Wednesday, January 13, 2010

BREAKING. DStv 1st, ODM 2nd then SABC and e.tv. Why viewers on free-to-air channels will wait even longer.



Viewers of SABC1, SABC2, SABC3 and e.tv will have to wait even longer before they get to see certain shows (if ever).

On Digital Media (ODM), one of the new entrants in the pay TV operator sphere in South Africa that now promises to start broadcasting in May, says it's going to try and corner the market of the ''second pay TV window'' and not compete with DStv.

What that means is that MultiChoice's pay TV platform, DStv will pay premium prices to show TV content mostly first. Then ODM gets the opportunity during a ''second pay TV window'' and only then would free-to-air broadcasters (eg. SABC and e.tv) get access to content because they wouldn't be willing to pay the higher broadcasting right fees to show certain TV programming first, or second.

''We're creating a more affordable product in the second pay TV window,'' says ODM ''We buy the content post-MultiChoice before it goes free-to-air.''

That means - on the long run - an even longer lagging time for viewers without access to pay TV. The creation of a ''second pay TV'' environment will mean that content providers (eg. TV channels) who didn't have the option, would/will now stall longer before bringing their prices down for free-to-air, simply because the opportunity will exist to make a bit more money from a second pay TV operator who almost-exclusively focuses on this niche market.