STAATSKOERANT, 24 JANUARIE 2014
No. 37261
The greatest challenge facing the development of community television is funding. Funding
constraints operate at two levels. It limits the number of communities that can launch their
own services to those with access to donors or other resources, and is an ongoing challenge
for those that are Iicensed.The cost to distribute channels in the digital terrestrial
environment will also play a fundamental role in the future developments as the distribution
costs together with programme costs consume most of the operational budgets.
8.10 Fair competition
Promotion of fair competition is critical to ensuring the viability of the broadcasting system as
a whole, including the commercial broadcasting sector. Several stakeholders in their
submissions to the Framing Paper highlighted a need to review current provisions and
mechanisms aimed at reinforcing fair competition to both address challenges that may have
been faced in meeting the objectives and to ensure that current provisions are updated in
line with new challenges given the new converged multi-channel environment.
In terms of the current policy framework, ICASA and the competition authorities have
complementary roles to play in ensuring fair competition in the electronic communications
and broadcasting sectors. The EC Act further clarified the regulator's role in relation to this
and set out the processes that should be followed by ICASA in dealing with competition
related matters it is responsible for. The regulator has held one specifically broadcasting
linked competition inquiry in terms of the Act an inquiry into broadcasting transmission.
A number of other issues relating to fair competition in the television sector are also
important to consider in a policy review process.
The issue of access to premium content is one such issue that has been considered in a
number of countries. Access to premium content such as sports or movies is crucial to the
success of platforms such as free-to-air, subscription and mobile television. Competition
issues may arise when buyers acquire exclusive rights to such premium content that
effectively lock out competition. Given convergence, there is also the potential for rights
bundling across platforms (one operator bundles rights across subscription television or
internet protocol television-IPTV-or mobile). Ultimately, this may deprive audiences of
choice and quality. The way rights are bundled and the period of such exclusivity, are often
means through which these issues are addressed by regulatory authorities (both sector
specific ones and/or competition bodies.
At the same time it must be recognised that the sale of distribution rights on an exclusive
basis can result in higher prices for rights holders, which in turn can support industry
development in sport and content development generally.
8.11 South African music and audio-visual content
The 1998 White Paper on Broadcasting recognises that "broadcasting plays an integral role
in developing and reflecting a South African identity, its character and cultural diversity within
the framework of national unity". It focuses on television content across a broad range of
genres and formats and on the promotion of South African music on radio. The White Paper
states that South African content regulation and policy must serve both cultural and
economic objectives.
The White Paper outlines the following key interventions to achieve these objectives:
Radio Television broadcasters must provide a mix of their own productions and of
programmes produced by independent South African producers.
South African music will be prioritised in the South African broadcasting system.
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