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SABC sport boss: pay channel not playing fair

Rathbone pleads for a level field with SuperSport

LL, SABC Sport GM, believes the industry that is in perpetual flux has moved rapidly in the four years since the Independent Communications Authority of SA  started their subscription broadcast inquiry.  Picture: Sebabatso Mosamo
LL, SABC Sport GM, believes the industry that is in perpetual flux has moved rapidly in the four years since the Independent Communications Authority of SA started their subscription broadcast inquiry. Picture: Sebabatso Mosamo

The proposed shake up in the way broadcasters conclude deals with sports federations has been a long time coming but it is perhaps a blessing that bureaucracy has held sway over brevity.

Gary Rathbone, SABC Sport GM, believes the industry that is in perpetual flux has moved rapidly in the four years since the Independent Communications Authority of SA (Icasa) first started its subscription broadcast inquiry.

"A lot of the technology and a lot of the media space have shifted quite significantly," said Rathbone. "If we arrived at conclusions in 2016 we would probably find ourselves going back to the well and drawing new perspectives."

Rathbone pointed to industry disruptors like Netflix, which have necessitated broadcasters to take a broader view of the landscape they tread. "Now we have to look to work together so that we can protect SA interest," said Rathbone.

It is that mandate that has been at the heart of the submissions he has made to Icasa to try to level a playing field dominated by MultiChoice though its subsidiary SuperSport.

Icasa wants to stimulate competition in the market and has proposed "remedies" but has encountered push back from SA Rugby and the Premier Soccer League (PSL).

Both bodies say that it will greatly affect their bottom line.

Among the concerns they listed are reducing the duration of contracts between a broadcaster and a federation to a maximum of three years, requiring the content providers to split their rights into multiple packages and then sell these packages to more than one distributor, as well as requiring content providers to unbundle their rights to enable multiple parties to distribute the content across various platforms.

"Because we sub-licence from SuperSport they basically cut that option out," said Rathbone.

"I think that is unfair because nowhere else does that happen. It is a great inconvenience for us because whenever that content that we sub-licence from them is set to appear on our digital channel, we have to replace it.

"I know why they are doing it but it is not a fair practice and should not be allowed to continue. Live-stream simulcast rights should be non exclusive and available to all broadcasters to all platforms that they simulcast their channels on.

"That's why the unbundling of rights is really crucial."

MultiChoice responded in a statement: "We trust that on conclusion of the process, the final outcome will be fair, balanced, and based on the evidence that reflects market realities."

MultiChoice and the SABC appear to have opposite views on those market realities.

"The fees we pay to sub-licence the PSL are huge," said Rathbone.

"When I add up what we paid for the FA Cup, the Bundesliga, the Top 14 rugby and the FA Women's Super League, it probably comes to a fifth of the seasonal fee I pay for the PSL.

"Yet, that only includes one match and highlights a week and that is pretty standard. I've got no selection on which games I can have and I don't have the live-stream option.

"There are a whole lot of restrictions placed on us.

"With rugby it is the same. They are asking me to pay, pay TV rights for a substandard package of free-to-air-rights. If I had the opportunity to negotiate with the rights owners, it would be a different situation.

"If we say we don't like those conditions, SuperSport will merely close up their books and walk out the room. It means nothing to them, whereas SA Rugby or the PSL would have to negotiate a free-to-air deal because they can reach our audiences."

In its response, MultiChoice said: "Sub-licence agreements are concluded by MultiChoice with other parties on commercial terms and by mutual consensus."

Rathbone was clear he did not want to pick a fight. "I want DStv and SuperSport to do for sport what it has done. We don't have that kind of money. The money they put into SA Rugby and the PSL is incredibly valuable.

"I'm not asking for that cosy relationship to be completely unbundled, but we need to look at a way that ensures that it serves the large disenfranchised sector of the SA public."

It hardly needs to be pointed out that the SABC needs to maximise its revenue outside of its long-established three linear channels.

"In the digital space there are growing revenue opportunities. A lot of people will soon only operate in that streaming space," Rathbone said.

Given the national broadcaster's mandate, he believes it cut its cloth to what needs covering.

He admits, however, boxing needs to re-emerge from the corner, while the SABC needs to clear a few hurdles in stepping up its athletics coverage.

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