Data from FNB shows that consumer spend on audio and video streaming services such as Netflix, Amazon Prime, Spotify and YouTube has increased by approximately 70% from the period before Covid-19 to June 2022.<\/p>\n
Raj Makanjee, chief executive of FNB Retail, said the bank’s retail customers spend up to R190 million per month on audio and video streaming subscriptions.<\/p>\n
“The flexibility of these platforms allows families to customise their own experience and playlists, with the convenience of consuming content whenever they want. The use of content-on-demand platforms is likely to continue as more providers introduce services to give consumers more choice.”<\/p>\n
This aligns with data from debt advisory service DebtSafe which shows that pay-TV services – including DSTV, Netflix and ShowMax – consistently feature as one of the top monthly expense items for households in South Africa, only ranking below rental\/bond costs, fuel expenses and food.<\/p>\n
Goodbye DStv\u00a0<\/strong><\/p>\n While DStv remains an ever-present force in South Africa, the pay-TV operator has seen comparatively less spending in recent years as consumers consider newer platforms and tailored content.<\/p>\n An analysis by MyBroadband<\/a> <\/strong>found that MultiChoice continues to hike DStv prices annually even as it bleeds its most valuable subscribers, and despite the growing competition from more affordable video streaming services.<\/p>\n The satellite TV broadcaster has dominated home entertainment for decades, due to a lack of competition. Its de facto monopoly over video entertainment and premium sports broadcasting allowed it to increase prices yearly, with little to no threat of customers leaving.<\/p>\n Increasing competition has forced MultiChoice to consider new platforms and products. In its 2021\/2022 financial year, it also saw a reduction in its mid-tier customer base<\/a><\/strong>\u00a0on the Compact, Family, and Extra packages.<\/p>\n The increase in low-end subscribers on its Access and EasyView packages has not been enough to compensate for its losses in the premium and mid-tier segments.<\/p>\n MultiChoice has been forced to hike prices<\/a><\/strong> to try and maintain a healthy average revenue per user (ARPU) and ensure continued profitability.<\/p>\n
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