South Africa: DStv's Netflix Deal In Abeyance, As It Goes Under Investigation
The South African Competition Commission has started an investigation into the planned deal between Multichoice and global streaming platforms, Netflix and Amazon Prime Video, to see if and how it could breach the country's competition rules and regulations.
Under the Multichoice plan, it will bundle-up access to the Netflix, Amazon Prime Video and potentially other streaming services into the DStv platform, potentially providing a one-stop-shop for content access to its subscribers. The multichoice proposition is to integrate and offer these third party streaming services on its "Explora" decoder.
However, Executives of the South African Competition Commission say they are investigating the proposed arrangement because it needs to be sure that it would not negatively impact or even kill-off the fragile competition that exists in the South African broadcast entertainment market.
Of course, MultiChoice management is not seeing any possible market disruption issues. The company thinks that on the contrary, its deal would widely benefit South Africans and whilst it may reshape the industry, it also has the potential to bolster market competition.