Wednesday, January 26, 2011

DStv and TopTV: Perspective on the new channels roll-out dilemma in 2011 both pay TV operators are facing.


I said it last year already when I confirmed it as a fact that Sony Max will be the first new TV channel in South Africa (and the first new one on DStv for 2011) but don't go looking for many new TV channels to be rolled out on DStv by MultiChoice in 2011. It's just not possible (and I don't mean it in a negative way).

It's not really new and I only relay information as accurately as I can, but I can add a bit further perspective now after what I was told days ago. In October last year I reported that MultiChoice is experiencing some bandwidth capacity ''challenges'' - and I can only reiterate the facts of this situation again, since I was told so again by very knowledgeable people, and it remains exactly unchanged from what I was told in October.

I'm told by credible insiders that MultiChoice will have some new channels in 2011 but the number will be very limited and that the issue has specifically to do with limited satellite capacity. It's not MultiChoice's ''fault'', there is just not any available spare capacity on satellites available for MultiChoice to ''lease'' until earliest 2012 when new satellites will again circle above us. Im told by people within MultiChoice they're ''extremely precious'' about the available bandwidth the pay TV operator has left for the year. ''There isn't more to get [bandwidth] so we'll play the best and do the best with what's left for this year.''

Meanwhile TopTV's main problem regarding new channels? Also nothing new, but the answer is MultiChoice. I won't bore with the technical stuff and it's actually several complex components all at work at the exact same time, but exclusivity agreements, territory agreements (as well as the lack thereof), clearance rights (and the lack thereof and the lack of time and the arduous process it takes to clear content on channels), price and money, distributor relationships (and in certain cases the lack thereof) are all specific factors I'm told by insiders are what's making things difficult for On Digital Media (ODM) to secure new channels.

''Would have if they could have,'' says an insider about TopTV constantly having to reset and adjust its channel roll-out ''calendar'' [my quotation marks] and not having added premium channels earlier. ''It's all tied up in one convoluted way or another,'' another insider tells me. ''People have no idea of the laborious process involved in getting a channel. The mere negotiation process is a mini United Nations,'' says this person. ''Talk to someone who's done shopping mall space lease management. Who's in, who's out, who stays, how much, how big, where, and how much can the parking tickets go up? And there's always the chain that wants to close or change or move their branch. That's nothing compared to this [acquiring channels].''