The Independent Communications Authority of South Africa (ICASA) has just given the green light for public channels to charge pay TV operators for broadcasting their content.
This agreement now allows the SABC, which publishes South African public channels, to negotiate commercial terms with pay TV operators.
The latter will have to distribute SABC1, SABC 2, and SABC 3 channels and, optionally, SABC Sport and SABC Education, in exchange for fees to be discussed. The issue of remuneration for channels by pay-TV operators is a real headache for audiovisual players and the regulator.
There is no doubt that satellite broadcasting has a cost for the operator and, from its point of view, it is normal that the channels it broadcasts should at least pay this broadcasting cost. When this broadcasting is done free of charge—because the operator finds a certain commercial interest in broadcasting the channel—this cost is borne by the operator. At the same time, the channel benefits from wider distribution and can generate additional advertising revenue. This approach is beneficial for everyone.
Nevertheless, in some cases, national public or private channels that offer original local programs and generally enjoy a reputation for proximity and a large audience in their country of origin find it normal not only to be broadcast free of charge but also to be remunerated for what they bring to the distributor, as this adds commercial value to its offerings.
This is undoubtedly true but remains very difficult to quantify: the deadlock is inevitable and can only be resolved by the intervention of the regulator.
In France, after years during which the channel was carried free of charge by pay TV operators, TF1—a private channel—began in 2016 to demand compensation from operators, arguing that the quality and audience of its programs and associated services (My TF1) had a value that deserved remuneration.
After several standoffs, a compromise was finally reached in 2018, confirming that all operators would pay TF1.
In French-speaking Africa, the question of the value of African national channels for pay-TV operators has not yet arisen, probably because there are not yet enough attractive national programs, except in Senegal, which is dominated by private national channels, and in Côte d'Ivoire, where RTI still occupies a strong position and private national channels are beginning to emerge.