MultiChoice`s 20-year grip on the local pay-TV market is under threat, but the group says it welcomes the prospect of competition.
MultiChoice, which has previously been allowed to operate its subscription services (M-Net and DSTV), in a market devoid of competition, may soon face one or more competitors when the Independent Communications Authority of SA (ICASA) awards licences.
"As a business we support and welcome competition," says MultiChoice CEO Nolo Letele, in reaction to the 17 other pay-TV licence applications.
Recent reports indicate applicants had to pay R100 000 each for their applications to be considered.
Commenting on the changing business environment, Letele says: "The landscape will change and we expect to see new players in this market - but we believe competition will ensure more choice and diversity of content for consumers; it will be good for the pay-TV industry.
Further investment
Most importantly, he adds, it will attract further investment into the broadcasting industry and the nation`s economy in general.
A source at MultiChoice indicates ICASA could take many months to consider the applications, with the results expected by about June next year.
MultiChoice, in partnership with Telkom, has throughout this year tested an IP-based video-on-demand service, and GM of corporate affairs Jackie Rakitla reveals the trials have now finished. "We are now investigating all the data following the completion of the trials."
While no further details are available, MultiChoice`s partner in this project could be a competitor in the pay-TV market, with Telkom`s new division, Telkom Media, also on the list of those applying for the subscription TV licence.
DSTV, launched 10 years ago, has over a million subscribers in SA, and more north of the boarder. Today, MultiChoice broadcasts over 50 video and 60 audio channels, and employs 700 people.
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