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".