South Africa’s Competition Commission Says It Will Not Prosecute MultiChoice And SuperSport
It decided not to prosecute because it didn’t see any reasonable prospects of success.
Instead, it made the suggestion that a regulatory intervention would be more effective in dealing with SuperSport and MultiChoice’s dominance of the subscription TV market.
The Commission also added that it foresaw a potential market failure in the subscription TV sector due to some factors including:
• The “highly concentrated nature” of the subscription TV sector in South Africa.
• High barriers to entry.
• A significant lack of credible competition for premium sports rights.
• The lengthy and exclusive contracts that are awarded to MultiChoice.
• A shortage of alternative pay-TV options.
The Commission also mentioned ICASA’s current inquiry into subscription broadcasting services and said that it would contribute to that inquiry wherever possible.
ICASA recently declared that it believed that all sports competitions of “national importance” should be available to free-to-air TV stations.
The PSL’s Chairman Irvin Khoza responded to ICASA by saying that without their TV deal with SuperSport, the PSL would lose more than 80% of its revenue and would be forced to shut down.
Credit: This article originated from www.mybroadband.co.za