Futurist Pieter Geldenhuys predicts that DStv is going to lose a large part of its market share to Netflix.
Speaking at the Huawei GPON Summit, Geldenhuys said: “A war is coming. Broadcasting services are being redefined, and the introduction of Netflix will result in a disruption to DStv’s current business model.”
Netflix, which offers streaming video content on demand, is due to launch in South Africa before the end of 2016.
In the new era of broadcasting, Geldenhuys said price comparison is a click away for customers and cost is crowd-sourced from around the globe.
“Customer loyalty has become dependent on instant gratification, and South Africa is already seeing a move away from DStv in favour of streaming services. A new game with new rules is emerging. Abundance and accessibility will drive the adoption of Netflix, and DStv is going to have to adapt if it intends to keep up,” he said.
The only card that DStv will have left to play will be its SuperSport offering, which covers rugby, soccer, cricket, and other popular local and international sports.
“DStv was very clever to get full ownership rights of SuperSport, since its sports advertising revenue will continue to shoot through the roof even if its other revenue drops.”
Nevertheless, he predicts that SuperSport alone will not be enough to prevent people from choosing Netflix.
“Sports lovers will simply downgrade their DStv subscription and get Netflix over and above that because it has a different value proposition. For people who aren’t sports fanatics, the switch to Netflix will be a no-brainer.”