In South Africa, the shift from traditional TV to online streaming is becoming more evident, prompting the country’s major broadcasters to focus on their digital streaming services.
According to the Market Research Foundation’s MAPS data overview, TV viewership in South Africa has declined significantly over the past three years. The research revealed that TV viewership peaked at 75% in the third quarter of 2021, but by the last quarter of 2023, it had dropped to 54%. In contrast, the percentage of individuals opting for on-demand streaming services increased from 15% in early 2021 to 18% by the end of 2023. Furthermore, the number of people accessing Netflix rose from 11% to 15%, and Showmax users increased from 4% to 8% over the same period.
The three main broadcasters in South Africa—MultiChoice, the SABC, and eMedia—rely heavily on advertising revenue, which is directly linked to viewership numbers. As TV ratings declined, these broadcasters’ advertising revenue also dropped in the past financial year. In response to this trend, broadcasters are recognising the need to adapt to the growing demand for streaming services.
MultiChoice has enhanced its DStv streaming and Showmax services, experiencing a 139% increase in active users since the relaunch of the DStv streaming-only packages as DStv Stream in July 2023. The company also partnered with NBCUniversal to enhance its Showmax service, and the revamped Showmax 2.0, launched in February 2024, has shown promising results. MultiChoice is aiming for significant growth and revenue increase from Showmax in the coming years.
The SABC introduced SABC+ as its streaming service in November 2022. The service has gained popularity and reached 1 million monthly active users by May 2024. The platform’s highest viewership numbers were recorded during the 2023 Afcon tournament, drawing over a million viewers to multiple matches. The SABC also aims to add new paid-for features while keeping its main channel and radio station offerings free.
The competitors know that the market is challenging and that previous South African streaming platforms such as MTN VU, Cell C’s Black, and Vodacom Video Play have not succeeded. The broadcasters are cautiously working on strategies to develop their streaming businesses to avoid missteps in this evolving landscape.
