Choice multiplied
Cellular operator Vodacom made known its intention to apply for a licence after the Independent Communications Authority of SA invited bids for unlimited pay-television licences in January this year.
Telkom is known to be interested, as it attempts to diversify its revenue stream. Already stepping on MultiChoice’s turf is MTN, which has signed an agreement to provide video material from each match in the 2006 World Cup on cellphones.
One analyst said there could be negative sentiment surrounding the new competitors and there are implications for MultiChoice SA, which is worth 38% of Naspers’ net asset value.
As much as MultiChoice is going to meet competition locally for the first time, the effect on the group’s business will be marked only if competitors get the right content.
Most of the content aired on MultiChoice’s bouquet is exclusivly sourced by the broadcaster.
Vodacom, on its 3G network, already broadcasts some of these channels, which could mean some future conflict.
Out of the more than 300 channels available worldwide, a new competitor will have to source channels that strike a chord with the South African viewing public, as MultiChoice holds on tight to its content.
Inet-Bridge
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