As MultiChoice gears up to relaunch Showmax, Africa’s largest pay TV providers says the growth of online streaming in SA and across the markets in which it operates is likely to change the make-up of its channels and programming.
The group has been doubling down on its online streaming efforts, signing a slew of deals in the past two years in a bid to set up Africa’s largest paid TV operator as the biggest gatekeeper to paying audiences who stream their content.
Until now MultiChoice has been operating three streaming services: DStv Now, Showmax and Showmax Pro. This means the company has live and on-demand streaming options for its customers.
Through DStv, the group has become famous for offering a wide range of channels and live programming. But according to Andrea Zappia, who joined MultiChoice’s board in September, the growth of streaming is likely to change the make-up of its DStv channels as certain content is more suited for on-demand viewing, while other content, like sport, is better suited for a live experience.
“While there is demand for linear channels ... we are a consumer business. We start with what people like and want,” Zappia told Business Day during a media event.
Linear television describes the traditional way of consuming TV. There are a limited number of channels, showing one programme at a time. The linearity refers to the progression of a schedule for a given period, such as a day.
Unlike the likes of Netflix, MultiChoice makes most of its content available on linear channels and streaming, giving an opportunity for shows to make money at each step through a process, called “windowing”.
Take time
Zappia says the trend is that over time linear channels will diminish. People will watch general entertainment programming or premium content on demand.
“Before we get to a point where the vast majority of people are there, it will take time, because of issues like connectivity and the costs associated with it.
“For some time, we need to accept that we need to operate both ... linear and streaming [platforms]. Over time, we expect investment to shift into streaming, gradually reducing on linear where the most popular content — sports, news and some general entertainment — will remain.”
Even then, Zappia says the move “will be demand driven. We will not impose a change. It will be a change that will be managed together with the customer.”
Globally, online streaming players have been grappling with trying to balance live content vs on demand offerings. Netflix, which is primarily an on-demand platform, has been experimenting with live content, such as broadcast comedian Chris Rock’s recent stand-up special as a live event.
A new version of Showmax is expected to be rolled out by the end of this financial year that will incorporate content from the various deals the JSE-listed group has signed in recent years.
It includes an agreement with media giants NBCUniversal from the US and the UK’s Sky, to create a new Showmax service.
The new Showmax group is 70% owned by MultiChoice and 30% by Comcast-owned NBCUniversal.
Created deal
The partnership provides Comcast with an opportunity to push the global reach of its content and streaming technology in one of the fastest-growing video markets. MultiChoice simultaneously gets more content, deeper pockets and technology to boost Showmax.
Zappia, executive vice-president and CEO of new markets and businesses at Sky, was part of the team that put the Showmax-NBCUniversal-Sky deal together.
He says the move to reconstitute channels will ultimately come down to insight derived from customer data and research.
“There is no formula today that you can apply. There is an approach that you can apply which the data supports. It’s about measuring consumer demand.
“The difference with data from streaming is that we now have accurate [information] on what people watch. How often do people watch a show, where do they stop, do they get to the end of the show? This is something we can’t do with linear channels. We have panels that give us an indication. We’ve been doing it as an industry for years, but the data is more accurate with streaming.”
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