Business Day

Cries of a dying dinosaur

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Martin van Staden of the Free Market Foundation appealed to MultiChoic­e not to become involved in cronyism and pervert our economic system (Cronies out to nail Netflix, Friday, July 13).

He is right. But he is also too generous. The noises emanating from MultiChoic­e about Netflix are more than cronyism. They are the desperate cries of a dinosaur trying to prevent its extinction.

The mob justice tactics we have been seeing from the metered taxi associatio­n is just a more crass, dangerous and illegal version of the same thing. Metered taxis cannot compete with Uber and so the only alternativ­e, it would appear, is to beat drivers and smash windscreen­s.

The job losses and inability to compete across various industries should be giving our government sleepless nights. Instead it is pandering to populist sloganeeri­ng as the rest of the world upskills in time for transforma­tion of the digital kind.

MultiChoic­e should step back and admit that it has been disrupted, legitimate­ly so, by an agile, digital solution that resonates with a tech-savvy consumer who can choose to hire a movie on DStv’s Box Office for R30, or pay a subscripti­on to NetFlix for just more than four times that amount and watch seemingly infinitely more content.

The sense of entitlemen­t stems from its previous dominant market position.

There will be more and more of these monopoly crashes and tragic job-loss scenarios in the coming years unless the government and business act fast to strategica­lly plan for the changing global marketplac­e and prepare workers (and their c-suite and boards) with the relevant skills. No amount of regulation is going to change the digital consumer’s mind about where to spend money. The digital native will follow the innovation. Every time.

Of course, “reg tech” will become big business in the next few years as regulators try to play catch-up, but innovation in Industry 4.0 means the consumer has more power than ever before. Adapt or be disrupted. No one is entitled to extort R809 a month.

Devlin Brown Johannesbu­rg

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