Connected Video operations
What sets us apart in the OTT market is our strong content offering
Our operating performance
Connected Video develops and operates our OTT video services for the group, primarily through our DStv via Streaming app and Showmax products.
Our DStv via Streaming app is available as a companion product for existing DStv subscribers or, increasingly in certain markets, as a standalone service for subscribers who want to stream the full DStv offering online without the need for a satellite dish installation or a dedicated set-top box.
Showmax is a paid streaming video on demand (SVOD) service available as a standalone product or as a value-added service free to DStv Premium subscribers and at a 50% discount to customers on our Compact Plus and Compact packages. We also offer a cheaper streaming-only Showmax service at less than half the price of the lean-back service.
Both of our OTT services are available on a wide variety of platforms, such as smartphones, smart mobile devices, desktop computers, laptops, gaming consoles, smart TVs and the DStv Explora Ultra decoder and Streama device.
What sets us apart in the OTT market is our strong content offering. This includes the best local African content, including Showmax originals like The Wife first and exclusive international series and movies, popular kids’ shows and live sport from SuperSport. Our products are also designed for the markets in which we operate, with innovative custom features such as tailored content recommendations, localised pricing in our core markets, payment integrations with a range of local payment channels, low data usage settings, further supported by strategic integrations with local partners such as telcos on distribution and banks on payments. Over the last few years our dedicated Showmax engineering team has upscaled our platform’s backend infrastructure and frontend user interface to create a user experience that is comparable to if not better than the global SVOD offerings.
As we approach an inflection point in broadband adoption in sub-Saharan Africa, our ambitions in streaming have stepped up. As a result, we announced in March 2023 that MultiChoice Group (owners of Showmax) and Comcast (owners of NBCUniversal, Sky and Peacock) have entered into a partnership to bring the world’s best content and technology to customers across our 50-market African footprint. MultiChoice will own 70% of the new Showmax entity, with Comcast holding the remaining 30%. The new Showmax service will be powered by Peacock’s technology, which will incorporate our local market innovations into a platform with a proven ability to scale.
with paying subscribers up
maintained momentum up
MultiChoice Group and Comcast have entered into a partnership. MultiChoice will own 70% of the new Showmax entity, with Comcast holding the remaining 30%.
The partnership will also allow us to give customers access to an unparalleled content mix which will showcase our hyper-local content slate (e.g. Showmax Originals plus M-Net’s local programming from Mzansi Magic, Africa Magic and Maisha Magic, sports from SuperSport (the English Premier League), exclusive international content from Comcast (NBCUniversal, Universal Pictures, Peacock and Sky Studios), and third-party content from international studios (Warner Brothers, HBO and Paramount).
During FY23, Showmax had a strong year with paying subscribers up 26% YoY. Ongoing growth was driven by our largest slate of Showmax Originals to date, targeted marketing campaigns, increased local content volumes in key markets, fresh and high-quality international movies and series, our strategic partnerships, product enhancements and compelling live sport on Showmax Pro.
Our hyperlocal content strategy continues to yield results, with popular shows driving growth in viewership numbers. The Wife, Life with Kelly Khumalo, Uthando Lodumo, Steinheist, Stella Murders and Tali’s Joburg Diaries amongst others, have all been successfully launched in South Africa, some with follow-on seasons. Our first Nigerian Showmax Originals, Diiche and Wura, and Kenyan Originals like Kyallo Kulture and Pepeta have also enthralled audiences. The Real Housewives franchise has been expanded to include Durban, Abuja and Nairobi. Our distinct content line-up is resonating with our audiences, and this can be seen in the increased viewership of local content on Showmax.
We continue driving our local content strategy
The Showmax Originals created for the South Africa, Nigeria and Kenya markets all topped the ‘most-watched charts’ on Showmax. The Wife remained the most-watched show in South Africa from November 2022 to March 2023. We continue to see a strong affinity for African storytelling with local series and movies making up 57% or above of all viewership for FY23 in all key markets.
We ramped up our content slate significantly in FY23, releasing over 48 originals movies and series in South Africa, Nigeria, Kenya and Ghana (FY22: 18). Showmax Originals in multiple countries set viewing records, earned five-star reviews, won Kalasha and South African Film and Television Awards and shows like The Wife trended at #1 on Twitter. Showmax Pro successfully streamed the FIFA World Cup Qatar 2022 in addition to top international and local football. As we head into FY24, we are ramping up our local content slate further in our key markets with titles like The Real Housewives of Lagos, Kenyan originals Igiza and Pepeta, and more locally produced drama, reality and documentaries, while continuing to bring bingeworthy international shows such as Yellowjackets, Gangs of London, and Succession to subscribers.
We have maintained an ongoing focus on enhancing our OTT platforms. This year, we made substantial improvements to our content discovery and personalisation features and revamped the DStv via Streaming user experience. We are constantly enhancing functionality and adding features to our streaming apps to make them even better for our customers.
Significant improvements have been made to download reliability and overall platform stability and scalability over the last year. Improvements in our DStv app CSAT can be primarily attributed to functional improvements undertaken by the team to reduce buffering, particularly on Android devices. FIFA World Cup Qatar 2022 readiness initiatives allowed our customers to enjoy the tournament (in 4K on compatible devices), with easier navigation and viewing of live and VOD content. We reached peak concurrent streams of almost 0.5m during the final match, which was a new record for concurrent users streaming on the DStv app, all with the rebuffering % at its lowest in the history of the platform.
With a strategy that offers African viewers a non-linear service designed exclusively for an African audience and including the best local programming, quality sport, and a diverse spread of international content, Showmax and DStv via Streaming are well positioned to continue to drive the group’s OTT ambitions forward.