MultiChoice has estimated that more than 2m people view pirated versions of the series and movies available on its platform, haemorrhaging billions of rands in annual sales and shining a harsh spotlight on pervasive copyright violations.

MultiChoice disclosed this to Icasa as the owner of DStv bleeds subscribers due to a confluence of factors, including the popularity of subscription video-on-demand over-the-top streaming services like Netflix, which are stealing market share from the group.

A Business Day report says the extent of the piracy is detailed in a supplementary discussion document from an inquiry into subscription television broadcasting services in SA.

The Sport Rights Owner Coalition urged the regulator to consider the effects of piracy in the industry, pointing out that the UK had developed a framework to pre-empt piracy before it happened.

‘This view is supported by MultiChoice, which estimates that more than 2m people view pirated versions of the series and movies available on DStv in SA, pointing to its pervasiveness. According to MultiChoice, piracy is a competitive constraint on subscription television services in SA,’ the supplementary discussion document reads.

‘The authority recognises that piracy is a pervasive problem for content creators and broadcasters alike,’ MultiChoice said.

‘The authority considered the advent of piracy and whether it constrains subscription broadcasting in SA, as claimed by MultiChoice. It has been reported that with pirated live sports content, high-income viewers who can afford subscription services, are less likely to engage in piracy. ‘The authority still recognises that piracy may have a significant impact on MultiChoice and any other paid service. However, because of its pervasive nature, it is difficult to ascertain with certainty the precise nature of the impact that it has as a competitive constraint.’

Full Business Day report