Netflix CEO Reed Hastings is no stranger to Africa. He has travelled throughout South Africa, taught maths in Swaziland for two years with the Peace Corps, and visits close family in Maputo. As a result, he is keenly aware of the South African entertainment and connectivity landscape.
In an exclusive interview at the Netflix studios in Hollywood, Los Angeles, last week, he revealed that Netflix had no intentions of challenging MultiChoice’s dominance of live sports broadcasting on the continent.
“Other firms will do sport and news; we are trying to focus on movies and TV shows,” he said. “There are a lot of areas that are video that we are not doing: sports, news, video gaming, user-generated content. We don’t have live sport.
“We’re not replacing MultiChoice at all. Their subscriber growth is steady in South Africa. They serve a need that’s independent of the Internet, via low-price satellite. There is no intention of capturing that audience. If they’re growing, it’s because they serve a need.”
While Reed ruled out any collaboration with MultiChoice on its satellite delivery platform, despite its collaboration with another pay-TV service, Sky TV in the United Kingdom, he did not close the door. He stressed that Netflix saw itself as an Internet-based service, and would pursue the opportunities offered by evolving broadband in Africa.
“If you look in other markets like the USA, how Comcast carries us on set-top boxes with their other services, it could happen with MultiChoice, the same as with all the pay-TV providers.
“We’re really focused on being a service over the Internet and not over satellite. Our service doesn’t work on satellite. Where we work with Sky is on Internet-connected devices. We’re happy to work on Internet-connected devices. We tend to work on smart TVs, but need broadband Internet for that.
“Broadband is getting faster in Nigeria, Tanzania, Kenya and South Africa – we can see the positive trendlines – so it’s more likely we will work with broadband Internet companies.”
Hastings is a firm believer in the idea that one content provider’s success does not depend on pushing another down.
“HBO has grown at the same time as we have, so can see our success doesn’t determine their success. What matters is amazing content with which the world falls in love.”
Click here to read on about Hastings’ views on international expansion, and how the streaming service selects content for its platform.
South Africa saw its first homegrown Netflix Original, a quasi-superhero series called Shadow, debut this month, following closely on the heels of Nigeria’s first Original, a comedy series about business succession, called Lionheart.
At this stage, says Hastings, there is no clear indication of what kind of content from this continent would work on Netflix, or how the company chooses its new shows.
“I would say it’s the content buyers taking guesses. If they’re right, we will do more content like that. Our members today watch everything; it’s not very different from country to country. We have a global service and then we’re adding some local content. We’ve got an economic incentive to do local content, because that helps us grow.
“We’re trying to figure out what shows serve our members best, and we’re doing that in Japan, Turkey, South Africa, Egypt and Jordan. We’re trying to curate great content from around the world.”
In the next five years, says Hastings, Netflix can be expected to have more original content, and far more of this will be local.
“We will be more global than we are, less US-centric, we will have significant productions in many countries of the world, and a lot more sharing of the world’s best content.”
Most significantly, says Hastings, we can can expect more Netflix in Africa, and more Africa in Netflix.
- Arthur Goldstuck is founder of World Wide Worx and editor-in-chief of Gadget.co.za. Follow him on Twitter and Instagram on @art2gee
- This story first appeared in the Sunday Times, Business Times