Netflix is coming to South Africa within the next five weeks, according to industry sources familiar with the situation.

This comes after the video streaming service confirmed in January 2015 that South Africa forms part of its global expansion plans. Now it has been revealed that next month Netflix launching its services in South Africa.

Netflix's global expansion strategy involves "acceleration to 200 countries", or being available in almost every country in the world by the end of 2016.

It then intends to "generate material global profits" from 2017 onwards.

"We have not provided details of when we plan to go where, but you can be confident South Africa is among the countries we intend to serve sometime in the next two years," said Netflix at the time.

Netflix was asked about the January launch rumours, but said it has nothing to add at this stage.

A number of video on demand services have launched in South Africa in the past 18 months, including a Netflix competitor from Naspers called ShowMax.

ShowMax recently launched its international KykNet service, offering almost 6,000 hours of Afrikaans programming in the UK, USA, Australia, Canada, and New Zealand for $8.99 per month.

DSTV has held uncontested monopoly over South Africa’s paid TV market for many years. Alternative services have materialised in recent years, but none with the features to rival DSTV. Enter, Netflix, an online streaming service that has been tipped to finally give DSTV some much needed competition.

Many believe that DSTV’s revenue will suffer following the introduction of Netflix in South Africa in 2016, and it’s easy to see why.
 
A lack of competition has allowed the broadcast service to retain high prices for their TV packages over the years. To gain access to all the channels and services DSTV has to offer, one must be subscribed to their Premium package, which goes for R799 a month. Only the higher value packages allow subscribers access to MultiChoice’s BoxOffice service, which offers the ability to rent movies online movies online for 48 hours, through the decoder. The scheduled viewing and endless advertisements are also features that Netflix can easily out-do, and others have already tired.

DSTV’s biggest draw will undeniably be its multiple sports channels, which broadcast live sports matches to its many subscribers. Additionally, DSTV owns full rights to the popular SuperSport channels, and its content cannot be broadcast elsewhere. Sports are a huge incentive to remain a DSTV subscriber despite better online streaming options. DSTV subscriptions are easily down-gradable, however, and it will be interesting to see if consumers remain loyal to the broadcast company, or downgrade to the lowest package for sport channels before taking out a Netflix subscription.
 
At R88 ($8 in America) a month with no additional fees, Netflix plans to remove its geo-blocking system, allowing all its operating countries access to the same content. With no schedule or ad breaks, Netflix gives subscribers access to thousands of hours with of content. DSTV may have a sports option, but Netflix is set to pull popular series off DSTV. Successful series, such as Orange is the New Black and House of Cards, have signed off their rights to Netflix, and they will be removed from the DSTV broadcast once Netflix enters the South African market. This will be a huge blow to DSTV.  Regardless of its hold on the sport market, DSTV will have to consider dropping monthly rates and restructuring its broadcast content in order to remain a major paid TV player in South Africa.




Comments   

Sandi de bruin
+1 # Sandi de bruin 2015-12-18 06:12
What fantastic news. So over these people with the monopoly! Daylight robbery. We will support you Netflix!
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Scot
+2 # Scot 2015-12-18 08:19
Who wrote this terrible clickbait article? The title should be RUMOUR and not breaking. This is all pure speculation. Where has Multichoice said it will reduce prices? And while I do believe that Netflix will launch soon - it hasn't been confirmed.
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jay
+2 # jay 2015-12-18 08:54
What a relief this will be can't wait, it will be beneficial to parents who live alone as well. SA needs more competitive prices . Woza Netflix.
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Sue Auko
+1 # Sue Auko 2015-12-18 11:53
Yes!!!! It will indeed be a happy new year! DSTV has enjoyed the monopoly for too long.
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Jeramy
0 # Jeramy 2015-12-18 13:20
Gaan sport op die draadloos luister soos in die ou dae. Dstv vat g@t
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Bispets
+2 # Bispets 2015-12-18 13:38
This is a welcomed development, in order to break the bone of market monopoly in South Africa and I pray it extend to Nigeria and other African states. Welcome Netflix, hope you won't disappoint us.
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Ann
-1 # Ann 2015-12-18 16:34
The article makes no mention of what type of internet connection you need and minimum speed. The internet is expensive in SA. You would have to go uncapped which is about R800 a month and then still pay about R120 Netflix fee, so it works out expensive too.
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Kylo
0 # Kylo 2016-01-03 15:53
Not sure where you get R800 from? You can get it for a lot cheaper than that. You can get a 10meg uncapped line for R365, infact for R800 you're coming close on having a 40meg line
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Johan
0 # Johan 2016-01-03 16:07
I obtained fixed wireless broadband internet via a dish on your roof linked up to a tower. Reason being cause Telkom don't provide ports in my area for ADSL lines. The bad part is u pay more for this technology @ R899pm for 5mbs uncapped. The good part is that ure contention ratio at 1:20 is light years better than what any fixed line operators could provide. This means guaranteed uptime max speeds at 96% and NO lagging what so ever. So even though I was forced to go this route, paying more than fixed line internet its worth the money for the awesome quality of the service.
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Evan
-2 # Evan 2015-12-18 19:04
Its not just the $8 for Netflix, the 8$ is for Standard Definition (DVD quality). you will need decent internet for that, at least 4Mbps line(about R786 for uncapped +R120 for Netflix), if you want HD, like a lot of DSTV users have , you will need a 10Mbps line(about R1086 for uncapped +R150 for Netflix HD). So if you already have decent interwebs then no prob.

"Watching movies or TV shows on Netflix uses about 1 GB of data per hour for each stream of standard definition video, and up to 3 GB per hour for each stream of HD video. This can create headaches for Netflix members who have a monthly bandwidth or data cap on their Internet service."
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Afh
+3 # Afh 2015-12-18 21:22
I used to have a 4mbps line, which was fine for watching. Now have 20mb. Not sure where these figures, prices come from. Also I have a capped account with Vox, with data carry over and free data from 12-6. I have never run out of data. My kids watch cartoons, my mother watch series through the day. I pay in total R680 for line and data. That is money for internet I am not only using for streaming etc. I can't say I have ever had headaches as a capped user and paying nowhere near R1000+
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Hamish
0 # Hamish 2015-12-19 00:07
You don't need ANY of it! Get one of Telkom's ADSL deals that includes NightSurfer, which has NO bandwidth restrictions between 00:00 and 07:00. And then download whatever you like on the lowest 2mbps line to watch later. I downloaded over 100 Gb the first month I went this route :) Costs me R429 for 20 Gb normal time + 2x Telkom simcards with 50 mins calltime pmk. as a bonus. Check it out.
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Igsaan
+1 # Igsaan 2015-12-21 15:23
About time that we get more competition to break this very expensive monopoly.
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