Satisfying demand for local content is how to foil Netflix

Netflix and ShowMax may be keeping many South Africans up at night, but M-Net CEO Yolisa Phahle is not among them.

The game-changing internet-based platforms have occupied greedy serial consumers in the past year, putting pressure on the satellite broadcaster. Particularly in Phahle's environment of traditional broadcasting, which has raised the ire of consumers with its expensive premium packages and repeated or outdated programming.

Recent Naspers financials showed that MultiChoice showed modest growth (about 6%) in South Africa and 2% in Africa, as well as in the uptake of cheaper packages.

But Phahle has plans to lead Africa into a new and evolving broadcast era - by maximising unique local content in its regions.

"Yes, people are consuming more than ever before and demanding more on these platforms. But we are well positioned to tackle that. It is a brand-new world of entertainment and we are trying to understand that. The tech is one thing - but where my heart really lies is in content creation," said Phahle.

M-Net's first black woman CEO , Phahle was born to South African parents in London and studied as a musician. She has been a game-changer herself in broadcasting since joining the company from the BBC in 2005.

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She may be responsible for raising the celebrity status of local personalities with her selection of pop programming on Channel O, Vuzu and Mzansi Magic.

The entertainment shows catapulted local productions and celebrities to fame, or at least into Africa. About 40 local channels are broadcast to almost 50 African countries, in 10 languages.

But the big fish, Netflix, came to South Africa early last year, adding to its 86million members in more than 190 countries. It is available throughout Africa, but high internet costs and poor infrastructure are drawbacks for businesses like Netflix that want to expand in developing countries.

Hadlee Simons, an editor with digital media and technology analysts Memeburn, said: "DStv is in the fortunate position where high-capped or uncapped internet is still an expensive, unfeasible option for most South Africans - Netflix and other video-streaming services simply require lots of data. With a few exceptions, you'll generally need an ADSL connection for the best experience, but the infrastructure often isn't in place for many South Africans.

"So this is another point in favour of DStv, which only requires a satellite dish. After all, you only need to walk through or drive past a large informal settlement to see the dishes.

"Another big feather in DStv's cap is sports. We love our football, cricket and rugby. And Netflix doesn't live-stream sport at all, anywhere," Simons said.

"I do foresee more people switching to Netflix, but as long as high-capped/uncapped internet remains pricey and as long as DStv has sports exclusivity, the MultiChoice service won't be in much danger.

"In saying so, there is a trend for sports to branch off and launch their own streaming services, but it remains to be seen whether the same happens to our local sports."

In 2017, Phahle plans more localised content for South Africa and the rest of Africa as her winning strategy.

Leveraging technology means understanding audience needs better.

"People will choose what they like, which means we can serve the customer more of what they like," she said.

"Already, the DStv Explora is meeting most of those needs." It includes access to ShowMax, which is linked to MultiChoice via holding company Naspers.

block_quotes_start A few of our people win positions in international films but my aim is to put more into development and scripting local stories block_quotes_end

Together, the group has 10 million subscribers.

"Our offering on the Explora means watching what you want to watch, when you want to watch it. Audiences don't need to get irritated with a linear channel."

Bringing express content from the US - when series launch, for example - is a necessity for the satellite channel.

"We are paying to see that content when it is available and it impacts the value. We need to get better," Phahle said.

Yet, her travels and global comparisons tell her that South Africa is on a par with, if not better than, other countries regarding content.

"Our local offerings, vernacular series, this is what talks to the audience and which they love. In fact, even when I look at HBO and Fox in the US, British, Chinese offerings, I feel South Africa has the best pay-TV."

A lesson learnt from the BBC is that local content is the key. And Phahle is enjoying a BBC drama series, The Missing.

"I know that those who are going to survive are those creating content ... the quality of content that engages audiences."

To this end, MultiChoice, with M-Net, spent R1.7-billion on local content last year.

The most difficult aspect of her job was "really understanding what audiences want, so we don't question why we make it", Phahle said.

"Shows like Our Perfect Wedding and Date My Family have been phenomenal successes. South Africa has loved that, because it is local. Generally, the local industry is really good and we have incredible industry professionals."

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She counts the popular Isibaya, Rockville and Suidooster as examples. "I am incredibly proud of the telenovelas. Isibaya was a turning point. Our industry is maturing, we have become more efficient in producing with tight timelines and meeting expectations. I am more proud that we have been able to build relationships with talented people and employ them. We are world-class in that way."

Phahle said broadcasters had the ability to shape the nation's view of the world.

"The local shows have encouraged a better view of our country. Affluence, happiness. For example, Suidooster has seen such positive response from the Afrikaans-speaking population.

"A few of our people win positions in international films but my aim is to put more into development and scripting local stories."

Phahle said it went back to basic education.

"The groundwork is in script development. We are willing to put in the time to get that going.

"We know that stories are told orally, that is a tradition. We need to pair people up with these amazing stories to document, and create content around it."

The M-Net Magic in Motion Academy gives year-long internships to top film and TV graduates, who are taken in by producers to get on-the-job experience.

"They will be engaging with someone like Proverb, who went from presenter to producer, and Connie and Shona Ferguson on Rockville," Phahle said.

"I do feel lucky to have such an incredible job. M-Net has achieved incredible things. I am in love with this country, and promoting the use of local language is hugely exciting for me as an African.

"The idea is that people must document our past, and produce and create our imagined future," she said.

Applications for internships for the Magic in Motion Academy programme for 2017 are now open to aspiring young broadcasters

naidoos@sundaytimes.co.za