The e.TV 24-hour News Channel goss has delivered yet another suprise - instead of being one of the channels on an e.sat subscription service as we've been thinking - it's going to be a new DStv channel instead.
It's gonna be a news channel alongside CNN, Sky etc. and be included in the regular DStv subscription. As time goes on e-sat's going to create more new channel's and they'll each be added to DStv the same way.
This from the press release that explains the reason:
"During ICASA’s hearings on pay-TV, e.sat argued that the South African market could only sustain two pay-TV operators. When four pay-TV licences were issued in addition to the Multichoice licence, e.sat decided to explore alternative opportunities as a content aggregator and channel supplier."
On one hand it's a cool unexpected bonus for DStv subscribers - there's no mention of DStv increasing their prices as a result and I very much doubt they will. Hopefully they'll rather have specials on subscriptions like they are with decoders.
On the other hand e.sat's no longer a competitive option for people who want a cheaper subscription service and hoped it would be.
They're right about five pay services being too much though aren't they? There's still Telkom Media, On Digital Media and On Water who'll provide something different and that's enough to give everyone a choice. If there are too many our money will be spread too thinly among them and we'll end up paying for it by way of the quality they deliver.
The service I'm very quizzy about at this point is On Digital Media. Telkom's huge and automatically seems to be the direct competition to DStv, On Water's religious programming will have it's own unique appeal but with On Digital Media we have no idea where they're going to be placed or what sort of programming or prices they're going to offer - all we know is that
their satellite's in space and ready for action.
Imagine how interesting it would have been to be a fly on the wall during the e.sat/DStv buck negotiations. I've been wondering how it's working cash-wise - when it comes to channels things work differently with each one depending on a whole variety of factors.
For instance deals can range from Multichoice paying channels to be on the DStv platform to channels paying to be on DStv and I can't quite work out which one it would be with e's News.
The whole arrangements win-win for both of them - e.sat immediately get more than 1.2 million viewers without doing a thing and DStv have one less competitor, an extra channel that's very different from any they've already got and they get to be part of the buzz of the new players.
As for whether or not it's win-win for us - bring on 2008 with the answer.