Pay TV operators object to unbundling

daveza

daveza

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http://www.channel24.co.za/TV/News/Pay-TV-operators-object-to-unbundling-20111104


Cape Town – South Africa's pay TV operators have rejected the compliance notice issued to them by the National Consumer Commission.

In October the National Consumer Commission ordered South Africa's pay TV companies to perform a so-called "unbundling" of their TV channels which the Commission wants them to sell individually.

Concerned pay TV insiders have told Channel24 that the Commission is misguided and asking the impossible; and that the South Africa's pay TV industry functions on the same global model for pay TV services used around the world.

"Small sardines in a tin can is one product, it's not a 'bundling' of sardines. If people buy sardines one by one they ironically will end up paying much more per sardine because it will cost more to offer them separately," said a South African pay TV executive not authorised to speak on the matter.

Internationally not done

It's currently highly doubtful that even if they wanted to, pay TV operators such as TopTV and MultiChoice wouldn't be able to secure licensing deals for the content to be sold in the way the Commission proposes, since internationally TV channels are simply not distributed in this way.

Vino Govender, CEO of On Digital Media (ODM) that runs TopTV, told Channel24 that On Digital Media intends to reject the proposal by the National Consumer Commission since it would "force us to offer consumers the ability to pick and choose the channels they want to subscribe to".

He says ODM has "taken legal steps to repudiate the commission's line of action because it threatens our business model".

He says if TopTV complies and allow subscribers to subscribe to only a few select TV channels it "could force the only pay-TV alternative to MultiChoice out of business; this will not be in the best interests of the end consumers."

Impossible model to maintain

"We have considered offering pick and mix a la carte options before TopTV launched but discovered the model made no financial sense as content providers would have hiked the cost of channels substantially. The model is also from a systems and administrative point of view impossible to maintain.

"If we remodel our product structure it will cause our business serious harm and could lead to our closure."

Govender says such a move would cost South Africa as much as 6 000 jobs nationally.

MultiChoice feels the same and has also objected to the order from the Commission.
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Spot the lies.
 
Internationally they are not unbundled... but alot of the junk on DSTV is free-to-air in other countries. The free channels are used to bulk up the offerings and make them appear more value for money.
 
Look everybody knows I hate DSTV with a passion. But they are not being dishonest here. This is simply the way the Sattelite and Cable TV industry operates. South African is not doing it any different to the rest of the world.

If you think there is too much junk on DSTV then just unsubscribe. But you can't be a willing subscriber and then complain about their business model.

The fact of the matter is... that some channels which are not as popular as others are bundled together with the more popular channels because they cross subsidise each other and add value to the entire bundle overall. It has been done that way in the industry for years. I would also prefer to be able to pick and choose only what I want to watch (oh, no wait... I already do! :D) But Satellite providers are tied into the bundles not because of their choice. It is forced on them that way by their providers.

If you don't like it, then find another way to get your entertainment.

/rant
 
Instead of trying to compromise they fight it... nice guys.

Why not use this as a chance to open the market up a bit ?
 
To be honest, I think Consumer Commission is abusing their authority. They're more than likely subscribers themselves. The fact is I don't see how a government agency is allowed to dictate the packaging of a luxury product.
 
Even if it isn't 'done' internationally, that doesn't make it right.
 
DSTV Sports(SS1,SS2,S3,SS4,SS5,SS6,SS7+) in HD package: Price R70/month.

^This should be one of their packages and that should the price, NO MORE!:twisted:
 
It is done internationally..

TataSky do it, they have bundled groups and the ability to add individual channels that the subscriber wants over and above that.
 
IIRC - supersport, mnet and BBC are DSTV's most 'expensive' channels.
 
Small sardines in a tin can is one product, it's not a 'bundling' of sardines. If people buy sardines one by one they ironically will end up paying much more per sardine because it will cost more to offer them separately," said a South African pay TV executive not authorised to speak on the matter.
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But they don't force you to buy anchovies, hake, prawns, calamary with those sardines do they ???

Oh yeah - good luck selling bbc + bbc + bbc + bbc for 4 times the price of bbc.

very bad example being used...

the guy bying a tin of sardines obviously like sardines...
The guy that buys dstv might only like the supersport channels, but is now forced to pay for the other crap that he don't like...
 
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The fact is I don't see how a government agency is allowed to dictate the packaging of a luxury product.
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I guess PayTv is a luxury when you have an acceptable free alternative - which we don't.

As for bundling, we can't attack Telkom for forcing us to accept a bundled product and at the same time allow Mnet to carry on as usual.
 
daveza said:
I guess PayTv is a luxury when you have an acceptable free alternative - which we don't.

As for bundling, we can't attack Telkom for forcing us to accept a bundled product and at the same time allow Mnet to carry on as usual.
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Says who? The only "essential" components of a Tv service are news and education. There are free alternatives. Telkom controls what is arguably an actual service. Provide an argument as to how entertainment is essential then we can talk.

I would also like cheaper unbundled Tv but I don't think my wants justify hijacking a private company.
 
It works online (VOD, MP3's Streams etc) so why not here?

Rubbish but not DSTV or Top's fault.Back to those drm demons.
 
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