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Impact of Covid 19 on Media Sustainability

Broadcasting

Private commercial radio
The radio sector in South Africa, as represented by listed private sector radio company AME, appears
also to have encountered adverse business conditions in the year to end-March, though less than the
print sector. AME reported, “Low business confidence and challenging trading conditions placed
further strain on our resources.” Overall, revenue for the financial year was flat and operating
profit was down by 8% year-on-year, after adjusting for an unusual gain in the previous year. For
its key radio station, Algoa FM, AME stated “Poor trading conditions since May 2019 combined with
the cancellation of advertising from March 2020, due to the COVID-19 virus, resulted in lower than
anticipated profitability for the year.”
Most of the private commercial radio sector is unlisted, and financial information is closely guarded.
Major radio group and web news producer Primedia, as noted above, when announcing the start of
retrenchments at the group reportedly blamed a “challenging economic environment in South Africa,
rapid technological change and new entrants in the media sector,” aggravated by the Covid-19
pandemic and lockdown.74
Yet – and this is a common paradox of media during the Covid-19 crisis – demand for some media shot up.

74. Reporter, “Primedia Group Starts Retrenchment Process.”

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