While the launch of the SABC’s new video streaming platform has been a long time coming, it signals changing consumer behaviour, amid the move from linear TV to streaming.
This is according to independent analyst Nozi Dikgale, remarking on the launch of the SABC Plus (SABC+) video streaming app.
The public broadcaster yesterday went live with its long-anticipated SABC+ streaming app, providing free online access to its catalogue of content.
According to the broadcaster, its three free-to-air channels (SABC 1, SABC 2 and SABC 3), the SABC sports channel, the station’s 24-hour news channel, as well as its 19 radio stations, will stream on SABC+. The five TV channels are simulcast on the platform, including a seven-day catch-up window of content that may have been missed.
For content outside of the SABC catalogue, SABC+ offers AMP, which is a subscription fee package formerly owned by video-streaming service TelkomONE. AMP features local and international TV shows, movies, lifestyle content, reality shows and a mix of TV channels, with a variety of subscription periods and payment options. For example, one AMP subscription package can cost R7 per day, or a monthly subscription of R49.
Speaking at the launch event yesterday, SABC Group CEO Madoda Mxakwe described the over-the-top (OTT) platform as a “strategic move”, saying it was the missing link in the public broadcaster’s content distribution strategy.
“Our position as a content service provider is that we’ve had to compete with second screen viewing and a variety of global players and streamers. We could no longer ignore the global content consumption that is growing quickly, and our response is by launching SABC+.”
He further states two reasons for the launch, namely: “Universal access and ensuring the SABC becomes a multi-platform, multi-device content provider. The second layer is from a revenue generation point of view.
“As audiences migrate from the traditional audio-visual platforms to watch digital, it was important for us to reposition ourselves strategically to not only follow those audiences, but also enhance the value offering to our clients. This means there is an increase in terms of eyeballs, audience ratings and listenership, which should also help us from a revenue-generating point of view.”
Guy Edri, president of TV operating system VIDAA, elaborated: “Now that SABC+ is live, the [SABC] will have a lot more to offer advertisers. They can approach advertisers and say let’s run a campaign that would previously not have been possible on national TV.”
Dikgale points out the SABC’s move to launch its in-house on-demand platform was expected, as it forms part of the corporation’s digital migration strategy and its move to diversity its revenue streams.
“There is still more room for other on-demand services to launch, as the pie is big enough. What’s key here is that the SABC is trying to keep up with changing consumer behaviour, as audiences fall off the main TV to enjoy cross-platform content consumption.”
Making moves
According to Dikgale, heightened by the COVID-19 pandemic, on-demand streaming platforms came to the rescue when traditional platforms were under pressure to keep audiences entertained on their screens.
This trend, she reveals, continues to grow as the new norm, even post the pandemic.
As a result, the launch of SABC+ is the right one by the SABC to ensure ease of access of its content online, she states. “This will benefit both the SABC and its audiences, especially the millennials and Gen-Z, who are digital-savvy audiences who spend most of their time shopping online, using on-demand platforms, streaming content.
“Additionally, this will benefit SABC clients (advertisers) to reach more audiences via cross-platform screening. This growth of video-on-demand services is expected to continue to grow as more South Africans gain access to smartphones and the internet.”
Responding to the question of whether the public broadcaster isn’t a bit late to the game, Dikgale concedes this is a move the SABC could have taken at least a few years ago to become a first mover, as one of the media houses that has the biggest TV reach in the country.
“The first movers to launch OTT on-demand streaming platforms have already paved the way and will take first position in growing subscriber numbers. This is because such players were able to deploy first in the market, test and refine their offerings. Some of them no longer have teething problems and will reap the benefits of taking the risks by being first movers. This has resulted in those first movers becoming entrenched in the market as leaders through developing first-class apps that have become loved by consumers.”
Similarly, Mark Walker, associate VP for Sub-Saharan Africa at IDC Middle East, Africa and Turkey, believes the SABC is “late to the game and will face significant headwind to win subscribers”.
Says Walker: “DStv has felt this pain over the last few years. To be successful, they will need to focus on relevant content. They will need to create a niche to get into the game – possible local language programming and current affairs that line up to the existing SABC portfolio.”
Way forward
To stand out means the content available on the SABC’s streaming platform should be of broad variety to meet consumer preferences in content, Dikgale advises.
“The SABC will have to ensure it meets the demands of the user of SABC+, which will ultimately be the unique selling point of the platform. Strong technology structure will also be critical in the growth of the platform in ensuring a seamless user interface and user experience.
“Besides a broad selection of content, the broadcaster will also have to ensure the app is easily accessible across multiple devices − including smart TVs − and quality of the streams must be equally, if not of better-quality picture, to be able to compete with major players.”
Walker adds: “If their value proposition based on content and affordability is worthwhile, they may be able to gain a foothold.”
Mxakwe comments: “As we forge ahead and enter this space, we are fully aware that OTT services would create some competitive challenges to the industry. However, with the rich content history and limitless opportunities for new content in all South African languages that the SABC enjoys, we are confident this platform will resonate with our consumers and our stakeholders.”
To access the SABC’s streaming app, users must first visit the SABC+ website to register and then download it via the iOS App Store.
The Android version of the app will “come shortly”; it was revealed at the SABC+ launch event.
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