinion (1903) and Indian Views (1914). In 1910, the African population stood at about 4 million of whom less than 7% were literate.

While the forces of urbanisation and industrialisation, together with increased levels of unionisation and literacy, created an environment conducive to the expansion of the black print media, the sector never really developed. By 1947, the estimated combined circulation of all newspapers printed in South Africa primarily for a black audience numbered just under 10,000 per day. The total circulation of the English language daily press, by contrast, stood at more than 340,000 per day (Hadland, 1991: 17). The attitudes of advertisers were particularly crucial to the fortunes of a black press that was already hindered by a lack of resources, personnel, equipment and by a hostile political environment.

In all three sectors of the South African print media, English, Afrikaans and black, over the last two hundred years, the overarching trend has been toward concentration of ownership. Four companies, Nasionale Pers, Perskor, South African Associated Newspapers and the Argus Company, dominated the print media landscape until well into the 1990s. This has included magazine as well as newspaper and freesheet titles.

Since then, the patterns of ownership have changed, somewhat. The alternative press has come and gone. The Argus company was bought by Independent Newspapers of Ireland, SAAN was broken up, Johnnic communications emerged, Caxton extended its scope of influence in the ‘knock-and-drop’ media sector and various new titles and new ventures have emerged. The community media sector is set for significant growth following the creation of the statutory Media Development and Diversity Agency (MDDA) in 2003.

South Africa has also experienced the rapid growth of the commercial magazine sector, featuring companies such as Picasso Headline and Monarch, over the last ten years that produces a wide range of magazines and publications. Despite the changes, argues Jacobs, “the overwhelming majority of newspapers in South Africa are controlled by a few large conglomerates and editorial control of South Africa’s mainstream press remain largely in white hands” (Jacobs, 2003: 1).
Another key aspect of the South African print media landscape is the passage of a whole raft of laws concerning skills. The key pieces of legislation in this regard are the South African Qualifications Act (1995), the Skills Development Act (1998) and employment equity legislation (1998). The legislation is set collectively to completely recast the educational and training landscape in the country. The legislation also compels the print media industry to develop and fund skills plans and learning activities. A more detailed look at the relevant legislation is presented below.

3. The Southern African context

There are currently an estimated 15,000 practicing journalists in the Southern African Development Community (SADC) region serving hundreds of print media titles (Vick, C. 2003: 7). According to Media trainer and analyst Chris Vick, the Media Institute for Southern Africa (MISA) and the United Nations “continue to note positive developments in the region since the signing of the Windhoek Declaration” (Vick, C. 2003: 4). The Windhoek Declaration of 1991 set out the rights and values of the print media of southern Africa, including pluralism, diversity and democracy.

Developments in the region include a proliferation of media organisations, particularly in the radio sector, the establishment of regulatory bodies and a growing assertiveness from civil society structures (Vick, C. 2003: 4).

Negative trends include the continuing monopolisation of the print and other media by governments, repression, harassment, persecution and strained relationships between the state and media. In addition, a recent survey notes that only 20% of journalists in the region are women.

4. Challenges facing the Print Media

1994 was a halcyon moment in South Africa’s political life. But the birth of democracy heralded a serious and unexpected consequence for the country’s print media industry. It was pitched, almost immediately, into a crisis from which it has arguably not recovered. The figures in Table 1 give a snapshot indication of the extent of the crisis as it affected some of the country’s better known newspaper titles.

As can be seen from the table, which represent the official ABC figures, the circulation of the Cape Argus plummeted from 105,649 per day in the last half of 1993 to 82,774 by the end of 1995. The Daily News dropped from just under 100,000 in the first half of 1993 to 75,960 in the last six months of 1995 and The Star dropped from 216,684 for the period January to June 1993 to 165,171 for the last half of 1995. Collectively these declines, reflected as they are across the sector, signal a huge loss of revenue. In most cases, titles have been unable to reclaim the lost ground.

At the same time that circulation figures were declining so rapidly, the organised print media sector conducted an investigation into the diminishing quality of newspaper and magazine reportage. The South African National Editors Forum (Sanef) undertook a skills audit of senior local journalists during 2002. Against a background of the juniorisation of newsrooms, an exodus of skills and experiences and a journalistic critique which was becoming increasingly shallow, it was hoped the audit would provide important indicators concerning the state of South African journalism. It did, and the result, according to the then Sanef chairman Mathatha Tsedu, was “not a nice picture” (Tsedu et al, 2002: 5). The poor skills levels were worse than expected and pointed to deteriorating work force quality at key levels in the sector. On the positive side, a new level of commitment to ongoing training and education has been articulated by top management within the media industry.

The reasons for the crisis, demonstrated by the decline in quality and shrinking circulations, are many. These can most simply be explained under the headings of demand-side and supply-side pressures.

4.1 Demand-side Pressures

These reasons for the crisis relate to the environment in which newspapers and magazines are sold. They don’t, in other words, reflect developments within the media industry itself, which fall under the supply-side section below.
Demand-side pressures include what has become known as ‘transition fatigue’. It is noticeable that the precipitous fall in newspaper circulations occurs just after April 1994, the date of the first democratic election. South Africans, it seems, had put so much emotive effort into the transition, that once democracy had been established, no one wanted to read another word about politics.

A second demand-side pressure is the presence of competing information sources to the print sector. The mushrooming of satellite television, broadband technology, digital radio and the Internet have all severely tested newspapers and magazines as people’s primary source of information.

One of the most important factors in the consumption of print media is the availability of time, specifically leisure time. People simply need several hours a week to read over newspapers and magazines. In this sense, the print sector has to compete with other leisure time opportunities, such as television, books, cooking and housework, sports and religious or cultural activities.

A fourth reason for the crisis lies in the complex concept of globalisation. As the world gets smaller due to technology, so people appear to be less interested in what is happening far from their own neighbourhoods. This contradiction sees the massive expansion of available information about the world but a growing demand for local news. This places tremendous pressure on print media titles which have to make key strategic decisions about the balance of content between the global and the local.

Pressures on disposable income represent the fifth demand-side factor behind the the crisis of South African print media sector in the post-1994 era. Here, the arrival of the national lottery and the hunger of other cash consumers, such as cell phones, has placed ever greater demands on disposable incomes. When given the choice between R3 on a lotto ticket or R3 on a newspaper, many choose the former, or alternate on different days.

Finally, South Africa – and the world generally – has experienced tough economic conditions over the last ten years. The national currency has been very volatile (leading at one point to a 40% increase in the price of newsprint), interest rates have risen and fallen, and continuing joblessness underpins the broad national economy. This will inevitably impact on who buys newspapers and magazines, and how often.

4.2 Supply-side Pressures

Within print media organisations, a range of dynamics have themselves impact on the ability of these organizations to function efficiently and competitively.

The first of these is the concept of convergence. As far back as the 1970s, media analysts began to talk of the phenomenon of convergence and of how it was becoming hard to compartmentalise the hitherto autonomous information platforms of print, broadcast and telecommunications. What intrigued policy planners in the 1970s has become a powerful, even pervasive force in the opening period of the 21st Century. The rules have simply changed and are changing with ceaseless rapidity. Digitisation, satellites and the Internet have had far-reaching and frequently unpredicted impacts. In most cases, the technology has moved faster than either the regulators or the law. For the print sector, convergence has meant the need for a greater range of skills among personnel, as content is generated for broadcast and Internet platforms. The convergence of print, broadcast and telecommunications has divided the demand for resources, with several key media houses diverting large amounts of money to the development of the Internet. Coping with convergence, rapid technological change and shifting ownership patterns have all added pressure on to the print media sector from within.

A relatively low level of commitment to training, demonstrated by the closure of the last remaining “cadet school” and the historical enmity between the teaching/tertiary training institutions and the industry has exacerbated the industry’s problems. There are signs this is changing, but 10 years of luke warm commitment to training has had its impact on personnel quality in the sector.

The poaching of senior black staff by government (local, provincial and national) and by the corporate sector in the wake of 1994 has stripped the media sector of a generation of quality black journalists. Pervasive low salaries in the sector have also made it difficult to retain good people. Efforts are being made to replace and train new staffers, but the print media is also competing against the more glamorous broadcast sector.

A rapid turnover of staff due to poor management of employment equity has also undermined print media organisation’s capacity to produce quality content. This is indicative of weak management performance generally in the sector, founded on a broad lack of business qualifications among managers, together with a worldwide trend in which print media managers seem able to comprehend and digest the global political or economic picture but are unable to define or act upon their own changing local media environment.

Finally, the falling circulations have themselves added to the cycle by placing even greater pressures on resources. This has allowed commercialism to take a hold in the sector placing ethical and traditional Fourth Estate functions under strain.

5. Government and the Print Media

The government engages with the print media industry in a number of complex ways. Newspapers and magazines faced a battery of some 120 laws during the apartheid era which governed what could be published and what could not. In the hangover from that period, government has been reluctant to impose new restrictions. This has left the print media largely unregulated by the state while the broadcasting sector has led the way in terms of policy, legislation and regulation.
This does not mean the sector is unregulated. Most print media organisations adhere to the Press Code of Professional Practice, which has been signed, among others, by the South African National Editors Forum (Sanef), the Newspaper Publishers Association of Southern Africa (Nasa), the South African Union of Journalists (SAUJ) and the Magazine Publishers Association of South Africa (MPA). The code is premised on the belief that “vigilant self-regulation is the hallmark of a free and independent press” (Press Ombudsman of South Africa). It commits its signatories to report truthfully, accurately and fairly, in a balanced manner and without an intentional or negligent departure from facts.

The code describes the public interest as the only test that justifies a “departure from the highest standards of journalism” and includes guidelines on avoiding discrimination, advocacy, comment, the use of confidential sources, payment for articles, portrayal of violence. The code is enforced by the Press Ombudsman of South Africa together with the office’s Appeal Panel. Its sanctions include reprimands and the publication of corrections by offending newspapers or magazines.
The print sector is also regulated, to some extent, by a number of other statutory or civil bodies, including the Advertising Standards Authority of South Africa, the South African Human Rights Commission, the Competition Commission, the Commission for Gender Equality and the Independent Communications Authority of South Africa (Icasa).

In a recent study, it was found that half a dozen government departments currently have formal contracts with the print media sector, and specifically with community media organisations (Hadland & Thorne, 2003). These include the Government Communication and Information System (GCIS), the departments of communications, local government, social services, various premiers’ offices, the Mapp Seta and the MDDA.

The Presidency has also recently instituted a Presidential Press Corps, in cooperation with the mainstream media sector, to facilitate access to the highest echelons of the government.5.1 Legislation relevant to the print media sector

The following pieces of legislation are among the most important:

The Labour Relations Act (1995): The Act has application to the print media sector as it promotes employee participation in decision-making, facilitates collective bargaining at the workplace and at sectoral level, regulates the right to strike and provides for the resolution of labour disputes through statutory conciliation, mediation and arbitration.

Telecommunications Act (1996): The key elements of this legislation were absorbed into the Icasa Act (see below). The Telecommunications Act was designed to regulate telecommunications activities and control the radio frequency spectrum. The legislation set up the South African Telecommunications Regulatory Authority (SATRA) which was tasked with regulating radio frequencies, apparatus and the control of radio activities. It also entrenches the idea of universal service in law, and creates a digital backbone to build an Internet economy.

The Films and Publications Act (1996): This Act overturned notorious legislation of the same name passed in 1974. The 1996 Act sets up a structure through which any publications or films that are intended for distribution or exhibition are required to pass. Films and publications are classified by a board, age restrictions can be imposed and consumer advice is given. Distribution of any prohibited film or publication is a criminal offence in terms of the legislation. The general attitude, however, is much less restrictive than in the past and a broad principle is applied which seeks to minimise harm.

The Lotteries Act (1997): The Act provides for payment of lottery monies for projects that promote the arts, culture and national historical or cultural heritage. The Act also governs the holding of promotional competitions and sets a number of regulations in this regard. These include that the competition may not be too similar to the national lottery and also that participating in promoting competitions should not be the only or even the substantial inducement to a person to purchase or use the goods or services to which the competition relates.

Competition Act (1998): Makes provisions concerning monopolistic behaviour, price collusion and access to general services. Commission established by Act ensures prohibition of anti-competitive agreements and/or abuse of a dominant position. Commission also considers applications for approval of mergers.

Employment Equity Act (1998): The legislation is aimed at achieving a diverse workforce that is broadly representative of the South African population. Companies are required to draw up employment equity plans and file these with government.

Skills Development Act (1998): This Act provides an institutional framework to devise and implement national, sector and workplace strategies to develop and improve the skills of the South African workforce; to integrate those strategies within the National Qualifications Framework contemplated in the South African Qualifications Authority Act, 1995; to provide for learnerships that lead to recognised occupational qualifications; and to provide for the financing of skills development by means of a levy-financing scheme and a National Skills Fund.

Independent Communications Authority of South Africa (Icasa) Act (2000): The Icasa Act dissolved the IBA and SATRA but absorbed substantive parts of both the Telecommunications Act of 1996, the IBA Act of 1993 and the Broadcasting Act of 1999. The Icasa Act combined the functions of the IBA and SATRA into one, independent, regulatory authority, Icasa. Icasa has already indicated it considers section 50 of the IBA Act (which sets out cross-media ownership limitations) as unworkable as it confuses readership with circulation.

Municipal Systems Act (2000): The Act sets out the formal definition of community participation as well as the procedures associated with Integrated Development Plans (IDPs). It includes the provision that municipalities must communicate relevant information to its community including the rights and duties of the community in the language preferred and used within the municipality. The Act also states that “when anything must be notified by a municipality through the media to the local community in terms of this Act or any other applicable legislation, it must be done-
(a) in the local newspaper or newspapers of its area;
(b) in a newspaper or newspapers circulating in its area and determined by the council as a newspaper of record; or
(c) by means of radio broadcasts covering the area of the municipality.
The Act also provides a regulatory framework for municipal service partnerships, particularly processes such as competitive bidding, dealing with unsolicited proposals, and contract monitoring and compliance, which gives legal effect to the framework agreement on restructuring municipal services signed between government and COSATU on 16 December 1998.

The Open Democracy Bill (1998): This seeks to implement Section 32 of the Constitution by giving all citizens access to state information, subject to certain restrictions. The Bill was split into three for legislative purposes. The Three Acts derived from the Bill are:

• Promotion of Access to Information Act (2000): This Act gives effect to the enshrined access to information clause in the Constitution (section 32(1)). It allows access to information held by public bodies or other persons or bodies which is required for the exercise or protection of rights. The rules are different, depending on whether a media organisation requires information from a public or a private body. If it is public, procedural requirements need to be fulfilled. There are several grounds on which a public body can refuse to provide the information. They include:
  - If it entails giving personal information about a third party
  - If it endangers the safety of an individual
  - If the records are legally privileged
  - If it relates to defence, security, international relations, economic or financial welfare of South Africa
  - If it is a vexatious or frivolous request
  A private body may refuse to supply requested information on a number of grounds including privacy, safety, confidentiality.
  Applications for information that are in the public interest override grounds for refusal of both private and public bodies. The overall intention of the Act is to provide for “a more open and trusting society”.
  
• Protected Disclosures Act (2000): This Act protects whistleblowers either within government or the private sector and prevents them from losing their jobs or benefits after disclosing corrupt behaviour or acts within their organisation.
  
• Promotion of Administrative Justice Act (2000): This Act gives effect to the right to administrative action that is lawful, reasonable and procedurally fair and to the right to written reasons for administrative action. One of the purposes of the Act is to create a culture of accountability, openness and transparency in the public administration or in the exercise of a public power.

Telecommunications Amendment Act (2001): Creates provision for the awarding of multimedia licenses and defines the concept. The Act also regulates mobile cellular telecommunication services.

The Regulation of Interception of Communications and Provision of Communication-related Information Act (2002): The Act, as amended, prohibits the unauthorised interception and monitoring of communications. It also provides for the establishment of interception centres, prohibits the manufacturing or sale of certain equipment and establishes an Internet Service Providers Assistance Fund.

Media Development and Diversity Agency Act (2002): This Act establishes the MDDA.

Electronic Communications and Transaction Act (2002): The Act provides for the development of a national e-strategy, promotes universal access to electronic communications and transactions and prevents the abuse of information systems. The national e-strategy is required to include programmes and means to achieve universal access, human resource development and development of SMMEs. The strategy is also required to set out existing government initiatives directly or indirectly relevant to or impacting on the national e-strategy and, if applicable, how such initiatives are to be utilised in attaining the objectives of the national e-strategy.

Electronic Communications and Transactions Act (2002): This law seeks to make government services accessible online, promotes universal and affordable access to electronic communications and transactions, promotes adoption and optimal use of electronic communications and transaction by the historically disadvantaged, encourages “e-health” and “e-learning”; and provides more protection for consumers.
This Act also set outs principles for the protection of personal information data, the principles of electronic collection of data and the management and protection of critical databases as well as restrictions on the disclosure of information.
Convergence Bill (2003): The acknowledgement of the process of convergence of personal telecommunications with broadcasting has resulted in the imminent publication of this new legislation.

5.2. Administrative steps taken of relevance to the print media sector

In 1994, the SABC Board was restructured and the IBA launched a Triple Enquiry into the Protection and Viability of the Public Broadcaster, cross-media control, local content and South African music. The inquiry represented the IBA’s first important step toward the restructuring of the domestic broadcasting system.
A critical moment in the development of policy around information, communication and the media arose in 1996 with the Task Group on Government Communication (Comtask). Among Comtask’s many important recommendations:the creation of the Government Communications and Information Service (GCIS)

• the acknowledgement of Multi-Purpose Community Centres (MPCCs) as a key objective of government policy
• a lack of media diversity results in an information bottleneck
• the ownership and control of distribution and printing infrastructure are critical areas that need to be addressed to promote media diversity
• proposes the establishment of the Media Development and Diversity Agency.
  

As a result of Comtask, a National Communication and Information System, which is co-ordinated by the GCIS, was established. The system is intended to provide development communication and information to the public with the purpose of ensuring they become active participants in changing their lives for the better.

The main responsibility of the GCIS itself, which was to play a crucial role in the community media sector, is to keep the public informed about all the issues that affect their daily lives. The GCIS also aims to:

• Provide all South African with information on their rights and how to access them
• Inform people on how they can use the prevailing socio-economic conditions to improve their personal circumstances and help to build a better South Africa for all
• Use community radio stations to reach the masses of illiterate people, mostly in the rural areas, and to focus particularly on those who were marginalised in the past and deprived of their rights.

A Government Communicative Planning Forum has been set up to ensure cooperation between GCIS and the directorates of communications in the various other government departments.

Around the same time, in 1996, the IBA launched its Triple Enquiry into the Protection and Viability of the Public Broadcaster, Cross Media Control, Local Content and South African Music. A number of important regulations in each of these areas were forthcoming as a consequence of the Triple Enquiry and are now enshrined principally in the Icasa Act of 2000.

In 1998, various stakeholders (including Print Media SA, NCMF and the IMDT) got together to look at ways in which media diversity in South Africa could be fostered. The Print Development Agency was intended to provide various forms of assistance to existing and emerging small print media to encourage their development. By the end of 1999, however, the process had broken down due to a lack of consensus. In 2000, the PDU was established, but as an internal division of Print Media SA.

On 29 November 2000, the GCIS launched a draft paper on Media Development and Diversity. The MDDA had been proposed by the Comtask report of 1996 and proposed the MDDA as an independent, statutory body funded by government, the media industry and by donors with the purpose of assisting the development of community media and promoting media diversity. The GCIS pointed to a number of policy predecessors for the establishment of the MDDA including the National Action Plan for the Promotion and Protection of Human Rights, which was published in 1998 and which emphasised freedom of expression and media diversity, as well as the Bill of Rights in the Constitution.

According to the policy draft, the MDDA would operate on the best principles of corporate governance and would use as its principal funding criteria: good governance, contributions to media development and diversity, community representation and participation. The GCIS noted the failure of the IMDT in 1998 and argued that media diversity schemes had been state assisted even in Europe since the 1950s on the basis that market forces alone would not achieve sufficient diversity.
In 2001, the Media Institute of Southern Africa noted that the region “lacks policies for the promotion of comprehensive, in-depth and impartial news and information coverage – particularly at the local level. What is required is a media environment that ensures access to minorities and provides cultural relevant information in local languages”.

It was also in 2001 that the Windhoek Declaration was extended to the broadcast sector with the unveiling of an African Charter of Broadcasting. This Charter noted that Freedom of Expression included the right to communicate and access to the means of communication. It called for the equal allocation of frequencies between the public service, commercial broadcasters and the community sector. It also noted ruefully that since the Windhoek Declaration, “little of a practical nature was undertaken to promote the community, rural or indigenous language media that would form the pluralistic and diverse media landscape envisioned in the Windhoek Declaration”. The Charter, however, called on states to promote “an economic environment that facilitates the development of independent production and diversity in broadcasting”.

The African Charter of Broadcasting contained a specific section on community broadcasting as well as an important section on telecommunications and convergence. The Charter defined community broadcasting as “for, by and about the community whose ownership is representative of the community, which pursues a social development agenda and which is non-profit”. These are, by now familiar, characteristics. The Charter noted too that the right to communicate included access to telephones, the internet “including through the promotion of community-controlled information and communication technology centres” .

Other African policy initiatives included the 2002 media forum of the Bamako Conference which addressed the role of the media in the development of the information society, and the 2002 Accra Declaration of the Conference on Africa and the Development Challenges of the 21st Century which expressed concern about the widely varying pace of democratisation in different parts of Africa, particularly concerning opportunities for citizen participation and expression.

A range of non-legislative policy actions have been implemented in South Africa in the post-1994 era which collectively have an important impact on the community media sector. They include:

The Cultural Industries Growth Strategy was adopted by the Department of Arts, Culture, Science and Technology (DACST) in 1998, prior to its being split into two departments. The policy includes initiatives to stimulate growth in the television and film industry. The strategy investigation showed that income generation depends on the integration of production into a full value chain (Hagg, 2002: 33)

In a Broadcasting Policy Technical Task Team Discussion Document published in 1998, it was stated: “A well-founded broadcasting system should ensure pluralities of news, views and information. It should give wide and enlightened choices to the citizens and thereby contribute significantly to an effective and vibrant democracy.”

Municipal Infrastructure Investment Unit (MIIU): The Unit was set up in 1998 to encourage private-sector investment in municipal services and to establish a market for such investments. Government provides an annual grant to the Unit. Through this grant, the Unit has undertaken 15 pilot projects and has assisted many municipalities in preparing and finalising appropriate municipal service partnership agreements.

The total number of municipal service partnership transactions completed by the MIIU continues to increase. During 2001/02, the MIIU completed five such projects, with a total contract value of over R1 billion. That brought the total contract value of all MIIU projects during its four-year existence to over R6,7 billion. As a result of just 2001's projects, over 280 000 disadvantaged South African households received new, enhanced, or more efficient municipal services. These services include water and sanitation, waste management, municipal transport and municipal power.

The MIIU has embarked on a programme to undertake diagnostic studies in a number of municipalities to determine the opportunity for private-sector investment in these localities.

Urban Renewal Strategy: The Urban Renewal Programme falls under the department of provincial and local government. The programme emphasises three principles:

• The mobilisation of people so that they can become active participants in their own development
• The activities, initiatives and budgetary resources of the three spheres of government should be coordinated and focused
• Public sector investment needs to leverage private sector resources.
  

The majority of projects focus on the development of infrastructure in order to address the legacy of apartheid economic development. These projects are co-funded by urban nodal municipalities, provincial governments and national departments. This new system of integrated governance for sustainable development arises from a new current of thinking that emphasises collective responsibility.

The Department of Communications has identified, funded and implemented community radio programme production projects including the Community Radio Infrastructure Project as well as capacity building and skills development through Nemisa. The department has also “promised to ensure community media’s inclusion in new delivery platforms, ensure community media access to new communications and information technology (Joe Mjwara in CEMI, 2001). It also established two bodies in 2001 to advise the minister on digital broadcasting and the development of South African content for the electronic media:

• the SA Digital Broadcasting Advisory Body, which focuses on opportunities to harness digital technologies and related applications in order to achieve developmental goals, economic growth and job creation, and
• the SA Broadcast Production Advisory Body, which focuses on strategies for developing and broadcasting more quality local content, especially in the 11 official languages

Both DACST and the Department of Communications have committed to identifying and promoting supply-side initiatives to support production of South African industry and content.

The Universal Service Agency (USA) has established Provincial Telecentre Forums to facilitate interaction.
The Independent Communications Authority of South Africa (Icasa) has agreed it “would support well-organised efforts to establish community multimedia centres and the awarding of multimedia licenses in underserviced areas of less than 5 telephones per 100 households.

A spin-off of the RDP’s Democratic Information Programme was the hosting of a conference in 1996 entitled Empowering Communities in the Information Society in 1996 that accepted the notion that multipurpose community development centres were the key instruments in community empowerment. This was developed further in the landmark Information Society and Development (ISAD) conference after which the roll-out of services in poor areas, the launching of MPCCs, citizen post offices, and Public Information Terminals (PiTs) began in earnest.

The various new initiatives were informed by the government’s Integrated Development Strategy (IDS) and also by the Integrated Sustainable Rural Development Strategy (ISRDS) both of which were aimed at ensuring development was coordinated and resources used efficiently. In addition, President Thabo Mbeki used the occasion of his state of the nation address in 2001 to identify various nodal points at which government departments would be expected to implement their services.

The Integrated Sustainable Rural Development Strategy (ISRDS). The policy highlights the need for development to reach the large proportion of the South African population who live in the rural areas. The overriding principle of the ISRDS is “to attain social cohesive and stable communities with viable institutions, sustainable economies and universal access to social amenities able to attract and retain skilled and knowledgeable people equipped to contribute to growth and development”. The policy stresses the participatory and decentralised fashion of successful rural development (as demonstrated by international experience), the need for the integration of development efforts and emphasises the importance of sustainability and the need for the bolstering of local capacity for bottom-up development. These are all key lessons and, indeed, obligations for community media planning and policy. The ISRDS identifies 13 rural nodal points for development.
Batho Pele means people-centred governance. The official slogan underpins much current government policy especially with regard to service delivery.

ICT and Empowerment Charter: The information and communications technology and electronics (ICT-E) sector announced in June that it would be drawing up a black economic empowerment (BEE) charter by early 2004. The empowerment charter working group consists of representatives from the Black IT Forum, Information Industry SA, The SA Communications Forum, the Information Technology Association, the Computer Society of SA, Electronics Industries Federation and the SA Chamber of Business.

The department of trade and industry is working with the ICT-E sector through the BEE working group and the ICT Development Council, led by Alec Erwin, the minister of trade and industry.

Minister Erwin is expected to issue a gazetted code of good practice for the ICT-E sector once the industry reaches an agreement on the charter.

The department has compiled a database of BEE companies in the ICT-E sector. The department defines a BEE company as one that is at least 25.1 percent owned and managed by black people, whether a black firm has control or not.
Almost all major government policy on the media and on ICTs, including the White Paper on Science and Technology (1996), the recommendations of Comtask, the RDP Base Document, the recommendations of the ISAD conference and TELI (Technology Enhanced Learning Investigation, 1996) call for greater integration of policy initiatives with regard to ICTs and Information Policy.

A Convergence Policy Process is underway at present following a national colloquium on convergence policy held in Johannesburg in July, 2003. A final report from the colloquium has been handed to the Minister of Communications, Ivy Matsepe-Casaburri. The report contains detailed feedback from the four commissions established at the colloquium: infrstructure, services, content and applications.The department of communications has issued a draft working document which a drafting committee is working on. A final document is expected to be presented to the minister as part of the preparation for the Convergence Bill.

6. Conclusion

The South African print media industry is in flux and crisis, and has been so for more than ten years. Internally, it suffers from key skills shortages and from the local and global trends apposite to the media sector. Externally, it is struggling to compete with competing information sources, alternative leisure time activities and pressures on disposable income.
Relations with government are largely undefined and the sector is self-regulated. This has left a gap for commercialism to seize a strong foothold in the sector and for confusion to exist surrounding the various roles of government and the media, in particular the emerging community media. In spite of its relatively small size, vis-à-vis the South African economy, the print media sector continues to wield considerable political power. It therefore offers ongoing opportunities to convey important messages, widen access to the media and to knowledge and to deepen democracy.
The sector continues to be dominated by a small group of large, media houses that are increasingly expanding into new media platforms from the broadcast and telecommunications sectors.7.

References

Hadland, A & Thorne, K. 2003. The People’s Voice: The development and current state of the community media sector. HSRC: Cape Town.
Hadland, A. 1991. The Political Economy of the South African Press, 1920-50. Unpublished MLitt Thesis, University of Oxford, UK.
Jacobs, S. 2003. Unpublished PhD dissertation (in progress): Media and Policy Debates in Post-Apartheid South Africa. Birkbeck College, London.
Switzer D & Switzer S. 1979. The Black Press in South Africa and Lesotho. GK Hall: Boston.
Vick, C. 2003. Evaluation of Media Programme for Southern Africa 2001-2003, Unpublished report.
Tsedu, M. Wrottesley S, & Clay, P. 2002. ‘Sanef’s 2002 South African National Journalism Skills Audit: an introduction’, in Ecquid Novi 23(1): 5-10.

Shape of the Book Industry
Prepared by the
Print Industries Cluster Council (PICC)
For the Human Science Research Council (HSRC)

1. Definition of the Book Industry

The Book Industry includes sectors involved in the provision of information, education and entertainment based on publishing, origination and processing of primarily print content, including books, electronic publishing, and multimedia, but excluding broadcasting, telecommunications and film.

The industries originate, package and disseminates ideas and information through the print and electronic media and can further be defined as text and image media, including writing, illustrating and editing resulting in the publication of the above.

1.1 The purpose of books

Books are indispensable in any national education system, being the mechanism for preserving and transmitting knowledge. Books are also indispensable in the preservation and transmission of culture, constituting a repository of social memories and imaginations, as imbedded in any literary work is the cultural knowledge of society, its accomplishments, dreams, realities and agonies across the ages.

Books, through the act of reading, offer a means of sharing the cultural sensibilities of times and traditions, places and people, countries and classes, contributing to the immense heritage of the human social thought.

Books remain one of the most interactive means of communication and a source of recent and distant memory, for recreation in the present and a platform from which to envisage the future. It also serves as a passport for all destinations, all cultures and all possible forms of imagination.

2. History of the Industry

South Africa is comparable to a number of other countries as the historical development of its publishing sector is integrally linked to the education of its people. The history of book publishing has been closely associated to its political and economic progress.

As with any other sphere in society, the publishing industry has been adversely affected through the apartheid laws and practices of the previous government.

At the close of the 19th century, several small, family-owned publishers were established, many in Cape Town. Shortly thereafter, the first of many, mainly British, international publishing houses also established operations in South Africa. In the 1930’s and ‘40’s, the rise of Afrikaans nationalism was associated with the establishment of several Afrikaans publishers, mostly as part of the Nationale Pers or Perskor groups. The struggle against apartheid also meant the establishment of several alternative or independent publishers, such as Ravan and David Phillip.

With the advent of a democratic society, changes in ownership and control of several publishers reflect black economic empowerment, but the sector is still primarily white owned and controlled and books are bought by a small percentage of the population. The shape of the publishing industry has been adversely affected by the past policies of South Africa, serving certain sections of the population over others. The former relationship between primarily the educational publishers and the state means that educational publishing is still dominated by huge indigenous companies. To this end, the needs of the marginalized are not adequately met.

South Africa has a well-established publishing industry, but typical to a developing country, it’s geared towards educational publishing, the only market showing good returns on investment. This reliance on educational publishing was demonstrated during 1996 – 2000, when government spending on school textbooks was reduced by almost 50%, resulting in the closure of many publishing houses. The industry has since recovered from this crisis, with government budgets on textbooks increasing to R1 billion in 2002.

The technological advances globally have brought about new opportunities for the industry, in the form of electronic publishing. E-publishing is the delivery of interactive, digital media to the consumer, through online websites and CD ROMs, or a combination of both. Books, journals, educational products etc are all becoming available in electronic format. The impact, opportunities and threats are still to be uncovered in this area. Key questions are whether it is a completely different sector, or whether it belongs within the print industry, and what implications there are for the printing and bookselling sectors in the industry.

3. Overview of the Industry

Lack of an information management system is a key challenge to the industry. Reliable statistics are not available and the figures used below are estimates.

Turnover for the book publishing industry is estimated at R2 billion per year, of which R1 billion comes from local publishing. The industry employs around 3 000 permanent employees as well as supporting a network of small companies and freelance workers. It is estimated that this makes up another 3000 workers.
Three main types of publishing can be distinguished:

3.1 Educational

Educational publishing for schools is the most viable and makes up the biggest portion of publishing in South Africa. Learning support material provisioning is key to the sustainability of the South African market. Almost all of the larger publishing houses are involved in educational publishing.

Government expenditure on textbooks declined from 1996 and many publishing houses closed, demonstrating the reliance of the industry on educational publishing. Government expenditure has risen again after 2000, with industry turnover estimated at R800 million in 2002.

It is estimated that 90% of Learning Support Materials (LSM) for schools are from local publishers.

3.2 Academic Publishing

This sector of the market produces books mainly for universities, technikons, teacher training colleges and universities.
The academic publishing sector in South Africa is relatively small, with more than 50% of academic texts being imported. It accounts for about 15% of the total publishing in the country, amounting to some R300 million.

3.3 Trade publishing

General or trade publishing includes fiction and non-fiction titles and is dominated by imports. Local production is estimated at 20-25%, trade publishing making up about 35% of total publishing, amounting to an estimated R700 million.

4. Defining the Value Chain

The book publishing value chain as defined in the Cultural Industries Growth Strategy (CIGS) report of the Department of Arts and Culture will be used.

4.1 Origination

The production of a book begins with ideas, knowledge and creativity of the writer, being the creative input into the book, including illustrators, photographers, designers etc, resulting in a manuscript.

4.2 Production

4.2.1 Publishing

This process begins once the manuscript is complete, where a copy-editor at the publishing house checks content, style, grammar, spelling, consistency etc. and confers with the author. The text then goes through further processes such as typesetting, page layout, page proofs etc., until it is ready to print.

4.2.2 Paper Manufacturer

This is where the supply chain becomes involved. Paper is used as a raw material in book production, hence paper manufacturers are an important link in book production.
There are two suppliers of paper in book production in South Africa, namely Mondi and Sappi.

The value of paper production for 2002 was R12,357 billion, with printing and writing papers amounting to R5,758 billion. The actual amount used purely for book production is not known at present. The paper industry is organised through the Paper Manufacturers Association of South Africa (PAMSA).

4.2.3 Printing

The second part of the production process is the printing of the book. It is estimated that there are about 1000 printers in South Africa, with 57 being dedicated to book production, employing about 3800 people.
The turnover figures for the printing sector is not known but research is currently underway. The printing sector is organised through the Printing Industries Federation of South Africa (PIFSA).

4.3 Book distribution

The end product, i.e. the book, is distributed through either (retail) bookstores or the library system to reach the consumer

4.3.1 Book Stores

It is estimated that there are approximately 1000 book retailers and independent booksellers in South Africa. These stores are mainly situated in urban white areas, making books accessible to mainly the urban, middle class section of the population.

4.3.2 Libraries

Libraries play an important role in book distribution, as it is currently the most fundamental strategy to make books available in South Africa. There are approximately 2000 libraries in South Africa, with 1249 being public and community libraries. The rest are made of up tertiary and specialist libraries.

Governance of this sector is fragmented and is controlled by a variety of authorities, including government departments, statuary boards, councils, institutions and municipalities. Public and community libraries are the responsibility of provincial and local governments.

Public /Community and school libraries have the greatest impact on the broad public and account for substantial spending on books. Libraries are both consumers and distributors as they purchase books and serve as access points for information to the population.

5. Geographical mapping

The activity of book production is mainly concentrated in three provinces, i.e. Cape Town, Gauteng and KwaZulu Natal, with the bulk of activity taking place in urban centres. Economic activity is normally situated around the activities of the publishing sector, and as such the printing and bookselling sectors mirror this. Book printing however does not take place in Gauteng, as book printers are concentrated in Cape Town and KwaZulu Natal. Most of the bigger publishers are situated in Cape Town.

Public/Community libraries
The table below sets out the number of libraries in each province.

Table 1. Libraries per province and population

6. Government Ministries related to the Book Industry

6.1 Arts and Culture

Book publishing falls under the Department of Arts and Culture as part of the Cultural Industries. Public and community libraries as consumers and distributors of books also fall within this department.

6.2 Education

Educational publishing, i.e. textbooks and learning support material and school libraries fall under the auspices of the Department of Education.

6.3 Trade and Industry

Trade tariffs, import and export duties, all impact on the book industry. Copyright legislation takes place through the Department of Trade and Industry.

6.4 Finance Ministry

VAT on books has long been an issue in the book industry. There have been many organised attempts for books to be zero rated or decreasing the VAT on books.

South Africa does not have a national book policy, although this was a recommendation from the now defunct Book Development Council of South Africa (BDCSA) in 1997, after conducting comprehensive research into the industry. In other countries, both developing and first world countries, book policies and programmes have been put in place by government to stimulate book development. Such policies and programmes are relatively absent in South Africa.

In India, the then Prime Minister established a National Book Trust in 1957, as an autonomous body with the necessary support and funding to increase the level of book production and reading in India. Today, India is the third largest producer of English books in the world and furthermore publishes in at least 22 local languages.

The Philippines enacted a Book Publishing Industry Development Act in 1994, creating a National Book Development Board (NBDB), with corresponding Book Policy and Book Development Plan. An increase of 11% in book production has been recorded from 1998 to 1999.

In Canada, the Department of Canadian Heritage drives book development through a range of programmes, including a Book Industry Development Programme, which started in 1979. In 1999, the budget for this programme amounted to approximately $30 million. The programme primarily aims to grow indigenous publishing, with incentives for local book production to local publishers, as well as increasing book exports.

In Australia, the government developed a Book Industry Assistance Plan, amounting to $38 million annually. The Department of Trade and Industry has a number of programs aiming to grow the book industry and make it globally competitive. The development and implementation of adequate copyright laws has also been given great attention in book development.

These are only four examples of what is happening elsewhere in the world to develop and grow the industry. Unfortunately, South Africa cannot attest to having similar policies, structures or programmes in place to develop the Industry. It is estimated that about R1,8 million is spent annually on book development in South Africa. Having said this, progress has been made in addressing this issue, and partnerships are being forged between government and industry to develop the necessary strategies for book development.

7. Analysis of the Industry

The industry faces a number of challenges in increasing access to and the consumption of books. The problem tree below identifies those challenges.