Recent findings from the Marketing Research Foundation’s (MRF) latest Marketing All Product Survey (MAPS) indicate that Showmax, owned by MultiChoice, is beginning to make strides against Netflix’s stronghold in South Africa.
Data reveals that Netflix experienced a decline in viewership in the first quarter of 2024, while Showmax saw an increase during the same period. “Showmax’s growth suggests they may be carving out a niche,” noted the MRF.
The streaming landscape has seen substantial growth between 2021 and 2023. Netflix’s viewership rose from 10.6% to 14.6%, while Showmax climbed from 4.4% to 8.3%—an increase of 3.9%.
Other services like Amazon Prime, Apple TV, and Disney+ have registered small but consistent growth over the last three years, albeit starting from a lower base. According to MAPS data spanning January 2021 to December 2023, Netflix boasts around 6.3 million subscribers in South Africa, while Showmax has approximately 3.6 million. Overall, about eight million South Africans now have access to on-demand streaming, with YouTube being the most popular platform.
The survey, which gathered responses from over eight million South Africans aged 15 and older across various demographics, suggests that streaming penetration in the country reached 19% by December 2023.
Despite this growth, streaming services globally confront challenges like password sharing, where subscribers share their login details with others. Both Netflix and MultiChoice have implemented measures to tackle this issue. MRF CEO Johann Koster stated that roughly half of the users accessing Netflix and Showmax are doing so with someone else’s login, highlighting the prevalence of the practice.
In March 2022, DStv imposed restrictions by limiting accounts to a single stream at a time, a move that received some pushback but reportedly led to an uptick in streaming activity. MultiChoice has been exploring options to allow more simultaneous streams, such as launching an Extra Stream add-on, though this is currently limited to mobile devices.
Netflix has taken a different approach, introducing the Profile Transfer feature in October 2022. This allows users to shift profiles between accounts—ensuring continuity in personalized recommendations and viewing history. To further combat password sharing, Netflix has enhanced its monitoring system, occasionally requiring primary account holders to enter a one-time PIN for access outside their home network.
Moreover, Netflix has rolled out a sub-account feature in select countries, allowing members to add extra subscribers for a reduced fee. However, this has not yet been implemented in South Africa. Currently,
As Netflix continues to tighten its grip on password sharing, users may be prompted to confirm their account usage if detected in a secondary location over an extended period, requiring them to either reset their home base or obtain their own subscription.
With significant shifts in the streaming landscape, both Showmax and Netflix are likely to continue innovating to capture and retain audiences in this competitive market.
