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ShowMax Year 1: ‘What we learned’

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Launched one year ago, ShowMax has clocked up over 10 million views – more than 700 years’ worth of TV shows and movies. We’ve learned much about what people watch and when they watch it, writes BARRON ERNST, Chief Product Officer for ShowMax.

We launched ShowMax on 19 August 2015, hitting the ground running with Africa’s largest on-demand catalogue of TV shows and movies. Over the past 12 months we’ve clocked up well over 10 million views, or more than 700 years’ worth of content if viewed back to back.

It’s been an insanely busy year for our team. My intention isn’t to boast, because we’ve got loads more to do, but dispassionately I’d say we’ve achieved a fair amount in that time. Enabling content downloads, setting up data usage caps, putting together a cash voucher system, and implementing multiple user profiles are some of the tougher technical challenges we solved, with additional tweaks and upgrades taking place on an almost daily basis. On top of that, since the launch we’ve added support for AirPlay, Apple TV, Chromecast, the DStv Explora, and more smart TVs.

So what have we learned about subscription video on demand in Africa? Here are some highlights. The survey I refer to was conducted earlier this year with just over 1,000 respondents.

When do people watch?

According to our stats, the peak viewing time is between 6 and 11 in the evening, reaching an absolute peak at around 8pm. Interestingly, the busiest days aren’t Friday or Saturday (we thought date night might be our killer function); instead we hit peak-couch-potato on Sundays.

How popular is internet TV in South Africa?

Our survey suggests that subscription video on demand (SVOD) usage is set to rapidly accelerate in South Africa. Only 35% of those surveyed currently subscribe to an internet TV service, but when asked whether they plan to be using an internet TV service within the next six months, that number rose to 65% of the respondents.

Why do people subscribe?

The main reason that people report using SVOD services is to access a wider range of content (39%), followed by access to the latest content (22%), and value for money (16%). Interestingly, given what we know of the binge-watching global phenomenon, only 13% listed binge-watching  as the main reason for using this type of service.

What do people prefer to use to watch SVOD?

There can be a marked difference between how people in different countries view video content. In some countries, the majority watch on mobile devices, while in others there’s a preference for “lean back” viewing on TVs and computers.

The survey suggests that in South Africa things appear to be split pretty much down the middle. The following are the answers to “which device(s) do you use to watch internet TV” by people currently subscribed to a service. Respondents were able to select more than one device which is why the results come to more than 100%:

  • 68% computer
  • 63% tablet
  • 37% smartphone
  • 31% smart TV
  • 7% Apple TV
  • 6% other

What’s most important in a service?

When asked what aspects of an internet TV service are most important, the following factors were all ranked as “very important” by 50% or more of the respondents.

  • Good video quality (66%)
  • Value for money (61%)
  • Right payment options (55%)
  • Available on right devices (54%)
  • Product features (52%)
  • International content (50%)

In a sense, the answers aren’t surprising, but in the context of Africa they take on extra meaning. For example, the fact that video quality came out on top obviously highlights the importance of making sure your content delivery network is up to scratch, but given the fact that many users connect via mobile in less-than-optimal conditions, it shows that a service needs to go even further to improve the user experience. In our case that’s why we’ve delivered solutions for offline viewing (downloads), dynamic streaming, bandwidth capping, and even less-obvious solutions like reducing picture file sizes when displaying content “movie posters” on mobile devices.

How many hours do people watch per week?

Is there a couch potato tendency among the group surveyed? It’s difficult to do a direct comparison, but the results suggest that South Africans may indeed be ahead of the curve when it comes to how many hours are spent watching internet TV.

Ericsson published a Consumer Lab report in September 2015 that looked at viewing habits in multiple countries http://www.ericsson.com/news/1949448. This study found that on average, people watched 6.0 hours of streamed on-demand TV programmes, series and movies per week.

The respondents in South Africa who are subscribed to an internet TV service reported the following weekly viewing:

  • less than 5 hours 26%
  • 5 to 10 hours 44%
  • 10 to 15 hours 17%
  • 15 or more hours 11%
  • don’t know 2%

What’s stopping people from subscribing?

What’s the main reason holding people back from subscribing? The clear answer is the cost of internet access (40%) rather than a lack of understanding how to access the services (20%). 15% of people find normal TV easier to use. Somewhat surprisingly, only 9% said that they don’t subscribe because they can pirate the content illegally.

Where to from here for ShowMax?

Pulling all this together, our take on the state of the industry one year in is that the time is right for SVOD in Africa. Having said that, it’s by no means an easy sell or an easy ride. We firmly believe that this isn’t a game of one-size-fits-all, and that localising your service, content, and partnerships is key. Perhaps unsurprisingly, the cost and availability of decent internet connectivity is the biggest hurdle, but we believe there are elegant solutions, some of which we’ve already deployed and some of which are still in the works.

Arts and Entertainment

Timberlake to headline iTunes London festival

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Apple has announced that Justin Timberlake, Thirty Seconds to Mars, Jack Johnson and Jessie J are among the headliners at this year’s iTunes Festival in London.

Running every night in September at the Roundhouse, the iTunes Festival features more than 60 acts performing at the legendary venue.

Performances can be watched live or on-demand by millions of iOS users around the world on their iPhone, iPad or iPod touch, as well as by music fans with iTunes on their computer or in stunning HD with Apple TV. Tickets are free for competition winners only.

Music fans from across the world, including the US, Australia, Brazil, Canada, Europe, Japan and Mexico can win tickets to the iTunes Festival through competitions run by local media partners. In the UK, fans can win tickets using the iTunes Festival app and the iTunes Store as well as select media partners including Channel 4, Global Radio and Metro.

Sir Paul McCartney, Amy Winehouse and Crowded House played the first iTunes Festival at London’s Institute of Contemporary Arts in 2007. Since then over 370 artists have performed in front of more than 370,000 fans and tens of millions more online and on television. Other performers have included Adele, Coldplay, Foo Fighters, Alicia Keys, Paul Simon, Jack White and Oasis. Performances are available for purchase and download on the iTunes Store.

Apple designs Macs, the best personal computers in the world, along with OS X, iLife, iWork and professional software. Apple leads the digital music revolution with its iPods and iTunes online store. Apple has reinvented the mobile phone with its revolutionary iPhone and App Store, and is defining the future of mobile media and computing devices with iPad.

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Arts and Entertainment

New PS games ready for download

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Sony has announced its June line-up for PlayStation Plus subscribers, including Kingdoms of Amalur: Reckoning, and two new catalogue releases, Demon’s Souls and ICO and Shadow of the Colossus HD Collection.

Immerse yourself in the ancient world of Amalur and its 10,000 years of magical history in the action-packed tale Kingdoms of Amalur: Reckoning, created by acclaimed New York Times bestselling author R.A. Salvatore. Take destiny into your own hands as you combat your way through this vast and vibrant world as envisioned by the visionary creator of Spawn and much-admired artist, Todd McFarlane.

In Demon’s Souls you are summoned by a mysterious maiden as the last hope for humanity to take on a mighty demon horde that has taken over the kingdom of Boletaria, after a terrible curse was mistakenly unleashed by King Allant the XII whilst in search of greater powers. Prepare for a battle that has so far defeated all other realm champions as you set out on this epic journey to save the Kingdom from a fate worse than death.

ICO and Shadow of the Colossus HD Collection brings two exciting worlds to PS Plus ready for fans to explore. Adopt the role of ICO, a young boy who finds himself imprisoned by the people of his village inside the walls of a menacing castle before joining forces with a young girl named Yorda as she attempts to escape in ICO. Take on the role of a young man named Wander in Shadow of the Colossus as you journey through an enchanted land, battling 16 enormous beasts known as the Colossi in order to restore the life of a girl named Mono, whose soul is trapped in this haunting world.

For gamer’s on-the-go, grab your PlayStation Vita (PS Vita) and transport yourself to lush forests in the cartoon-quality action title Rayman Origins. Alternatively, weave through airborne mazes as you avoid falling coconuts in Coconut Dodge HD, both available on PS Plus from 5th June.

PS Plus provides subscribers with access to top-rated games on PS3 and PS Vita, extending the service to two platforms for a single price for a one-year subscription. Additionally, 90 day subscriptions are also available giving user’s access to the same fantastic titles and great PlayStation Store discounts.

PS Plus subscribers receive an array of exclusive features, including 2GB cloud storage (1G for PS3 & 1G for PS Vita) for game saves. Automatic updates and beta access, as well as a huge collection of exclusive dynamic themes and PlayStation Network avatars, makes PS Plus the place to be in 2013.

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