On Digital Media (ODM), the licensing company behind the pay television platform StarSat, has taken note of the recent statement issued by the Independent Communications Authority of South Africa (ICASA) on 20 September 2024, which expressed surprise and concern regarding StarSat’s potential exit from the South African subscription market.
StarSat Exits South African Market As On Digital Media Loses License
The company acknowledges the challenges faced in securing new investments amidst a highly competitive market environment.
“The introduction of a new shareholder agreement, compounded by the economic pressures resulting from the COVID-19 pandemic, led to a delay in the submission of ODM’s license renewal application to ICASA. Despite several attempts to engage with ICASA officials and address these regulatory hurdles, ODM regrettably did not receive the necessary support,” said StarSat.
In a recent legal development, the Gauteng High Court dismissed an urgent interdict application filed by ODM, which sought to halt ICASA’s decision to terminate StarSat’s operations as of 18 September 2024. A review application is pending to resolve the substantive legal issues between the two parties, which will be addressed once a court date is set.
StarSat said it finds ICASA’s recent statement surprising and concerning, particularly as legal proceedings are currently underway.
“For the past 18 months, StarSat has maintained open and consistent communication with ICASA. Any implication that the company has not engaged with the regulatory authority is inaccurate, as there is extensive documentation demonstrating StarSat’s commitment to constructive dialogue,” said StarSat.
“The potential loss of jobs is a significant concern in light of ICASA’s role in promoting economic growth. The livelihoods of over 600 ODM employees and the wider network of more than 4,000 dealers and sales agents who depend on StarSat’s operations are at risk. This could have a far-reaching impact on the South African economy.
“StarSat also plays a crucial role in providing information, entertainment, and educational content to the public, serving over 500,000 subscribers with quality programming at affordable rates. The company remains dedicated to supporting the informational and entertainment needs of South Africans through its diverse range of content offerings.
“Despite the challenges, StarSat remains committed to continuing its operations and providing uninterrupted service to its users and business partners.
“The company will strive to resolve these issues and continue contributing to the South African media landscape.”
