The Video-On-Demand RUSH
After the launch of Show Max, a South African based Video-On-Demand (VOD) company owned by parent company Naspers, companies and investors have been running riot over the term VOD. What about it? Well, who sells it, who consumes it, who is going to supply the internet connection, and how do we capitalise on it. For starters, VOD is a platform where TV-series and movies are available to be streamed 24/7 meaning you now get to watch Game Of Thrones when you want, not when it’s on the Satellite schedule.
It is rumoured that Netflix, an American based VOD company, will be arriving in South Africa in 2016, so the move by Naspers seems to be an attempt at getting a head start and claiming market share. The whole jump into VOD comes off the back of another race for market share, the race for internet users.
Telkom, Vodacom, MTN, Neotel, Vuma and next year even Cell C. These or just a few names of companies rolling out fibre-optic cables for private and business use. So due to this massive fibre rollout, users are now capable of utilising services much like VOD, and due to the fact that there is a pretty big monopoly in the television sector in South Africa, this has opened the biggest gap in the market in years.
When looking to invest in either the internet service provider or the VOD provider, take into account financial, but also more simple factors, like: Would YOU take the deal? Would your friends or family take the deal? Do you see it advertised a lot? How do people review the service?