Digital TV

South Africa: As Vumatel Rolls Out Across The Country, DStv Market Share Would Dip

Digital TV operators in South Africa are worried that as fibre broadband rolls out in the country's townships, people will migrate from satellite TV services to online platforms.

Research that DStv made this statement, which indicates that once a subscriber makes the switch to an online subscription video service, that person almost never returns.

CEO, MultiChoice South Africa Calvo Mawela said there is no doubt that the future of pay TV is online, and this is why they are arguing that Internet-based pay-TV services must experience the same regulations in the country.

MultiChoice is pre-empting the media on its position ahead of the public hearings that the Independent Communications Authority of South Africa (ICASA) will hold this week on an inquiry into subscription television broadcasting services.

In 2017, ICASA released a report on pay-TV inquiry where it addressed several options on the issue of MultiChoice’s dominance in the South African market.

These options included unbundling and splitting the sports rights, forcing exclusive sports rights contracts to be shortened,  and forcing MultiChoice to license its rights to other broadcasters.

MultiChoice's CEO said should these regulations go through successfully, it would hand the South African pay-TV market to global online streaming giants like Netflix and Amazon.

Malewa said: “We’re just killing pay TV and providing the online a free ride."


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