27th December 2022
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Merry Christmas and Happy New Year in advance
Welcome back to In A Giffy, the newsletter by TechCabal Insights that helps make you sense of Africa’s digital economy. ICYMI, you can read the third edition here where we talked about the influence of agent networks in Africa and how to make the most of it.
From last week, we have shared previous editions of the newsletter.
Today’s newsletter focuses on video streaming in Africa.
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by Mobolaji Adebayo
A report by Conviva shows that the demand for streaming services in key African markets grew 273% in the third quarter of 2021. The subscriber video on demand (SVOD) market in Sub-Saharan Africa has grown; between 2018 and 2021, the number of streaming subscribers almost doubled to reach 5 million+.
Showmax, the streaming platform by MultiChoice, dominates the market with almost 2 million subscribers recorded in 2021 and is projected to reach 5 million subscribers by 2026. Netflix follows closely with subscribers expected to hit 4.7 million from 1.7 million within the same period while VideoPlay, owned by the South African mobile operator Vodacom will see its subscriber count grow to 2.4 million by the end of 2026 from 1.1 million subscribers in 2021.
While the streaming culture has grown significantly in Africa in recent years, it’s important to note that it can’t leapfrog poor infrastructure. Many regions still battle with spotty and expensive internet.
How can video streaming platforms spearhead growth in spite of these challenges?
By doubling down on mobile-only plans to increase user base
By partnering with telcos to create streaming-only data plans as Showmax has done with MTN in Nigeria
By marketing their services to the already established consumer base of their telco partners via apps, online stores, SMS, and email.
By diversifying consumer touchpoints, prioritising convenience for audiences to be able to access their services, and putting the end user at the centre of their business and distribution model, executives at streaming platforms can make the most of this rising demand.
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