The rise of international streaming services such as Netflix and Disney+ has not only impacted traditional television broadcasters like DStv but has also affected cinema chains in South Africa. Siphumelele Zondi, a multimedia and television journalism lecturer at the Durban University of Technology, pointed out that the increasing access to internet connectivity in South Africa has led to more residents opting for streaming services over traditional entertainment options.
As a result, cinema chains and broadcasters are facing challenges, with companies like Nu Metro seeking to diversify their content offerings in response to these market shifts.
Zondi noted that the growing internet access in South African homes has led to a significant increase in the number of people using streaming services, which has affected television and cinema attendance. This has prompted cinema chains like Ster-Kinekor to close down some of their locations.
In response to the trend, Nu Metro expressed its intention to venture into gaming, recognising that streaming services are drawing customers away from traditional cinema experiences.
The impact of streaming services on traditional broadcasters is significant. As Leslie Adams, sales director at Reach Africa, pointed out, DStv is not immune to the challenges faced by satellite TV providers in Western markets. The erosion of their market share by streaming services is a reality they must confront.
Adams highlighted the appeal of streaming services, emphasising their ability to tailor content to individual preferences and providing the flexibility to subscribe and unsubscribe based on viewers’ changing interests.
MultiChoice, the owner of DStv, has been cognizant of the competitive threat posed by international streaming services for some time. In a presentation to the Independent Communications Authority of South Africa, the pay-TV broadcaster identified Netflix and YouTube as their major competitors, acknowledging the existential threat they pose.
Despite recognising the threat of international streaming services, MultiChoice remains optimistic about its position in the South African streaming industry. The company views its streaming service, Showmax, as a platform well-suited for African markets, offering a wide range of local and international content, including exclusive Showmax Originals and live sports from SuperSport.
While acknowledging the popularity of international streaming services like Netflix and Disney+, MultiChoice also allows its subscribers to access these platforms using their DStv decoder.
