A closer look at video streaming in South Africa

By Kristy Hesom

In a third-world country, live streaming movies and TV shows might sound like a distant dream. But with the rise of local video streaming services, and the recent introduction of one of the largest international providers to the local market, video streaming is on the rise.  

“Broadly, video streaming refers to watching videos online without having to wait for it to download first. When you click play, the video begins immediately,” explains Jan Vermeulen, senior journalist/technology hack at MyBroadband. 

Therefore, instead of waiting for a movie/TV show/video to download and watching it off a hard drive, you are streaming it live off a server, and your computer/tablet/mobile device deletes it immediately, explains Adam Oxford, editor in chief of htxt.co.za, a technology-focused website. 

Video streaming is a relatively new way for South African viewers to consume content, and the current landscape shows that more people are making use of the various services. 

At the moment, the two biggest competitors in South Africa are Showmax (owned by Naspers) and Netflix (an American-based company). Vermeulen explains that these are both monthly subscription-based services where you stream content from their libraries. 

While Netflix has a wide variety of international content, Showmax have invested a lot of money to become a worthy competitor, says Oxford. He also points out that Showmax has the advantage of local knowledge, as well as the rights to many Afrikaans TV shows, which are highly popular in South Africa. 

There are, however, other international and local services. International services include iTunes Films and Google Play movies, points out Vermeulen. OnTapTv, which was launched in South Africa by Asian conglomerate, PCCW Global, works on a model where users pay a monthly subscription as well as additional fees for the latest movies and blockbusters, explains Oxford.

As with most things, there are certain challenges that face the success of video streaming in South Africa. 

Oxford explains that he believes geo-locking is the biggest problem that faces Netflix specifically: “It stops a South African viewer from accessing certain international or American content,” which will make it less attractive to local viewers. 

Gareth van Zyl, in an article for Fin24, says that the arrival of Netflix in South Africa means that viewers will no longer have to make use of virtual private networks (VPNs), which are legally problematic, to access Netflix content. However, if the content is limited in South Africa, locals will potentially continue using VPNs to access Netflix content that isn’t available in South Africa. 

Vermeulen highlights a different, but equally challenging issue: internet access: “You essentially need ADSL, fibre, or one of Telkom’s uncapped LTE-Advanced deals, all of which are only available in a handful of neighbourhoods around the country”. This means that only people in higher LSM areas will have access to the services, which could result in a non-substantial market size.

Showmax, however, has the local knowledge to know that this is an issue, and they offer the option to download content too, which gives them an advantage,points out Oxford. 

Oxford believes that the future of video streaming in South Africa lies in sport streaming: “The one thing that streaming services don’t offer at the moment is sport – DSTV still has the rights to all the sports,” he points out. With South Africa being a sport-mad country, it is unlikely that streaming services will take over satellite services while they still broadcast sport. 

Vermeulen, however, says that as good quality and affordable broadband becomes more available, the amount of streaming in South Africa will increase, too. He also points out that research by Cisco has shown that, globally, 67% of all Internet traffic was made up by video in 2014, and that by 2019 this will increase to 80%.  

While it may take South Africa some time to reflect these global trends, we usually don’t take too long to catch up.

Do you use video streaming service? What’s your experience been like? Tell us in the comments below.