JOHANNESBURG, SOUTH AFRICA - JANUARY 31: Naspers CEO; Bob van Dijk and Multichoice CEO; Calvo Mawela during a media briefing regarding the outcome of the review into Multichoice's relationship with ANN7 on January 31, 2018 in Johannesburg. Multichoice announced that it will not be renewing ANN7's contract when it expires in August 2018, sighting mistakes in the lobbying process. (Photo by Gallo Images / Netwerk24 / Felix Dlangamandla)
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As the digital revolution continues its migration online, MultiChoice have been told to get with the times or suffer the consequences.
That was the warning issued by Naspers; the holding company who own MultiChoice. MyBroadband report that chairman Koos Bekker was incredibly frank in his assessment of their future this weekend.
The big threat is not some local company. The big threat is Netflix. The vast majority of advertisements are going to Facebook and Google, not to any South African company. That's a big problem and how are you going to regulate them?
How can MultiChoice compete with Netflix? Speaking at the Brics business forum, Bekker was insistent that the only way MultiChoice could adapt to life in the fast lane was by improving their digital output.
Bekker hinted that providing more streaming-on-demand services was the way forward for the broadcaster. It's not just a case of giving the people what they want, however. The chairman revealed that commercial revenue is beginning to mirror the behaviour of television viewers.
Advertisers are also favouring the online market, something which will only widen the chasm between traditional television and services like Netflix, Hulu, Amazon and their other competitors.
Do Netflix and co need regulating? In fact, Bekker's call for regulation isn't the first time a MultiChoice representative has raised this point. They've previously claimed to have lost more than 100 000 DStv Premium subscribers in its last financial year because of unregulated competition from streaming services like Netflix.
They also say that the infiltration of streaming services could lead to job losses in the domestic market. MultiChoice South Africa CEO Calvo Mawela previously rallied against the changes taking the industry by the scruff of its neck.
They do not pay a cent in this country for tax. They do not pay income tax. That gives them a nice advantage to capture the audience. Netflix also does not employ locals that, we think, is an unfair advantage.
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JOHANNESBURG, SOUTH AFRICA - JANUARY 31: Naspers CEO; Bob van Dijk and Multichoice CEO; Calvo Mawela during a media briefing regarding the outcome of the review into Multichoice's relationship with ANN7 on January 31, 2018 in Johannesburg. Multichoice announced that it will not be renewing ANN7's contract when it expires in August 2018, sighting mistakes in the lobbying process. (Photo by Gallo Images / Netwerk24 / Felix Dlangamandla)
