It is a sign of the times how over-the-top (OTT) services, as exemplified by the likes of Netflix, are literally stealing the show as internet uptake spreads across Africa. DStv’s widely quoted appeal recently to the South African regulators regarding why it may “not survive any regulation in the face of streaming” only emphasises this fact (see, “MultiChoice is terrified by the rise of Netflix”, The New Times, May 22, 2018). It is inevitable the digital march is firmly on course from offline content to dishing it online. This need not be belaboured, but “video consumption is fast shifting from offline to online, from larger to smaller screens and from linear to on-demand”. OTT services are appealing for their convenience, streaming programmes anytime, anywhere to personal computers, tablets, smart phones and smart TVs and, for those with the means to afford the leisurely novelty, Xbox and PlayStation game consoles. The only major limitation in the OTT upward trend is the high cost of data. Otherwise, it is just a short step before the convergence of TV and entertainment online through video on demand and streaming services will be more inclusive ascending the next step in pay-TV. The cost of data, however, to which I revert shortly, is one thing. And, aside from free to air TV services that are sustained by advertising revenue, the real catch is in the more accessible price of the OTT services to which a comparison handily lends itself between DStv and Netflix. Observe, for instance, the monthly cost of about $9 (Rwf7,850) to consume all the TV series or movies you can take “24/7” on Netflix against the more controlled, though similar, fare on premium satellite TV services such as DStv offers at a monthly cost of about $80 (Rwf70,000). Due to the lopsided cost, my household long moved to alternative providers, of which there are several. But there’s no missing the apparent higher DStv cost is probably only in the perception. While OTT services are catching up, MultiChoice was first in the field and still commands a substantial lead with its superior viewer numbers continent-wide, buoyed by its lifestyle and entertainment programmes produced to local tastes within the different African countries. Add to this its premier range of sports coverage and news channels in its bouquet clusters and it becomes clear why it still commands the viewership. Generally, some estimates put the total number of all pay-TV subscribers on the various platforms across Africa at 23.7 million as of the second quarter of 2017. The research firm Dataxis projects the total pay-TV subscriber base to reach 35 million by 2022, nearly double the 2016 figures. Such market potential is too alluring to let pass. Thus, while MultiChoice claims to have lost upwards of 100,000 subscribers since the introduction of streaming services such as Amazon and Netflix, it has since caught on to cash in on the trend. Its owner, the South African media conglomerate Naspers, has since joined the fray with online programming solution DStvNow. This is in addition to the launch of its own OTT service, Showmax – which only goes to show the survival instinct to adapt and keep in business against the strong competition from the digital upstarts. Be that as it may, however, media consumption largely remains offline even as fixed broadband (FBB) and 4G/LTE penetration continues on its march, though unevenly with countries in the East African region farther ahead than most on the continent. Uptake of OTT services, therefore, remains inevitable; except that what will make the difference is affordability of data. A recent industry analysis, “The realities of the Pay-TV and OTT battle in Africa. It’s not (yet) ‘play’ time”, points out that at current pricing levels of around $2 per GB of data, “even if one were to consume 2 hours of video per day in ‘low’ quality (average Pay-TV viewership in many African markets is currently in excess of 4-5 hours per day), the monthly mobile bill could rack up close to $36 per month.” I am, therefore, inclined to agree with its conclusion that mobile network operators hold the key, not only because OTT uptake is unavoidable as viewership has gained traction, but because it is within their purview to either significantly cut mobile data pricing, launch affordable unlimited bundles, or zero-rate partnerships with OTT providers. Demonstrating the viability of the proposition, such OTT partnerships are already in place between streaming service providers such as Showmax and Kwese Play with telcos such as Safaricom, Vodafone and MTN. In the meantime, the likes of Zuku are offering broadband data and TV programming through fibre optic networks, with TV content is also available via satellite. The convergence of TV and entertainment online is, therefore, more in the present than in the future. The blueprint is already in place, so that all that remains is addressing the issue of high cost of data and it shall have enhanced digital inclusivity to supplement the free-to-air fare with affordable and more varied pay-TV programming. Twitter: @gituram The views expressed in this article are of the author.
