{"id":441682,"date":"2022-04-20T12:59:57","date_gmt":"2022-04-20T10:59:57","guid":{"rendered":"https:\/\/mybroadband.co.za\/news\/?p=441682"},"modified":"2022-04-20T13:04:20","modified_gmt":"2022-04-20T11:04:20","slug":"dstvs-existential-threat","status":"publish","type":"post","link":"https:\/\/mybroadband.co.za\/news\/broadcasting\/441682-dstvs-existential-threat.html","title":{"rendered":"DStv&#8217;s existential threat"},"content":{"rendered":"<p>South Africa\u2019s biggest pay-TV broadcaster MultiChoice is being pressed into a corner.<\/p>\n<p>The rapid expansion of international and local online video streaming services threatens its once sought-after DStv Premium satellite package.<\/p>\n<p>Over the last few years, DStv has seen a gradual decline in customers on its high-end Premium product.<\/p>\n<p>Major driving factors behind the exodus are the constantly increasing price and the proliferation of video streaming services that more affluent customers can access.<\/p>\n<p>In a January 2021 submission for industry regulator Icasa&#8217;s inquiry into pay-TV competition, MultiChoice acknowledged it is facing an <a href=\"https:\/\/mybroadband.co.za\/news\/broadcasting\/385414-netflix-can-kill-dstv-warns-multichoice.html\"><strong>existential competitive threat<\/strong><\/a> from these services.<\/p>\n<p>The number of streaming services South Africans can subscribe to has grown substantially since Netflix officially landed in the country in 2016.<\/p>\n<p>In 2021, the BBC and IPTV\u2019s BritBox service made its debut in South Africa, bringing a host of British content with it, some of which has been missing from DStv since it shut down some UK-based channels.<\/p>\n<p><strong><a href=\"https:\/\/mybroadband.co.za\/news\/broadcasting\/441536-disney-pre-registrations-launch-in-south-africa-with-special-pricing.html\">Disney+ is the next to arrive in the country<\/a><\/strong> on 18 May, with a plethora of content from its vast and popular catalogue of movies and TV shows expected to be available.<\/p>\n<p>It will join Netflix, Amazon Prime Video, Apple TV+, BritBox, and AcornTV in South Africa.<\/p>\n<p>But DStv is also facing an onslaught on the local front, with various South African streaming services coming online.<\/p>\n<p><strong><a href=\"https:\/\/mybroadband.co.za\/news\/broadcasting\/408800-evod-e-tvs-netflix-contender-launched.html\">E-tv launched its video streaming service eVOD<\/a><\/strong> in August 2021. TelkomONE preceded it, rolling out in November 2020.<\/p>\n<p>The SABC also plans to launch its video streaming service in the second quarter of 2022.<\/p>\n<p>Smaller parties have also launched their own offerings.<\/p>\n<p>These include the likes of civil action group AfriForum, which recently <strong><a href=\"https:\/\/mybroadband.co.za\/news\/broadcasting\/440962-afriforumtv-free-streaming-service-launched-the-details.html\">launched AfriForumTV<\/a><\/strong> \u2014 an alternative for Afrikaans-speaking viewers to MultiChoice&#8217;s offerings like Showmax, and the kykNET and Via channels on DStv.<\/p>\n<div id=\"attachment_364360\" style=\"width: 650px\" class=\"wp-caption aligncenter\"><a  data-lightbox=\"post-image\" href=\"https:\/\/mybroadband.co.za\/news\/wp-content\/uploads\/2020\/08\/DStv-Streama.jpg\"><img loading=\"lazy\" decoding=\"async\" aria-describedby=\"caption-attachment-364360\" class=\"size-full wp-image-364360\" src=\"https:\/\/mybroadband.co.za\/news\/wp-content\/uploads\/2020\/08\/DStv-Streama.jpg\" alt=\"\" width=\"640\" height=\"430\" srcset=\"https:\/\/mybroadband.co.za\/news\/wp-content\/uploads\/2020\/08\/DStv-Streama.jpg 640w, https:\/\/mybroadband.co.za\/news\/wp-content\/uploads\/2020\/08\/DStv-Streama-595x400.jpg 595w, https:\/\/mybroadband.co.za\/news\/wp-content\/uploads\/2020\/08\/DStv-Streama-300x202.jpg 300w\" sizes=\"(max-width: 640px) 100vw, 640px\" \/><\/a><p id=\"caption-attachment-364360\" class=\"wp-caption-text\">DStv Streama<\/p><\/div>\n<p>DStv has one big advantage \u2014 video streaming services require an Internet connection.<\/p>\n<p>However, the cost of fixed broadband in South Africa has dropped radically. You can get uncapped fibre capable of streaming 4K video and a subscription to several streaming services for less than DStv Premium.<\/p>\n<p>The price of mobile data may also soon become cheap enough for video streaming following <strong><a href=\"https:\/\/mybroadband.co.za\/news\/telecoms\/437868-spectrum-auction-winners-announced-vodacom-and-mtn-to-spend-r5-billion-each.html\">Icasa&#8217;s recent spectrum auction<\/a><\/strong>.<\/p>\n<p>Households also typically have an Internet connection for more than video streaming.<\/p>\n<p>Asked about this, MultiChoice remained adamant that DStv was the &#8220;most cost-effective means of family entertainment and presents the most video entertainment value&#8221;.<\/p>\n<p>However, its approach to offering streaming services leaves much to be desired.<\/p>\n<p>In a heavily criticised move earlier this year, <strong><a href=\"https:\/\/mybroadband.co.za\/news\/broadcasting\/438376-dstv-starts-limiting-streaming-to-one-device.html\">DStv reduced concurrent streams<\/a><\/strong> to one, even on streaming-only packages.<\/p>\n<p>This decision sparked calls for a boycott on social media.<\/p>\n<p>It is also challenging to measure Showmax&#8217;s success as MultiChoice doesn&#8217;t publish subscriber numbers for the service.<\/p>\n<p>Although Showmax offers some of the world&#8217;s most popular content thanks to MultiChoice&#8217;s licencing deal with HBO, there are indications that things might not be going the way they hoped.<\/p>\n<p>Showmax has repeatedly offered promotions that include two-for-one subscription deals.<\/p>\n<p>DStv&#8217;s streaming services and Showmax have their streaming quality capped at 720p, while Disney+, Netflix, and Amazon Prime Video all have 4K available.<\/p>\n<h3 class=\"my-4\"><a  data-lightbox=\"post-image\" href=\"https:\/\/mybroadband.co.za\/news\/wp-content\/uploads\/2020\/06\/DStv-Netflix-Hulu-YouTube-Amazon-Prime-Video.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-full wp-image-355796\" src=\"https:\/\/mybroadband.co.za\/news\/wp-content\/uploads\/2020\/06\/DStv-Netflix-Hulu-YouTube-Amazon-Prime-Video.jpg\" alt=\"\" width=\"640\" height=\"430\" srcset=\"https:\/\/mybroadband.co.za\/news\/wp-content\/uploads\/2020\/06\/DStv-Netflix-Hulu-YouTube-Amazon-Prime-Video.jpg 640w, https:\/\/mybroadband.co.za\/news\/wp-content\/uploads\/2020\/06\/DStv-Netflix-Hulu-YouTube-Amazon-Prime-Video-595x400.jpg 595w, https:\/\/mybroadband.co.za\/news\/wp-content\/uploads\/2020\/06\/DStv-Netflix-Hulu-YouTube-Amazon-Prime-Video-300x202.jpg 300w\" sizes=\"(max-width: 640px) 100vw, 640px\" \/><\/a><\/h3>\n<p>DStv could also be growing concerned about one area where it has been dominant for years \u2014 sports broadcasting.<\/p>\n<p>Big international players have shifted their gaze towards this potentially lucrative revenue stream for advertising.<\/p>\n<p>Sporting federations are gradually disintermediating broadcasters. <strong><a href=\"https:\/\/mybroadband.co.za\/news\/broadcasting\/340253-f1-tv-pro-launched-in-south-africa-watch-live-for-r76-per-month.html\">Formula 1<\/a>,<\/strong>\u00a0Premier League football clubs, and even <strong><a href=\"https:\/\/mybroadband.co.za\/news\/broadcasting\/441146-fifa-launches-free-video-streaming-service.html\">FIFA<\/a><\/strong> offer dedicated streaming apps for fans.<\/p>\n<p>Amazon and Disney+ have thrown their hats into the ring for the right to stream Indian Premier League cricket between 2023 and 2027.<\/p>\n<p>Multinationals like Amazon, Apple, Disney, and Netflix have much more cash to offer for the rights to this content, and they have recognised the opportunity.<\/p>\n<p>YouTube recently won the exclusive rights to stream 15 major league baseball games in 182 countries.<\/p>\n<p>Apple TV+ has been streaming Friday Night Baseball in 2022 and is reportedly close to sealing a deal for the National Football League\u2019s Sunday Ticket rights from 2023.<\/p>\n<p>Should these companies begin to turn to smaller regions like South Africa as a ripe market for advertising revenue on globally popular sports like soccer, rugby, and cricket, MultiChoice could find itself priced out of the rights auctions.<\/p>\n<p>MultiChoice did not acknowledge the threat when asked about this. Instead, it told MyBroadband that SuperSport would remain a long-term supporter of local sport \u2014 as an investor and a broadcaster.<\/p>\n<h3 class=\"my-4\"><strong>One-stop shop? Not so much<\/strong><\/h3>\n<p>MultiChoice previously expressed big plans to become an entertainment super-aggregator, effectively offering a one-stop shop for various streaming services alongside DStv.<\/p>\n<p>It has had some success on this front with the Explora Ultra decoder, which offers Netflix, Amazon Prime Video, and YouTube on top of DStv and Showmax.<\/p>\n<p>However, with the third-party apps also being available on a myriad other smart TV and mobile platforms, it is difficult to see the benefit of getting an Ultra decoder unless DStv somehow bundles these subscriptions with its own at a discount.<\/p>\n<p>In this regard, it has failed, while rivals like France-based Canal+ have succeeded.<\/p>\n<p>Here there may be some hope, as there are murmurings that <strong><a href=\"https:\/\/mybroadband.co.za\/news\/business\/415610-multichoice-now-15-owned-by-canal.html\">Canal+ may be looking to acquire MultiChoice<\/a><\/strong>.<\/p>\n<p>MultiChoice has also kept eerily quiet on progress regarding its DStv Streama, which it announced <strong><a href=\"https:\/\/mybroadband.co.za\/news\/broadcasting\/364370-dstv-streama-unveiled-dstv-sport-showmax-and-youtube.html\">more than 19 months ago<\/a><\/strong>.<\/p>\n<p>Asked about the Streama, MultiChoice said it would announce information about the launch later.<\/p>\n<p>The Streama is a compact media box that would have to go toe-to-toe with Apple TV and the slew of Android TV media boxes already on the market.<\/p>\n<p>For the more technically inclined, media platform developer Plex has also started offering aggregating services in its apps \u2014 and made it available for free.<\/p>\n<p>With consumers getting more comfortable with an array of existing options on the market, and more TVs offering operating systems with built-in app support, time is running out for MultiChoice to pivot.<\/p>\n<h3 class=\"my-4\">Now read: <a href=\"https:\/\/mybroadband.co.za\/news\/broadcasting\/441536-disney-pre-registrations-launch-in-south-africa-with-special-pricing.html\" rel=\"bookmark\">Disney+ pre-registrations launch in South Africa \u2014\u00a0with special pricing<\/a><\/h3>\n","protected":false},"excerpt":{"rendered":"<p>As more content owners like Disney launch their own streaming services globally, DStv&#8217;s existence is under threat.<\/p>\n","protected":false},"author":341042,"featured_media":440142,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[24],"tags":[39088,2638,68666,12857,85,35,475,2054,32140,62312],"class_list":["post-441682","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-broadcasting","tag-amazon-prime-video","tag-apple-tv","tag-britbox","tag-disney","tag-dstv","tag-headline","tag-multichoice","tag-netflix","tag-showmax","tag-video-streaming-services"],"_links":{"self":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts\/441682"}],"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\/341042"}],"replies":[{"embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/comments?post=441682"}],"version-history":[{"count":2,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts\/441682\/revisions"}],"predecessor-version":[{"id":441694,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts\/441682\/revisions\/441694"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/media\/440142"}],"wp:attachment":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/media?parent=441682"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/categories?post=441682"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/tags?post=441682"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}