(Ecofin Agency) – The projected growth of video services on demand (VoD) in South Africa can create opportunities for all media players: the public, advertisers and content providers. That is the substance of the latest study by Nielsen Media Research.
The Dutch group was interested in the VoD market in South Africa, emerging market certainly, but already very competitive since the arrival of global giant Netflix in January 2016 which found the Showmax service launched in August 2015 by Naspers.
The Nielsen study revealed that South Africans are rapidly adopting VoD. With the current offer, they are already 63% who agree they watched online content; and 79% do so at least once a week. But for now, the VoD services hold only 10% of the national audience, against 57% for satellite television services and 11% of cable TV.
However, VoD does not replace the traditional means of television consumption. Online video is more a supplement. Indeed, 85% of South Africans say they do not intend to replace their traditional satellite service by an online service. The market is open to everyone, even if the VoD has a favorable rating because users appreciate the flexibility that allows them to watch timely content.
But Nielsen boss in South Africa, Craig Henry warns that it will be neecessary to understand the dynamics of changes in consumers, and why they are changing. Indeed, the growth VoD reveals taste for entertainment among South Africans. Online, they mainly watch movies, TV series and documentaries.
If VoD is an opportunity for advertisers, it also constitutes a risk for these. Indeed, Nielsen warns against the use of ad-blocking. And because 77% of South African consumers do not like the ads, and 71% do not exclude the blocking option. Craig Henry then warns that only relevant ads and brand genuine experiences will have the opportunity to engage consumers.