by Thinus Ferreira
South Africa's broadcasting regulator is restarting its inquiry into South Africa's pay-TV industry and superficially the near-monopoly market dominance of MultiChoice, citing "ongoing developments in what is a rapidly changing market".
After starting an inquiry into South Africa's monopolistic subscription broadcasting services market, dominated by MultiChoice's DStv, that led to draft findings, the Independent Communications Authority of South Africa (Icasa) in a statement on Monday morning said that it will now extend this inquiry and continue with it for longer.
"Based on ongoing developments in what is a rapidly changing market, the consultation process in respect of the Inquiry into the Subscription Broadcasting Services Market must be extended into the current financial year," Icasa announced.
"This extension builds upon and will update and refine the work undertaken in the consultation process by the Authority during the 2021-22 financial year."
In April 2019 Icasa found that MultiChoice has a dominant market position in pay-TV in South Africa and said MultiChoice "was found to possess significant market power in the markets that are characterised by ineffective competition".
Icasa recommended the unbundling of its SuperSport sports rights, that content rights should be unbundled and split with more than one broadcaster - for instance the SABC and e.tv - that there should be a limit placed on the number of Hollywood studios that a single operator like MultiChoice should be allowed to have exclusive licensing agreements with, and that there should be decoder interoperability between satellite pay-TV services.
Dr Keabetswe Modimoeng, Icasa chairperson, says that "upon considering the draft findings emanating from the Inquiry" it is "of the view that further consultation and engagement with stakeholders is required, as any regulatory intervention in this market ought to take account of current policy developments, as well as recent technological and market trends, including entry of complementary and competitive services introduced by, amongst others, OTT players".
These over-the-top players like Netflix SA, Amazon Prime Video, Apple TV+, VIU and others are making headway in signing up pay-TV subscribers in South Africa and across sub-Saharan Africa, with The Walt Disney Company Africa set to launch its streaming service Disney+ on 18 May in South Africa adding another one to the mix.
"Following the identification and definition of relevant markets and market segments, the empowering legislation provides that the Authority must assess the effectiveness of competition in those markets and market segments."
"Amongst other things, the Authority must consider matters such as the non-transitory barriers to entry into the applicable markets or market segments and the dynamic character and functioning of the markets or market segments."
"Icasa is mindful that any regulation of the market and/or its market segments must be aimed at enhancing competitiveness in the market going forward."
"The extended consultation process will include, among others, the publication of a questionnaire to solicit comments and information from interested stakeholders that will take into account the work emanating from the 2021-22 financial year Inquiry)."
Icasa says it will also "conduct a full inquiry that includes publication of an updated discussion document, as well as public hearings, to come to a conclusive determination of the subscription TV market dynamics going forward".
"The rebooting of this process is meant to enableIcasa to take account of all relevant and current developments to inform a robust, forward-looking regulatory intervention that balances interests of consumers and stability of the broadcasting services market."
