Netflix Enters South Africa Next Month While Posing Threat To Pay-TV

The online media streaming service Netflix would soon be entertaining the residents of South Africa.

In January 2016, Netflix is about to stream in South Africa, according to a variety of local reports – almost exactly one year after the organization first indicated that it would make its debut in the continent.

The video streaming business might not be able to easily compete with its competitors owned by the biggest media company of Africa, Naspers, but there is a good opportunity for it to dominate the market as it has its own films and shows. The owner of country’s largest pay-television service DSTV Naspers competes and leads the market and previously this year, it introduced a streaming video facility known as ShowMax, which could give a tough time to the media company.

Apart from sports, one of the most famous genres of TV shows that DSTV is carrying is Netflix originals. So shows such as Orange is the New Black and House of Cards, and films such as Beasts of No Nation, would most probably be pulled out of South Africa’s top pay-TV channels when Netflix launches. It has been speculated that DSTV might be compelled to cut down its fees if these famous shows are available everywhere.

Netflix has already made an investment worth billions of dollars in genuine content, and it is probable that it would invest up to $5bn next year as it makes an effort to reduce its dependence on conventional Hollywood-produced movies and TV shows.

Those shows can only be authorized for a limited period. Ownership of shows plays a role in increasing the advantage of the corporation in negotiating programming licenses with Hollywood. It is probable that the genuine content of the company would get competitive advantage in overseas markets.

Netflix has the potential to dominate the South African media industry as ValueWalk reported that the American company would continue to threaten giant media organizations in 2016.

Film and television producers previously viewed Netflix as it turned into a new purchaser of programming, thus helping them to earn sales revenue. Nevertheless, it is currently a threat as the increase in its popularity is slowly damaging Pay-TV, which is a predictable and more lucrative source of revenue.

Despite of its opposition from television, the growth rate of the enterprise tells us that next year, it would probably go ahead of its competing networks. It is already investing and spending heavily in its production to achieve its objectives and further grow in streaming market.