{"id":399395,"date":"2021-05-31T17:31:27","date_gmt":"2021-05-31T15:31:27","guid":{"rendered":"https:\/\/mybroadband.co.za\/news\/?p=399395"},"modified":"2022-04-07T10:09:36","modified_gmt":"2022-04-07T08:09:36","slug":"dstv-under-siege","status":"publish","type":"post","link":"https:\/\/mybroadband.co.za\/news\/broadcasting\/399395-dstv-under-siege.html","title":{"rendered":"DStv under siege"},"content":{"rendered":"<p>DStv is facing threats from international streaming services, local competitors like Openview and PremiumFree, and a Competition Commission investigation.<\/p>\n<p>MultiChoice\u2019s response to these threats will shape what DStv\u2019s products look like in future and how subscribers will consume content on the platform.<\/p>\n<p>Launched in 1995, Digital Satellite Television (DStv) has been the dominant pay-TV service in South Africa for three decades.<\/p>\n<p>It faced some competition from TopTV \u2014 now called StarSat \u2014 which was launched in 2010, but it hardly made a dent in MultiChoice\u2019s monopoly.<\/p>\n<p>Now there are new competitors which MultiChoice is rightly worried about. These are not licensed pay-TV broadcasters, but rather international streaming services.<\/p>\n<p>The arrival of fast and affordable broadband paved the way for South Africans to cut the cord and sign up to Netflix, Amazon Prime Video, and other streaming video platforms.<\/p>\n<p>At a fraction of the price of DStv Premium and with a bucketload of on-demand content at up to 4K, these services offer excellent value for money.<\/p>\n<p>Many people are more interested in movies and TV series than sport, and this is where streaming services shine.<\/p>\n<p>Netflix, Amazon Prime Video, Apple TV+, YouTube Premium and other services have enjoyed strong adoption in South Africa.<\/p>\n<p>Other heavyweights like Disney+, Hulu, and HBO Max are also expected to launch in the country in future.<\/p>\n<p>Sports lovers can also subscribe to a growing number of sports streaming services, like F1TV Pro, UFC Fight Pass, Tennis TV, and WWE Network.<\/p>\n<p><a  data-lightbox=\"post-image\" href=\"https:\/\/mybroadband.co.za\/news\/wp-content\/uploads\/2020\/11\/TelkomONE-headline-image.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-full wp-image-374774\" src=\"https:\/\/mybroadband.co.za\/news\/wp-content\/uploads\/2020\/11\/TelkomONE-headline-image.jpg\" alt=\"\" width=\"640\" height=\"430\" srcset=\"https:\/\/mybroadband.co.za\/news\/wp-content\/uploads\/2020\/11\/TelkomONE-headline-image.jpg 640w, https:\/\/mybroadband.co.za\/news\/wp-content\/uploads\/2020\/11\/TelkomONE-headline-image-595x400.jpg 595w, https:\/\/mybroadband.co.za\/news\/wp-content\/uploads\/2020\/11\/TelkomONE-headline-image-300x202.jpg 300w\" sizes=\"(max-width: 640px) 100vw, 640px\" \/><\/a><\/p>\n<p>Local streaming services, like TelkomONE and Vodacom Video Play, provide further competition to MultiChoice\u2019s ShowMax and DStv Now offerings.<\/p>\n<p>Unveiled in November 2020, TelkomONE offers a range of free content including SABC and news channels, paid-for movies, and TV shows that primarily consist of local reality programmes.<\/p>\n<p>Telkom has not released subscriber numbers yet, but said it was pleased with consistent growth in registrations and content engagement across the platform.<\/p>\n<p>Vodacom Video Play is another big local player. Launched in 2015, it is targeting mobile users with movies, series, kids shows and music videos. It grew to over a million subscribers by 2019.<\/p>\n<p>So significant is the threat from over-the-top (OTT) providers like Netflix, YouTube, and Disney+, that <a href=\"https:\/\/mybroadband.co.za\/news\/broadcasting\/385414-netflix-can-kill-dstv-warns-multichoice.html\"><strong>MultiChoice described it as an existential competitive threat to DStv<\/strong><\/a>.<\/p>\n<p>MultiChoice told the Independent Communications Authority of South Africa (ICASA) that OTT operators are their biggest competitors and a real threat.<\/p>\n<p>\u201cCurrently competition is fierce and will continue to grow rapidly and in a disruptive way,\u201d MultiChoice said.<\/p>\n<p>\u201cWe consider providers like Netflix, YouTube, Disney+, HBO Now &amp; Peacock to be an existential competitive threat.\u201d<\/p>\n<div id=\"attachment_385997\" style=\"width: 650px\" class=\"wp-caption aligncenter\"><a  data-lightbox=\"post-image\" href=\"https:\/\/mybroadband.co.za\/news\/wp-content\/uploads\/2021\/02\/Calvo-Mawela-MultiChoice-Group-CEO-1a.jpg\"><img loading=\"lazy\" decoding=\"async\" aria-describedby=\"caption-attachment-385997\" class=\"wp-image-385997 size-full\" src=\"https:\/\/mybroadband.co.za\/news\/wp-content\/uploads\/2021\/02\/Calvo-Mawela-MultiChoice-Group-CEO-1a.jpg\" alt=\"Calvo Mawela, MultiChoice Group CEO\" width=\"640\" height=\"430\" srcset=\"https:\/\/mybroadband.co.za\/news\/wp-content\/uploads\/2021\/02\/Calvo-Mawela-MultiChoice-Group-CEO-1a.jpg 640w, https:\/\/mybroadband.co.za\/news\/wp-content\/uploads\/2021\/02\/Calvo-Mawela-MultiChoice-Group-CEO-1a-595x400.jpg 595w, https:\/\/mybroadband.co.za\/news\/wp-content\/uploads\/2021\/02\/Calvo-Mawela-MultiChoice-Group-CEO-1a-300x202.jpg 300w\" sizes=\"(max-width: 640px) 100vw, 640px\" \/><\/a><p id=\"caption-attachment-385997\" class=\"wp-caption-text\">Calvo Mawela, MultiChoice Group CEO<\/p><\/div>\n<p>DStv\u2019s answer to streaming services encroaching on its territory is to offer Netflix, Amazon Prime, and YouTube through its DStv Explora decoders.<\/p>\n<p>MultiChoice CEO Calvo Mawela said it makes sense for DStv to become a one-stop-shop where you pay one bill and get access to all streaming content, including Netflix, Amazon, Hulu, and YouTube.<\/p>\n<p>There is however a snag &#8211; <a href=\"https:\/\/mybroadband.co.za\/news\/broadcasting\/363570-dstv-bundling-plans-with-netflix-investigated-by-competition-commission.html\"><strong>a Competition Commission investigation<\/strong><\/a>.<\/p>\n<p>Competition Commission spokesperson, Siyabulela Makunga said they are investigating MultiChoice\u2019s deal with Netflix and Amazon Prime Video.<\/p>\n<p>The investigation is focussed on the integration of popular international streaming services into its DStv Explora decoder, which may lessen competition.<\/p>\n<p>If the outcome of this investigation is not favourable for MultiChoice, it can stop its Netflix and Amazon integration plans in its tracks.<\/p>\n<p><a  data-lightbox=\"post-image\" href=\"https:\/\/mybroadband.co.za\/news\/wp-content\/uploads\/2021\/05\/DStv-vs-OpenView.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-397149 size-full\" src=\"https:\/\/mybroadband.co.za\/news\/wp-content\/uploads\/2021\/05\/DStv-vs-OpenView.jpg\" alt=\"\" width=\"640\" height=\"430\" srcset=\"https:\/\/mybroadband.co.za\/news\/wp-content\/uploads\/2021\/05\/DStv-vs-OpenView.jpg 640w, https:\/\/mybroadband.co.za\/news\/wp-content\/uploads\/2021\/05\/DStv-vs-OpenView-595x400.jpg 595w, https:\/\/mybroadband.co.za\/news\/wp-content\/uploads\/2021\/05\/DStv-vs-OpenView-300x202.jpg 300w\" sizes=\"(max-width: 640px) 100vw, 640px\" \/><\/a><\/p>\n<p>It is not only local and international streaming services which are looking to take market share from DStv.<\/p>\n<p>South Africa\u2019s free-to-air satellite TV service platform, Openview is aggressively targeting the less affluent end of the market.<\/p>\n<p>Openview has increased its investment in content from R308.7 million to R366.9 million per year to strengthen its offering.<\/p>\n<p>The platform is currently offering over 18 TV and radio channels and has signed an agreement in March to add a new SABC Sport channel to the platform.<\/p>\n<p>The strategy is working. Openview set-top box activations continue to grow at an average of 35,000 per month.<\/p>\n<p>eMedia Holdings\u2019 latest financial results revealed that Openview now has 2,361,443 users, up from 1,992,844 a year ago.<\/p>\n<p><a  data-lightbox=\"post-image\" href=\"https:\/\/mybroadband.co.za\/news\/wp-content\/uploads\/2021\/03\/Premium-Free.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-389154 size-large\" src=\"https:\/\/mybroadband.co.za\/news\/wp-content\/uploads\/2021\/03\/Premium-Free-640x268.jpg\" alt=\"PremiumFree\" width=\"640\" height=\"268\" srcset=\"https:\/\/mybroadband.co.za\/news\/wp-content\/uploads\/2021\/03\/Premium-Free-640x268.jpg 640w, https:\/\/mybroadband.co.za\/news\/wp-content\/uploads\/2021\/03\/Premium-Free-600x251.jpg 600w, https:\/\/mybroadband.co.za\/news\/wp-content\/uploads\/2021\/03\/Premium-Free-768x321.jpg 768w, https:\/\/mybroadband.co.za\/news\/wp-content\/uploads\/2021\/03\/Premium-Free.jpg 1024w\" sizes=\"(max-width: 640px) 100vw, 640px\" \/><\/a><\/p>\n<p>It is not only Openview which is going after the South African satellite TV market.<\/p>\n<p>AfricaXP expanded its free-to-air satellite TV service, PremiumFree, to millions of satellite dishes in South Africa on 1 May 2021.<\/p>\n<p>PremiumFree is already offering free-to-air satellite TV services in many African countries through two Eutelsat satellites.<\/p>\n<p>AfricaXP is now further extending PremiumFree\u2019s reach through a partnership with Intelsat via its IS-20 satellite \u2014 the same satellite DStv uses which covers most of Sub-Saharan Africa.<\/p>\n<p>AfricaXP CEO Craig Kelly said the capacity on Intelsat\u2019s IS-20 satellite gives them additional coverage and direct access to over 40 million homes across this region with dishes aligned to it.<\/p>\n<p>Many South African households have IS-20 aligned dishes connected to \u201cclosed\u201d decoders that lock out other channels.<\/p>\n<p>These viewers could now buy any low-cost free to air decoder and connect it to their LNB cable coming from the dish to receive the PremiumFree channels.<\/p>\n<p>The current PremiumFree bouquet offers 20 English channels with a strong focus on African content.<\/p>\n<p>Openview and PremiumFree compete directly competing against DStv EasyView which is priced at R29 per month.<\/p>\n<p><a  data-lightbox=\"post-image\" href=\"https:\/\/mybroadband.co.za\/news\/wp-content\/uploads\/2020\/08\/Showmax_PR_sport_pro9-1047x698-1-e1598541329656.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-full wp-image-365360\" src=\"https:\/\/mybroadband.co.za\/news\/wp-content\/uploads\/2020\/08\/Showmax_PR_sport_pro9-1047x698-1-e1598541329656.jpg\" alt=\"Showmax Pro\" width=\"640\" height=\"430\" srcset=\"https:\/\/mybroadband.co.za\/news\/wp-content\/uploads\/2020\/08\/Showmax_PR_sport_pro9-1047x698-1-e1598541329656.jpg 640w, https:\/\/mybroadband.co.za\/news\/wp-content\/uploads\/2020\/08\/Showmax_PR_sport_pro9-1047x698-1-e1598541329656-595x400.jpg 595w, https:\/\/mybroadband.co.za\/news\/wp-content\/uploads\/2020\/08\/Showmax_PR_sport_pro9-1047x698-1-e1598541329656-300x202.jpg 300w\" sizes=\"(max-width: 640px) 100vw, 640px\" \/><\/a><\/p>\n<p>It is not clear how MultiChoice will react to the competitive and regulatory threats, but it is likely to include improved streaming services.<\/p>\n<p>The company is already offering its own streaming service, ShowMax, which was launched in August 2015.<\/p>\n<p>Last year MultiChoice unveiled its new Showmax Pro offering which includes a selection of live sports.<\/p>\n<p>It followed up its enhanced ShowMax Pro service with the launch of a new standalone DStv streaming service in December.<\/p>\n<p>The standalone DStv streaming service allows existing and new subscribers to access content on mobile phones, tablets, gaming consoles, or smart TVs without the need for a dish or decoder.<\/p>\n<p>MultiChoice is also busy developing a bundle which will combine DStv subscriptions with uncapped Internet service packages.<\/p>\n<p>These interventions will help to make MultiChoice competitive, but whether it will be enough to maintain its dominance remains to be seen.<\/p>\n<h3 class=\"my-4\">Now read: <a href=\"https:\/\/mybroadband.co.za\/news\/broadcasting\/395987-dstv-easyview-versus-openview-prices-and-channels.html\">DStv EasyView versus Openview \u2013 prices and channels<\/a><\/h3>\n","protected":false},"excerpt":{"rendered":"<p>DStv is facing serious threats and MultiChoice&#8217;s response will shape what the future of their service offering looks like.<\/p>\n","protected":false},"author":2,"featured_media":397927,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[24],"tags":[39088,85,35,2052,475,2054,50823,67075],"class_list":["post-399395","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-broadcasting","tag-amazon-prime-video","tag-dstv","tag-headline","tag-hulu","tag-multichoice","tag-netflix","tag-openview","tag-telkomone"],"_links":{"self":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts\/399395"}],"collection":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/comments?post=399395"}],"version-history":[{"count":1,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts\/399395\/revisions"}],"predecessor-version":[{"id":399585,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts\/399395\/revisions\/399585"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/media\/397927"}],"wp:attachment":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/media?parent=399395"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/categories?post=399395"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/tags?post=399395"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}