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How Netflix has changed video in SA (and it’s not what you think)

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For some years now, South Africans have been circumventing regional restrictions on the US-based Netflix service, but that’s not what has changed video-on-demand in South Africa, writes ARTHUR GOLDSTUCK.

Not long after dismissing South Africa as a potential market for its movie-on-demand service, Netflix last week announced it would bring the service here within the next two years.

As vague as that timeframe may be, it set the cat among the video pigeons in this country. Expectations for Netflix transforming the local movie-watching market are, however, misplaced.

The truth is, Netflix has already transformed the local market. And no, it’s not because thousands of South Africans have found ways to bypass regional restrictions. Nor even the fact that some service providers are offering unblocking services for regional content restrictions.

These services are based on providing a DNS-masking service, which means the user’s Internet address is masked, so that a registration request appears to come from the United States rather than South Africa, for example. A simple Google search reveals dozens of options for this technique.

The problem with such services – and the thousands of South Africans who have taken advantage of them – is that it remains the arena of the techie, the geek and the early adopter. The vast majority of the population will never come close to such workarounds, as evidenced by Eighty20’s latest figures for DStv satellite TV subscriptions: one third of South African households – more than 5-million homes – have DStv. The number keeps rising, with a 23% annual growth rate recorded for the past decade.

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Another statistic to pour cold bandwidth over a belief in techie-circles that Netflix is hurting DStv: its holding company, MultiChoice, last year generated revenues of R27,5-billion, and a profit of R6,3-billion. In other words, one year’s profit could fund several serious competitors to Netflix.

Meanwhile, the long-touted prospect of Netflix coming to South Africa has spurred the emergence of a variety of new players in local video-on-demand. Vidi from media group Times Media Limited and FrontRow from mobile network operator MTN both rely on broadband, while Node from technology conglomerate Altech uses a combination of satellite for downloading movies and any Internet connection for uploading requests, registrations and settings.

Apple TV is also in the mix with a local version of its movie store. Other small players peck away at the market from the edges, the equivalent of online mom-and-pop video stores.

None of these provides a comprehensive new-release service to those who are abandoning physical video stores, and even their back catalogues are disappointing for the serious movie buff.

Nevertheless, when Netflix announced in a letter to shareholders on Wednesday that it’s able to accelerate the roll-out of its international expansion plans, it was really a euphemism for saying it has to expand quickly into markets where growing numbers of competitors are staking claims to the video-on-demand territory.

That forces them to be less squeamish about conditions on the ground. Like the local newcomers, they’ve realised that, if they wait for perfect broadband, the competitive environment will become far more of a challenge than slow connections.

It is also likely they figured out that thousands of South Africans are already using their service by pretending to be elsewhere in the world.

Finally, they would have picked up on the fact that fibre-to-the-home (FTTH) services are sprouting throughout South Africa, and these are ideal for Netflix. Some of the FTTH providers may well have contacted Netflix to request that it become part of the content services offered to customers, to take full advantage of fibre speeds and justify their capacity.

Netflix will have little impact on DStv in the short term. It may slow down its growth, but there is one area where no video-on-demand service can compete, and that is live sports. This is the mainstay of DStv’s market dominance throughout Africa, and Netflix is unlikely to challenge that dominance.

Netflix will comply with regional licensing requirements, as it does in all territories. For this very reason it has tried to prevent users in non-Netflix countries like South Africa from using the service. For the same reason, sadly, its offering is unlikely to be dramatically better or different from the video-on-demand competition locally.

In short, much of the potential impact that Netflix could make on the local market has already been made.

* Arthur Goldstuck is founder of World Wide Worx and editor-in-chief of Gadget.co.za. Follow him on Twitter on @art2gee, and subscribe to his YouTube channel at http://bit.ly/GGadgets

 

 

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Wannacry still alive

One and a half years after its epidemic, WannaCry ransomware tops the list of the most widespread cryptor families and the ransomware has attacked 74,621 unique users worldwide.

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These attacks accounted for 28.72% of all users targeted by cryptors in Q3 2018. The percentage has risen over the last year, demonstrating more than two thirds growth against Q3 2017, when its share in cryptor attacks was 16.78%. This is just one of the main findings from Kaspersky Lab’s Q3 IT threat evolution report. 

A series of cyberattacks with WannaCry cryptor occurred in May 2017 and is still considered to be one of the biggest ransomware epidemics in history. Even though Windows released a patch for its operating system to close the vulnerability exploited by EternalBlue 2 months prior to the start of the attacks, WannaCry still affected hundreds of thousands devices around the globe. As cryptors do, WannaCry turned files on victims’ computers into encrypted data and demanded ransom for decryption keys (created by threat actors to decipher the files and transform them back into the original data) making it impossible to operate the infected device.

The consequences of the WannaCry epidemic were devastating: as the victims were mainly organisations with networked systems – the work of businesses, factories and hospitals was paralysed. Even though this case demonstrated the dangers cryptors pose, and most of PCs around the world have been updated to resist the EternalBlue exploit, the statistics show that criminals still try to exploit those computers that weren’t patched and there are still plenty of them around the globe.

Overall, Kaspersky Lab security solution protected 259,867 unique users from cryptors attacks, showing a substantial rise of 39% since Q2 2018, when the figure was 158,921. The growth was rapid yet steady, with a monthly observed increase in the number of users.

The rising share of WannaCry attacks is another reminder that epidemics don’t end as fast as they start – there are always long-running consequences. In the case of cryptors, attacks can be so severe that it is necessary to take preventive measures and patch the device, rather than deal with encrypted files later,” said Fedor Sinitsyn, security researcher at Kaspersky Lab.

 To reduce the risk of infection by WannaCry and other cryptors, users are advised to:

  • Always update your operating system to eliminate recent vulnerabilities and use a robust security solution with updated databases. It is also important to use the security solution that has specialised technologies to protect your data from ransomware, as Kaspersky Lab’s solutions do. Even if the newest yet unknown malware does manage to sneak through, Kaspersky Lab’s System Watcher technology is able to block and roll back all malicious changes made on a device, including the encryption of files.
  • If you have bad luck and all your files are encrypted with cryptomalware, it is not recommended to pay cybercriminals, as it encourages them to continue their dirty business and infect more people’s devices. It is better to find a decryptor on the Internet – some of them are available for free here: https://noransom.kaspersky.com/

·         It is also important to always have fresh backup copies of your files to be able to replace them in case they are lost (e.g. due to malware or a broken device), and store them not only on the physical object but also in cloud storage for greater reliability (don’t forget to protect your cloud storage with strong hack-proof password!)

·         If you’re a business, enhance your preferred third-party security solution with the newest version of the free Kaspersky Anti-Ransomware Tool.

·         To protect the corporate environment, educate your employees and IT teams, keep sensitive data separate, restrict access, and always back up everything.

·         Use a dedicated security solution, such as Kaspersky Endpoint Security for Business that is powered by behaviour detection and able to roll back malicious actions. It should also include Vulnerability and Patch management features that automatically eliminates vulnerabilities and installs updates. This reduces the risk of vulnerabilities in popular software being used by cybercriminals.

·         Last, but not least, remember that ransomware is a criminal offence. You shouldn’t pay. If you become a victim, report it to your local law enforcement agency.

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Nokia 6.1 gets slice of Pie

HMD Global has announced that the Nokia 6.1 will start receiving Android 9 Pie – the second smartphone in the portfolio to receive the latest version of Android less than a month after the update arrived on the Nokia 7 plus.

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Packed with Google’s newest software and building on the features of Android 8.0 Oreo, Android 9 Pie’s focus on artificial intelligence and machine learning gives owners a more customised and tailored experience.

Powered by the Qualcomm Snapdragon 630 Mobile Platform, the Nokia 6.1 is over 60% faster than its predecessor. Also, now offering enhanced Dual-Sight, ZEISS optics, USB-C fast-charging, Nokia spatial audio and pure, secure and up-to-date Android Oreo.

The Nokia 6.1 has been selected by Google to join the Android One family and therefore users get exclusive access to Apps Actions – a feature only available to Android One and Google Pixel devices.  App Actions helps users get things done faster by predicting their next move and displaying the right action on right away.

Now with Android 9 Pie, the Nokia 6.1’s already impressive battery life is further complimented with the introduction of Adaptive Battery, an update that uses deep learning to understand usage patterns and prioritise battery power on the most important apps.

Other key features of Android 9

·       Slices – Identifies relevant information on favourite apps to make them more easily accessible when needed

·       Adaptive Brightness – Automatically adapts phone brightness by learning from interactions with different settings

·       New system navigation – Features a single home button that provides intelligent predictions and suggestions (user enabled)

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