South Africa and Africa

¶ … Comcast to Carry EbonyLife TV

Channel Financing

Ownership and Management

Ownership

Management

MVPD Distribution

Economic Value to Comcast

This is a proposal for Comcast to carry the EbonyLife TV channel. Acquiring this channel for syndication will increase the variety and richness of the Comcasts offerings, with a channel that is Africa's first global black entertainment and lifestyle network (EbonyLife TV, 2017). For this proposal to be viable it is important to assess the funding of the channel, its' ownership, current distribution and the potential economic value it could add to Comcast's current line-up. Each of these issues is considered individually.

Channel Financing

EbonyLife TV was set up by African female entrepreneur, Mo Abudu, the channel is relativity young, having been set up in 2013 (EbonyLife TV, 2017). The channel requires a significant level of funding to meet its launch commitment to producing more than 700 hours of original programming per annum (Busayo, 2012). The initial financing achieved this commitment, with the channel now producing more than 1,000 hours a year (EbonyLife TV, 2017).

To meet the start-up funding requirements the initial capital was made up of both equity and debt, with the major of finance supplied by Mo Abudu. This position has since changed, with the firm obtaining pay off debt due to the strong revenues as resulting from syndication and the more recent launch of the VOD services through the internet, accessible on the web and though an app with subscription of $4.99 a month or $39.99 per annum (African Business Central, 2015). This inflow of revenues, which have been used to eliminated EbonyLife TV's debt, are not declared in public accounts as the channel is a subsidiary of Media and Entertainment City Africa (MEC Africa) (Busayo, 2012), which in turn is a subsidiary of WPP (2015) a global entertainment and communications company.

With the revenues, including those from the syndication discussed in section 4, revenues it may be extrapolated from the avaiable data that there have not only been sufficient to repay the debt, they have been enough to allow the firm to increase the original programming to 1,000 per year (EbonyLife TV, 2017).

The position of the EbonyLIfe TV as a subsidiary is an important consideration. The position indicates there is strong financial backing for the firm from the parent company, increasing the stability and resources available to EbonyLIfe TV.

3. Ownership and Management

3.1 Ownership

Although EbonyLife TV operates as a independent business unit, the ownership is complex, EbonyLife is a subsidiary of Media and Entertainment City Africa (MEC Africa) (Busayo, 2012). In turn MEC is a subsidiary of WPP (12015) which is a global leader within communications and entertainment with a total of more than 160 subsidiary companies. Comcast has already had dealing with other subsidiary companies in this group, including the Berlin Cameron, who were partnering with BAV Consulting in 2015 (WPP, 2015).

3.2 Management

The current CEO and chairman, who is also the founder, is Mosunmola Abudu, known as Mo Abudu. Mo Abudu is also the majority shareholder and was the entrepreneur who developed the channel (EbonyLife TV, 2017). Mo is not only television executive, she is also a talk show hostess, producer, and undertakes the role of human resource management, indicating she is a highly hands-on owner and CEO (EbonyLife TV, 2017), and has been described by Forbes as "Africa's Most Successful Woman" (Nsehe, 2015). A television programme, called "Moments with Mo" has become one of the most successfully syndicated talk show is broadcast on African regional television, with Variety referring to her as "Africa's Oprah" (Vourlias, 2016). This indicates a high level of passion and commitment to the channel, which appears to be good for its future, and for those who choose to syndicate the channel.

In addition to Mo, the management of the channel is impressive line-up, including executive director Lanre Olusola, who is in an alumnus of Harvard business School, and known as a life coach providing motivational and inspirational management skills (EbonyLife TV, 2017). The commercial director is Uzoma Onwuchekwa who has 25 years as a commercial strategist within the marketing and marketing communications industry, Zac Almeida is the director of technical operations, having worked in television for more than 30 years, while Mark Sonnenberg is the head channel consultant of programming, with 25 years of experience within the entertainment industry across different platforms, including experiencing start-up operations (EbonyLife TV, 2017). Howard Boulter, with an MFA from the University of Southern California is the head of channel consultant for operations, and was formerly president and chief operating officer for LA TV networks, Sandra Amadio is the director of entertainment programming, who has extensive experience on some of South Africa's most highly rated shows, including SAB2 and 3, with a great deal of experience within documentaries (EbonyLife TV, 2017). The remaining lineup also present a high level of experience across a broad peripheral of television experiences which bode well for the performance of the channel in the future nobility to deliver premium programming that will appeal to a large audience.

4. MVPD Distribution

EbonyLife TV is distributed widely. In 2013 EbonyLife TV launched on DStv's channel 159 (EbonyLife TV, 2017). The channel has expanded it's audience, and is now distributed to a total 49 African countries, including South Africa and many southern African countries. The syndication in Africa is undertaken through a licence with Multichoice (DStv) Africa, which is Africa's largest pay TV platform (EbonyLife TV, 2017). On the DStv network EbonyLife TV is one of the most watched channels. The channel is also carried by FLOW in the Caribbean, where it is distributed to 10 countries. Therefore, this is a channel which is already shown in 59 countries.

5. Economic Value to Comcast