The South African sports broadcasting market is dominated by MultiChoice, which owns SuperSport. This dominance allows for exclusive rights allocation, potentially maximizing revenue but limiting accessibility for some viewers.
South Africa’s sports broadcasting industry has seen several developments this year, moving the market toward one that is more accessible to a greater number of South Africans. The market has long been dominated by MultiChoice, the pay-TV operator that owns Showmax, DStv, and SuperSport. SuperSport is a world leader in sports broadcasting, offering some of the most extensive coverage of any operator in the world.
In addition to excellent coverage of major international events like World Cups, Wimbledon, Formula 1, the Olympics, and various international sporting leagues, SuperSport provides substantial support to local sports. Additionally, SuperSport regularly provides subscribers access to events that would be offered on a pay-per-view basis overseas, like major combat sports bouts. Unlike most markets where high levels of competition are strongly encouraged and dominance is stringently regulated, the sports broadcasting market is quite the opposite. This largely concerns the revenue sports unions need to sustain their operations and improve sports in general throughout a country. David Martimort and Jerome Pouyet, in “Why is exclusivity in broadcasting rights prominent and why does simple regulation fail?” argue that allocating rights to a dominant firm allows for maximum revenue. In this case, the dominant firm, such as MultiChoice in South Africa, will earn more revenue than a firm with lower viewership rates would lose if it was not granted access to the rights. By allocating exclusive rights to the dominant firm, this firm can increase its competitive advantage, enhance market power, and essentially generate more revenue for the industry through advertising and subscription fees. This also means the sports body allocating the rights has more incentive to choose the dominant firm if it will guarantee higher viewership number
Supersport Multichoice Broadcasting Rights Exclusivity Sports Industry
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