StarSat South Africa shuts down as OnDigital Media faces liquidation, licensing dispute

StarSat, a once-competitive satellite pay-TV broadcaster in South Africa, has officially ceased operations. This follows the recent liquidation of its license holder, OnDigital Media (ODM). 

This comes months after the Independent Communications Authority of South Africa (ICASA) raided StarSat’s Midrand headquarters in October 2024, disconnecting its broadcast signals due to an expired broadcasting license. The shutdown has left subscribers frustrated, with many demanding refunds for prepaid subscriptions that have gone unfulfilled.

Jan Hendrik Harmse, StarSat’s marketing manager, confirmed to MyBroadband that ODM, the entity responsible for processing payments and holding StarSat’s broadcasting license, has been liquidated.

“OnDigital Media, the independent broadcasting license holder that processed payments of StarSat, has been liquidated,” Jan stated, signalling the end of the broadcaster’s efforts to resume operations in South Africa.

ICASA raid and signal disconnection

The collapse of StarSat traces back to a prolonged dispute with ICASA over the renewal of its broadcasting license, which expired on July 8, 2023. South African regulations, under the Electronic Communications Act, mandate that broadcasters submit renewal applications no earlier than 12 months and no later than 6 months before a license expires.

StarSat, however, submitted its application in November 2023, four months late, prompting ICASA to declare it ineligible for renewal. Despite this, the broadcaster continued operating unlawfully, leading ICASA to issue a shutdown order effective September 18, 2024.

StarSat defied the directive, prompting Icasa, alongside law enforcement officials, to raid its Midrand headquarters on October 2, 2024. During the operation, authorities disconnected and confiscated broadcasting equipment, halting StarSat’s signals not only in South Africa but also across other African markets where it operated under the StarTimes Media banner.

Harmse criticised the raid at the time, alleging that officials mishandled the process by removing equipment essential for broader African broadcasts, not just local services. Following the raid, StarSat issued its last public update to customers on October 8, 2024, stating, 

“Due to ICASA’s removal of broadcasting equipment, StarSat is experiencing signal interruptions. We apologise for the inconvenience caused and will continue to work tirelessly to return your viewing pleasure,” the broadcaster said.

The broadcaster also suspended all payments, assuring subscribers that “customers who have paid will not lose their money and will be rewarded with bonuses once the signal is restored.” However, no further communication has been forthcoming, and the promised restoration never materialised.

Customers’ backlash and refund struggles

Since the signal disconnection, StarSat subscribers have voiced growing frustration over the lack of service and unrefunded subscription fees, particularly for payments made in October 2024 and beyond. Many have taken to the broadcaster’s Facebook page to demand answers. One customer wrote:

“StarSat SA, can you please reimburse me now? It’s been months without any subscriptions. I cannot afford to lose my money. Please just pay back my money for the month of October.” 

Another commented, “Since your last communication with us on 8 October 2024, it is now 4 months later, and you just went mute on us as if we do not exist anymore.”

StarSat had previously instructed customers seeking refunds to email [email protected], but numerous reports indicate that these emails have gone unanswered. Calls to the customer support centre have similarly been met with silence, leaving subscribers with little recourse. With ODM now in liquidation, customers hoping to recover their funds face the daunting prospect of joining a queue of creditors, a process that offers no guarantee of refund.

A failed attempt to relaunch

StarSat’s troubles began long before the raid, rooted in its failure to meet Icasa’s renewal deadline. Jan acknowledged the late submission in October 2024, attributing it to challenges stemming from the COVID-19 pandemic, difficulties securing investors, and unresolved shareholder agreements.

“We kept communicating the issue to them,” he told the press at the time, insisting that StarSat had notified ICASA of the impending delay and believed it had met regulatory requirements despite the tardiness.

Following the raid, StarSat pursued legal avenues to challenge ICASA’s actions, seeking an urgent interdict to halt the shutdown and restore its services. Jan expressed optimism as recently as January 2025, saying that the broadcaster was “still fighting to relaunch in South Africa” and had restored signals in other African countries.

However, these efforts have evidently failed, with ODM’s liquidation marking the final blow to StarSat’s presence in the South African market.

Background and market impact

StarSat was originally launched as TopTV in 2010 by OnDigital Media. It aimed to compete with MultiChoice’s DStv by targeting middle-class viewers in the LSM 6-9 demographic. Rebranded as StarSat in 2013 after Chinese company StarTimes acquired a significant stake, the broadcaster offered affordable packages ranging from R130 to R360 monthly, featuring channels like National Geographic, ESPN, and BBC World News. Despite its niche appeal, StarSat struggled to gain substantial market share, particularly against DStv’s dominance in sports broadcasting via SuperSport.

The shutdown leaves South Africa’s pay-TV landscape with one fewer player. It has potentially reduced competition in an industry already dominated by MultiChoice’s DStv and the free-to-air Openview service. Critics have questioned Icasa’s handling of the situation, with some suggesting the regulator’s uncompromising stance may have favoured larger incumbents, though Icasa maintains it acted within its legal mandate.

With ODM liquidated and StarSat’s South African operations terminated, the focus now shifts to the fallout for its estimated 500,000 subscribers and 600 employees, as well as the broader network of installers and agents who relied on the service. Customers seeking refunds are left in limbo. The liquidation process offers a slim chance of recovery, dependent on the distribution of ODM’s remaining assets among creditors.