Two down, one to go
This week saw the fall of Telkom Media, which had been the market’s favourite to break MultiChoice’s pay television monopoly. Telkom Media’s demise comes a year after e.sat threw in the towel and instead launched its 24-hour news channel on MultiChoice’s DStv platform.
The outstanding licensed contender is On Digital Media, but it remains to be seen whether it will fly. Like other aspirant pay television operators, it seems to be struggling to raise money.
The company said it had raised a substantial amount, but this probably means it has not met its R1 billion target. And it has warned that there might be a slight delay in its launching, which was set for the fourth quarter.
The folding of e.sat and Telkom Media raises the question as to whether the Independent Communications Authority of SA (Icasa) should be blamed.
It was warned to issue only one additional licence because the market was too small for more than two operators.
Icasa spokesperson Sekgoela Sekgoela says the primary role of Icasa is to regulate the market, not involve itself in the internal operations and investment strategies of the companies it regulates.
Therefore, Icasa has not in any way failed in its aim of introducing competition in the pay TV market. It still believes the subscription broadcasting licensing process it conducted was in the interest of the industry and South Africa at large.
Now that those licensed operators are falling one by one, it remains to be seen whether Icasa will try other ways to break MultiChoice’s monopoly.
As for Walking on Water, it has been discounted as an alternative to MultiChoice. It has positioned itself as a niche operator and may end up providing content to either On Digital Media or MultiChoice. As things stand, MultiChoice will remain the sole pay TV provider for some time.
Business Report
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