DStv monopoly regulation in South Africa — what happens next
The Independent Communications Authority of South Africa (Icasa) has announced that it will publish questionnaires on its website to gather more information about developments in the pay-TV market.
This comes after Icasa launched its Subscription Broadcasting Services Market inquiry in 2016, published its findings in April 2019, and rebooted the process in May 2022.
“Following the public hearings held by the Authority from the 12th to the 15th of January 2021, the Authority notes that there are rapidly changing developments in the market,” Icasa acting chair Yolisa Kedama said in a notice published in the Government Gazette.
“[This is] including but not limited to internet access, data prices, content, viewership patterns and technology which, in the Authority‘s view, are critical for consideration by the Authority in coming to a finding(s).”
Kedama said that after gathering more information, Icasa intends to publish a discussion document for public comment.
“Upon completion of the public consultations on the discussion document, the Authority intends to publish its findings,” she said.
After its first round of inquiries in 2019, Icasa concluded that MultiChoice dominates South Africa’s subscription broadcasting market and proposed several remedies. This included:
- Unbundling sports rights
- Splitting content rights with more than one broadcaster
- Limiting the number of Hollywood studios a broadcaster may have exclusive agreements with
- Decoder interoperability with multiple satellite services
MultiChoice baulked at the proposed regulations and took legal action against Icasa over having to give up its major competitive edge — sports rights.
Last year, MultiChoice told Icasa it faces an existential threat from major international streaming providers.
“We consider providers like Netflix, YouTube, Disney+, HBO Now, and Peacock to be an existential competitive threat,” MultiChoice stated.
Icasa seemed to take MultiChoice’s submission to heart and rebooted its subscription TV market inquiry in May 2022.
Since then, MultiChoice has announced a partnership with Comcast’s NBCUniversal and Sky that will see Showmax switch to Peacock’s technology.
As part of the deal, Comcast will essentially acquire a 30% stake in Showmax for an undisclosed cash injection.
MultiChoice expects to launch the revamped “Showmax 2.0” before its current financial year ends in March 2024.
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