The Internet is not likely to replace traditional media in the foreseeable future, according to SA`s media bosses. However, they say the Internet and digital devices can offer significant value in adding to the 'out of home` delivery of content.
This emerged at an International Communications Forum conference hosted by Telkom in Cape Town this week.
Speaking at the conference, SABC CEO Peter Matlare, Johnnic Publishing CEO Connie Molusi and Primedia CEO William Kirsh said many media groups had overestimated the potential for the Internet to overtake other media in its early days.
The panel of CEOs said many media companies have had their fingers burnt by the Internet, and that in SA, where there is rampant poverty and limited access to digital media, the Internet has a limited commercial potential for media companies at this stage. They see the Internet as being supplementary to their other media offerings.
Matlare said the SABC is keeping up with the "technological revolution" in order to deliver content in whatever form the public wanted it. He highlighted the SABC`s existing SMS and voice news-on-demand services, and said the broadcaster aims to deliver bulletins to desktops by later this year.
Matlare highlighted the fact that global advertising revenues are stagnant, and that offering content across new delivery platforms could prove costly. "We envisage that public-private partnerships will be needed to help us exploit the opportunities presented by new media."
Kirsh said Primedia believes that while the Internet looks promising in terms of its low barriers to entry, any content produced on the Internet should coexist with other offline products in order to be viable. However, he feels the Internet shows considerable potential for growth in the e-commerce arena.
Molusi said the troubled AOL-Time Warner merger had raised serious questions about mass media converging with the Internet. He said companies are questioning whether online news could be offered within a sustainable business model at a time when media companies are grappling with the problem of growing in a stagnant economy.
The media heads said news content is expensive to produce, and that offering the same content across different media - including new media - could help to maximise the revenue generated by the content. They therefore see the Internet and mobile devices as an important supplementary content delivery option.
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