In South Africa, the Independent Communications Authority of South Africa (Icasa) has launched a new inquiry into competition within the subscription broadcasting services market. This additional investigation aims to assess the changes in market conditions and dynamics since the public hearings held in 2021 were initially postponed due to the Covid-19 pandemic.
First initiated in 2016 and revisited in 2021, the inquiry has been extended into the 2022-2023 financial year to keep pace with ongoing technological advancements and market developments.
In 2021, Icasa observed significant transformations in the broadcasting sector, notably due to the emergence of over-the-top (OTT) streaming platforms like Netflix and Disney+, drastically altering the competitive landscape.
Dr. Keabetswe Modimoeng, the Chairperson, emphasized the importance of comprehensive consultation, stating that any regulatory actions must consider current policy changes and technological trends.
Key areas under scrutiny include:
- Defining relevant markets and market segments.
- Evaluating the effectiveness of competition within these markets.
- Identifying barriers to entry, including regulatory and structural challenges.
- Understanding how technological changes and evolving consumer behaviours impact market dynamics.
In the ongoing debate, traditional broadcasters like MultiChoice argue that competition is intense, highlighting OTT platforms as their primary challenge. In contrast, the SABC has called for sector-specific regulations to ensure the viability of public and free-to-air broadcasting.
During the 2021 hearings, the national broadcaster raised concerns about monopolistic behaviours in the industry, particularly citing MultiChoice’s dominance in acquiring and distributing premium content. The SABC has advocated for measures such as unbundling rights, shortening contracts, and enhancing access to premium content for free-to-air broadcasters.
Conversely, MultiChoice has pushed for a technology-neutral regulatory framework that acknowledges the increasing competition posed by global OTT providers. Additionally, local OTT services like DStv Stream and SABC Plus are now vying for viewers by offering sports content and other premium options, directly competing with established international platforms.
