MultiChoice is in a difficult situation. After reaching an agreement with the public broadcaster over the televising of 2023 Rugby World Cup matches, it has raised the ire of eMedia, which owns eNCA and OpenView. After tough negotiations between the pay-TV provider and the state broadcaster, it was agreed at the last minute that the SABC could obtain sub-licence rights.
It came at an understandably hefty price and the SABC, according to a report by the Sunday Times, has South African Breweries, Hollywoodbets and Pineapple Insurance to thank for it. Though no-one wants to go on the record, it is understood that MultiChoice accepted an offer of $3m (about R58m) to allow the SABC to get a bite of the action.
According to the deal, the SABC could flight the opening ceremony on Friday, and has rights to show the closing ceremony. It will be able to broadcast all the Springbok matches, as well as two quarterfinals, one semifinal, the final and the playoff for third place. An insider told the Sunday Times it was thanks to sports minister Zizi Kodwa stepping in. “MultiChoice people were taking a hard stance; they were not prepared to budge. Kodwa had to use his influence and they eventually relented and took the $3m the SABC was able to produce.”
Both sides’ arguments carry value. It would be a travesty of justice if most South Africans are denied the fun, moments of much-need patriotism and hopefully, finally, the triumph of a Rugby World Cup win because they cannot afford the R879 monthly DStv premium subscription. That is why we should applaud MultiChoice and all the stakeholders involved in securing and funding the deal with SABC. However, it could not have been easy for MultiChoice, whose representatives argue the pay-TV provider pays a massive premium for these broadcasting rights. This allows it to offer a unique selling point to viewers.
But now new headaches loom. eMedia CEO Khalik Sherrif has expressed his discontent with MultiChoice’s decision not to allow the SABC to broadcast Rugby World Cup 2023 matches on the OpenView satellite platform. This was described as an “irrational decision” and “anticompetitive action” that will exclude more than three million South Africans from the rugby tournament. MultiChoice has declined to comment, but former SABC board member Michael Markovitz told Tech Central the entire situation could have been averted had the Independent Communications Authority of SA (Icasa) adopted SABC’s recommendations from two years ago for the unbundling of sports rights. A similar complaint is before the Competition Commission but will only be heard next year.
This while the world is changing. The Sunday Times has also reported on the many illegal streaming options available to follow the Rugby World Cup at much lower prices than what MultiChoice is offering. While illegal actions can never be condoned it is an indication of a changing broadcast environment and it is important for our regulators and authorities to take all these challenges into account and to adapt accordingly. It will be interesting to see how the landscape would have changed by the next Rugby World Cup in four years' time. It is important for all stakeholders to keep an open mind and find the balance between profits and public interest.
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