My AfricaCom 2018 notes and thoughts

AfricaCom is the perfect place to get insights into the current and future broadcast/content publisher platforms available, OTT (Over-the-top media services), DTH (Direct to Home services) etc.

After attending this year’s event, I walked away with the knowledge that when one has enough content to sell, there’s more than enough content platforms to sell to.

Some of the many buzzwords mentioned in most of the presentations were Collaboration, Content Devices, Data and Market Growth.

Market Growth

A presentation from Deepak Mathur from SES, called “Identifying New Revenue Models For Video In Africa” mentioned some very interesting insights which includes…..

Free To Air Linear broadcasters

Research has shown that regions which have successful Free To Air televisions stations also have financially viable Pay TV subscription services.

Unlike all the other regions, Sub Sarah Africa has the smallest amount of viewers supporting Free To Air channels because of the bad quality of the content produced and badly run television channels.

This indicates the potential for content creators who own their IP of the content they produce and license to struggling Free To Air stations throughout Africa.

Free To Air is expected to increase their revenue from 0,9 B $ in 2017 to 1,1 B $ in 2023 and Pay TV is expected to increase from 6,0 B $ in 2017 to 11,5 B $ in 2023.

This means that Pay TV is expected to grow and OTT platforms will not be the death of Pay TV, just yet.

One of the biggest challenges OTT platforms will need to overcome is the slow expected growth of the availability of internet services and the current high costs for data in Africa.

Subscription OTT is expected to increase from 0,1 B $ in 2017 to 1,3 B $ in 2023.

Besides Netflix, the other OTT platforms popular in Africa are iflix, Showmax, IROKOtv, Kwese Play, Wavo and Black.

In South Africa, the local OTT platforms are Showmax, Cell C’s Black and the lesser known iStarring and the recently launched Jomo Sono’s TV2GO.

Showmax has commissioned a few local shows and Cell C Black produced the “Hangman” business reality show last year. I am not sure what their current production slate is looking like. More research will need to be done.

iStarring is struggling to secure locally produced TV series and movies for their platform because most, if not all, local production companies do not own their IP to the shows they develop and create, because of the current commissioned process by local broadcasters.

In the info below, you will notice information of what to expect once digital migration has been implemented in Africa.

Africa today and tomorrow Digital Migration in Africa

Millions of 2017 2023

Inhabitants 988 1,150

Homes 212 253

TV Homes 94 131

Pay-TV Homes 24,2 38,5

Fixed BB Homes 6,4 19

SVOD subscribers 1,5 10

Smartphone users 287 541

Conclusion

There is great potential for mobile first video content to be viewed on smartphones, which as you know, Circle 7 Media is currently focusing on.

As I mentioned earlier in this document, there is more than enough video platforms in need of good quality video content.

If content creators are prepared to hold on to their IP and willing to collaborate and use existing funding models and look to create newer ones, then the future is abundant with loads of opportunities.

#intheoffice #workspace