Media - No clean hands as a bloody “war of ideas” looms

(Published in Leadership Intelligence Bulletin - Online newsletter of Leadership magazine)

By Stef Terblanche

The African National Congress (ANC) has published its Mangaung national conference resolutions on its website – including one that reopened the issue of transforming and regulating the media. Within hours it triggered much reaction. Some say the ANC is just paying lip service to its media resolution and its proposed parliamentary investigation of the media will come to nothing. But there appears to be much more to this complex issue fraught with pitfalls than meets the eye, with neither the ANC nor the media being as innocent or well-intentioned as they claim.

The battle over the role, control, and freedom of the media, or the battle of ideas as the ANC calls it, has been long in the making. The ANC government is also by far not the first in South Africa to clash with a media it perceives to be hostile.

But the current battle started in 2007 when the ANC’s national conference in Polokwane raised the possible establishment of a media appeals tribunal (MAT) that could "strengthen, complement and support" existing self-regulatory institutions and measures.  The issue triggered fierce debate and the media and various analysts attacked the proposal as an attempt to curb press freedom. At the time the ANC government was being increasingly embarrassed by media exposés of corruption in its ranks, while unsavoury media coverage of the affairs of the man who would soon become president, Jacob Zuma, was also on the rise. At the time Zuma was still facing corruption charges.

The battle intensified in the months that followed and the debate widened to include the ANC’s charge that monopolistic ownership of the media continued to vest largely in white hands. In fact, the ANC says black media ownership in South Africa stands at a paltry 14%.

At the same time the suspicions of those opposing possible state or political control of the media were heightened when the ANC reintroduced the highly controversial Protection of State Information Bill in 2010. Critics of the bill and a diverse range of organisations and campaigns that mobilised against it argued that it would stifle media freedom to expose corruption or other illegal activities within organs of state among other things.

The media itself is to blame for much of the pressure on it for transformation and regulation. Twice the media tried to act pre-emptively, and twice it failed to follow through on its own efforts.

First, responding to the ANC’s demand for a MAT, the Print Media SA (PMSA) and the SA National Editors Forum (Sanef) set up the Press Freedom Commission (PFC) in 2011 to find ways of improving self-regulation and avoid the imposition of a state-controlled MAT.

The commission of nine persons from outside the media community chaired by former Chief Justice Pius Langa delivered a report last year on how self-regulation could be improved. The ANC participated in the PFC’s hearings and later said it was quite satisfied with its recommendations.

But then the media was caught napping. The media itself was slow to implement the PFC’s recommendations, showing a preference for some, rejecting others, or appearing to merely be going through the motions on some. The Press Council, for instance, said it had revamped itself, but to outsiders it would appear as little more than window dressing.

Perceiving implementation by the mainstream media of its own recommendations to be slow, the ANC revived the idea of having parliament look at introducing a MAT.  At its 53rd national conference in Mangaung in December the ANC adopted its resolution called “Communications and the Battle of Ideas”.

This latest ANC resolution broadened the scope of possible state interference in the affairs of the media considerably. It now called for the following:

                    The adoption of a media charter to regulate and transform the media and promote black economic empowerment in  the sector;
                    That parliament conduct an inquiry on the desirability and feasibility of a MAT, which includes the PFC recommendations, a review of existing media accountability mechanisms, reviewing the balance between individual  rights and those of the media, and a review of laws dealing with privacy, libel and defamations. (In the past the ANC complained bitterly that the media was trespassing badly in this area with reports on the affairs of President Zuma, for instance);
                    Strengthening the Media Development and Diversity Agency (MDDA) to support more community and commercial entities;
                    Calling on the Competition Commission (CC) to focus on anti-competitive practices within the sector; and
                    Transforming the advertising industry to ensure its contribution to media diversity must be prioritized.

The ANC’s current focus is primarily on all facets of the mainstream print media including its printing and distribution operations, but also to a lesser degree on the advertising industry and on the “new media” (online and mobile platform media). Till now the print media has been self-regulated by its own Press Council; the advertising industry by its own Advertising Standards Authority (ASA); and the new media to some extent by the Online Publishing Association (OPA). The major online newspapers, however, are also owned by the big four print media groups.

The electronic and broadcast media are already regulated by a statutory body, the Independent Communications Authority of SA (Icasa). The ANC and independent researchers view this sector as being the most transformed one.

The MDDA is a development agency for promoting media development and diversity, a partnership between the South African Government and major print and broadcasting media companies to assist in (amongst others) developing community and small commercial media, in terms of the MDDA Act of 2002. In this sector too there has been large-scale transformation to black ownership and control.

When the ANC late last year stepped up its call for transformation of the print media, the owners of the major media publishing houses organised as the Print and Digital Media of SA (PDMSA) again tried to stave off government action. They opted for self-transformation by establishing the Print and Digital Media Transformation Task Team (PDMTTT).

This attempt however also does not seem set for success. The PDMSA already stated its opposition to a media charter, which sets it on a collision course with the ANC. And it has displayed little enthusiasm for the work of its own transformation task team.

Only a few hearings have been held, while one of the major members of the PDMSA, the Caxton group, recently withdrew from the process because of the Competition Commission’s investigation into monopolistic practices in the media. And the media houses have not called for public participation, nor have they communicated in any depth in their own newspapers the issues involved or the processes they have embarked on.

The ANC believes the big four print media groups, namely Naspers, Avusa, Caxton and the foreign owned Independent Group, still dominate the entire value chain of the market in this sector including printing, distribution and advertising. This it views as the biggest barrier to market entry for other media players and the ANC says it shows possible anti-competitive behaviour. Hence the call for the Competition Commission to investigate.

The commission is already investigating suspected anti-competitive behaviour by Caxton, Naspers, Times Media Group and Independent Newspapers. That there are problems in this area is quite clear from the commission’s 2011-12 annual report, which gives the example of a case of “predatory pricing” by Media24 (Naspers). The commission  found that Media24 had used its two Free State goldfields titles, Vista and Forum, to squeeze out an independent newspaper called Gold-Net News by charging businesses below-cost advertising rates, thus “making it impossible for Gold-Net to compete for the business of advertisers, and eventually forcing it to exit the market in April 2009.”

The ANC on the other hand has also not come quite clean with a credible explanation for its quest to control and transform the media.

It does not have what it would consider being significant influence with the main print media players in South Africa, being Media24, Caxton, Avusa and Independent Newspapers. A new ANC-friendly newspaper, The New Age, was launched by the Gupta family which is close to President Zuma and other senior ANC members. However, despite recent reports of vast sums of public funds being channelled to The New Age, the paper has not made a sufficient enough dent on the circulation front for it to divulge its actual circulation and readership figures.

The MDDA in 2009 released a report based on research it had commissioned on the trends of ownership and control of the South African media. It is this report which the ANC rather selectively quotes when it puts ownership of the media by blacks, or “historically disadvantaged individuals”, at 14%.

To arrive at accurate figures of ownership depends on what categories of media are included and how it is calculated, bearing in mind also that some of the figures may have changed since the 2009 release of the study. Ownership data also differ immensely from one media group to another. For instance, Media24 has 15 HDI shareholding, Caxton 0% and Avusa 25.5%.  Independent is wholly foreign-owned as therefore also has 0% HDI shareholding.

Together the HDI shareholding of the big four groups amounts to an average of 10.1%. Without Independent Newspapers it is 13.4%. Should Primedia be added as the fifth major print media player with its 50% HDI shareholding, the average for the five groups is 18.1% HDI ownership.

On the other hand, if the so-called independent media players – smaller regional and community publications or single-newspaper publishers – are included, there are at least 206 out of the estimated 469 newspaper titles published countrywide, who have HDI shareholding, pushing the average total up to around 44%.  There are also close to 70 smaller newspapers that are 100% owned by HDI shareholders.

Another anomaly is the fact that HDI shareholding is not always considered to be the same as black shareholding. For instance, The Mail and Guardian has 87.5% black ownership, but 0% HDI ownership because the black owner of the newspaper is a naturalised South African originally from Zimbabwe who is not considered to be an HDI owner.

The bottom line is that any breakdown of the numbers involved in the transformation of media ownership in South Africa along the above lines is open to manipulation to suit a particular viewpoint. It is clear that the ANC’s primary interest is in the big four print media groups who control the influential major newspapers in South Africa, and not in the other largely transformed sectors. It is here where the ANC believes, in its own words, that the “war of ideas must be fought like a real war”.

The government also already controls a massive state media sector by virtue of the SABC and the Government Communication and Information System (GCIS). Through these and through friendly smaller newspapers as well as the ANC’s own internal communications and political structures the party quite adequately gets its message across to the voting masses.

But with literacy rising, urbanisation increasing and a new generation of better educated voters emerging, the ANC may perceive a real need to change the control and news content of the “anti-ANC” mainstream print media.

This is evident too from the ideological tone of its Mangaung resolution. Apart from the war talk already mentioned, the ANC says things like –
-          “the battle of ideas is being waged between the theoretical and practical underpinnings of the democratic developmental state and neo liberal paradigm”;
-          “his ideological battle is being waged mainly through the market forces which seek to dislodge the democratic forces as the drivers of change and to substitute the objectives of the national democratic revolution (NDR) with a neo-liberal market driven paradigm”;
-          a national dialogue is needed to “reignite and deepen the battle of ideas” to, amongst others, “reassert the position of the ANC as a progressive leader of society”; and
-          that, with reference to the four main media groups, “the print media existed for many years as one of the pillars of the apartheid” and is still trapped in the patterns and behaviour of the apartheid era.

Following the ANC’s publication of its conference resolutions recently, the press ombudsman, Joe Thloloe, reportedly said he thought it was unlikely that the ANC’s proposed MAT would materialise as it would be subjected to a Constitutional Court battle, but that the parliamentary inquiry would continue because the ANC has to be seen carrying out its resolutions.

However, it is much more than just the proposed MAT that is at stake this time round. Judging by the vested interests and strong signs of hidden agendas of both sides to this contest, it seems a major “war of ideas” may well lie ahead.

No comments: