South Africa is likely to have between 692 000 and 917 500 active video-on-demand (VOD) households by 2020, according to new research by BMI-TechKnowledge.
The finding forms part of BMI-T’s South African Consumer Digital Lifestyle Research Programme, which surveyed 1 500 respondents in metropolitan areas. It added VOD and fibre to the home to the survey for the first time this year.
The research concludes that subscription television providers and mobile telecommunications operators are in a prime position to offer VOD to consumers – more so than pure-play VOD players.
“VOD is still a fledgling market locally,” BMI-T said in a statement. “When respondents were asked to name VOD providers in South Africa, only 18% mentioned pure-play VOD providers. What stands out in the VOD space is the strength of the leading subscription TV player [MultiChoice, with DStv] in terms of awareness, contrasted against low levels of awareness of the pure-play VOD providers.”
BMI-T senior research analyst Clinton Jacobs said VOD is for now seen by most consumers as an addition to pay TV rather than a replacement of it. “That speaks to what consumers would be willing to pay — much less than if it was seen as a replacement service. The additional cost of data usage must also always be kept in mind.”
Despite the low recognition in consumers’ mind of pure-play VOD providers, a quarter of those surveyed who do not have a VOD service are interested in subscribing to one. Almost 80% of those are considering VOD as an addition to their pay-TV subscription.
“Two-thirds of respondents say subscription TV providers would be their most likely choice for a VOD provider,” said BMI-T. “This is also a reflection of current VOD usage patterns, which are dominated by DStv’s own offerings, including BoxOffice.”
However, almost a quarter of respondents named mobile telecoms operators are their most likely VOD supplier.
“Pure-play VOD providers received a surprisingly low mention rate. However, 18% would still consider them, which is significant at this early stage of market development and awareness, and this number is likely to grow rapidly once Netflix, for example, is officially launched in South Africa, raising general awareness levels,” BMI-T said. — © 2015 NewsCentral Media
