Icasa launches another inquiry into streaming service competition

The Independent Communications Authority of South Africa (Icasa) has initiated another inquiry into the state of competition in the subscription broadcasting services market. This supplementary process looks to evaluate changes in market conditions and dynamics since the conclusion of public hearings in 2021, which were initially delayed due to the Covid-19 pandemic.

By Lindsey Schutters

13 Jan 2025

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The inquiry, initiated in 2016 and revisited in 2021, was further extended into the 2022-2023 financial year because of evolving technological and market developments.

In 2021, Icasa witnessed seismic shifts in the broadcasting landscape, particularly with the rise of over-the-top (OTT) streaming platforms like Netflix and Disney+, which have redefined competition in the sector.

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Chairperson Dr Keabetswe Modimoeng expressed the need for robust consultation, saying that any regulatory intervention must consider current policy developments and technological trends.

Key aspects under review include:

The definition of relevant markets and market segments.
The effectiveness of competition within these markets.
Barriers to entry, including regulatory, legal, and structural impediments.
Dynamic market functioning influenced by technological changes and shifting consumer behaviours.

Trading blows

While traditional broadcasters like MultiChoice have argued that the market is fiercely competitive, with OTT platforms representing their biggest threat, the SABC has advocated for sector-specific regulations to ensure the sustainability of public and free-to-air broadcasting.

The national broadcaster used the 2021 hearings to raise concerns about the monopolistic tendencies in the market, particularly the dominance of MultiChoice in premium content acquisition and distribution.

It supports rights unbundling, contract shortening, and improved access to premium content for free-to-air broadcasters.

MultiChoice argued the need for a technology-neutral regulatory approach that recognises the growing competition from global OTT players.

Notably, local OTT offerings such as DStv Stream and SABC Plus now compete more directly with international services through sports content and other premium offerings.