Comcast acquisition proposal for EbonyLife TV channel

¶ … 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.

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

The channel has a primary target audience of black people between the ages of 18-34 years (Nsehe, 2015). This is a large demographic, in the US the 51% of all black females are in this age group, with 41% of all black males in the US in this age group (BlackDemogroahics.com, 2017). With female African-American population of 23.5 million, and a male African-American population of 21.5 million, this is a significant potential target audience. Notability, the channel also appeals to an older secondary market, and which will not be limited to only the African-American audiences. This indicates there is a broad appeal of the channel, which will complement the existing channel line-up, helping to increase customer satisfaction with the offerings, and generate more revenues due to that satisfaction. The revenues may come from increased payments from existing subscribers paying for the channel, the potential to attract new subscribers, and from increased revenues from advertising. This channel has proven popular as it is like to gain sufficient audience numbers to generate high advertising revenues.

6. Conclusion

Overall, it appears that the channel offers a great potential for Comcast, it has a strong performance record, supported by strong management and a sound financial position, indicating it is likely to continue to produce similar programming in the future, With a good line up, and a high level of popularity, this would make a good addition to Comcast's line up and facilitate additional value creation and revenue generation.