Telkom is diversifying its services by adding a video content aggregation platform, to offer a range of over-the-top (OTT) streaming services to customers as a bundled service.
The telephony group says it working on offering bundled video streaming services, to execute its vision to become a “streaming content mall’’, after signing partnership deals with streaming services providers Netflix, Amazon Prime Video and Disney+, with plans to on-board more.
This, as local telecommunication companies increasingly diversify their revenue streams from the traditional voice and data services, amid tight competition.
During an ITWeb on the Road interview at Telkom’s headquarters in Centurion, Telkom Consumer CEO Lunga Siyo discussed the operator’s renewed strategy to increase its market share and its vision to become the “go-to” platform for video content services.
Telkom is edging closer to 22 million mobile subscribers, driven by strong growth in mobile service and data revenue, he noted.
It reported a 3.9% revenue increase for the first quarter of 2024, with next-generation revenue comprising over 80% of total revenue.
“While our strategy is focused on connecting more South Africans to the internet, we are cognisant of the fact that customers use the internet for several reasons, such as communicating, streaming, or to browse socials,” commented Siyo.
“So, instead of investing in content and becoming a content producer, we have decided to create a ‘content mall’ and become the platform where these services can be accessed.
“We have established partnerships premised on our OTT platform, with streaming players, including Amazon, Netflix and Disney+. On our own platform, users will be able to subscribe to these multiple platforms, for one fee, which might work out to be more affordable than going directly to the service providers.”
As it is in the process of consolidating the streaming services, Telkom is only offering Amazon Prime Video to customers at the moment, allowing them to sign up forPrime Video Mobile Edition, where they get unlimited streaming, inclusive of a free promotional Amazon subscription service, varying from one to six months.
Additionally, customers of Telkom fibre, LTE postpaid or top-up plans can get three months of Prime Video viewing free of charge.
“We have the same approach as in our financial services business, for instance, where every contract customer is offered device insurance,” he added.
Telkom joins Vodacom, MTN, Airtel, Globacom, Orange and Safaricom, which are among the telecoms companies that have become players in the video-streaming market in Sub-Saharan Africa.
The telcos’ forays into the OTT market come amid fierce competition from Netflix, Showmax, Prime Video and Apple TV, among others.
A report by Digital TV Research states the African OTT market is set for explosive growth over the coming years, with revenue increasing by well over $1 billion from 2020.
The continent’s collective OTT revenue was only $392 million at the end of 2020, indicating there is significant room for growth in the coming years, says the report.
Vodacom has an ‘add to bill’ service, which allows customers to access various video streaming services and apps by having the monthly subscription fees added to their Vodacom mobile bill.
The service offers streaming platforms Prime Video, Netflix, Showmax and Viu, as well as more affordable subscriptions under R10 per day for a variety of content, such as movies, series, originals and kids' shows.
MTN says it has signed partnerships with Showmax and Disney+, offering customers ad-free video streaming services that provide local and international content, as well as all 380 football matches of the English Premier League.
During an interview last month,Dr Noxolo Kubheka-Dlamini, chief digital and information officer at Telkom Consumer & Small Business, told ITWeb the telco is in the process of introducing a digital transformation programme to overhaul its digital platforms and add a variety of offerings.
The long-term vision of its content strategy, she noted, is to add more streaming services and offer them as part of an aggregated package, made available through a single payment.
“With the ever-evolving digital world, we are determined to meet the evolving needs of our customers, not only through our connectivity products, but also through our non-connectivity products, like streaming services.
“We are engaging other streaming players to come on-board to enable us to offer their content to Telkom customers,” she concluded.
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