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Video-on-Demand heats up in SA

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The arrival of a new Video-on-Demand service in South Africa last week added a new flavour to an intriguing marketplace, writes ARTHUR GOLDSTUCK.

When MTN announced last week it would shut down its video-on-demand (VOD) service, VU, just more than a year after Times Media lowered the curtain on a VOD service called Vidi, many assumed it was now a two-horse race between Naspers-owned ShowMax and the global giant Netflix.

But the news was barely cold when a new player unveiled its offering. An online service called Digital Entertainment on Demand (DEOD) has been launched by a VOD solutions provider, Discover Digital. They happen to be the same company that provided the platform for MTN’s VU, and would have learned a few lesson’s from MTN’s failure to set the market alight.

The key lessons are fairly obvious, though:

  • It requires massive marketing budgets or clever niche programming – or both – to go up against the vast offering of Netflix, even given the fact that it has a more limited catalogue than the original US service;
  • Without live sports, the bulk of the pay TV market remains firmly in the hands of Multichoice and its DStv bouquet – with Supersport still one of the best live sport services in the world;
  • The number of people with the kind of high-speed connectivity needed to watch high-definition video via the Internet is still tiny, relative to the scale needed to make such a service profitable.

Nevertheless, when the first inklings of Netflix’s arrival in South Africa surfaced, it became clear that DStv subscribers who were only watching movies and video series would be easy pickings for the US-based provider, which has single-handedly destroyed the video rental industry in the USA. As a result, Naspers decided to set up its own competitor, preferring to see customers jump ship to a sister company rather than to the competition.

ShowMax has worked hard to differentiate itself, with the largest South African movie and series catalogue available from any provider. However, this does not appear to have been an effective enough counter to Netflix’s secret weapon: the ability to bring its own high-quality productions to a global audience simultaneously.

But there is one market where it has made a massive impact through a keen understanding of local dynamics. In Kenya, it has achieved instant success, partly through adopting the same local content strategy in South Africa. But the most important factor in its success is its understanding of the local dynamics of the economy.

It has allowed viewers to subscribe via M-PESA, the Kenyan-born mobile money service that has transformed payments in East Africa. Users can also purchase a single movie at a time, making it the most affordable as well as accessible VOD service in Africa.

Into this stormy mix, in the past week, DEOD made its entry.

It offers a standard selection of rental and subscription movie and video series content, but has added two elements that give it more of a YouTube than a Netflix feel.

The first is a news service that includes most major news channels from around the world. Since viewers tend to stick to one or two news sources, this one is unlikely to have the competition sit up and take notice. The second new element however, is a potential winner.

A Sports Pack gives access to a range of popular niche sports that have been largely ignored by mainstream TV, with the aim of giving sports participants, sporting bodies and sponsors exposure. It includes no less than five niche channels:

* Channel Edge HD – an extreme sports bouquet;

* Fightbox HD – covering all forms of fighting and martial arts;

* Motorvision TV – an automotive and motorsport channel;

* Nautical channel – for sailing and boating enthusiasts;

* Sportskool – a tuition based channel with instructional sports content.

“The new DEOD sports offering is just the first of a broader range of Discover Digital on-demand services set to propel South African niche sports into the limelight,” says Discover Digital managing director Stephen Watson.

“There are probably 40 or more sports in South Africa that have thousands of participants, national championships and even international competitions, which do not enjoy airtime on traditional TV in South Africa.

“Via the DEOD sports desk, they now have an opportunity to secure coverage of their events among local fans. We also have the capacity to help sporting bodies stream, package and archive their events on any number of digital platforms for a broader international audience, which allows their sponsors to gain more exposure, better monetise their events, and showcase their participants.”

These include sports like women’s hockey, SuperGP, mountain biking, surfing, gymnastics, tennis, netball, water sports and boxing, along with school leagues and tournaments with large followings.

Discover Digital plans to send its own experienced production team to help schools and sports bodies learn how to record, stream, archive and monetise their own content.

It is an open secret that no one can compete with DStv for the rights to major sports leagues and events. But in that very strategy lurks the massive gap that DEOD has spotted: the content Multichoice doesn’t want, but that tens of thousands of viewers do.

 

  • Arthur Goldstuck is founder of World Wide Worx and editor-in-chief of Gadget.co.za. Follow him on Twitter and Instagram on @art2gee

The cost of catching DEOD

DEOD app: free to download for Android (from Play Store) and IOS (App Store).

Rent a single movie: R18

On Demand – All movies, series, music: R79 a month

All News channels: R49 a month

All sports channels: R99 a month

News + On demand: R99 a month

Sports + On Demand: R159

Five devices are allowed to access each subscription. All titles are initially available in Standard Definition. Later, DEOD will introduce Chromecast and Airplay support, along with Smart TV apps for all TV brands, and High-Definition will then be enabled.

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Huawei goes ultra-premium

Porsche Design and Huawei have launched the Porsche Design Huawei Mate RS in South Africa exclusive to MTN and retailing for R 26 459.

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The Porsche Design Huawei Mate RS boasts features like the world’s first dual fingerprint design, including an in-screen fingerprint sensor, the world’s first Artificial Intelligence (AI) processor and Leica triple camera with 40MP image capture.

“After the overwhelming success of the Porsche Design Huawei Mate 10 Pro in South Africa, we now bring you our latest offering, a perfect blend of innovation in a smartphone and luxury design,” said Likun Zhao, Vice President of Huawei Consumer Business Group Southern Africa. “From three-point security feature including facial recognition, rear fingerprint scanner and the new innovative in-screen fingerprint to the Leica triple camera system. it culminates in an unprecedented experience for our customers.”

The device incorporates Porsche Design’s signature design language and Huawei’s breakthrough technology.  The phone has a 6” 2K curved OLED screen and symmetrical look, minimalist feel and 8-edged 3D curved glass body.

High performance is symbolised by the naming of the smartphone: the term “RS” in the world of Porsche motorsport stands for outstanding racing performance.

Huawei provided the following information on The Porsche Design Huawei Mate RS benefits and features :

·         The world’s first dual fingerprint scanner for enhanced convenience, allowing users to wake and unlock the device simply, thanks to an in-screen fingerprint sensor. Hover to wake the device, touch to unlock it

·         The winning combination of Leica triple camera with 40MP RGB sensor technology and exceptional photography powered by Master AI. This combination puts effortless, eye-catching photography at the fingertips of those looking to immortalise their favourite moments. Combined with 5 x hybrid zoom, and the world’s first AI image stabilisation on a smartphone camera ensures photography lovers can capture the best shots with exceptional clarity in almost any situation

·         The Porsche Design Huawei Mate RS is the first Huawei handset to allow quick wireless charging, making it even easier to keep the phone topped up and ready to go and, thanks to its long lasting battery, users will easily be powered through the busiest of days

·         An ‘intelligent’ smartphone, the powerful AI processor automatically tailors the performance of the phone according to how it is used – constantly learning, understanding and anticipating needs, it is the perfect personal assistant for the pocket

·         256GB of internal storage means those constantly on the go and constantly on their phone can be worry free

·         Dual SLS (super linear system) speakers with DOLBY ATMOS enable users to have a superior experience, with the best immersive surround sound and entertainment on the go

·         Splash, water and dust resistant, which means there is no need to worry about damaging the device in the rain or accidentally dropping it in water

Jan Becker, CEO Porsche Design Group, said: “Both Porsche Design and Huawei seek to imagine and develop products that stand for precision and perfection, intelligent functionality and highly sophisticated design. Our aim was to create an outstanding device that goes one step further. We believe we have reached this goal by taking our partnership to the next level.”

Porsche Design and Huawei have worked in tandem to develop a smartphone that fuses together the two brands’ DNA, wealth of experience in design and technology, industry-leading expertise and exceptional performance. Through the use of colour in the device’s body, software themes and accessories, the new handset is accentuated with Porsche Design’s distinguished aesthetic and purist, minimalist feel.

The Porsche Design Huawei Mate RS will be available to purchase exclusively from MTN at R 26 459.

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Cross-channel chat launched

Clickatell has launched a cross-channel live chat service, Touch Go, that transforms omni-channel customer care.

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It enables live chat across a company’s website as well as social platforms (Twitter and Facebook) and mobile apps, bringing customer care and engagement into a single business platform.

“Today’s consumers expect to engage with your brand on the digital channel of their choosing,” says Deon van Heerden, Clickatell Engage CEO and Group CFO. “They want to message your business and instantly have queries resolved, find the information and services they are looking for, without the need for a voice call. Clickatell’s Touch Go makes that happen with the right level of capabilities for businesses of all sizes.”

Businesses can start using Touch Go immediately, with a free Starter option. Touch Go requires no credit card for sign-up and is fully featured with a simple setup process. It offers customisable branding, a unified chat desk business application as well as reports and analytics.

As the business scales up its digital customer care, it can opt-in for the Touch Enterprise offering. Touch Enterprise is designed for scaling up customer care efforts through advanced capabilities including AI driven virtual agents, sentiment analysis, automated workflows, enterprise integrations and in-channel mini-applications.

“Customer care has become a defining factor for sustained business success ” says Nirmal Nair, Clickatell Engage EVP Product & Marketing. “In an ever-increasing mobile native world, customers often choose to interact digitally, but they also expect to be able to reach a human immediately, should they need. Monitoring multiple channels and providing immediate action becomes challenging with siloed deployments. Touch’s unified solution allows businesses of all sizes to provide the customer delight in a simple modular approach.”

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