Telkom’s plan to compete against DStv

Telkom plans to launch a content platform with Netflix, Amazon Prime, Disney+, and other streaming services for one fee.

Telkom Consumer CEO Lunga Siyo told ITWeb On The Road that it is creating a content model instead of investing in content and becoming a content producer.

Telkom is building a content aggregating platform where users can subscribe to a bundle of streaming services.

This will allow users to subscribe to Netflix, Amazon Prime, and Disney+ for one fee. This fee can be lower than paying for individual services.

“We will aggregate all the streaming services and offer it to you as a bundle. They bring their content, and we bring our platform,” Siyo said.

He added that Telkom will provide the data needed for their subscribers to stream the content they subscribe to.

The service is built on a revenue share model. This allows Telkom to do what it is good at — providing telecommunications services — while still benefiting from streaming revenue.

If this sounds familiar, you are not mistaken. MultiChoice had exactly the same plan with its DStv platform.

In 2021, MultiChoice announced it was creating a unified streaming platform that would make DStv a one-stop shop for all video entertainment, including Netflix.

At the time, MultiChoice had already added Netflix, Amazon Prime Video, and YouTube to its DStv Explora Ultra.

MultiChoice CEO Calvo Mawela previously said the company was happy with the results of adding third-party providers like Netflix to its platform.

“We are positioning ourselves as a super-aggregator where we add all other streaming providers to our platform,” he said.

“This will position DStv as a one-stop-shop where anyone who wants to see video entertainment can come onto our platform and access any streaming services out there.”

MultiChoice CFO Tim Jacobs said they were trying to provide subscribers with simplicity, choice, and convenience by allowing them to access all content in one place.

Today, DStv subscribers can add Netflix and Disney+ to their bill. However, it is unclear how many subscribers use this option.

Telkom’s plan in the media streaming space means that it will compete directly against MultiChoice.

Telkom’s previous plans in the media space

In 2006, Telkom created Telkom Media, and in September 2007, it received its commercial broadcast licence.

At the time, triple-play — broadband, television, and telephone — was all the rage, and it was hailed as the saviour of telecommunications companies.

Telkom started building a large media company to take on DStv with South Africa’s first IPTV service.

The plan was to invest R7 billion in Telkom Media, with R3.5 billion coming from Telkom.

By March 2008, Telkom started to get cold feet, announcing it would slash Telkom Media’s funding to R2.2 billion.

Soon after, Telkom said it would no longer invest in Telkom Media. It sold its stake in the media company — and its broadcast licence — to Shenzhen Media Group in 2009.

Telkom took another bite at the cherry in November 2020 when it launched its TelkomOne streaming service.

TelkomONE offered a range of free content, including SABC and news channels, and paid-for movies and TV shows, primarily local reality programmes.

In 2021, Telkom said usage of its TelkomONE online video and audio streaming service had surpassed its expectations.

However, two years after its launch, Telkom climbed out again and handed the entire platform over to the SABC, which relaunched it as SABC+.