EFF statement on ICASA’s draft findings into the state of competition in the subscription broadcasting services sector
9 February 2021
The EFF notes the draft findings of the Independent Communications Authority of South Africa (ICASA) which give insight on the state of competition in the subscription broadcasting services sector.
Most notably, we are vindicated in the fact that ICASA has found that MultiChoice holds a significant and disproportionate market power in the sector, in the form of exclusive contracts, a monopoly of rights over content, and as we have long argued, a parasitic relationship with the national broadcaster and the use of its content.
The current state of the subscription services broadcasting sector has resulted in MultiChoice not having sufficient competition, and this has allowed them to set unreasonable and excessive subscription rates while dominating the market, which limits consumer options.
We therefore welcome the proposal by ICASA to impose pro-competition licensing conditions on MultiChoice, which include but are not limited to; the shortening of their exclusive contracts, the introduction of the forced splitting of rights over content and the opening of the Multi-Choice's network.
Further to that, the EFF reiterates its call for a review of the "Must Carry Regulations", which have allowed MultiChoice to make revenue of the content of the South African Broadcasting Services (SABC) by airing its channels and content, without remunerating the national broadcaster adequately and according to market related prices.
The monopoly that MultiChoice has over the subscription broadcasting market is diametrically opposed to the developmental prospects of the country and stifles competition to the detriment of consumers. There most be strong regulation that will ensure that the broadcasting space in South Africa is not only democratized, but based on fair access and control over content at a reasonable price for consumers.
Issued by Vuyani Pambo, National Spokesperson, EFF, 9 February 2021
