In South Africa’s rapidly evolving digital streaming market, local broadcaster DStv holds a unique edge—broadcasting live sports. Over the years, MultiChoice has established SuperSport as a dominant name in the industry, offering an unparalleled selection of sports content.
According to a recent discussion document from the Independent Communications Authority of South Africa (Icasa), live sports stand out due to two primary characteristics: unpredictability of outcomes and non-substitutability. When viewers tune in to a live match, they engage with the uncertainty of the outcome, making it a compelling spectacle. Conversely, once the game has concluded, the interest in that content significantly diminishes. Furthermore, fans of major events like the Rugby World Cup or the UEFA Champions League cannot simply replace the experience of watching the live game with any other content.
The scarcity of desirable live sports rights creates highly competitive bids among broadcasters. As sports unions typically bundle rights into exclusive packages, those willing to invest the most can secure broadcasting privileges, establishing a monopoly over specific events. MultiChoice currently holds the majority of broadcasting rights for South Africa’s top three most-watched sports: football, rugby, and cricket. This positions it favourably against its streaming competitors.
DStv Stream and Showmax are among the few platforms providing sports streaming in South Africa. DStv Stream offers several subscription options, with the Premium package featuring extensive coverage of local and international sports, including rugby, football, and cricket.
In terms of live event broadcasts, SuperSport leads the pack, having aired a staggering 34,490 live events last year, far surpassing any other global broadcaster. This included extensive coverage of significant events such as the 2024 Olympic Games in Paris, the EURO 2024, and the ICC T20 Men’s World Cup. SuperSport delivered 1,200 live events over 2,900 broadcasting hours during the Paris Olympics across 19 days, utilizing eight dedicated linear channels and multiple OTT streaming services.
SuperSport Schools also saw remarkable growth, doubling its app’s user base to over one million registered users and delivering over 35,000 hours of content within just six months.
Against this backdrop, Showmax has introduced a mobile-only subscription for the English Premier League, offering a more economical alternative to traditional DStv packages. This move capitalizes on DStv’s long-standing experience in live sports streaming.
While platforms like Netflix have attempted to enter the sports broadcasting arena, their efforts have yet to gain a foothold in the South African market. Other streaming competitors like Prime Video and Disney+ have not yet produced sports content that matches DStv’s offerings.
Icasa has yet to determine whether DStv’s ability to secure exclusive rights stems from the absence of competitive bidding or outbidding its rivals. However, exclusivity beneficially impacts the revenue streams of the corresponding sports organizations. MultiChoice emphasizes that income generated from exclusive rights is vital for the sustainability of sports in South Africa. This income supports competitive salaries for players, international tours, grassroots development, and maintenance of sports facilities.
A spokesperson from the South African Rugby Union (Saru) supports this sentiment, noting that about 50% of revenue generated from broadcast rights contributes to the growth and development of rugby for both men and women.
Research by David Martimort and Jerome Pouyet highlights that granting broadcasting rights to a dominant player like MultiChoice can maximize industry revenue. Such a firm typically garners higher revenue, which outweighs potential losses from not granting rights to smaller firms with lower viewership. This approach benefits sports bodies by enhancing their revenue potential and viewership, making them more inclined to collaborate with dominant broadcasters when allocating rights.
As the competition in South Africa’s sports broadcasting space heightens, securing exclusive rights remains critical for broadcasters, shaping the country’s future of live sports consumption.
