The combined revenue from OTT\/streaming services and broadcasters\u2019 video on demand (VOD) services will overtake physical home video revenue in South Africa in 2018.<\/p>\n
This is according to the South African entertainment and media outlook: 2014 \u2013 2018, published by financial services company, PwC.<\/p>\n
The electronic home video segment is expected to double its share of the home entertainment market, accounting for approximately 27% of the market in 2013, but reaching 54% in 2018, with revenues of R910 million.<\/p>\n
The decline in the number of shops stocking physical home video is contributing to the decline in the physical home video market, PwC said.<\/p>\n
“Yet even with consumers shifting their viewing patterns, as the growth of video streaming services enables viewers to access long-form video content digitally across multiple screens and devices, there is evidence of some resilience in the physical home video market, arguably boosted by the popularity of TV series box sets,” the report said.<\/p>\n
PwC said that MultiChoice\u2019s DStv platform will be responsible for the bulk of growth in the home video segment. As of March 2014, the platform had five million subscribers in South Africa.<\/p>\n
DStv\u2019s online version of its BoxOffice movie rental service, launched in 2013, offers customers the opportunity to rent and stream films directly from the BoxOffice website, or to rent and download films via the DStv Desktop Player app.<\/p>\n
DStv also offers customers an online catch-up service.<\/p>\n
DStv\u2019s BoxOffice video-on-demand (VOD) service was launched in July 2011 and June 2014 saw the first price rise since its launch. For DStv Premium and DStv Extra subscribers, new movies cost R27 through their PVRs and online, while non-DStv subscribers now pay R32. In addition, DStv BoxOffice rental prices are now R10 for old films.<\/p>\n
Owners of Samsung\u2019s Smart TVs will be able to access DStv BoxOffice via an application on the televisions enabling them to rent and watch movies via their home Internet connection, PwC said.<\/p>\n
South Africans can also buy and rent movies in Apple\u2019s iTunes Store, the report pointed out.<\/p>\n
By 2015, Telkom aims to provide customers with an uncapped Internet, voice services and VOD priced at a flat rate.<\/p>\n
Earlier this month, Times Media Group took the wraps off its online streaming entertainment service, Vidi<\/a>.<\/p>\n The new hub offers both a monthly subscription option and\/or an instant rental option across one platform.<\/p>\n Available across multiple devices, viewers have two options: an all-inclusive Unlimited Subscription to a library of movies and TV series for only R149 per month, or movie rentals at R27 a pop.<\/p>\n According to PwC, growth of OTT streaming services will, however, be limited by relatively low levels of broadband access. Fixed broadband penetration is forecast to remain below 20% in South Africa, even in 2018, the report said.<\/p>\n The adoption of OTT content remains constrained as broadband connections are not available throughout the country, and so film aggregators such as Iroko Partners distribute their content in physical DVDs.<\/p>\n The physical home video market is forecast to continue its decline as a result of competing formats for delivery of filmed entertainment, falling by a CAGR of -1.9%. Although the rental market is forecast to stabilise at a relatively low R25 million, it represents only a fraction of the overall home video market.<\/p>\n The slump in physical DVD sales in South Africa will, however, be less pronounced than falls witnessed in other countries as a result of limited broadband coverage restricting the availability of streaming services, the report said.<\/p>\n “The prospects for streaming services remain tied to the levels of broadband coverage in the country. Meanwhile, consumers have begun to download films via DStv\u2019s BoxOffice Online,” PwC said.<\/p>\n R149 a month video streaming service launched in SA<\/strong><\/a><\/p>\n MTN a step closer to streaming\u00a0video<\/strong><\/a><\/p>\nMore on SA media<\/h3>\n