Unlicensed StarSat claims its not illegal, refuses to reveal shareholding

by Thinus Ferreira

StarSat which has been broadcasting unlicensed for over a year and failed to renew its licence, on Tuesday claimed that it is not operating illegally, with the Chinese-run pay-TV provider that said it would continue to defy South Africa's broadcasting regulator and stay on the air.

This comes as On Digital Media (ODM) that runs StarSat refuses to divulge its local and foreign shareholding, with an insider saying StarSat's claims of 500 000 subscribers and 600 workers are bogus.

South Africa's, the Independent Communications Authority of South Africa (Icasa), warned ODM multiple times in 2023 to renew its broadcasting licence in time, which the Midrand-based satellite pay-TV operator ignored and failed to do. 

ODM's 15-year broadcasting licence expired on 8 July last year and simply kept broadcasting without telling StarSat subscribers, installer agents, its staff, or local and international TV channel providers that it is operating without any valid licence.

By March this year Icasa told ODM it must shut down by 18 September and in advance of the shuttering date tell all its stakeholders, subscribers and channel providers that 18 September will be its last day on air.

The date came and went with ODM, the only traditional satellite pay-TV competitor to MultiChoice's DStv, defying Icasa's shutdown order and vowing to keep broadcasting despite losing an urgent court interdict against its shutdown order in the Gauteng High Court.

On Tuesday, at a hastily-arranged press conference, Pule Mabe who is now StarSat's head of strategy and public affairs and previously was national spokesperson for the ANC political party, claimed that "StarSat is not operating illegally".

During its business rescue under which the financially imploded TopTV became StarSat, China's StarTimes acquired a 20% share in StarSat, the maximum allowed by a foreign company in a local media business. 

On Tuesday ODM refused to provide the current shareholding structure and composition of StarSat.

"We are trying to recover on the two years that we have lost. During that period, our own shareholding at the level of StarSat got to be tampered with," Pule Mabe said.

He said StarSat is going to do roadshows over the next weeks with mobile operators "depending on where we get the right and best offer for our customers to launch fully our over-the-top (OTT) platform so that our people know that they do not only have to rely on satellite dishes for them to watch content".

After StarSat claimed it has 500 000 subscribers and 600 workers who will lose their jobs if the unlicensed StarSat is forced to shut down, an insider told News24 that these numbers are very likely overstated.

Meanwhile, TV channel operators and distributors including the SABC, e.tv, Warner Bros. Discovery (WBD), ZEE, The Walt Disney Company, AMC Networks International, the BBC, Bloomberg, NBCUniversal, Sky News, Trace Africa and others have not pulled their channels from StarSat and continue to supply their channel collections to the illegal pay-TV operator.

Icasa didn't respond to a media query earlier this week, asking whether it told channel distributors to stop providing their content to StarSat since it is unlicensed and was told to shut down.

Justine Limpitlaw, an expert in electronic communications law, told SABC News that "until a court sets aside Icasa's decision, Icasa is the regulator under the constitution".

"StarSat simply didn't apply in time and Icasa has therefore said to it you need to wind down your operations."

Icasa and the police shuts down unlicensed On Digital Media's StarSat in raid on Midrand offices as staff huddle in prayer circles

by Thinus Ferreira

South Africa's broadcasting regulator on Wednesday morning cut off the signal of the unlicensed On Digital Media's StarSat in a raid on its Midrand office complex in Johannesburg after a defiant ODM continued broadcasting and refused to shut down.

StarSat staff stood around, huddled in prayer circles.

Thousands of StarSat subscribers who were warned not to pay for another month, after the Independent Communications Authority of South Africa (Icasa) warned the public that StarSat was meant to shut down on 18 September, suddenly lost signal and got an "E001: There is no signal! This may be due to bad weather or a faulty connection in the installation" on-screen message from their decoders.

On Wednesday morning ODM didn't respond other than to say on social media "We are aware of the connection issue and we will provide further feedback".

It didn't tell subscribers that Icasa had shut it down when the regulator's officials arrived at its offices in Halfway Gardens, ripped equipment out and carried it away.

Icasa officials ripped out servers, cables and other broadcasting equipment since 9:00 on Wednesday morning. 

Icasa's StarSat raid and shutdown was televised live on SABC News.

Jan-Hendrik Harmse, StarSat marketing manager, told SABC News that Icasa arrived on Wednesday morning with a search and seizure order.

"Icasa started unplugging things. They started just ripping out all the equipment we need to broadcast. But not just to South Africa, but to the rest of Africa as well. So as we speak, our customers have nothing showing on their screens."

"If we have to go to the courts we are going to go to the courts," he said.

On Wednesday afternoon a StarSat's customer call centre operator, when asked if StarSat had been raided and shut down, said "No, that is not the case".

StarSat which has been broadcasting unlicensed for over a year and failed to renew its licence, claims it is not operating illegally, with the Chinese-run pay-TV provider that says it will continue to defy South Africa's broadcasting regulator and stay on the air.

ODM didn't immediately respond to a media query about Icasa’s shutdown of StarSat. Icasa also didn't respond yet to a media query seeking comment on its shutdown raid.

Icasa warned ODM multiple times in 2023 to renew its broadcasting licence in time, which the Midrand-based satellite pay-TV operator ignored and failed to do. 

ODM's 15-year broadcasting licence expired on 8 July last year and simply kept broadcasting without telling StarSat subscribers, installer agents, its staff, or local and international TV channel providers that it is operating without any valid licence.

By March this year Icasa told ODM it must shut down by 18 September and in advance of the shuttering date tell all its stakeholders, subscribers and channel providers that 18 September will be its last day on air.

The date came and went with ODM, the only traditional satellite pay-TV competitor to MultiChoice's DStv, defying Icasa's shutdown order and vowing to keep broadcasting despite losing an urgent court interdict against its shutdown order in the Gauteng High Court.

On Tuesday, at a hastily-arranged press conference, Pule Mabe who is now StarSat's head of strategy and public affairs and previously was national spokesperson for the ANC political party, claimed that "StarSat is not operating illegally".

During its business rescue under which the financially imploded TopTV became StarSat, China's StarTimes acquired a 20% share in StarSat, the maximum allowed by a foreign company in a local media business. On Tuesday ODM refused to provide the current shareholding structure and composition of StarSat.

"We are trying to recover on the two years that we have lost. During that period, our own shareholding at the level of StarSat got to be tampered with," Pule Mabe said.

He said StarSat is going to do roadshows over the next weeks with mobile operators "depending on where we get the right and best offer for our customers to launch fully our over-the-top (OTT) platform so that our people know that they do not only have to rely on satellite dishes for them to watch content".

After StarSat claimed it has 500 000 subscribers and 600 workers who will lose their jobs if the unlicensed StarSat is forced to shut down, an insider told News24 that these numbers are very likely overstated.

Meanwhile, TV channel operators and distributors including the SABC, e.tv, Warner Bros. Discovery (WBD), ZEE, The Walt Disney Company, AMC Networks International, the BBC, Bloomberg, NBCUniversal, Sky News, Trace Africa and others have not pulled their channels from StarSat and continued to supply their channel collections to the illegal pay-TV operator.

Justine Limpitlaw, an expert in electronic communications law, told SABC News that "until a court sets aside Icasa's decision, Icasa is the regulator under the constitution".

"StarSat simply didn't apply in time and Icasa has therefore said to it you need to wind down your operations."

On Wednesday afternoon StarSat in a statement confirmed "that today Icasa, accompanied by the South African Police Service entered its Midrand offices and disconnected services".

"During this process, not only were ODM's services impacted but also those of StarTimes Media's pan-African broadcast. As the service provider to ODM and a subsidiary of the larger StarTimes Group, StarTimes Media holds a valid individual electronics communication network service (ECNS) licence for transmissions across Africa."

"While we acknowledge Icasa's mandate to shut down ODM's South African services, we are appalled by the manner in which Icasa disregarded ODM's reasonable initial request for a discussion regarding which equipment should be removed, should the execution order be carried out."

"Instead, Icasa opted to remove all equipment, including that belonging to StarTimes Media, which has adversely affected its pan-African broadcast services. This disconnection is highly concerning as it affects legitimate operations under this licence."

"While ODM acknowledges an ongoing dispute, it strongly contests the disconnection of a valid

StarTimes Media connection, which it believes to be unlawful."

"ODM is exploring all legal avenues to resolve this issue swiftly and restore services. The company's legal representatives have urgently approached the courts and will continue to keep all stakeholders, including customers, employees, and the media, informed as the situation progresses."

ALSO READ: Unlicensed StarSat claims its not illegal, refuses to reveal shareholding

ALSO READ: Unlicensed StarSat kept shutdown order secret for 6 months, says ‘recent order came as unexpected surprise’

ALSO READ: Half a million StarSat subscribers could be cut as On Digital Media that no longer has a licence defies South Africa's broadcasting regulator Icasa and says it 'will remain operational'

ALSO READ: StarSat denies it will be shutting down in September after South Africa's broadcasting regulator Icasa revokes On Digital Media's pay-TV licence.

Unlicensed StarSat kept shutdown order secret for 6 months, says ‘recent order came as unexpected surprise’

by Thinus Ferreira

StarSat which is broadcasting illegally without a licence kept its subscribers, staff, local installer agents and even its global TV channel providers in the dark ever since South Africa's broadcasting regulator told it six months ago to shut down by September, now claiming "the recent shutdown order came as an unexpected surprise".

Yet StarSat also says it didn't believe it was "necessary to raise concerns with our stakeholders at the time" after it was told in March to shutter by 18 September.

South Africa's broadcasting regulator, the Independent Communications Authority of South Africa (Icasa), warned the Chinese-run On Digital Media (ODM) last year to renew its broadcasting licence in time, which the Midrand-based satellite pay-TV operator failed to do. 

ODM's 15-year broadcasting licence expired on 8 July last year, but has since then kept operating its StarSat service.

On 18 March this year, Icasa finally decided that ODM should wind up its affairs and shut down by 18 September and told the Midrand-based satellite pay-TV operator to tell StarSat subscribers that StarSat would stop on this date.

ODM knew for six months about its StarSat shutdown order from Icasa but decided to keep this a secret from staff and subscribers. 

In response to a media query, ODM claimed that "Unfortunately, the recent shutdown order came as an unexpected surprise, impacting both our business and staff".

After Icasa told StarSat that its licence wasn't renewed and that ODM must shut down, CEO Debbie Wu in June denied that StarSat would be shutting down when she was asked about it.

In response to a media query in June, Debbie Wu said "We can assure you and the public that ODM/StarSat will not be closing its operations anytime. Should such an event materialise, which we doubt will happen, we will respect our obligation in terms of the law to notify all interested parties".

ODM was sent questions about StarSat's shutdown order through Eclipse Communications appointed to do ODM's crisis communications, asking for comment about StarSat subscribers, staff, StarSat installers and agents, as well as TV channel distributors, who say they were not notified over the past half a year by ODM that Icasa told StarSat to shut down by 18 September.

None of these specific questions were answered. 

In a statement from Eclipse Communications, ODM said that after an urgent interdict application to stop the Icasa shutdown order failed, "A review application is pending to address the substantive legal issues between the two parties once the court date is set".

A question about what exactly ODM's "review application" entails, what court and what it means, also went unanswered.

Instead, ODM notes that "StarSat has always prioritised open communication at every level of our business. We maintain ongoing dialogue with stakeholders to ensure smooth operations, and it has been our hope that our engagement with Icasa would result in positive outcomes for both our employees and customers".

ODM which claims it has 500 000 StarSat subscribers and 600 staff, says it didn't tell anybody that its pay-TV service was ordered to shut down because it didn't believe it was necessary and didn't want to alarm stakeholders.

"Throughout this process, StarSat remained in regular contact with Icasa, submitting our late application with full justification, believing that ICASA understood the challenges we faced. Given our confidence in a positive resolution, we did not believe it was necessary to raise concerns with our stakeholders at the time."

"Unfortunately, the recent shutdown order came as an unexpected surprise, impacting both our business and staff."

"Like any organisation filled with passionate and dedicated individuals, we were disheartened by the sudden decision. Our current focus is on finding a solution to continue delivering our unique offering to South African audiences."

"We remain committed to working with Icasa and sincerely hope for a resolution that supports the livelihoods of our employees and the pay-TV industry as a whole."

ODM's StarSat is the only traditional pay-TV competition for MultiChoice's DStv in South Africa. It is 20%-owned by the Chinese pay-TV service StarTimes – the maximum allowed for a foreign company of a South African media business. 

StarTimes took over the running of a rebranded StarSat following a business rescue process a decade ago, after Top TV came to the verge of collapse following controversy and public outcry over TopTV's eventually abandoned plans to carry a bouquet of pornographic TV channels.

Channel operators are distributors like the SABC, e.tv, Warner Bros. Discovery, ZEE, The Walt Disney Company, AMC Networks International, the BBC, Bloomberg, NBCUniversal, Sky News and Trace Africa have taken a wait-and-see approach and have not pulled their channels from StarSat's channel line-up since last week although they are currently providing services and content to an unlicensed and now illegal pay-TV operator.

ODM says "StarSat remains committed to engaging with Icasa in a respectful and constructive manner. We look forward to a platform where we can discuss any concerns or discrepancies and work toward a positive outcome."

"In the meantime, we have sought legal counsel and will be transparent in sharing updates with stakeholders as the matter progresses."

"Our primary focus remains the well-being of our employees and continuing to contribute positively to the South African economy. We are optimistic that, in partnership with Icasa, we can find a solution that benefits all parties involved".

According to Icasa, the industry and StarSat subscribers should prepare for "StarSat's imminent exit from the subscription television market in South Africa".

MultiChoice Kenya hikes DStv fees from November 2024 by over 5% with 4th increase in two years as subscribers say they're done and cancelling

by Thinus Ferreira

MultiChoice Kenya is hiking DStv prices in the East African country from November for the 4th time in two years, this time by up to 5.4%, leading to massive outrage under DStv consumers saying they're cancelling.

MultiChoice Kenya is hiking DStv Premium by 4.7% from Sh10500 to Sh11000, with DStv Compact Plus increased by 4.6% from Sh6500 to Sh6800.

DStv Compact is increasing, 5.4% from Sh3700 from Sh3900. MultiChoice is hiking DStv Family by 5% from Sh2000 to Sh2100.

It's the 4th time in two years that MultiChoice Kenya is hiking DStv subscribers' monthly fees. 

When MultiChoice Kenya last hiked prices in the country in March by up to 6% it was the third price hike in a year after price increases in April and August 2023.

"We would like to inform you that MultiChoice Kenya will be making adjustments to some of its DStv subscription prices effective from 1 November," Nzola Miranda, MultiChoice Kenya managing director, announced.

MultiChoice Kenya failed to provide any reasons for the latest price hike.

DStv Kenya subscribers are furious and say they're cancelling - similar to DStv subscribers in other countries from Uganda to Namibia where MultiChoice Africa announced further recent price hikes.

"DStv Kenya, you are being greedy and uncontrollable," says Michelle Katami. "You cannot increase pricing, whenever, wherever you feel like. What is your excuse this time? DStv subscription in Kenya is overpriced. Only sports channels matter to me. MultiChoice Kenya needs to be regulated at this point".

Ron Peter asked MultiChoice Kenya to "provide justification for the increases in your prices. Otherwise I haven't seen any improvements in content except for SuperSport channels. Over the years you have remained stagnant. We welcome other pay-TV into the Kenyan market".

Former SABC News Sepedi news reader Willie Matlawa dead at 67 after long illness

by Thinus Ferreira

The former SABC News Sepedi news reader Willie Matlawa has died after a long illness. He was 67.

Willie Matlawa retired in 2023 from the SABC after four decades.

The South African public broadcaster said "The SABC is deeply saddened by the passing of William 'Bra Willie' Matlawa. His immense contribution to the entertainment industry will forever be remembered. We extend our heartfelt condolences to the Matlawa family, friends and family".

Producer Duma Ndlovu in court for alleged tax evasion of over R25 million

by Thinus Ferreira

The veteran South African TV and film producer Duma Ndlovu (69) appeared in court on Tuesday after being charged with tax evasion of over R25 million.

He was granted R100 000 bail.

Duma ka Ndlovu first tried to ban the media from the court while his lawyer unsuccessfully pleaded with the court not to have the media present for the court proceedings.

Duma Ndlovu is the producer through Word of Mouth Pictures of the Venda soap Muvhango on SABC2, as well as Queen Modjadji through Rhythm World Productions for MultiChoice and M-Net's Mzansi Magic (DStv 161) channel on DStv.

Rhythm World Productions also produced a litany of other shows for Mzansi Magic like Umkhokha, eHostela, Komkhulu, My Brother's Keeper as well as the current Sibongile and the Dlaminis, and co-produced Imbewu: The Seed for eMedia's e.tv.

Dumakude "Duma" Ndlovu appeared in the Specialised Commercial Crime Court in Palm Ridge this afternoon on tax evasion charges spanning multiple years, together with his co-accused tax practitioners Rodney Mutsharini and Maxwell Mloyi.

According to the tax evasion charge sheet, Duma Ndlovu owes the South African Revenue Service (SARS) over R25 717 680.44 as a result of "undeclared personal income tax, corporate income tax and VAT".

For the tax return four years of 2016, 2017, 2018 and 2019 and its financial assessment, SARS says Duma Ndlovu's misrepresentations led to more than R19.2 million in losses for SARS.

Duma Ndlovu told the court that he owes SARS R234 000.

Duma Ndlovu's bail conditions include that he must not have any contact with any state witnesses, must report to the Sandton police station weekly on a Monday or Wednesday, and must hand in his passport.

Rodney Mutsharini and Maxwell Mloyi were granted bail of R50 000 each.

If Duma Ndlovu is found guilty, the state wants him and his co-accused to be imprisoned for no longer than two years or fined.

How South Africa's CBS foreign correspondent Debora Patta made it to the CBS Evening News anchor desk in Washington

by Thinus Ferreira

Last week CBS News' South African correspondent Debora Patta made it to behind the anchor desk of the CBS Evening News with Norah O'Donnell in Washington D.C, in the United States, as well as the studio of the morning show CBS Mornings done from New York.

For the Wednesday and Thursday editions of the American newscast on 25 and 26 September, Debora Patta reported from Accra, Ghana and New York on internet romance scams targeting Americans, venturing inside the darkly lit rooms filled with computers and cellphones where unsuspecting victims are conned out of their money.

The CBS News investigation into online fraudster syndicates in West Africa took over a year.

Following her first night's report for the "Eye on America" segment, Debora Patta was in the CBS News studio and behind the anchor desk to talk to anchor Norah O'Donnell about the investigation.

Debora Patta gave more information, and also did a "throw-forward" to the second night's upcoming report on the scams which would be about an American man conned out of $700 000 as the criminals "break hearts and empty out bank accounts".

Last week Debora Patta was also in New York, where CBS Mornings is done from close to Times Square, and did a live link on CBS Mornings to introduce the same story to American morning viewers.

MultiChoice and Canal+ make 'joint merger control filing' with Competition Commission seeking approval of Canal+'s aggresive buyout takeover

by Thinus Ferreira

MultiChoice and the French Canal+ that is attempting an aggressive buyout takeover worth R55.3 billion of the Randburg-based pay-TV company, on Monday made a "joint merger control filing" to South Africa's Competition Commission.

MultiChoice is also communicating with the broadcasting regulator, the Independent Communications Authority of South Africa (Icasa).

In terms of the country's Competition Act, the transaction is classified as a "large merger", which requires approval by the Competition Tribunal. The Competition Commission has to consider the filing and refer its recommendations to the Competition Tribunal.

South Africa's Electronic Communications Act prevents a foreign company like Vivendi's Canal+ from holding a share larger than 20% in a local media company like MultiChoice that operates brands like DStv, M-Net and SuperSport across sub-Saharan Africa.

Yet Canal+ currently has a more than 45.2% shareholding in MultiChoice.

Netflix cancellations surge after reed Reed Hastings donates to American presidential candidate Kamala Harris

by Lucas Shaw, Bloomberg

Netflix suffered a surge in cancellations in the days after its co-founder and chairman, Reed Hastings, endorsed Kamala Harris for president and donated millions to her campaign.

The rate of cancellations – churn in industry parlance – nearly tripled in the United States after his endorsement, according to the researcher Antenna. The streaming giant has the lowest churn in the industry.

Customers in the United States cancelled Netflix at a higher rate in July - 2.8% - than any month since February.

That is largely due to the company's decision to phase out its basic tier. Basic was the cheapest advertising-free version of Netflix. But the five-day period after Hastings' endorsement was unusual, even for July.

Hastings, a longtime Democratic donor, endorsed Harris in a post on the social media platform X on 22 July. A day later, Hastings told The Information that he donated $7 million to a pro-Harris super PAC.

Shortly after Hastings' endorsement, fans of Donald Trump began urging people to drop the service.

Some posted photos showing they had closed their accounts alongside the hashtag #CancelNetflix. Three days later after the donation became public, 26 July, was the single worst day for Netflix cancellations this year. 

The company declined to comment while Hastings didn't respond to a request for comment.

The spike in cancellations at Netflix lasted just a few days. It wasn't as severe as the reaction in 2020 when conservatives asked Netflix to take down the French movie Cuties, which they felt exploited children.

The long-term effect of these incidents can be hard to gauge. Advertisers and companies were eager to speak out on social issues following the murder of George Floyd. Many companies raced to show their support for the Black community and started new programs or initiatives to promote diversity, equity and inclusion (or DEI).

Netflix shifted cash to black-owned banks while Hastings donated to historically black universities.

Yet in recent years opponents have started to take on DEI initiatives. 

Sales of Bud Light tanked after an advertising campaign featuring a transgender influencer sparked a boycott by conservatives. Critics of DEI have been emboldened since the Supreme Court ruled affirmative action programs designed to boost racial diversity on college campuses are discriminatory.

Entertainment companies have faced a backlash after their executives took a stance on political issues.

Walt Disney spent two years battling Florida Governor Ron DeSantis after the company criticised a law that restricts classroom discussion of sexual orientation and gender identity. The company has also faced questions in recent weeks for the close relationship between Harris and its entertainment co-chair, Dana Walden, who oversees ABC News.

Hastings has always been civic-minded. 

He was working on education reform when he started Netflix and has devoted a lot of time and money over the years to charter schools. As his wealth has grown, he and his wife have given billions to philanthropic causes. 

He wasn't as outspoken about elections until more recently. But earlier this year, he was a vocal and public member of the chorus of celebrities and executives calling for Joe Biden to step out of the American presidential race.

Netflix has always tried to keep Hastings' donations and politics separate from its business. Eager to appeal to viewers of all persuasions all over the world, the company is sensitive to any perception that it's politically biased. Disney faces a similar conundrum.

Like most companies in entertainment and Silicon Valley, Netflix's employees lean to the left politically. 

Co-CEO Ted Sarandos is married to Nicole Avant, a former ambassador in the Obama administration. Sarandos and Avant are active in politics and were advocates for Rick Caruso in the Los Angeles mayoral race in 2022.

Netflix reports financial results in mid-October.