Local internet video service ShowMax is not increasing its monthly R99 subscription rate despite the weak rand impacting its business.<\/p>\n
Multinational media and internet company Naspers launched ShowMax on August 19 \u00a0last year as a TV series and movie video on demand service.<\/p>\n
But the rand has significantly weakened from R12.88 to the US dollar on August 19 2015 to around the R16 mark this week.<\/p>\n
ShowMax, like other local television companies, is susceptible to currency movements as it buys its content from markets such as the US.<\/p>\n
However, ShowMax spokesperson Richard Boorman told Fin24 that while it is difficult to predict what will happen in the long-term, the company is not planning any subscription price hikes in the short-term, despite the effects of the weak rand.<\/p>\n
\u201cAs with many other companies and industries, the significantly weaker rand does have an impact on our business plans,\u201d Boorman said in a statement.<\/p>\n
\u201cOur 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 USD, which has the beneficial impact of making ShowMax better value for money,\u201d he said.<\/p>\n
US streaming service Netflix is priced at $7.99 in South Africa, meaning that it\u2019s subscription fee could change month-on-month for South Africans depending on the rand\u2019s movements.<\/p>\n
Meanwhile, Naspers-owned satellite pay-TV provider MultiChoice told Fin24 sister publication Channel24.com that it is reviewing its pricing amid the weakening of the exchange rate.<\/p>\n
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.<\/p>\n
ShowMax is going global to take on Netflix<\/a><\/strong><\/p>\n Netflix competitor ShowMax launches in SA<\/a><\/strong><\/p>\n