Icasa’s draft regulations may shift emphasis towards content streaming
Pay-TV operator MultiChoice may be forced to change its business model to remain competitive as the Independent Communications Authority of SA drafts new rules to challenge its dominance.
Instead of hanging on to its traditional satellite business, MultiChoice may have to shift its focus more towards its content streaming businesses to stay competitive if the regulations become a reality, said Tefo Mohapi, technology analyst at iAfrikan Digital. If the regulations — released for comment about two weeks ago — are implemented as is, MultiChoice, which owns DStv, could find itself having to find a new way to differentiate itself in the market.
Byron Lotter, portfolio manager at Vestact Asset Management, said MultiChoice may have to change its pricing structure to remain competitive, especially with the possibility of new regulations in the offing.Because of loftier pricing for some of its packages, free-to-air players like the SABC, eTV and soon-to-be Kwese Free TV offer an alternative for price-sensitive consumers.
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