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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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How we use phones to avoid human contact

A recent study by Kaspersky Lab has found that 75% of people pick up their connected device to avoid conversing with another human being.

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Connected devices are becoming essential to keeping people in contact with each other, but for many they are also a much-needed comfort blanket in a variety of social situations when they do not want to interact with others. A recent survey from Kaspersky Lab has confirmed this trend in behaviour after three-quarters of people (75%) admitted they use a device to pretend to be busy when they don’t want to talk to someone else, showing the importance of keeping connected devices protected under all circumstances. 

Imagine you’ve arrived at a bar and you’re waiting for your date. The bar is busy, and people are chatting all around you. What do you do now? Strike up a conversation with someone you don’t know? Grab your phone from your pocket or handbag until your date arrives to keep yourself busy? Why talk to humans or even make eye-contact with someone else when you can stare at your connected device instead?

The truth is, our use of devices is making it much easier to avoid small talk or even be polite to those around us, and new Kaspersky Lab research has found that 72% of people use one when they do not know what to do in a social situation. They are also the ‘go-to’ distraction for people even when they aren’t trying to look busy or avoid someone’s eye. 46% of people admit to using a device just to kill time every day and 44% use it as a daily distraction.

In addition to just being a distraction, devices are also a lifeline to those who would rather not talk directly to another person in day-to-day situations, to complete essential tasks. In fact, nearly a third (31%) of people would prefer to carry out tasks such as ordering a taxi or finding directions to where they need to go via a website and an app, because they find it an easier experience than speaking with another person.

Whether they are helping us avoid direct contact or filling a void in our daily lives, our constant reliance on devices has become a cause for panic when they become unusable. A third (34%) of people worry that they will not be able to entertain themselves if they cannot access a connected device. 12% are even concerned that they won’t be able to pretend to be busy if their device is out of action.

Dmitry Aleshin, VP for Product Marketing, Kaspersky Lab said, “The reliance on connected devices is impacting us in more ways than we could have ever expected. There is no doubt that being connected gives us the freedom to make modern life easier, but devices are also vital to help people get through different and difficult social situations. No matter what your ‘connection crutch’ is, it is essential to make sure your device is online and available when you need it most.”

To ensure your device lifeline is always there and in top health – no matter what the reason or situation – Kaspersky Security Cloud keeps your connection safe and secure:

·         I want to use my device while waiting for a friend – is it secure to access the bar’s Wi-Fi?

With Kaspersky Security Cloud, devices are protected against network threats, even if the user needs to use insecure public Wi-Fi hotspots. This is done through transferring data via an encrypted channel to ensure personal data safety, so users’ devices are protected on any connection.

·         Oh no! I’m bored but my phone’s battery is getting low – what am I going to do?

Users can track their battery level thanks to a countdown of how many minutes are left until their device shuts down in the Kaspersky Security Cloud interface. There is also a wide-range of portable power supplies available to keep device batteries charged while on-the-go.

·         I’ve lost my phone! How will I keep myself entertained now?

Should the unthinkable happen and you lose or have your phone stolen, Kaspersky Security Cloud can track and protect your device from data breaches, for complete peace of mind. Remote lock and locate features ensure your device remains secure until you are reunited.

 

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Five key biometric facts

Due to their uniqueness, fingerprints are being used more and more to quickly identify and ensure the security of customers. CLAUDE LANGLEY, Regional Sales Manager, for Africa at HID Global Biometrics, outlines five facts about the technology.

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How many times in a day are you expected to identify yourself? From when you arrive at work you are required to sign in, visiting your bank, receiving healthcare services… The list is endless. When a system knows who you are, you are able to do any number common, everyday activities. Your identity is unique and precious. It is also easily stolen and the target of many hackers across the globe. Technology is constantly evolving alongside the criminal element, always looking for ways to protect data and identity. One such solution happens to be biometrics and it is rapidly gaining traction in our increasingly complex modern world.

Reliable, secure and fundamentally YOU, unique biometric traits such as fingerprints are being used by banks, enterprises and consumers to verify identity. Biometric solutions offer significant identity protection because they use unique biological details to ensure an account is only accessed by the account holder, a door only opened by the owner. Here are five things that are little known about this technology…

  • The uncut identity. Your fingerprint is unique to you. Nobody can use a copy of it to impersonate you. Good technology is capable of scanning down into the layers of the fingertip to differentiate unique elements of a person’s fingerprint, this data is then encrypted and used as a key to unlocking whichever physical or virtual door that the biometric system protects.
  • The living proof. No, there is nothing to the stories of fingerprints being used without their owner’s knowledge or permission. Biometric solutions can use specific variables to determine if the finger used to access the system is that of a present, living person.  A copy or a fake cannot be used to access a cutting-edge biometric solution.
  • Easy and convenient. Queues and documents and paperwork may well be a thing of the past should biometrics take a firmer grip of government and banking systems. The process of registering is easy, and access to identity documents and records is yours alone.
  • Security blanket. A thousand passwords and a hundred post-it notes stuck on walls and drawers.  An excel file with a list of sites and applications and their corresponding passwords, all a thing of the past.  Nobody needs to remember their password with biometrics, they only need to show up.
  • Anywhere is cool. Schools, airports, networks, offices, homes, toilets, banks, libraries, governments, border controls, immigration services, call centres, hospitals and even clubs and pubs – knowing “who” matters and biometrics can quickly and conveniently confirm your identity where needed.

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