Pay-television service provider TopTV - having recently weathered a storm surrounding its failed attempt to introduce adult content - does not discount the possibility that it could try the move again, but is worried that the communications regulator is playing censor.
Chairman and acting CEO Eddie Mbalo lashed out at the Independent Communications Authority of SA (ICASA), warning that the authority is setting itself up as a censor, which could potentially endanger the “rights and freedoms that citizens of this country fought for”.
At the end of last month, ICASA refused TopTV's application to air three Playboy channels. The decision came amid a stream of protests from the public and civic groups, who vilified TopTV for its porn plans.
However, Mbalo maintains the company also received much support for the proposed X-rated content. “This type of content is accessible [to viewers] in many parts of the world; why not in SA?”
Speaking during an interview, Mbalo says the company does not discount the possibility that it could revisit the issue of offering adult content again in future, as there remains a strong business case for such a move. However, he adds that the broadcaster would first obtain guidance from its board and its subscribers.
Despite the controversy surrounding its proposed move into adult content, Mbalo does not think the broadcaster suffered reputational damage. He also denies the resignation of former CEO Vino Govender, amid the fall-out, was linked to the debacle. At the time, speculation was rife that Govender had fallen out of favour with the board, and had been left with no choice but to resign.
“It is a coincidence that the two events happened at the same time. Vino is an entrepreneur, but not a broadcaster. He started up the operation and then handed over the running of the company. It was the natural progression,” Mbalo explains, adding that the appointment of a new CEO is expected to happen in the near future.
Identifying weaknesses
He says the eight-month-old company is evaluating its strengths and weaknesses, and concedes that only about 50-55% of its 360 000 subscribers remain active, as the broadcaster operates on a prepaid model. “We are studying this, while also focusing on retaining current and getting new subscribers.”
Mbalo concedes the broadcaster's lack of sport content could be a factor that counts against it. “Sport is a driver of pay-TV. We will either have to supply this content, or say why we can't.”
While the broadcaster is clearly facing challenges in a space historically dominated by MultiChoice, Mbalo denies it is a far tougher market to crack than TopTV anticipated. He says the public response at launch, which saw TopTV signing up about 50 000 in its first weekend, is an indication that there is place for another pay-TV player.
Initially, the company stated it is targeting about five million households, and Mbalo says its targets have not changed. However, he slams ICASA's recent announcement that more pay-TV players could be licensed in future.
“I'm astounded that ICASA would say this. I'm not sure there's space for more players. They should rather wait and see what TopTV can do in the market. I think we need more entrepreneurs at ICASA who understand what they are doing.”
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