CHAPTER 2 STREAMING SERVICES AND MARKETING
2.3 MODERN ENTERTAINMENT: STREAMING SERVICES
2.3.3 Streaming services in South Africa
2.3.3.2 Video streaming services
2.3.3.2.2 Digital Entertainment on Demand (DEOD)
Digital Entertainment on Demand, which is referred to as DEOD, is a South African video streaming service platform that launched in 2017 (Vermeulen, 2017). DEOD offers their members high-quality movies and television series through the internet (Mantendere, 2019). This platform provides their members with three options, namely individual movie rental, subscribing to the content of their choice or internet television channel programming (Lancaster, 2017). The rental of individual movies is billed on a pay-per-view basis (TechCentral, 2017). As for the internet television channel programming, the members have to make a selection amongst entertainment, sport and news channels (DEOD, 2018; Lancaster, 2017).
DEOD’s premium package will cost members R129 per month, which includes all news, sports and entertainment channels, which include a selection of series, music videos and movies on- demand (DEOD, 2020). The additional packages that DEOD offers allow a user to subscribe to their platform either per-week or per-weekend basis for only R5/day (DEOD, 2020; Vermeulen, 2017). The individual movie rental options are R40 per month, R15 per week, R8 for a weekend or a daily option for R3.50 (DEOD, 2020). DEOD offers no trial period.
2.3.3.2.3 DStv Now
Naspers introduced pay-television by means of an analogue, single-channel service by the name of M-Net in 1986. In 1993, they created MultiChoice as a subsidiary company which launched a new digital satellite service called DStv. In 2011, DStv introduced the online version of DStv which was called DStv Mobile, which was later renamed to DStv Now. DStv Now enables consumers to have access to their DStv channels and catch up on their television shows and movies while broadcasted on devices such as a computer, laptop, tablet, smartphone, smart television or gaming console (DStv, 2020a; Ferreira, 2020b). In 2020, MultiChoice renamed DStv Now to
“DStv” as they are in the process of developing and launching a streaming service that will not require the use of a satellite dish.
In order for consumers to have access to DStv Now they have to be a DStv Premium subscriber.
The monthly cost of the DStv Premium package is R829, which then grants the subscriber access to DStv Now, Box office, Catch up and ShowMax (BusinessTech, 2021a; DStv, 2020b; McKane, 2020b).
2.3.3.2.4 Google TV
Google launched Google Play Movies and TV in March 2012 (Spangler, 2018; Callaham, 2017);
however, in October 2020, they rebranded and are now called Google TV (Fedewa, 2020).
Google integrated 28 other streaming services’ content libraries into their platform (Spangler, 2018). Consequently, Google television service users have the benefit of watching content that is normally exclusively available to a specific streaming provider (Perez, 2018).
This platform generates a personalised viewing list for each user by using their subscribers’
preferences (Perez, 2018). Users are also able to pre-order movies, a feature which allows them to watch the movie immediately after it has been released (Sarnataro, 2015). Users can download a movie or television series they want to watch while offline to their smartphone or Android tablet (Google.com, 2018). This service has a caveat - it is not compatible with iPhones or iPads.
However, consumers who own such devices can still make use of this platform through personal computers (Sarnataro, 2015). The user has 30 days to watch the movie or television series once rented; however, they only have 48 hours to finish watching once they have started the movie (ITNewsAfrica, 2016).
Google TV launched their service in South Africa in 2016 (van Zyl, 2016b). The users only pay for each movie or television series they rent or purchase; there is no monthly subscription fee (Finder, 2015). It is more beneficial for a user to rent or buy individual content than to pay a monthly subscription fee (Finder, 2015), as movie rental prices range from R11.99 to R34.99, and movie purchasing costs start at R89.99 up to R149.99 (BroadBand, 2016).
2.3.3.2.5 Netflix
In 1997, a website video company called Kibble was established (Rossen, 2015). This company’s name changed to Netflix.com, and subsequently changed to Netflix (Rodrigues, 2017). The company initially started as a DVD subscription rent-by-mail service. Subscribers had access to an unlimited library of movies and television titles to select from; once they selected the titles they wanted to watch, they were mailed to the subscribers in the form of DVDs (Hosch, 2020; BBC, 2018). The package was sent from one of the distributor's centres containing the DVDs as well as prepaid return envelopes (Hosch, 2020). The demand for DVD rentals was substantial as the subscribers increased from 700,000 in 2002 to 3,6 million in 2005 (BBC,2018). In 2007, Netflix introduced a streaming feature that offered subscribers the option to stream movies and television shows directly from their library through the internet (BBC, 2018). By July 2020, Netflix had 193 million paying subscribers and is currently available in 190 countries worldwide (Moody, 2020).
Netflix offers their subscribers access to their comprehensive digital library that comprises films, documentaries and television programmes (DigitalUnite, 2018). Netflix makes use of an algorithm to predict an individual’s movie and television programme preferences. The preferences are based on a function where the individual is required to pick three shows or movies that they like, which the algorithm uses to calculate the probability of the individual wanting new added content;
if the calculated probability is high, the content will be showcased on the platform’s ‘suggested for you’ feature. Additionally, Netflix takes into account the individual’s previously watched content in order to recommend similar content to the subscriber with the aim of enhancing user experience (Hosch, 2020). Furthermore, this subscription service enables subscribers to watch content offline by downloading it on their application (Bogdana, 2018: Netflix, 2018). Netflix is an advertisement- free service provider, which means that users can watch their content of choice without being interrupted by advertisements (Bogdana, 2018).
In January 2016, Netflix was introduced to the South African market (Reuters, 2016). According to Statista (2018a) estimations, Netflix had around 337 000 subscribers within the South African market in 2020. However, FlixPatrol (2020) estimated South African Netflix subscribers to be around 500 000.
For the first two years, subscribers were billed according to a dollar-based subscription fee, which was inconvenient as the exchange rate caused the monthly fee to fluctuate (MyBroadband, 2018;
Ferreira, 2018). Since August 2018, Netflix billed their subscribers in South African Rands (MyBroadband, 2018). Netflix has three packages that are aimed at television users – basic, standard and premium, and two packages that are aimed at smartphone and tablet users – Netflix Mobile and Mobile + (BusinessTech, 2020). The premium package monthly subscription cost is R199/month, which allows subscribers to use Netflix on four devices simultaneously. The standard subscription package allows subscribers to use two devices at the same time for is R159/month. While the basic plan’s monthly cost is R99/month for only one device (BusinessTech, 2021b; Ferreira, 2018). The monthly subscription cost for the Netflix Mobile option is R39/month which will allow only one Smartphone or Tablet to be used (BusinessTech, 2020).
As for the Netflix Mobile + option will be R59/month and will allow subscribers to use the service on their smartphones, tablets and laptops (BusinessTech, 2021b). However, the Netflix Mobile + option is not yet available in South Africa. In line with most other streaming services, Netflix offers first-time users a free one-month trial to experience their service and the related features (Aswani, 2020).
2.3.3.2.6 ShowMax
ShowMax an online subscription video-on-demand service, was introduced by Naspers in August 2015 (Business Tech, 2018; Mybroadband, 2018). ShowMax offers their members access to various local and international movies and television shows (ShowMax, 2018). Consequently, ShowMax has a relative advantage over their competitors within the South African market (Channel24, 2016). In 2017, DStv and ShowMax were integrated, which made ShowMax available on DStv’s digital platforms (Vermeulen, 2018a). The ShowMax merger with DStv enabled the customers with a Premium option to have access to ShowMax free of charge; while the customers with the Compact or Compact Plus option will pay R49 per month to gain access to ShowMax (Ferreira, 2018). However, ShowMax introduced a new package option – ShowMax Pro, which is an expanded version of their original package which includes live football, athletics and boxing broadcasting (Mckane, 2020b). This package monthly subscription is R449 or the mobile-only streaming option at R225 (Mckane, 2020b). However, when non-DStv users subscribe to ShowMax, the monthly subscription fee is R99 per month (ShowMax, 2018).
ShowMax offers a two-month trial period for first-time subscribers to try out their service and features before switching to a paid subscription (Channel24, 2019).
2.3.3.2.7 YouTube Premium
YouTube Premium’s journey started in November 2014, and it was initially introduced as Music Key. Music Key was an advertisement-free streaming service for music videos from labels featured on YouTube and Google Play Music (Aploon, 2019). However, in 2015, the service was re-launched as YouTube Red, which then offered subscribers advertisement-free access to all the videos on YouTube, and not only to music (Aploon, 2019). In 2018, YouTube Red was rebranded and introduced as YouTube Premium, which is bundled with YouTube Music Premium (Dalul, 2020).
YouTube is known as the biggest video-sharing platform available where consumers can view free content (Vermeulen, 2019). However, with a premium membership of R71.99 per month, members have the added benefits of watching advertisement-free videos, downloading videos to watch while offline, having access to the feature of listening to music, videos or podcasts while their device’s screen is locked (Aploon, 2019). Furthermore, members will have access to YouTube Music Premium and YouTube Originals (Dalul, 2020). YouTube Premium also offers a family subscription option for R109.99. This option allows up to six individuals to access the account; however, the individuals should be older than 13 years of age and live in the same household as the main account holder (Aploon, 2019). A trial period of one month is offered to
new users who want to experience the service and features before subscribing (Vermeulen, 2019).