South Africa’s StarSat pay TV offices raided over license issues. But it’s not piracy

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In July 2023, the license to broadcast television programming into South Africa that was issued to On Digital Media (pty) Ltd (ODM), the parent company of pay TV provider StarSat, expired.

According to regulation, broadcast license-holders must request renewal within an six-month window between 12 and six months before expiration, but ODM did not request renewal until about four months after expiration.

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In March, 2024, South Africa’s Independent Communications Authority (ICASA) informed ODM that ICASA had no mandate to consider a renewal application after a license’s expiration date, informed ODM that it must cease operations by September 18, 2024, and asked ODM to provide ICASA with the play by which ODM would cease operations.

That September date came and went, with no indication by ODM or StarSat as to how or when it would shut down.  So ICASA took matters into their own hands. On October 2, police and ICASA raided StarSat’s facilities and siezed equipment.

Another side to the story

According to local reporting, ODM cited challenges that included funding, a share-holder agreement, and financial difficulties that resulted from the COVID pandemic.  Both ICASA and ODM claim to have sent letters to one another with rationale for their actions. The shut-down affects more than 200 jobs and 1,000 StarSat dealers.

In response, StarSat was set to file a damages suit against ICASA on October 4, saying that the authorities had no standing to disrupt services that StarSat delivers to other countries that should not be subject to the broadcast license for South Africa.

StarSat is the South Africa branch of StarTimes, which reaches 13 million subscribers in more than 30 countries.  Its streaming app reaches more than 27 million users.  The companies are competitors of MultiChoice, which is Africa’s largest media company.

Further reading

ICASA’s Decision on ODM Licence Renewal.  Press release. September 20, 2024. Independent Communications Authority of South Africa (ICASA)

South African Regulator Issues Ultimatum to StarSat: Shut Down or Face Forced Closure.  Article. September 30. by Grace Ashiru. Tech in Africa

StarSat: What we’re all about. TV of a different sort. Web page about StarSat and StarTimes. Accessed October 7, 2024 by Piracy Monitor.  StarSat

ICASA Raid Threatens 200 Jobs, 1,000 Dealers at StarSat. Article.  October 7, 2024. Investing.com

Why it matters

The question from the piracy perspective, does the fact that ODM continued to operate StarSat without license amount to piracy?  No, because the license to operate is separate from any distribution agreements that StarSat would hold with programming providers.

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