Satisfying demand for local content is how to foil Netflix
NETFLIX and ShowMax may be keeping many South Africans up at night, but M-Net CEO Yolisa Phahle is not among them.
The game-changing internetbased platforms have occupied greedy serial consumers in the past year, putting pressure on the satellite broadcaster. Particularly in Phahle’s environment of traditional broadcasting, which has raised the ire of consumers with its expensive premium packages and repeated or outdated programming.
Recent Naspers financials showed that MultiChoice showed modest growth (about 6%) in South Africa and 2% in Africa, as well as in the uptake of cheaper packages.
But Phahle has plans to lead Africa into a new and evolving broadcast era — by maximising unique local content in its regions.
“Yes, people are consuming more than ever before and demanding more on these platforms. But we are well positioned to tackle that. It is a brand-new world of entertainment and we are trying to understand that. The tech is one thing — but where my heart really lies is in content creation,” said Phahle.
M-Net’s first black woman CEO, Phahle was born to South African parents in London and studied as a musician. She has been a game-changer herself in broadcasting since joining the company from the BBC in 2005.
She may be responsible for raising the celebrity status of local personalities with her selection of pop programming on Channel O, Vuzu and Mzansi Magic.
The entertainment shows catapulted local productions and celebrities to fame, or at least into Africa. About 40 local channels are broadcast to almost 50 African countries, in 10 languages.
But the big fish, Netflix, came to South Africa early last year, adding to its 86 million members in more than 190 countries. It is available throughout Africa, but high internet costs and poor infrastructure are drawbacks for businesses like Netflix that want to expand in developing countries.
Hadlee Simons, an editor with digital media and technology analysts Memeburn, said: “DStv is in the fortunate position where high-capped or uncapped internet is still an expensive, unfeasible option for most South Africans — Netflix and other video-streaming services simply require lots of data. With a few exceptions, you’ll generally need an ADSL connection for the best experience, but the infrastructure often isn’t in place for many South Africans.
“So this is another point in favour of DStv, which only requires a satellite dish. After all, you only need to walk through or drive past a large informal settlement to see the dishes.
“Another big feather in DStv’s cap is sports. We love our football, cricket and rugby. And Netflix doesn’t live-stream sport at all, anywhere,” Simons said.
“I do foresee more people switching to Netflix, but as long as high-capped/uncapped interAfrica net remains pricey and as long as DStv has sports exclusivity, the MultiChoice service won’t be in much danger.
“In saying so, there is a trend for sports to branch off and launch their own streaming services, but it remains to be seen whether the same happens to our local sports.”
In 2017, Phahle plans more localised content for South and the rest of Africa as her winning strategy.
Leveraging technology means understanding audience needs better.
“People will choose what they like, which means we can serve the customer more of what they like,” she said.
“Already, the DStv Explora is meeting most of those needs.” It includes access to ShowMax, which is linked to MultiChoice via holding company Naspers.
Together, the group has 10 million subscribers.
“Our offering on the Explora means watching what you want to watch, when you want to watch it. Audiences don’t need to get irritated with a linear channel.”
Bringing express content from the US — when series launch, for example — is a necessity for the satellite channel.
“We are paying to see that content when it is available and it impacts the value. We need to get better,” Phahle said.
Yet, her travels and global comparisons tell her that South Africa is on a par with, if not better than, other countries regarding content.
“Our local offerings, vernacular series, this is what talks to the audience and which they love. In fact, even when I look at HBO and Fox in the US, British, Chinese offerings, I feel South Africa has the best pay-TV.”
A lesson learnt from the BBC is that local content is the key. And Phahle is enjoying a BBC drama series, The Missing.
“I know that those who are going to survive are those creating content . . . the quality of content that engages audiences.”
To this end, MultiChoice, with M-Net, spent R1.7-billion on local content last year.
The most difficult aspect of her job was “really understanding what audiences want, so we don’t question why we make it”, Phahle said.
“Shows like Our Perfect Wedding and Date My Family have been phenomenal successes.
High internet costs and poor infrastructure are drawbacks for Netflix