Local technology group Altron is closing its video on demand business Altech Node.<\/p>\n
Last year in September, Altron launched the Altech Node satellite-connected box which delivers VoD content in high definition to subscribers.<\/p>\n
Altron also described the Node as a home-gateway device, which included features such as home security and internet calling.<\/p>\n
But the product and service has failed to take off as Altron said its uptake has \u201cnot met expectations\u201d.<\/p>\n
\u201cUnfavourable conditions such as the current economic environment which is putting pressure on the consumer and increased competition in the video-on-demand (VOD) environment have necessitated us to make the difficult decision to close the Altech Node business,\u201d said Altron chief executive officer Robert Venter in a statement emailed to Fin24.<\/p>\n
\u201cWe will however retain the technology within the group,\u201d said Venter.<\/p>\n
Altron also said that with immediate effect no new subscription agreements will be entered into for the Altech Node service.<\/p>\n
Also, on October 31 2015 all Altech Node services will be terminated while the company intends to refund subscribers an amount of R1 999 per Altech Node device.<\/p>\n
Altron said refunds will be processed during November 2015.<\/p>\n
Managing director of technology research firm World Wide Worx, Arthur Goldstuck, told Fin24 that awareness of the Node started to diminish in the local market.<\/p>\n
“It’s been on the cards for a while,\u201d Goldstuck told Fin24.<\/p>\n
“Their product has been very limited in terms of content…and you didn’t see any marketing for it.<\/p>\n
“They must have realised at an early stage that it wasn’t working and they pulled out or they decided to limit their exposure,\u201d he said.<\/p>\n
The closure of the Altech Node business also comes as Altron streamlines parts of its business.<\/p>\n
In May, Altron said it planned to sell the subscriber base of its phone service provider business Altech Autopage.<\/p>\n