Video-on-demand sports in SA – will it really take off in 2017?
Frost & Sullivan says there are a number of fundamental hurdles to overcome before video on demand in the sporting space can see significant growth on the continent.
There is a lot of buzz around ‘sport-on-demand’ and its potential through video-on-demand (VOD), said Frost & Sullivan research analyst, Laura Caetano.
As subscribers are becoming increasingly dissatisfied with having to pay high Pay TV
subscription fees, the door is opening for VOD for sport.
“There are numerous benefits of truly digitising sports such as bringing attention to the lesser known sports that are generally not given any airtime, and its use as a vehicle to promote local sports, especially where smaller leagues are concerned,” said Caetano.
“An important factor that many are turning a blind eye to are broadcasting rights—their cost in particular. Big players in the Pay TV market, such as MultiChoice, can afford to buy broadcasting rights for a range of sport, making it worthwhile for their clients to subscribe,” the analyst said.
This poses a significant barrier to those trying to enter the VOD sport market but do not have the capital to outbid MultiChoice.
The high cost of data is an additional barrier to entry and the potential of VOD for sport will not fully be realised in Africa until data is more affordable to the masses, Caetano noted.
“Untill then, people will retain their Pay TV subscriptions as it offers them more value for money, especially if they have broadcast rights for popular league matches,” Caetano said.
Frost & Sullivan pointed out thatthese hurdles create the opportunity for companies to come up with innovative ways to overcome these barriers to entry, whilst simultaneously building their key value advantage in the market.
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