Friday, September 20, 2024

South Africa's broadcasting regulator warns that StarSat which failed to renew its pay-TV licence in time is operating illegally and should have shut down 18 September.

by Thinus Ferreira

South Africa's broadcasting regulator is warning StarSat subscribers and the country's TV industry that the pay-TV service is supposed to have shut down by 18 September for its failure to renew its pay-TV licence in time.

TVwithThinus reached out to Debbie Wu, On Digital Media CEO, on Friday and comment will be added here when received. 

Various TV channel distributors with channels available on Starsat were also asked on Friday if they have, or are removing their TV channels from StarSat and comment from them will be added here when received.

On Friday TVwithThinus asked The Walt Disney Company, the SABC, e.tv, AMC Networks, Warner Bros. Discovery and ZEE whether they have pulled their TV channel sets, are planning to do so, or aren't doing anything.

In June, after Icasa told StarSat that its licence was not renewed, Debbie Wu denied that StarSat would be shutting downand told me in response to a media query "We can assure you and the public that ODM/StarSat will not be closing its operations anytime".

Earlier this year an insider told TVwithThinus that South Africa's broadcasting regulator, the Independent Communications Authority of South Africa (Icasa) has not renewed On Digital Media's broadcast licence for StarSat, with the pay-TV operator that has been given until 18 September to tell subscribers, agents, the industry, stakeholders and to then shut down.

The 14-year-old pay-TV service headquartered in Midrand, Johannesburg started out as TopTV and is run by On Digital Media. 

On Digital Media is 20%-owned by the Chinese pay-TV service StarTimes – the maximum allowed for a foreign company of a South African media business – following a business rescue process a decade ago, after Top TV came to the verge of collapse following controversy and public outry over its eventually abandoned plans to carry a bouquet of pornographic TV channels.

Run under the StarTimes brand in the rest of sub-Saharan Africa and as StarSat in South Africa, the company competes with MultiChoice's DStv in the traditional pay-TV space. 

It however has far fewer subscribers in South Africa than MultiChoice's DStv where it offers a Special, Super and Global package with a lot of Chinese TV channels.

According to the insider, StarSat workers have been kept in the dark about the company's pay-TV service going dark. Now 18 September came and went with StarSat still broadcasting and in breach of Icasa's regulations - and with subscribers who have not been warned.

Icasa now says it is notifying the industry and the public about StarSat's "imminent exit from the subscription television market in South Africa".

"In the interest of On Digital Media (Pty) Ltd (ODM) / StarSat subscribers, members of the public and all relevant stakeholders, Icasa wishes to provide clarity regarding StarSat’s imminent exit from the subscription television market in South Africa," the regulator says.

According to Icasa, ODM's 15-year licence expired on 8 July 2023.

"ODM failed to submit a licence renewal application within the required timeframe set by the Electronic Communications Act (ECA) and related regulations," Icasa says.

"The legislation requires a licensee that holds an Individual Broadcasting Service licence to submit its renewal application to the Authority no earlier than twelve 12 months and no later than 6 months prior to the expiry of the licence."

"Despite numerous reminders, ODM submitted its licence renewal application after the expiry date on 10 November 2023."

Icasa says it sent several letters to ODM, requesting it to provide a plan on how and when it will inform StarSat subscribers about the winding up of its services. Icasa says ODM failed to provide any answers.

"On 18 March 2024 Icasa decided that ODM should wind up its affairs and cease providing broadcasting services by 18 September 2024, and further inform its subscribers."