Truly, DStv has bestrode the satellite TV scene of Africa like a colossus for more than two decades. They have what I term a natural monopoly. They have the best hands as their staff, up to 6 million subscribers and currently holds the exclusive right to broadcast EPL from sub-Saharan Africa until 2021/2022. Th question now is that, isn’t there a real rival to DStv? which of the various satellite companies that we have in Africa can be tagged a competitor to DStv?what are the DStv alternatives?
The questions can go on and on and on. However, take a seat as I will try as much as I can to demystify the phenomenon surrounding the unwillingness of most satellite tv companies to take on DStv head-to-head. Also, I will talk about the current real competitions to DStv.
Which territory does DStv Multichoice Africa legally occupies?
First off, DStv has the rights to legally broadcast within every country that falls under Sub-Saharan Africa. Furthermore, they have exclusive rights to certain contents most especially EPL. According to Wikipedia: Sub-Saharan Africa consists of all African countries that are fully or partially located south of the Sahara. It contrasts with North Africa, whose territories are part of the League of Arab states within the Arab world. Somalia, Djibouti, Comoros and Mauritania are geographically in Sub-Saharan Africa but are likewise Arab states and part of the Arab world. In other words, DStv is available can operate in all African states except most north African countries.
Why are there no companies that can wrestle EPL rights out of the hands of DStv in Sub-Saharan Africa?
I cannot speak for other countries, but I know my country Nigeria has the richest man in Africa. Apart from this, we have several other billionaires in Nigeria that have the resources to invest in the satellite business. South Africa also have rich citizens. The question once again is why are there no real DStv alternatives? Get the answers below:
- How premier league rights are acquired: Prelmier league specified a not too easy method of rights acquisitio which is based on brodcast rights exclusivity. No matter how rich you are, you cannot just go to PL to acquire rights. You have to bid for it and they will always give the highest bidder. The downside of this is that, if the rights are worth $200,000 and Mr a comes with $201,000, Mr B with 220,000 and Mr c with 220,500. Pl will sell the rights to Mr C. In business, you must not buy what you cannot sell. DStv already has the structure and the market. Any new entrants that are ready to outbid them(like HITV did) must match this with the ability to sell profitably. You cannot expect a good businessman who wishes to start up in Nigeria to outbid DStv and also make profits easily.
- Maybe if HITV didn’t die the way it did(due to mismanagement and debt) DStv would not have been so strong. The second-factor that scares investors away from wrestling the rights out of DStv’s hands is “the failure of HITV” Hitv did very well but it failed to sustain the brand. It couldn’t balance the cost with the profit.
- Thirdly, no one company can buy it all. However, DStv owns a great chunk of sports contents in Sahara Africa. They will broadcast, the world cup, they have rights to UCL and also EPL. Imagine if a not well-structured company buys just the EPL rights, does it mean you will need to buy DStv for your UCL actions?
- Fear of reaction by DStv if any company outbid them for EPL rights and fails to wrestle the remaining rights from them. This happened during the defunct HITV spell. DStv still maintained the rights to major UCL matches. Commercial soccer viewing centres had a swell time then. They were all forced to buy both decoders, That in itself cut a slack on IHITV’s profits.
WHAT CAN BE DONE LEGALLY TO BREAK DSTV’S MONOPOLY?
There are two ways by which this monopoly as a result of exclusivity of rights of Sporting contents can be broken.