eMedia and MultiChoice Resolve Long-standing Legal Disputes Amicably

eMedia and MultiChoice, two titans in the South African broadcasting sector, have officially settled their legal disputes, concluding a series of prolonged legal confrontations that have spanned over a decade. This resolution, confirmed in eMedia's interim results released this Monday, brings an end to a costly legal saga that has significantly impacted both companies.

The disputes began escalating when MultiChoice, a leading South African pay-TV provider, opted to drop four of eMedia’s channels from its DStv platform following a 2022 Competition Tribunal hearing. This decision was contested by eMedia, leading to further legal challenges and financial strain, with legal costs soaring by R8.8 million as reported in eMedia's latest financial disclosures.

In recent months, the conflict was exacerbated during the 2023 Rugby World Cup. A sub-licensing agreement between MultiChoice’s SuperSport and the SABC, which excluded eMedia’s Openview platform, was labeled as “anti-competitive” by the SABC and challenged in court by eMedia. The resultant additional legal expenses further burdened the free-to-air broadcaster.

However, the tide turned when the Competition Tribunal granted eMedia an interdict that required MultiChoice to reinstate eMedia’s channels on DStv. This decision was extended for a further six months in December 2023.

Despite the legal confrontations, both parties expressed a positive outlook regarding the settlement. "The issues between the parties have been satisfactorily resolved by agreement," said Philippa Rafferty, eMedia’s legal executive. MultiChoice also affirmed the amicable nature of the settlement, although the terms remain confidential.

This conclusion not only alleviates the financial and operational pressures on eMedia but also changes the broadcasting rights landscape in South Africa. It follows a series of high-profile disputes within the industry concerning the sub-licence of sports broadcasting rights, which have significant implications for how premium sporting events are accessed by the broader South African public.

Communications Minister Solly Malatsi announced that his department is crafting an Audio and Audio-Visual White Paper, aiming to ensure that sporting events featuring national teams should be accessible freely, underscoring the government's commitment to resolving these issues sustainably.

This settlement may herald a more collaborative future in South African broadcasting, as indicated by Sports, Arts, and Culture Minister Gayton McKenzie's proactive involvement in negotiating a deal that allowed all South Africans free access to a key test match in 2024. This case may serve as a precedent encouraging other broadcasters to seek more inclusive approaches to rights-sharing, aligning with national interests and enhancing viewer accessibility across the nation.