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StarSat in new empowerment deal: report

Staff Writer
By Staff Writer, ITWeb
Johannesburg, 14 Dec 2014
StarSat investor Eddie Mbalo hopes ICASA will soon rule on a licence transfer.
StarSat investor Eddie Mbalo hopes ICASA will soon rule on a licence transfer.

StarSat has several new empowerment partners who hope to cash in once the channel becomes profitable, reports the Business Times.

The paper reports that the pay-TV offering aims to move out of business rescue and start trading normally again in the next few months.

However, it notes, for this to happen, its current network licence needs to be transferred from predecessor On Digital Media to StarTimes Media, its Chinese investor. Eddie Mbalo, who was its acting CEO and is now a consultant and shareholder, has reportedly told the paper that the Independent Communications Authority of SA (ICASA) is dealing with the transfer application.

Mbalo says the regulator is expected to rule within 30 days, says the paper. Yet, Business Times adds, the regulator has noted it does not have a strict timeline.

According to Business Times, StarSat now has several new empowerment shareholders who hope to benefit from its success, including former Robben Island political prisoners and influential executives. The main new partner, it says, is Digital Landmark, which owns 28.8%.

StarSat recently suffered a set back when it lost its application for leave to appeal against a decision that pulled the plug on its adult content offerings, said this morning it is not sure whether it will have another go at showing X-rated content on TV.

On Thursday, Mbalo told ITWeb it was pondering its options and would soon decide whether to proceed with another attempt to be allowed to screen X-rated content, or move on. This came after the Western Cape High Court yesterday ruled its earlier decision - that ICASA must review its decision to license ODM's three hardcore adult channels - was correct.

In April last year, ICASA issued three licences to ODM to broadcast Playboy TV, Desire TV and Private Spice, via its pay-TV platform StarSat. However, this decision was challenged by the Justice Alliance of SA, Doctors for Life, and Cause for Justice, on the basis that ICASA erred in making its decision.

Last month, judge Lee Bozalek ruled the matter be remitted back to ICASA for reconsideration, ordering ODM to stop broadcasting the hardcore content immediately, and both ICASA and the broadcaster were ordered to pay the applicants' legal costs.

StarSat, which has been in business rescue for about two years, has some 85 000 subscribers, reports Business Times. This is in contrast with the dominant DStv, which broadcasts to some five million homes.

Mbalo has long rejected the idea that the embattled broadcaster is leaning on its porn offerings as a lifeline that provides a revenue stream, allowing the company to survive. However, market observers have repeatedly stated the company - like many other ailing broadcasters across the world - is most likely including adult content as a necessity to bulk up its earnings.

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