Netflix overtaking DStv in South Africa
Local technology group, BMIT, has released a report noting the meteoric rise of digital media masters, Netflix. The case-study also reveals that Dstv is struggling to maintain it’s, once immense, viewership.
It’s a high-tech debate which has gathered momentum in the past year: Which is better for the South African consumer, Netflix or DStv?
While extensive research has been done comparing prices and packages, convenience and customer support – new statistics reveal that ‘high-tech’ consumers are abandoning DStv at a rapid rate, and switching over to the internet-based broadcaster, Netflix.
High-tech users switching to Netflix
The figures do not lie. In the past year alone DStv has lost more than 100,000 premium subscribers, which has, in turn, impacted greatly on MultiChoice’s revenue. CEO Calvo Mawela places the blame squarely on the shoulders of the newcomer, Netflix.
Yet, who could blame consumers for choosing a system which is based upon freedom of choice? Arguments levelled at DStv concern its monopoly on the local broadcasting market, expensive premium subscriptions, and an out-dated interface that is struggling to adapt to the new era of internet entertainment.
BMIT use the Digital Lifestyle Measure (DLM) survey to classify consumers based on the extent of their digital lifestyles.
Consumers are classed from DLM 1 (low-tech) to DLM 5 (high-tech) – whereby DLM5 represents consumers who rely heavily on digital trends, and DLM1 represents those with limited digital access.
It’s important to remember that 45% of the entire population of South Africa is classified as DLM0, because they have no internet access.
It’s also necessary to note the far higher percentage of DLM 1 and DLM 2 consumers, compared to DLM 3, 4, and 5. This is indicative of a country with a large developing economy.
Netflix vs DStv and the South African DLM
The 2018 BMIT report shows that 63% of high-tech South Africans have a DStv subscription, of which 45% are DStv Premium subscribers.
Comparatively, 62% of high-tech South Africans have a Netflix subscription – which means that Netflix is twice as popular as DStv Premium in this group.
There may be a silver-lining for DStv, as the data reveals that co-service, Showmax, is keeping up with Netflix amongst high-tech consumers.