Local Internet video service ShowMax is not increasing its monthly R99 subscription rate despite the weak rand impacting its business.
Multinational media and Internet company Naspers launched ShowMax on 19 August last year as a TV series and movie video-on-demand service.
But the rand has weakened significantly, from R12,88/US$ on 19 August to around R16/$ this week.
ShowMax, like other local television companies, is susceptible to currency movements as it buys its content from markets such as the US.
However, ShowMax spokesman Richard Boorman said that although it is difficult to predict what will happen in the long term, the company is not planning any subscription price hikes for now.
“As with many other companies and industries, the significantly weaker rand does have an impact on our business plans,” Boorman said in a statement.
“Our focus is on managing that impact and keeping pricing stable. Rand weakness translates into a de facto price increase by our international rivals, whose services are priced in US dollars, which has the beneficial impact of making ShowMax better value for money,” he said.
US streaming service Netflix is priced from $7,99/month in South Africa, meaning that it’s subscription fee could change month-on-month for South Africans depending on the rand’s movements.
Meanwhile, Naspers-owned satellite pay-TV provider MultiChoice told Channel24 that it is reviewing its pricing amid the weakening of the exchange rate.
MultiChoice has increased its prices annually for the last few years. The pay-TV company typically announces its price changes at the end of February and then implements the revised fees in April each year. — Fin24