Icasa halts license renewal for StarTimes’ OnDigital Media, mandates shutdown

The Independent Communications Authority of South Africa (Icasa) has made the decision not to renew the broadcasting license of OnDigital Media, the company responsible for operating StarSat, which is the South African division of the international broadcasting group StarTimes Media.

Icasa communicated its verdict through a formal letter addressed to OnDigital Media, in which it instructed the company to cease its broadcasting services by the date of September 18, 2024. The specifics behind Icasa’s decision, including the rationale and any conditions that OnDigital Media might need to fulfill to secure a new license, were not disclosed in the reports.

Despite the directive from the regulator, OnDigital Media’s CEO, Debbie Wu, has conveyed a message of reassurance to the company’s customers and other stakeholders. Wu has declared that the company has no intention of halting its operations in the near future, in spite of the order to shut down.

Wu stated, “We can assure you and the public that On Digital Media/StarSat will not be closing its operations anytime soon.” She further mentioned that OnDigital Media is currently in discussions with Icasa with the aim of finding a mutually agreeable solution to the situation.

According to an insider who spoke with TVwithThinus, OnDigital Media has continued its business operations as usual, including the sale of StarSat decoders to new customers. However, it appears that the company has not yet communicated the situation to its employees or to its parent company, StarTimes.

In early June 2024, reports emerged that the Independent Communications Authority of South Africa (Icasa) had not renewed the broadcasting license for StarSat, operated by OnDigital Media, the South African branch of StarTimes Media.

Icasa had reportedly sent a communication to Debbie Wu, CEO of OnDigital Media, and Ronald Reddy, the company’s General Manager for Legal, Risk, and Compliance, in mid-March. The letter from the regulator instructed OnDigital Media to start preparing its subscribers, content providers, and investors for the potential cessation of its broadcasting services.

The regulator also issued a warning that it might publicly announce the winding up of OnDigital Media’s broadcasting services on its website or in the Government Gazette, thereby alerting all affected parties.

Icasa directed OnDigital Media to outline its strategy for communicating the shutdown to its subscribers, content providers, and investors. Additionally, the regulator made it clear that it is not within its powers to consider applications for the transfer or renewal of licenses that have already expired.

In response to the situation, CEO Debbie Wu has indicated that OnDigital Media is actively pursuing all available regulatory and legal options to secure the renewal of its license and avert the impending shutdown. The company is committed to exploring every avenue to continue its operations and service to its customers.

Debbie Wu remains optimistic about OnDigital Media’s prospects, expressing confidence that the company’s efforts to renew its broadcasting license will be successful. However, she acknowledges that if these efforts do not yield the desired outcome, which she considers unlikely, the company is prepared to act in accordance with the regulator’s instructions. Wu assures that, in such an event, OnDigital Media will fulfill its obligations and communicate the necessary information to all parties involved, including subscribers, content providers, and investors.

StarTimes, the Chinese pay-TV service, holds a 20% stake in OnDigital Media, which is the maximum level of foreign ownership permitted for a media company in South Africa. This investment reflects the interest and involvement of international players in the South African media landscape.

Should StarSat be required to cease operations, industry reports predict a significant impact on the competitive landscape of South Africa’s pay-TV market. StarSat is recognized as one of the top three contenders in the market, alongside DStv and Openview. Its potential exit could lead to reduced competition and choice for South African consumers in the pay-TV sector.