What prompted SABC to rely on MultiChoice for disposable income is simple as they already make a half a billion in advertising revenue with 4 channels alone compared to eMedia's R140+ million figure. They also have the watched channels not only in South Africa but to DStv consumers.
Even though these channels do add some value to the average DStv consumer MultiChoice created the platform particularly for those hoping to view content from another perspective. Even though Mzansi Magic is lagging behind SABC 1 in numbers, they could as well be at an advantage point if you had to divide those numbers amongst packages.
On the basis of TV license, if the government were to approve plans of enforcing TV licenses to a platform like DStv as mentioned this will lead to dire consequences not only to the average DStv consumer but MultiChoice.
As we've seen in recent years, MultiChoice continues to bleed in DStv consumers as subscriber numbers had dropped to under 8 million subscribers and enforcing this would lead to additional fees. A lot of DStv consumers had been complaining about the rates and these fees will lead another drop and probably destroy the whole DStv structure.
MultiChoice trying to balance DStv and SABC paying consumers will likely have to cutback on content and lose out on potential revenue if it means retaining their consumers. The public broadcaster had stated that the current rates of TV licenses have yet to be adjusted so whose to say that this may not lead to the closure of certain DStv packages.
One of those reasons MultiChoice proposed a household levy in which SARS will take responsibility. But then again this wouldn't help DStv as the average taxpayer will most definitely want to wind down on expenses and who better than DStv as some have stated we pay DStv which carries SABC so there's your TV licence.
But this is due to the mangled must-carry regulations which hasn't benefited SABC on a fundamental level but to a consumer's standpoint.
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