South Africans are increasing their spending on streaming services like Netflix at an incredibly high rate.
This is according to data from FNB on the spending of its customers on these services.
FNB customer debit and credit card spend on Netflix more than doubled in 2019 compared to 2018, said FNB, while spend on Spotify was up by 231%.
The data below shows the increases in FNB customer debit and credit card spend on these platforms.
- Netflix – 110% year-on-year value growth.
- Showmax – 45% year-on-year value growth.
- Spotify – 231% year-on-year value growth.
FNB previously told MyBroadband that its customers spent nearly R500 million on subscription and gift card purchases for Netflix, Showmax, and Spotify over the last 12 months.
This includes consistent month-on-month increases in the number of customers using these services.
“The increasing use of content-on-demand platforms is not surprising, as consumers are constantly looking for ways to stretch every rand and manage their money a lot better,” said FNB Retail chief executive Raj Makanjee.
Of the subscriptions purchased by FNB customers, Makanjee said 60% are paid by premium account holders who earn a gross income of at least R25,000.
FNB Consumer chief executive Christoph Nieuwoudt said access to affordable data and smart technologies are reasons for the increases in streaming service adoption.
“In 2019, we introduced free telco services for customers who use FNB Connect,” said Nieuwoudt.
Streaming services are becoming more popular
Research from Nielsen shows that services like Netflix are growing significantly in the US, too.
Consumers spent 19% of their TV viewing time on a streaming service in the fourth quarter of 2019, reported Nielsen – compared to 10% in early 2018.
31% of this time was spent on Netflix, while the nearest competitor was YouTube.
The research also found that the most important element of a streaming service to customers was price.
The customer spending report follows Showmax launching special offers for prepaid packages which make Showmax significantly more affordable than Netflix.
The packages are:
- 12 months – R475 (saving of R713)
- 6 months – R297 (saving of R297)
- 3 months – R199 (saving of R98)
These deals offer significant savings, and make the service significantly cheaper than Netflix.