Naspers in Talks With Vodacom to Deepen Mobile Devices

Naspers Limited is in talks with wireless carrier, Vodacom Group Limited about delivering video content to mobile devices across Africa as the media company seeks to compete with Netflix Incorporated in offering movies and TV in the continent of one billion people.

An agreement would give Naspers additional distribution for a video-on-demand service, dubbed Showmax, that the company plans to start this week, according to two people familiar with the matter.

Bloomberg reported that the product initially will target South Africa’s one million fixed-line broadband users, and within three years will be accessed predominantly by smart-device users across Africa.

s“These discussions are still ongoing,” Vodacom spokesman, Tshepo Ramodibe, said in an e-mailed response to questions. “This conversation is in line with our business strategy to add new service offerings, including content.”

Naspers, Africa’s most-valuable stock at 716 billion rand ($56 billion), is investing in mobile applications to deliver TV content more widely in a region where high-speed landline connections are still rare. It’s also producing more African shows as its targets further expansion in Kenya and Nigeria to ward off competition from Netflix.

A spokeswoman for Naspers’ service declined to comment on the plans.

Vodacom has 64 million subscribers and runs mobile networks in South Africa, Tanzania, the Democratic Republic of Congo, Mozambique and Lesotho. Cape Town, South Africa-based Naspers owns 34 per cent of Chinese Internet operator Tencent, has online-service interests in about 40 countries and is Africa’s biggest seller of pay TV.