Tracking the latest streaming trends in South Africa
Consumers are taking more charge of how they engage with content and when they consume it. This has given rise to the increase in streaming services all over the world with the number of users is expected to hit over 9 million by 2026. In South Africa, about 16 per cent of the population now have streaming devices. To discuss the latest streaming trends in South Africa. Joining CNBC Africa is Lerato Mapitsa, Strategist at The MediaShop.
Tue, 12 Jul 2022 12:56:39 GMT
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AI Generated Summary
- Streaming services are transforming traditional TV viewing habits, with a projected increase in users in South Africa to over 9 million by 2026.
- Challenges such as load shedding and expensive internet services pose obstacles to the growth of streaming platforms in the country.
- Targeted educational campaigns and digital innovations are essential to boosting consumer awareness and driving adoption of streaming services.
The consumption of video content has witnessed a significant shift globally, with consumers now taking more control of how and when they engage with content. The surge in streaming services worldwide is expected to see the number of users surpass 9 million by 2026. In South Africa, approximately 16% of the population currently own streaming devices, indicating a growing trend in the country. Lerato Mapitsa, a Strategist at The MediaShop, discussed the latest streaming trends in South Africa, highlighting the opportunities and challenges in the market.
Mapitsa emphasized the transformative impact of streaming services on traditional TV viewing, attributing it to the rise of Over-The-Top (OTT) platforms. She pointed out that while the adoption of streaming services is increasing in South Africa, there is still a need for more education among consumers to fully grasp the concept. Despite the potential for growth, she noted that only about 16% of South African households currently have access to streaming devices, underscoring the untapped market potential.
One of the key challenges facing the streaming industry in South Africa is the impact of load shedding and limited internet penetration. Mapitsa acknowledged that unreliable electricity supply poses a significant hurdle for businesses, including streaming platforms, as it disrupts consumer access to content. Additionally, the high cost of internet services in the country hinders widespread adoption, further complicating the growth prospects of streaming services. The strategist stressed the importance of addressing these challenges to ensure seamless connectivity for consumers and to drive market expansion.
Regarding the demographics of current streaming device owners in South Africa, Mapitsa explained that the majority are adults aged 15 and above, with a focus on the 35+ age group. She noted that there is a need to broaden the market reach and educate consumers across different age segments to boost streaming device ownership. Despite the positive outlook for the industry, the strategist highlighted the need for ongoing efforts to enhance accessibility and affordability for streaming services in the country.
Various industry reports, including Nielsen data, have indicated a growing demand for bundled viewing services among viewers. In South Africa, however, there remains a gap in consumer awareness and understanding of streaming services, necessitating targeted educational campaigns to bridge the knowledge gap. Mapitsa stressed the importance of communicating with consumers in a language they understand to drive adoption and engagement with streaming platforms effectively. She also emphasized the role of innovative digital solutions in promoting streaming services to a wider audience and enhancing the overall viewer experience.
As the streaming landscape continues to evolve in South Africa, stakeholders in the industry are faced with the dual challenge of capitalizing on the growing demand for online content while navigating obstacles such as load shedding and limited internet access. Despite these hurdles, the potential for expansion and innovation in the streaming sector remains promising, signaling a transformative era in the way South Africans consume entertainment.