Pay television service provider MultiChoice says it welcomes competition from internet video company Netflix because it gives consumers \u201cmore options\u201d.<\/p>\n
This is according to a statement from Naspers owned MultiChoice, which has responded to questions from Fin24 about the launch of Netflix in South Africa.<\/p>\n
Netflix went live in South Africa on Wednesday night as part of the streaming service\u2019s expansion to 130 countries.<\/p>\n
Pay TV service DStv is part of MultiChoice. And as of September 2015, MultiChoice reported that it had 5.6 million DStv subscribers in South Africa, an increase from 5.2 million September 2014.<\/p>\n
\u201cMultiChoice welcomes competition in the pay television and entertainment industry – we believe it is good for consumers as it gives them more options and the ability to compare services,\u201d MultiChoice told Fin24 in an email.<\/p>\n
MultiChoice went on to explain that it has been expanding its video on demand offering to customers.<\/p>\n
\u2018Premium\u2019, \u2018Extra\u2019 and \u2018Compact\u2019 customers, for example, have access to a \u2018Catch Up\u2019 service, said the company. Premium customers also have access to Catch Up content via the DStv Now mobile app, the company added.<\/p>\n
Sports coverage DStv\u2019s \u2018strength\u2019<\/strong><\/p>\n Meanwhile, local analysts have said that MultiChoice could ward off competition from Netflix with DStv\u2019s sports channels.<\/p>\n \u201cThe real strength of DStv lies in its live sports coverage, and that’s an area where no video on demand service can compete at this stage,\u201d Arthur Goldstuck, managing director of local technology research company World Wide Worx, told Fin24.<\/p>\n But Goldstuck cautioned that DStv subscribers who don\u2019t want sport content could leave the pay TV service for the likes of Netflix.<\/p>\n \u201cPeople who subscribe to DStv only for movies and series can be expected to migrate rapidly to video on demand, because it will simply make more sense both economically and in terms of choice of content and viewing time,\u201d said Goldstuck.<\/p>\n Netflix costs $7.99 (about R128) per month in South Africa compared to the top range DStv ‘Premium’ package which costs R699 per month.<\/p>\n Local IT consultant and prominent technology blogger Liron Segev also echoed Goldstuck\u2019s views.<\/p>\n \u201cWe want the ability to customise our packages so we pay for what we want,\u201d Segev told Fin24.<\/p>\n \u201cSo unless you want sports, DStv is going to become irrelevant for those people who can currently afford DStv,\u201d he added.<\/p>\n MultiChoice rights to Netflix content<\/strong><\/p>\n While Netflix has launched in South Africa with shows such as Suits and Narcos, other content like House of Cards, Orange is the New Black and Grey\u2019s Anatomy are unavailable locally on the web service.<\/p>\n Netflix told Fin24 earlier on Thursday that this is owing to content rights that “sit with other platforms”. However, Netflix plans to expand South Africa\u2019s viewing catalog, the company said.<\/p>\n Netflix further said that it plans to spend about $5bn on programming rights in 2016 which will include securing titles that will be exclusive to Netflix.<\/p>\n MultiChoice, in the meantime, has confirmed to Fin24 that it holds rights to certain Netflix shows.<\/p>\n \u201cAs a result of our ongoing contracts with content providers, MultiChoice holds the rights to a number of series across the African continent including shows like House of Cards,\u201d MultiChoice told Fin24.<\/p>\n \u201cWhere we hold the rights, we will continue to screen these on DStv and offer it on our DStv Catch Up and DStv Now services. We already offer a number of shows express from the US within hours of the US broadcast time, and will continue to ensure our customers get access to the best international content first,\u201d said the company.<\/p>\n Fin24<\/a><\/p>\nMore on Netflix<\/h3>\n