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

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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Veeam passes $1bn, prepares for cloud’s ‘Act II’

Leader in cloud-data management reveals how it will harness the next growth phase of the data revolution, writes ARTHUR GOLDSTUCK

Veeam Software, the quiet leader in backup solutions for cloud data management,has announced that it has passed $1-billion in revenues, and is preparing for the next phase of sustained growth in the sector.

Now, it is unveiling what it calls Act II, following five years of rapid growth through modernisation of the data centre. At the VeeamON 2019conferencein Miami this week, company co-founder Ratmir Timashev declared that the opportunities in this new era, focused on managing data for the hybrid cloud, would drive the next phase of growth.

“Veeam created the VMware backup market and has dominated it as the leader for the last decade,” said Timashev, who is also executive vice president for sales and marketing at the organisation. “This was Veeam’s Act I and I am delighted that we have surpassed the $1 billion mark; in 2013 I predicted we’d achieve this in less than six years. 

“However, the market is now changing. Backup is still critical, but customers are now building hybrid clouds with AWS, Azure, IBM and Google, and they need more than just backup. To succeed in this changing environment, Veeam has had to adapt. Veeam, with its 60,000-plus channel and service provider partners and the broadest ecosystem of technology partners, including Cisco, HPE, NetApp, Nutanix and Pure Storage, is best positioned to dominate the new cloud data management in our Act II.”

In South Africa, Veeam expects similar growth. Speaking at the Cisco Connect conference in Sun City this week, country manager Kate Mollett told Gadget’s BRYAN TURNER that the company was doing exceptionally well in this market.

“In financial year 2018, we saw double-digit growth, which was really very encouraging if you consider the state of the economy, and not so much customer sentiment, but customers have been more cautious with how they spend their money. We’ve seen a fluctuation in the currency, so we see customers pausing with big decisions and hoping for a recovery in the Rand-Dollar. But despite all of the negatives, we have double digit growth which is really good. We continue to grow our team and hire.

“From a Veeam perspective, last year we were responsible for Veeam Africa South, which consisted of South Africa, SADC countries, and the Indian Ocean Islands. We’ve now been given the responsibility for the whole of Africa. This is really fantastic because we are now able to drive a single strategy for Africa from South Africa.”

Veeam has been the leading provider of backup, recovery and replication solutions for more than a decade, and is growing rapidly at a time when other players in the backup market are struggling to innovate on demand.

“Backup is not sexy and they made a pretty successful company out of something that others seem to be screwing up,” said Roy Illsley, Distinguished Analyst at Ovum, speaking in Miami after the VeeamOn conference. “Others have not invested much in new products and they don’t solve key challenges that most organisations want solved. Theyre resting on their laurels and are stuck in the physical world of backup instead of embracing the cloud.”

Illsley readily buys into the Veeam tagline. “It just works”. 

“They are very good at marketing but are also a good engineering comany that does produce the goods. Their big strength, that it just works, is a reliable feature they have built into their product portfolio.”

Veeam said in statement from the event that, while it had initially focused on server virtualisation for VMware environments, in recent years it had expanded this core offering. It was now delivering integration with multiple hypervisors, physical servers and endpoints, along with public and software-as-a-service workloads, while partnering with leading cloud, storage, server, hyperconverged (HCI) and application vendors.

This week, it  announced a new “with Veeam”program, which brings in enterprise storage and hyperconverged (HCI) vendors to provide customers with comprehensive secondary storage solutions that combine Veeam software with industry-leading infrastructure systems. Companies like ExaGrid and Nutanix have already announced partnerships.

Timashev said: “From day one, we have focused on partnerships to deliver customer value. Working with our storage and cloud partners, we are delivering choice, flexibility and value to customers of all sizes.”

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‘Energy scavenging’ funded

As the drive towards a 5G future gathers momentum, the University of Surrey’s research into technology that could power countless internet enabled devices – including those needed for autonomous cars – has won over £1M from the Engineering and Physical Sciences Research Council (EPSRC) and industry partners.

Surrey’s Advanced Technology Institute (ATI) has been working on triboelectric nanogenerators (TENG), an energy harvesting technology capable of ‘scavenging’ energy from movements such as human motion, machine vibration, wind and vehicle movements to power small electronic components. 

TENG energy harvesting is based on a combination of electrostatic charging and electrostatic induction, providing high output, peak efficiency and low-cost solutions for small scale electronic devices. It’s thought such devices will be vital for the smart sensors needed to enable driverless cars to work safely, wearable electronics, health sensors in ‘smart hospitals’ and robotics in ‘smart factories.’ 

The ATI will be partnered on this development project with the Georgia Institute of Technology, QinetiQ, MAS Holdings, National Physical Laboratory, Soochow University and Jaguar Land Rover. 

Professor Ravi Silva, Director of the ATI and the principal investigator of the TENG project, said: “TENG technology is ideal to power the next generation of electronic devices due to its small footprint and capacity to integrate into systems we use every day. Here at the ATI, we are constantly looking to develop such advanced technologies leading towards our quest to realise worldwide “free energy”.

“TENGs are an ideal candidate to power the autonomous electronic systems for Internet of Things applications and wearable electronic devices. We believe this research grant will allow us to further the design of optimized energy harvesters.”

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