South African media group Primedia has announced the completion of a major 18-month restructuring programme that included the creation of two new divisions to separate content and delivery.

Ferdi Gazendam, a former director of South African television hire company Teljoy, will head Primedia's newly created Media division, which includes the Ster-Kinekor Theatres chain. Peter Matlare heads the Broadcasting and Entertainment division.

While the Primedia group owns several commercial radio stations, it lacks a television arm and is investigating the possibility of making either acquisitions in this area or forming a strategic alliance.

Gazendam's major challenge is to improve the poor performance of Ster-Kinekor theatres, which suffered from a lack of blockbuster product and a poor local economy last year. A recent move to slash cinema ticket prices from about $3.97 (R25) to about $2.86 (R18) is expected to improve attendances at the group's cinemas.