8 January, 2018 - 06:01
It's SABC and e.tv versus DStv as the future of South Africa's pay TV market is being hotly contested in a discussion document. It forms part of an inquiry into subscription TV services by broadcast regulator, the Independent Communications Authority of SA (Icasa). by Charl Blignaut
The central figure in the inquiry is MultiChoice, whose M-Net and DStv services control 98% of the pay TV market, with revenue believed to be up to R20 billion in subscriptions, according to an annual PwC report on consumer spend on TV.
In addition, sports rights are a particularly sore point for the free-to-air broadcasters, as well as the Competition Commission.
The submissions, made public on Icasa's website late on Friday, reveal that MultiChoice has become so powerful that its channels are now watched in 41% of South Africa's TV-viewing households, controlling 48% of the TV industry's share of advertising, as opposed to SABC's 36% and e.tv's 16%.
Free-to-air broadcasters e.tv and SABC say they are primarily reliant on advertisers and the less of the advertising pie they get, the less likely they are to survive and educate and entertain the nation.
While e.tv raises similar concerns about DStv's monopoly of the market, SABC's 30-page response takes a hard line against MultiChoice, marking a shift of tone under the new board at the public broadcaster. They are supported by submissions from civil society groups the SOS Coalition and Media Monitoring Africa.
MultiChoice submitted a 600-page document in its own defence.
The SABC, in particular, suggests concrete changes to existing broadcasting regulations and legislation. The main areas of concern for e.tv and the SABC include:
Legislation
In 2006, the Electronic Communications Act attempted to cap the commercial potential of pay TV operators such as MultiChoice by legislating that their revenue from advertising may not exceed their revenue from subscribers. However, say e.tv and the SABC, the legislation is useless because DStv's subscriptions have gone through the roof;
Must carry regulations
In 2008, Icasa determined that pay TV operators of a certain size in South Africa must carry the SABC's free-to-air channels for no pay. The SABC says their shows such as Uzalo, Generations, Skeem Saam, Muvhango, Tjovitjo and Isidingo are the most watched shows on the DStv bouquets in terms of audience numbers , and that they should be allowed to negotiate being paid for their content on DStv;
Sports rights
A contentious issue for almost all broadcasters is MultiChoice's total dominance of the rights to sporting events. This is made particularly difficult for the SABC, which is legally mandated to broadcast certain events. The SABC is having to sub-license rights from SuperSport, often at high rates and sometimes with the agreement that they delay their broadcasts so that they are not live. They accuse MultiChoice of hoarding sports rights by signing long-term deals with sports associations. They want these rights unbundled and spread between all broadcasters, a notion supported by e.tv; and
The SABC makes no bones about how MultiChoice was advantaged by the apartheid government, allowing the Naspers group to diversify into TV and create M-Net, even giving it 21 years of open time to market its content, in turn allowing it to launch DStv in 1995.
Touchvision enables creative professionals to achieve stellar growth
Request a trial, book a demo or call us for a chat
Get New Film Business in 2018
Select your Membership
Many players in the TV industry say in their submissions that Icasa has spectacularly failed to protect the market, and that they embarked on similar inquiries in the past, with no effect. Almost all the submissions say that Icasa's inquiry needs to be broader than pay TV, because the TV market mutates due to the internet.
In its whopping 604-page response, MultiChoice raises numerous legal technicalities around jurisdiction, scope and market definition.
But the core thrust of its argument is that it, like all the players in the TV market, is under massive threat from internet-based over-the-top (OTT) TV services such as YouTube, Netflix, Facebook and Amazon Prime Video, which are largely unregulated in South Africa compared with the extensive regulation around traditional and pay TV. They point to how OTT content has shattered the traditional music market as viewing patterns shift online and on to mobile devices around the world. They say research indicates that South Africa has the second highest growth of mobile video consumption in the world. South Africans who are younger than 34 lead the world's demand for streamed mobile content.
Piracy is another threat, they point out, as well as declining viewership and advertising figures, and the loss of exclusivity over content. MultiChoice says traditional TV channels on SABC and e.tv face multiple threats, not just from MultiChoice's market dominance. The company refers extensively to emerging local OTT players and points to the massive investment it has made to offer a winning service.
MultiChoice insists it is not to blame for new players struggling to enter the market, but rather that its competitors have not made the right strategic choices. Pay TV licences have been offered by Icasa, says MultiChoice, but the winning bidders failed to launch.
Critics point out that MultiChoice has its own investments, such as Showmax, and future plans for dominating the local OTT market.
THE COMPETITION COMMISSION
In its submission, the Competition Commission says its investigations, many of which are still under way, pertain specifically to sports rights and viewers' complaints that to watch sport, they have to pay for channels they don't want. It says there is a need for pro-competitive r
Most recent headlines
09/11/2025
Dalet today announced a transformative leap forward for media operations: Agentic Artificial Intelligence (AI) that unifies the Dalet ecosystem under one natura...
16/10/2025
SVG Sit-Down: FUJIFILM Execs on GFX ETERNA 55 Camera, Importance of Shallow-Dept...
16/10/2025
Squash's Most Ambitious Broadcast Production To Be Deployed at Comcast Busin...
16/10/2025
Main Street Sports Group Inks Deal With Omaha Productions, Launches Original-Con...
16/10/2025
A Historic Precursor? FIFA, HBS, DAZN Offer an Inside Look at Production of FIFA...
16/10/2025
Prime Video Offers Sneak Peak at New NBA on Prime StudioThe massive 13,000-sq-ft, two-story studio features a LED regulation half court and hoopBy Jason Dachman...
16/10/2025
SVG Remote Production Forum Draws Record Crowd for Visit to PGA TOUR Studios, De...
16/10/2025
BitFire's Ben Grafchik on How Growing Cloud Workflows Are Impacting the Live...
16/10/2025
AI technology is advancing quickly, bringing both new creative possibilities and...
16/10/2025
In 2017, Imani Ellis launched CultureCon, a conference that's become a must-attend event for more than 10,000 diverse creatives and Black professionals to c...
16/10/2025
It might still be a little early to break out the tinsel and mistletoe, but Spotify's already queuing up some holiday magic. This year's Spotify Singles...
16/10/2025
Earlier this year, our in-house publishing imprint, Spotify Audiobooks, put out ...
16/10/2025
VAMPIRE has been integrated onto GM Defenses Infantry Squad Vehicle (ISV), providing a mobile solution to effectively and affordably counter small drone threat...
16/10/2025
The AgilePod mounted on the host aircraft....
16/10/2025
60% say infotainment systems are a critical purchasing or leasing consideration,...
16/10/2025
NEW YORK The Broadcasters Foundation of America has launched its 2025 Year-End Giving Campaign, which seeks to raise donations from tax-deductible personal and ...
16/10/2025
Roku has added several new features to its user interface and operating system meant to make it easier to discover and personalize content, the company said....
16/10/2025
NEW YORK CNN has announced that its All Access subscription tier will launch in the U.S. on Oct. 28, providing audiences with a centralized destination for CNN&...
16/10/2025
Student Spotlight: Alan Villanueva The graduate student and saxophonist, who performed on Natalia Lafourcades Latin Grammy-nominated Live at Carnegie Hall alb...
16/10/2025
The XR Sports Alliance (XRSA) has announced the third cohort of members. The new members include Maple Leafs Sports & Entertainment (MLSE), the Vegas Golden Kni...
16/10/2025
NEW YORK The Broadcasters Foundation of America has launched its 2025 Year-End Giving Campaign which seeks to raise donations from tax-deductible personal and c...
16/10/2025
NEW YORK Australia's Nine Network and the NHL today announced a media partnership that will bring the world's premier professional ice hockey league to ...
16/10/2025
Parks Associates has released new data showing that nearly half (45%) of U.S. internet homes watch free ad-supported streaming TV (FAST) services and 89% of U.S...
16/10/2025
TROY, Mich. -New data from J.D. Power's 2025 U.S. Residential Internet Service Provider Study shows that residential wireless internet providers are growing...
16/10/2025
TV's most charming detective drama * Shakespeare & Hathaway: Private Investi...
16/10/2025
Back to All News
Thailand's Legendary Outlaw Returns: Tee Yai: Born to be ...
16/10/2025
Back to All News
Christmas Is Just Around The Corner: Home For Christmas Season...
16/10/2025
Back to All News
Trist n Ulloa Stars in El crimen de Pazos, the New Netflix Ser...
16/10/2025
ABS Completes Redomiciliation to Dubai Development Authority as Part of Strategi...
16/10/2025
This Saturday October 18 Katja Mia will burst onto the radio airwaves for the first time as she joins 2FM. Katja will be standing in for Bl thnaid Treacy on Sat...
16/10/2025
This October, RT is delighted to support Wexford Festival Opera, Babor International Arts Festival for Children, Open House Dublin and 36 other arts and cultu...
16/10/2025
GeForce NOW is more than just a platform to stream fresh games every week - it offers celebrations for the gamers who make it epic, with member rewards to sweet...
15/10/2025
Across the world, early-career reporters are interrogating systems that shape daily life, from mortuaries and classrooms to the corridors of legal education and...
15/10/2025
St. Louis Blues Pay Tribute to Ozzy Osbourne in New Pregame Open VideoThe NHL franchise worked with production firms 2WEI and 4th Floor CreativeBy Mark J Burns,...
15/10/2025
Cobalt Digital, G3DVu, Proxima Vision, and Telos Alliance Renew Premier Sponsors...
15/10/2025
By Paige Bethmann
Before my grandmother passed away in 2019, I went to visit her in the hospital where she'd been for a few weeks. When I arrived, the nurs...
15/10/2025
Two years ago, Spotify set out to grow the entire publishing industry by making ...
15/10/2025
People turn to DJ for a listening experience that feels personal, dynamic, and j...
15/10/2025
Las personas recurren a DJ para vivir una experiencia de escucha personal, din m...
15/10/2025
Rock legend Bruce Springsteen and luminary actor Jeremy Allen White came togethe...
15/10/2025
At Spotify, we're all about supporting rising talent and helping them connec...
15/10/2025
New SBS Documentary Series THE CANCER KILLERS Premieres 4 November on SBS & SBS ...
15/10/2025
SBS celebrates the Festivals of Lights with bold, illuminating stories across th...
15/10/2025
One of humanity's most profound questions continues: Is there any place in our galaxy suitable for life beyond Earth? NASA intends to find out, with the hel...
15/10/2025
eds3_5_jq(document).ready(function($) { $(#eds_sliderM519).chameleonSlider_2_1({ content_source:......
15/10/2025
Scality, a global leader in cyber-resilient storage software for the AI era, today announced the advancement of its comprehensive AI ecosystem certification pro...
15/10/2025
The Hollywood Professional Association (HPA) today unveiled key highlights of the 2026 HPA Tech Retreat, scheduled for Feb. 15 19 at the Westin Rancho Mirage Go...
15/10/2025
At NAB Show New York 2025 (Stand 244), Interra Systems will showcase the future of media QC, monitoring, and captioning, highlighting its award-winning, AI- and...
15/10/2025
Grass Valley today announced that RMC BFM, part of the CMA-CGM Group and France's third-largest private media group, has chosen Grass Valley's productio...
8 January, 2018 - 06:01 
