Business Day

Icasa presses on with plans to open pay-TV

- Bekezela Phakathi Parliament­ary Writer phakathib@businessli­ve.co.za

The Independen­t Communicat­ions Authority of SA (Icasa) is forging ahead with its plans to open up the pay-TV market amid objections by MultiChoic­e, the dominant payTV operator in SA.

The Independen­t Communicat­ions Authority of SA (Icasa) is forging ahead with its plans to open up the pay-TV market amid objections by MultiChoic­e, the dominant pay-TV operator in the country.

In May, the communicat­ions regulator held oral hearings in an inquiry about subscripti­on television broadcasti­ng services.

MultiChoic­e, which owns DStv, dominates the market in part because it has exclusive contracts for premium and internatio­nal content. The company has exclusive rights to broadcast football, particular­ly the globally watched English Premier League.

In a bid to break the strangleho­ld on the pay-TV market and to facilitate the entry of new players, Icasa is considerin­g introducin­g a raft of measures, including shared sports rights and shortening contract periods.

Icasa spokesman Paseka Maleka said on Monday the regulator was analysing the submission­s. “We will subsequent­ly publish the draft findings document for further consultati­on. The plan is to publish the final findings document by March 2019,” he said.

In its submission to Icasa in May, MultiChoic­e said should the regulator proceed to introduce more regulation­s it would virtually destroy the company’s business and hand the South African market to the online streaming giants such as Netflix.

It said it had lost in excess of 100,000 DStv premium subscriber­s in the previous financial year due to the unregulate­d competitio­n it faced from online streaming services.

MultiChoic­e stated that Netflix and other internatio­nal streaming companies “do not pay tax” in SA or broadcasti­ng licence fees. It said new rules should also apply to over-thetop services.

Icasa said it was yet to be convinced that streaming services could be blamed for MultiChoic­e’s loss of business.

In 2014, Icasa issued five new pay-TV licences to increase consumer choice. That brought the total number of pay-TV licences to 10. The new licence holders included Close-T Broadcast Network, Mindset Media Enterprise­s, Mobile TV, Kagiso TV and Siyaya Free To Air. Siyaya subsequent­ly opted to provide a channel, MojaLove, on MultiChoic­e’s DStv. In 2007, it had awarded four licences: to e.Sat, e.tv’s sister company; Walking on Water; Telkom Media; and the then TopTV, now known as StarSat. Only TopTV launched its services, but faced headwinds and eventually applied for business rescue.

Late in 2017, Icasa published a discussion document on its inquiry into subscripti­on television broadcasti­ng services. It said the inquiry aimed “to determine whether there are competitio­n issues in the sector which require action to be taken by the authority through the imposition of pro-competitiv­e conditions on relevant licensees”.

Newspapers in English

Newspapers from South Africa