{"id":442256,"date":"2022-04-26T10:09:18","date_gmt":"2022-04-26T08:09:18","guid":{"rendered":"https:\/\/mybroadband.co.za\/news\/?p=442256"},"modified":"2022-04-26T14:04:17","modified_gmt":"2022-04-26T12:04:17","slug":"dstv-and-e-tv-battle-over-dropped-channels","status":"publish","type":"post","link":"https:\/\/mybroadband.co.za\/news\/broadcasting\/442256-dstv-and-e-tv-battle-over-dropped-channels.html","title":{"rendered":"DStv and E-tv battle over dropped channels"},"content":{"rendered":"<p>MultiChoice and eMedia Holdings are fighting it out over DStv&#8217;s plan to cut four E-tv channels.<\/p>\n<p>On Monday, the Competition Tribunal heard eMedia&#8217;s application for interim relief against MultiChoice&#8217;s decision to drop the eMovies, eMovies Extra, eExtra and eToonz channels from its DStv packages.<\/p>\n<p>The broadcaster planned to suspend these channels from its service at the end of March 2022. It delayed the removals by two months after E-tv decided to take the issue to the Competition Commission.<\/p>\n<p>eMedia Holdings legal counsel Tembeka Ngcukaitobi argued that MultiChoice&#8217;s decision amounted to a dominant player refusing to supply a scarce service, in contravention of the Competition Act Section 8.<\/p>\n<p>The company believes it will lose as much as 19% of its advertising revenue should the channels be suspended.<\/p>\n<p>In his opening arguments on the matter, Ngcukaitobi stated that MultiChoice did not justify its decision during negotiations or in response to a letter of demand from eMedia.<\/p>\n<p>MultiChoice had only stated the decision was based purely on commercial considerations.<\/p>\n<p>It was only in its first answering affidavit to the case brought before the Competition Tribunal that MultiChoice elaborated.<\/p>\n<p>Initially, its rebuttal included that it had satellite capacity constraints.<\/p>\n<p>MultiChoice said it had to cut eMedia&#8217;s four channels so it could accommodate three yet-to-be-launched SABC channels that it must carry under South African broadcasting laws.<\/p>\n<p><a href=\"https:\/\/mybroadband.co.za\/news\/wp-content\/uploads\/2022\/03\/E-TV-headline-.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-large wp-image-439194\" src=\"https:\/\/mybroadband.co.za\/news\/wp-content\/uploads\/2022\/03\/E-TV-headline--800x533.jpg\" alt=\"\" width=\"800\" height=\"533\" srcset=\"https:\/\/mybroadband.co.za\/news\/wp-content\/uploads\/2022\/03\/E-TV-headline-.jpg 800w, https:\/\/mybroadband.co.za\/news\/wp-content\/uploads\/2022\/03\/E-TV-headline--600x400.jpg 600w, https:\/\/mybroadband.co.za\/news\/wp-content\/uploads\/2022\/03\/E-TV-headline--768x512.jpg 768w\" sizes=\"(max-width: 800px) 100vw, 800px\" \/><\/a><\/p>\n<p>But eMedia disputed this, claiming that its calculations showed MultiChoice had more than enough bandwidth on one of the satellites it has capacity on.<\/p>\n<p>eMedia alleged MultiChoice held satellite bandwidth broadcast capacity from 23 transponders on Intelsat IS-20 and 28 more on the Intelsat IS-36 satellite.<\/p>\n<p>MultiChoice&#8217;s initial affidavits didn&#8217;t reveal which satellite it uses for the four E-tv channels. It also disputed eMedia&#8217;s calculations and said\u00a0it had only 21 transponders on IS-20.<\/p>\n<p>Curiously, it included data on the IS-20 satellite&#8217;s capacity to try and support its case, implying that this was the satellite on which E-tv&#8217;s channels were broadcast.<\/p>\n<p>When E-tv&#8217;s experts performed calculations based on this input, it worked out that E-tv&#8217;s 720p &#8220;HD Ready&#8221; channels would take up between 3.5Mbps and 5Mbps of capacity.<\/p>\n<p>That means they would occupy a combined maximum of 20Mbps of bandwidth out of an estimated 1,150Mbps on IS-20 \u2014 or a 1.7% share.<\/p>\n<p>MultiChoice had claimed that IS-20 could host four more channels for uplink from South Africa.<\/p>\n<p>Ngcukaitobi also stressed that DStv doesn&#8217;t have to carry SABC&#8217;s additional channels immediately, but only sometime in the future following negotiations with the SABC.<\/p>\n<h3 class=\"my-4\">Confusion over satellite in question<\/h3>\n<p>However, MultiChoice subsequently claimed that the channels took up more than 11% of capacity, with each drawing up to 6.5Mbps for 26Mbps in total.<\/p>\n<p>While DStv did not directly clarify which of the satellites it hosts E-tv&#8217;s channels, its new data suggested they were actually broadcast on IS-36.<\/p>\n<p>Ngcukaitobi repeatedly emphasised that MultiChoice&#8217;s first affidavits seemed to completely ignore the broadcaster&#8217;s capacity on the IS-36 satellite, continually suggesting that IS-20 was the satellite being used.<\/p>\n<p>In another affidavit, MultiChoice backtracked on the capacity constraint argument and said it was never told to specify details around bandwidth capacity on the actual satellite used for E-tv&#8217;s broadcasts.<\/p>\n<p>Ngcukaitobi described MultiChoice&#8217;s apparent flip-flop as &#8220;astonishing&#8221; and an attempt to turn the litigation into a game of &#8220;catch me if you can&#8221;.<\/p>\n<p>&#8220;The only reason why the capacity defence is abandoned is because it has been shown to be unsustainable in their evidence,&#8221; Ngcukaitobi stated.<\/p>\n<h3 class=\"my-4\">E-tv needs DStv<\/h3>\n<p>eMedia contends under the prevailing market dynamics, its channels were dependent on DStv to remain competitive.<\/p>\n<p>Ngcukaitobi argued presence on the DStv platforms allows E-tv to maintain customer contact, generate advertising revenue, and ensure a high-quality broadcasting service.<\/p>\n<p>The company has also argued that carrying the four E-tv channels was economically feasible for MultiChoice, as eMedia provided them for free, and two were in DStv&#8217;s top 10 most popular channels.<\/p>\n<p>MultiChoice&#8217;s other reasons for denying a carriage renewal agreement included that the channels did not meet its strategic objectives for local content, black empowerment, value propositions, and its aim to decrease the frequency of repeats.<\/p>\n<p>Ngcukaitobi said MultiChoice&#8217;s claims that the decision was based on E-tv not meeting DStv&#8217;s strategic objectives were &#8220;contrived&#8221;.<\/p>\n<p>He argued two of the four channels were sharply focused on local content, while eMedia was a majority black-owned business.<\/p>\n<p>He also maintained MultiChoice had not provided evidence it would replace the channels with other offerings that met its criteria.<\/p>\n<p>Ngcukaitobi surmised that MultiChoice&#8217;s action was done from a desire to inflict harm on a potential rival by undercutting its revenue.<\/p>\n<p>The hearing continued this morning from 10:00.<\/p>\n<hr \/>\n<h3 class=\"my-4\">Now read: <a href=\"https:\/\/mybroadband.co.za\/news\/broadcasting\/442214-dstv-to-offer-disney-in-south-africa.html\" rel=\"bookmark\">DStv to offer Disney+ in South Africa<\/a><\/h3>\n","protected":false},"excerpt":{"rendered":"<p>According to eMedia, MultiChoice has claimed it must cut four E-tv channels to make room on its satellite to broadcast three new SABC channels, which it must carry under South African broadcasting laws.<\/p>\n","protected":false},"author":341042,"featured_media":441746,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_sma_x_autopost_status":"idle","_sma_x_autopost_error":"","_sma_x_post_id":"","_sma_facebook_post_id":"","_sma_instagram_post_id":"","_sma_threads_post_id":"","_sma_x_attempts":0,"footnotes":""},"categories":[24],"tags":[3222,5960,85,2092,51025,35,475,361,78076],"class_list":["post-442256","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-broadcasting","tag-competition-commission","tag-competition-tribunal","tag-dstv","tag-e-tv","tag-emedia","tag-headline","tag-multichoice","tag-sabc","tag-tembeka-ngcukaitobi"],"_links":{"self":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts\/442256"}],"collection":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/users\/341042"}],"replies":[{"embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/comments?post=442256"}],"version-history":[{"count":1,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts\/442256\/revisions"}],"predecessor-version":[{"id":442338,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts\/442256\/revisions\/442338"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/media\/441746"}],"wp:attachment":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/media?parent=442256"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/categories?post=442256"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/tags?post=442256"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}