DStv is on the verge of establishing itself as an internet service provider
DStv is on the verge of establishing itself as an internet service provider
DStv, a well-known cable television service provider, has launched its own internet service for users, starting with those in its home country of South Africa. Due to competition from streaming platforms such as Netflix and Amazon Prime, this move is part of a natural evolution for the company from its traditional cable entertainment business.
Consumers will be able to purchase the service online or at DStv walk-in centres across South Africa, according to a statement released yesterday by the company's parent company, Multichoice.
The DStv Internet service is a fixed wireless access service provided by DStv. Customers will be connected to the internet through the use of a SIM card and a Wi-Fi router, in other words. Some media outlets have reported that Multichoice has chosen MTN to provide the service to users in their homes, citing the company's selection of telecommunications services provider. The specifics of the partnership, on the other hand, have yet to be determined.
The partnership was confirmed by the executive in charge of managed network services at MTN South Africa. She also stated the following:
“We are delighted to be working with Multichoice to improve access to digital services in South Africa,” says the company. The network wholesale provider is gearing up to serve the larger digital eco-system in order to ensure that more people can benefit from living a modern and connected life,” says the CEO of a network wholesale provider.
MultiChoice's digital platform security subsidiary, Irdeto, and Minim, a manufacturer of intelligent networking products, have collaborated to develop an exclusive new premium service called DStv Trusted Home, which is an AI-driven network protection and Wi-Fi management solution. This service is available exclusively through the DStv Internet offering.
According to the announcement, the DStv Trusted Home not only includes an iOS and Android app, but also a web-based interface. In order to use the DStv Trusted Home app, you must have a DStv Internet router on your network. Packages and contract offerings include routers, which are included in the price.
DStv Internet is being launched in conjunction with the launch of the DStv Trusted Home app, which will be provided to the first 20 000 customers for free for a period of 12 months. After 12 months, customers will have the option to opt out or opt to add an R30 monthly charge to their DStv Internet bill in lieu of opting out.
DStv's plan to stay alive includes the use of the internet
Multichoice, Africa's largest entertainment company, has been fighting a two-pronged battle for the past few years. The first is the increasing level of competition from streaming services. The other factor is the government's relentless campaign to bring down the price of oil.
Africa has a population of more than one billion people. On the other hand, there are only 2.7 million Video on Demand (VoD) subscribers across the whole of Africa. This is a small but growing number when you consider that more than half a billion (527 million) Africans use the internet and that more than 250 million own smartphones. As a result, there has been fierce competition for this sum of money.
For example, Netflix is pouring colossal sums into developing African original content in an attempt to capture the continent's largely untapped video-on-demand market. The company announced on Monday that it would provide users in Kenya with a free mobile plan, an unprecedented move that the company believes will boost growth and retention rates.
According to a study conducted by Digital TV Research, Netflix has approximately 2 million subscribers in Africa at the moment. Showmax, despite the fact that it claims to serve more than 20 million households in more than 50 African countries, isn't doing particularly well in the video-on-demand market, as we've previously reported.
Regulations in some countries, on the other hand, are pressuring the company to provide more affordable options for its citizens. A Pay-Per-View (PPV) billing model, for example, has been proposed by the Nigerian government for the introduction of DStv in the country.
Despite declining revenues and the possibility that it will not be able to acquire broadcast rights for the UEFA Champions League and the English Premier League (EPL) on SuperSport in 2022 after the 2020/21 football season concludes, the company has decided to proceed.
This comes on the heels of an unrelenting price war with competitors such as the Chinese-owned Startimes in West and East Africa, as well as in the Middle East. DStv and GoTV subscription prices in Uganda, Kenya, Tanzania, and Mozambique were set to be reduced by Multichoice just prior to the outbreak of the Ebola virus in East Africa. This comes as a result of a competitor, StarTimes, deciding to lower its prices in the region.
As a result, the company has made a concerted effort to transition from being a traditional pay-tv platform to becoming a comprehensive entertainment organization. Remember that in June, Multichoice made an offer to Blue Lake Ventures Limited (BetKing) for an increase in its shareholdings in the company from 20 percent to 49 percent in exchange for an estimated $281.5 million in cash.
According to Group CEO Calvo Mawela, sports betting is an interesting market that is complementary to the company's Pay-TV operations.
Multichoice is entering a new entertainment market with its entry into internet services, and it has the potential to quickly become a viable alternative for the approximately 20 million households that do not have access to fiber optic networks. The fact that it could provide the service as an add-on without having to build new fiber infrastructure makes it a financially viable proposition.
Customer acquisition costs are reduced as a result of the availability of bundled offerings that include data options as part of their DStv subscription package, which is particularly advantageous for new customers.
According to what we've heard, people who don't have a DStv subscription can also access DStv Internet. This means that people may require the DStv internet service in order to watch other streaming platforms such as Netflix.
Many African countries' internet service providers will be significantly altered as a result of this development. Only time will be able to determine the extent of the transformation.
