Think Netflix will kill DStv? Think again
Netflix launched in South Africa earlier this year, with a number of commentators heralding it as “real competition” to DStv.
There is little doubt that the launch of Netflix is set to be a game-changer for the broadcasting world, including the video entertainment industry in South Africa.
However, predictions of the demise of DStv are more than a little premature, and fail to consider just how poor South Africa’s broadband penetration is.
It also doesn’t consider just how sports mad South Africans are.
[Also read: The impact of Netflix on MultiChoice and the South African TV market]
Bad broadband buys DStv some more time
To stream movies and TV shows from Netflix, the service recommends the following broadband speeds:
- 0.5Mbps – Required broadband connection
- 1.5Mbps – Recommended broadband connection
- 3Mbps – Recommended for SD quality
- 5Mbps – Recommended for HD quality
- 25Mbps – Recommended for Ultra HD quality
Download speeds are also just one part of the broadband equation in South Africa. Your cap is the other.
For South Africans without access to fibre, DSL, or Telkom’s 50GB LTE package, streaming video is prohibitively expensive.
DStv Premium vs Netflix
In Netflix’s own words, it is not aimed at less-wealthy market segments that platforms such as DStv and StarSat serve well.
“We are starting by primarily targeting outward‐looking, affluent consumers with international credit cards and smartphones,” said Netflix.
This means that at least in some ways, Netflix is competing for the attention of viewers who can afford DStv Premium, which costs R699 per month (excluding the R80 per month PVR and XtraView Access Fee).
[Also read: Netflix vs DStv – can South Africans cut the cord?]
Some of these subscribers may be willing to part with M-Net’s “Express from the US” series such as Game of Thrones, Billions, Suits, Greys Anatomy, Shameless, and Lucifer.
However, DStv Premium also offers something that sports lovers can’t get anywhere else (easily or legally).
SuperSport: The Ace up DStv’s sleeve
For all the complaining South Africans do about DStv, such as the way SuperSport’s channels are distributed among the different packages, few realise just how good they’ve got it.
For example, if you wanted to watch the Floyd Mayweather and Manny Pacquaio fight in 2015, viewers in the US were charged $100 to see it on their TVs.
Sky charged £19.95/€24.95 to watch the fight through its Sky Sports Box Office platform.
DStv Premium subscribers were able to watch the fight on SuperSport at no additional cost.
Children of the Revolution
As long as fast, high-usage broadband remains a luxury in South Africa, and premium live sports is excluded from subscription streaming services, Netflix is not much threat to DStv.
However, the arrival of Netflix in South Africa represents the beginning of a major shift in the broadcasting industry.
As the first global TV network, Netflix has said it hopes to one day get rid of the regional content restrictions that frustrate viewers around the world.
“We have a way to go before we can offer people the same films and TV series everywhere. Over time, we anticipate being able to do so,” said Netflix.
More on Netflix and DStv
Netflix vs DStv – can South Africans cut the cord?
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Expect a big DStv price hike in April
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