Subscription Video on Demand (SVoD) relevance in the market is enjoying of positive momentum in South Africa bolstered by local and foreign platforms offering over-the-top (OTT) services.
Showmax, MultiChoice’s streaming flagship, leads the South African market as the telco bundles the service along with their core products. In South Africa, MultiChoice is enhancing value proposition on its paid-tv by including OTT’s subscriptions into its plans, crossing-borders and reaching populated countries such as Nigeria.
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Broadband penetration in South African households will increase at an 18% CAGR and is estimated to reach 29% of total households by 2024. Therefore, as a response to behemoth competitors such as Netflix and Prime Video, local players may harness a digital consumer culture migrating from traditional TV into online content consumption.
Telcos have an edge in stepping in to SVoD industry. Their large client base in mobile and fix services creates an important data flow that can be transformed into customer-profiling and behavior analysis. Finally, recent Covid-19 pandemic has exposed how important it is for people at home to stay connected and how consumption swiftly shifts online in a proliferating digital world.
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