Urban Brew Studios (UBS) is one of the largest independent television studios on the Africa continent, producing television content for all South African broadcasters. During the year, it celebrated 25 years of URBANATION, being in the business of serving the media landscape.

Operating environment

The production market is tight, especially as a result of continued financial, operational and management challenges being faced by the industry. The commissioned content pie has decreased in size with heightened competition and lower budgets.

However, UBS is well positioned in this market as it traditionally has a success rate of more than 90% on renewals of prior year contracts. It will continue to focus on securing both renewals of existing opportunities with local broadcasters, as well as finding innovative ways to increase the number of projects it produces.

Performance

For 2011 financial year, UBS delivered significantly improved results compared to 2010 with 23,5% revenue growth to R189,8 million. All divisions performed well despite industry specific pressures, which include the slowdown in local content commissioning and the increase in operational costs across most areas of the business.

The highlights for the year include:

•  As the management company appointed by Soweto TV, UBS was instrumental in it achieving good revenue growth.

•  UBS was appointed as the management company for the channel branded as 1KZN TV which was launched on 1 July 2011.

•  One Gospel became the most watched music channel on the DStv Compact bouquet.

•  UBS maintained a number of commissioned productions with new names, including Dance Your Butt Off; Kom Ons Karaoke; Ambush; Headline; Trevor Noah Show; One Day Leader; TV to the Power of 5; and Home Sweet Home.

•  It was awarded the contract to produce a 156-episode telenovella for Mnet to commence early 2012.

•  UBS was commissioned for the first time to produce various projects for the Mnet group of channels that include KykNet and Mzansi Magic.

Prospects

The outlook is complex, due to the unpredictable and short-form nature of most of the contracts awarded in the content sector,as well as the unpredictability of the television media and advertising market in the coming year. UBS is focused on delivering on its strategic plan, and retaining of all existing commissions to sustain its performance.