TopTV battles to take to air as relaunch is delayed
THE relaunch of pay-TV provider TopTV has been delayed due to regulatory processes, amid reports that its controlling shareholder, StarTimes, is under financial duress that has forced it to cut back on spending in Africa. Launched in 2010 by On Digital Media to rival MultiChoice, TopTV has failed to gain traction and will be fighting for survival against e.tv and Sentech.
THE relaunch of pay-TV provider TopTV has been delayed due to regulatory processes, amid reports that its controlling shareholder, Chinese-based StarTimes, is under financial stress that has forced it to cut back on spending in Africa.
Launched in 2010 by On Digital Media to rival MultiChoice, TopTV has failed to gain traction and will be fighting for survival against e.tv and Sentech, which are launching separate free-to-air satellite services.
E.tv and Sentech will offer consumers multiple channels with no monthly subscription fees. Consumers will have to pay a one-off fee for a decoder.
On Digital Media filed for business rescue in November last year and is still in the process of finalising the sale of the business to the Chinese company.
StarTimes operates in more than 10 countries in Africa and plans to rebrand TopTV into StarSat with more than 90 channels. The initial relaunch was planned for tomorrow, but on Tuesday On Digital Media said the launch “has been slightly delayed due to regulatory processes.”
However, it said that it hoped to still launch TopTV before the end of the year.
Independent Communications Authority of SA (Icasa) spokesman Paseka Maleka said the regulator “received an application in September for (the) transfer of (an) Individual Electronic Communications Network Service Licence from On Digital Media to StarTimes Media and it is still under consideration”.
Media reports from Nigeria said the company may be facing a funding crisis that could halt investment in its African operations. According to the reports, StarTimes president Pang Xinxing was recently quoted by the Chinese Entrepreneur and China Daily as saying that StarTimes has slowed down its operations in Africa due to a paucity of funds.
In some countries, StarTimes will reportedly be unable to start operating despite being granted an operating licence.
On Digital Media dismissed reports that StarTimes is facing financial difficulties.
On Digital Media said its creditors would not have voted “overwhelmingly” for StarTimes to take over the business.
On Digital Media said Mr Xinxing was referring to the difficulties facing the roll-out of digital terrestrial TV (DTT) on the conti- nent. In other countries in Africa StarTimes operates a pay-TV service using the DTT platform, while in SA it will use satellite.
African countries, including SA, have until June 2015 to complete the migration from analogue broadcasting to digital.
“Mr Xinxing was referring to the need for stronger financial partnerships between broadcasters and governments to improve access to digital TV, and ensure that the (migration) in fact takes place,” On Digital Media said.