The struggling On Digital Media's (ODM) precarious TopTV service came thisclose to shutting down at the end of July 2013; China's StarTimes has already funneled more than R30 million into the South African satellite pay-TV operator's operations, StarTimes has taken on the role of assimilating TV content for TopTV and StarSat promises to provide better TV content at more competitive prices to South African viewers.
These and other startling "new" facts are now coming to light, buried in new court documents submitted to the South Gauteng High Court.
The new court documents submitted by ODM's business rescue practitioner Peter van den Steen, follows after unhappy and exasperated ODM shareholders launched an urgent court interdict to stop what it calls permanent and "dangerous" changes to the operations, distribution, structure and content of On Digital Media and its new StarSat pay-TV product the company is launching with StarTimes as its new financial and content backer.
In court documents Peter van den Steen calls the court application of First National Media Investment Holdings (FNMIH) and Atchuthandandan Moodley - the shareholders bringing the application for an urgent court interdict - "ill-conceived".
Peter van den Steen says any interdict granted to prevent him from proceeding with ODM's business rescue plan will "undermine the successful implementation of the plan" and warning that there is "no doubt that, if the business rescue plan is not implemented, I will be required to apply for the liquidation of ODM".
ODM shareholders are alarmed and upset by what it calls big irreversible changes to ODM and TopTV's content and signal distribution, the operations of which were largely turned over or has now been "outsourced" to StarTimes.
"If I had not taken the action that I took, the business would have failed and the rescue would have become unachievable," says Peter van den Steen.
ODM came this close to losing the ability to broadcast TopTV when SES, the company from which ODM leased space on a satellite, in July 2013 decided to terminate ODM's transponder lease and uplinking contract.
"SES communicated to me that ODM had until 31 July 2013 to pay the outstanding rentals due in terms of the lease, failing which SES would shut down their transponders. This would have led to a complete shutdown of ODM's services to its subscribers," says Peter van den Steen.
"StarTimes then entered into negotiations with SES for the continued use of the transponders. SES was prepared to conclude a comprehensive deal with StarTimes internationally, which would avert the shutdown of ODM's services."
The business rescue practitioner says transferring the lease from ODM to StarTimes was a practical measure needed to ensure the continued operation of ODM. "The transfer of the lease to StarTimes serves to protect the effective operation of ODM."
"If the uplinking contract had been terminated, this would have interrupted the broadcasting services provided by ODM to its subscribers."
About ODM's new billing system which has been introduced for StarSat the business rescue practitioner says "the new billing system allows for a customer to be reconnected or for a new customer to be connected within a matter of minutes as opposed to the hours it took under the old billing regime."
Regarding claims by ODM shareholders that "the control of all material broadcast into South Africa is now under foreign control", the business rescue practitioner says "ODM retains a fully staffed content department headed by Ian Woodrow."
Peter van den Steen reveals that "StarTimes has taken on the role of assimilating content for ODM" which means that ODM "now has access to StarTimes' wide bouquet of channels worldwide".
"As such ODM has been placed in a better position to compete with other pay-TV providers in South Africa. The arrangement between StarTimes and ODM will ultimately enable ODM to provide better content offerings at more competitive prices."
"StarTimes has invested substantial amounts towards the improvement of the business and getting the business ready to compete once the business rescue is implemented. StarTimes has, to this end, invested an amount in excess of R30 million."
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