VOD makes SA inroads

26 April 2016 - 02:35 By Bekezela Phakathi, BDlive

The survey polled more than 30000 online respondents in 61 countries late last year and found that 63% of South Africans watched some kind of VOD programming on a device and 79% did so at least once a week.Services such as Tiso Blackstar's Vidi, MTN's FrontRow, Altech Node, Naspers' ShowMax and ONTAP-tv.com have been launched locally in the past 24 months.But take-up has been slow while some have pulled out. In addition to Tiso Blackstar's Vidi, Altech Node has been shelved.Rather than replacing paid-for traditional TV services, growing online subscriptions are instead supplementing established viewing habits.Nielsen MD Craig Henry said: "The projected growth of VOD programming services in South Africa has the potential to create opportunities for all players in the media ecosystem."For audiences, advertisers and content providers alike, advantage will be gained with an in-depth understanding of not just how consumer viewing dynamics are changing, but why they are changing," he said.Earlier this year Netflix launched in South Africa, heightening competition in an industry that has struggled to establish itself in the country.Analysts said this is largely because the local connectivity environment has not been conducive to streaming video.Plus, an advantage for traditional network providers is that there is no simple replacement for live news and sports programming.Eighty-five percent of respondents said they had no plans to cancel their satellite service in favour of an online service. ..

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