The Department of Communications and Digital Technologies recently released a Draft White Paper that targets exclusive SuperSport rights to major sports events, aiming to provide a “new vision for South Africa” in terms of audio and audio-visual media services and online content safety.
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The Draft White Paper particularly focuses on “Sports of National Interest,” referring to national sporting events deemed to be in the public interest. According to the paper, the regulator must ensure that such sports events are broadcast free-to-air and not exclusively through subscription-based audio-visual content services. This implies that the current rights holder, typically MultiChoice’s SuperSport, would need to reach an agreement with a free-to-air broadcaster to ensure wider access.
While the proposal seeks to increase access to key national sports events, it raises concerns about the impact on the subscription model, as SuperSport invests heavily in gaining exclusive rights to sporting events, thus contributing to the development of major and minority sports. SuperSport’s exclusivity is a significant selling point for DStv’s Premium package, and removing it could lead to reduced incentives for paying high prices for exclusive events.
The Draft White Paper acknowledges that television broadcast rights have become essential for attracting audiences to subscription television, but it warns about the risks of competitive bidding wars among broadcasters leading to anti-competitive effects and restricted access to sports broadcasting rights. The paper proposes that subscription-based broadcasters should not prevent national sporting events from being broadcast on free-to-air platforms.
Arthur Goldstuck, CEO of World Wide Worx and a media expert, points out that the proposed regulations could create complexity in terms of industry regulation. The paper suggests that the regulator should identify national sporting events in consultation with the Minister of Communications and Digital Technologies and the Minister of Sport, Arts, and Culture. This might lead to disagreements, as MultiChoice contends that the Independent Communications Authority of South Africa (ICASA) should be responsible for regulation.
Goldstuck also predicts that the proposals in the Draft White Paper could be politically motivated, aimed at gaining support in the upcoming general election. Making popular sports events available on free-to-air platforms might be seen as a campaign point for the ruling party, the ANC. However, it could lead to losses for broadcasters, rights owners, and sporting codes.
Furthermore, the proposals could have consequences for big international events. If they become law, SuperSport might not bid on expensive broadcast rights, and the financially constrained South African Broadcasting Corporation (SABC) might be unable to purchase them. As a result, major sporting events could go untelevised in the country.
Goldstuck emphasizes that interfering with broadcast rights could undermine broadcasters and sporting leagues, potentially damaging the sports infrastructure. The proposed changes could create tensions between stakeholders and may lead to legal challenges. Ultimately, finding a balance between increased access to national sports events and sustaining the financial viability of the sports broadcasting industry is crucial.
