How streaming is killing linear TV

[WaxLyrical]

Yet...

Internet connectivity is one of the few things in the world that decreases in cost. It isn't going to be long until a streaming option from CellC, MTN or Vodacom becomes cheap enough for 90% of the population.
DSTV on the other hand will continue raising its prices.

In South Africa its costing more with rising inflation and unemployment, and we know ISPs look for every opportunity to milk the masses.
The masses will still look for the cheapest option to watch Generations so they don't care about what Netflix has to offer.
Most are on a basic satellite package and will continue to do so for the foreseeable future.

As I said, its the transition period.. it may take 10 years, but the shift has already started in the upper LSMs and will start happening with more speed in the lower LSMs over time.

The transistion is stating the obvious but I seriously doubt youll see Generations streaming through Netflix on an uncapped package in the townships - not in your lifetime at least.
We don't have a government with enough vision for that.

 

[Bryn]

Linear TV DSTV is killing itself.

There is a broader question here though that is more interesting to consider, and that is how broadcasters survive when all the major content producers have their own streaming services.

Imagine this (perfectly plausible) scenario by 2022:

- Netflix as popular as ever. 90+% of content is Netflix Originals.
- BBC and ITV content available exclusively on international BBC iPlayer.
- All Disney content available exclusively on their own streaming service.
- HBO Now finally available worldwide & the only way to watch HBO.
- Amazon Prime Video catching up to Netflix.

The above services would cover almost all the best content produced worldwide. What exactly is DStv supposed to do? Rebrand into Supersport?

 

[Ho3n3r]

Stopped reading at

but a high-level executive – MultiChoice South Africa CEO Calvo Mawela

Anything that follows, is bound to be self-absorbed, narcissistic drivel.

 

[DMNknight]

There is a broader question here though that is more interesting to consider, and that is how broadcasters survive when all the major content producers have their own streaming services.

They won't. When there were one or two streaming providers, piracy of movies and series was on a decline (an article I can't find now) but not that everyone is scrabbling for a piece of the pie @ $10 each... people are going back to piracy.

Translated, this means people will likely be happy with 3-4 big networks that give them 90% of the content they're looking for. The rest will need to merge.

 

[bwana]

There is a broader question here though that is more interesting to consider, and that is how broadcasters survive when all the major content producers have their own streaming services.

Imagine this (perfectly plausible) scenario by 2022:

- Netflix as popular as ever. 90+% of content is Netflix Originals.
- BBC and ITV content available exclusively on international BBC iPlayer.
- All Disney content available exclusively on their own streaming service.
- HBO Now finally available worldwide & the only way to watch HBO.
- Amazon Prime Video catching up to Netflix.

The above services would cover almost all the best content produced worldwide. What exactly is DStv supposed to do? Rebrand into Supersport?

American broadcasters survive by also streaming. Hulu, for example, is owned by Disney, NBC, Fox, and Turner Broadcasting IIRC. CBS has it's own streaming network that entices customers by offering exclusive popular content such as the new Star Trek. Disney/ABC also has Freeform. Mutichoice's big worry should be that Hulu et al start streaming internationally instead of licensing their content to them.

How does DSTV survive? They put together inexpensive bundle services together, like Sky did with NowTV, and/or they streamline their satellite service and bring down their price point. Let sports fans pay for their own damn sports addiction.

 

[Masataka]

Had access to DSTV over the holidays and it made me realise how dated the service type is.

Who wants to pick-up a movie half way through its running or schedule your life around the tv schedule? Catch-up is far more appealing, but not a chance am I paying 1k for that.

 

[konfab]

The above services would cover almost all the best content produced worldwide. What exactly is DStv supposed to do? Rebrand into Supersport?

Bribe the government into making these international streaming companies illegal..

 

[stefan9]

DSTV is clinging to those sports packages for life. Without them they are dead in the water.

Unless they reinvent themselves the end will be here soon...

 

[ToxicBunny]

In South Africa its costing more with rising inflation and unemployment, and we know ISPs look for every opportunity to milk the masses.
The masses will still look for the cheapest option to watch Generations so they don't care about what Netflix has to offer.
Most are on a basic satellite package and will continue to do so for the foreseeable future.





The transistion is stating the obvious but I seriously doubt youll see Generations streaming through Netflix on an uncapped package in the townships - not in your lifetime at least.
We don't have a government with enough vision for that.

You may not see Generations streaming through Netflix in the next 10 years (beyond that it is impossible to really judge), but Netflix are making local content, and if its successful more and more will be made and streamed. As more of the population moves online, traditional TV will lose ground, and pay tv services will ultimately collapse.

 

[Icemanbrfc]

Operating a business based on phone lines in a country where certain members of the public see telephone copper lines as a public resource to be expropriated without compensation is always going to be difficult.

They don't have to use phone lines. We all know that naked adsl is possible, but we also know that line rental is a sneaky income of millions and millions for them. The question is, why cut adsl as a connectivity option, when you know you are about to lose that income? That's the confusing bit. Dsl still works great for me, so all they needed to do, was ensure that they came up with better solutions towards copper theft etc

 

[konfab]

They don't have to use phone lines. We all know that naked adsl is possible, but we also know that line rental is a sneaky income of millions and millions for them. The question is, why cut adsl as a connectivity option, when you know you are about to lose that income? That's the confusing bit. Dsl still works great for me, so all they needed to do, was ensure that they came up with better solutions towards copper theft etc

Because they can rather spend the resources on rolling out LTE and fibre, which are superior technologies. They know that by increasing LTE coverage they can serve far more people a far better service than upgrading an old exchange.

 

[Lupus]

As i said, DSTV's biggest mistake was to year on year raise prices of its premium packages. Lets say you have a premium package at R900. You have an Explorer, and DSTV promotes streaming from it. They then charge you extra to pay to watch a movie or to stream it. Thats besides your DSL or Fibre costs you pay monthly. You looking at almost R2000 for this... thats damn expensive

What are you dribbling about? The only movies charged extra are on Boxoffice, in fact with the DSTV sub you get Showmax free and Joox (what ever that is).

 

[LazyLion]

DSTV's mistake was that they thought the Sports Content alone would keep sbscribers bound to them with no other choice but to pay the Premium Subscription month after month. They didn't count on people's willingness to give up or forego the Sport because the subscription rate had become ludicrously high.

They also hopelessly failed to adapt to other forms of content distribution.

 

[Lupus]

There is a broader question here though that is more interesting to consider, and that is how broadcasters survive when all the major content producers have their own streaming services.

Imagine this (perfectly plausible) scenario by 2022:

- Netflix as popular as ever. 90+% of content is Netflix Originals.
- BBC and ITV content available exclusively on international BBC iPlayer.
- All Disney content available exclusively on their own streaming service.
- HBO Now finally available worldwide & the only way to watch HBO.
- Amazon Prime Video catching up to Netflix.

The above services would cover almost all the best content produced worldwide. What exactly is DStv supposed to do? Rebrand into Supersport?

Well if that happens wouldn't you end up paying more for everything that used to be under one roof?

 

[Lupus]

DSTV's mistake was that they thought the Sports Content alone would keep sbscribers bound to them with no other choice but to pay the Premium Subscription month after month. They didn't count on people's willingness to give up or forego the Sport because the subscription rate had become ludicrously high.

They also hopelessly failed to adapt to other forms of content distribution.

The biggest problem with DSTV and why the fee is so high is because of sport, if they didn't have to pay millions for the rights to sports the premium would be a lot cheaper. That's the bulk of the fee right there.

 

[Icemanbrfc]

What are you dribbling about? The only movies charged extra are on Boxoffice, in fact with the DSTV sub you get Showmax free and Joox (what ever that is).

So wait you have to still pay extra on top of your subscription? My point is that, your outlay for a premium sub on DSTV plus an active cost on an Internet Connection is crazy. Then you pay x amount for a blockbuster movie? Why doesn't dstv just include those blockbuster movies inclusive of your subscription?

 

[Lupus]

So wait you have to still pay extra on top of your subscription? My point is that, your outlay for a premium sub on DSTV plus an active cost on an Internet Connection is crazy. Then you pay x amount for a blockbuster movie? Why doesn't dstv just include those blockbuster movies inclusive of your subscription?

Because it's like renting a movie from Google, Apple or Amazon and it's generally just off the circuit so like the old days when you had to go to the video store to get one.
Other then that you're getting Catch-up, Showmax + DSTV for the R900pm sure it could be cheaper if they dumped the expensive sports rights.

 

[Icemanbrfc]

Because it's like renting a movie from Google, Apple or Amazon and it's generally just off the circuit so like the old days when you had to go to the video store to get one.
Other then that you're getting Catch-up, Showmax + DSTV for the R900pm sure it could be cheaper if they dumped the expensive sports rights.

Well that's my point.. As said before, it would have made sense for DSTV to drop pricing to say R500 on a premium package, and pick up more clients. Leaving it at R900 they losing clients regularly. So I don't understand how they will intend to maintain those sort of pricing and programming, if their base is declining.

 

[Lupus]

Well that's my point.. As said before, it would have made sense for DSTV to drop pricing to say R500 on a premium package, and pick up more clients. Leaving it at R900 they losing clients regularly. So I don't understand how they will intend to maintain those sort of pricing and programming, if their base is declining.

They can't do R500 a month because of the sport rights costing a fortune :-(

 

[Cius]

My kids have almost never experienced live TV. We pirated for a bit and a few years ago switched to showmax/netflix. It was hilarious to try explain the concept of DSTV to them at a holiday flat last year. They wanted to pause a show and come back to it and watch the next episode when they were ready, all impossible with DSTV. One week of having it and we were already sick of the repeats. Never had it never will. My TV has not had an areal or satellite dish connected to it for about 10 years now and I have no plans on changing that.

However, that is for people with decent internet, which is a small percentage of the country. Old style TV will stick around for a while still in SA due to the poor among us. However that is more SABC than DSTV methinks.