SABC cuts a deal with MultiChoice
The financially hamstrung SABC is breathing a sigh of relief after it reached a new commercial channel supply deal with pay-TV operator MultiChoice. Although the two organisations did not reveal details of the deal, insiders say the state broadcaster could pocket R700m-R900m a year.
The financially hamstrung SABC is breathing a sigh of relief after it reached a new commercial channel supply agreement with pay TV operator MultiChoice.
Although the two organisations did not reveal the details of the deal, insiders say the public broadcaster could pocket between R700m and R900m a year for providing MultiChoice’s DStv platform with a 24-hour news channel and the entertainment channel SABC Encore.
The SABC confirmed on Tuesday that it is still pushing to reach an agreement regarding the “must carry” regulations.
In 2008, the Independent Communications Authority of SA introduced the “must carry” regulations, which compel payTV companies to carry the SABC’s free-to-air channels — SABC1, SABC2 and SABC3 — in support of universal access.
However, the SABC now wants MultiChoice to pay to carry the three channels, saying the private broadcaster has benefited from the channels as they are among the most watched on DStv. The SABC has been struggling to pay its bills, and is still negotiating with the Treasury in a bid to secure a R3bn government guarantee to keep it afloat.
Earlier in August, the SA Football Association said arrears from the SABC would probably push it to a loss of about R20m in the financial year to June.
A previous deal between the SABC and MultiChoice in 2013 — worth about R533m — was flagged by a parliamentary inquiry as possibly unlawful. That deal, which was about to lapse, gave MultiChoice access to the SABC’s entire archive.
Under that deal, the SABC agreed to supply a 24-hour news channel and an entertainment channel.
One condition was that the SABC would support MultiChoice’s proposal to have encryption-free set-top boxes. Set-top boxes are meant to be introduced as part of the digital migration programme.
Free-to-air service provider eSat TV wants the set-top boxes encoded to fight MultiChoice’s monopoly on pay TV.
In a statement on Tuesday, the SABC said the new agreement with MultiChoice “follows extensive discussions between the parties as the previous contract is set to expire”.
DA MP and communications spokesperson Phumzile van Damme said the party would ask for details of the deal.
Media Monitoring Africa director William Bird said: “We are cautiously optimistic about the new deal. Given the prevalence of MultiChoice and the extra income for the SABC, it is good news that the news channel will continue. We also take heart at the special mention that the archives remain the property of the SABC.”