Telkom plans to challenge DStv’s dominance by launching a content platform that will aggregate services like Netflix, Amazon Prime, and Disney+ into a single subscription. Telkom Consumer CEO, Lunga Siyo, recently revealed the company’s strategy to become a key player in South Africa’s streaming market without directly investing in content production.
Telkom’s New Streaming Strategy
Speaking to ITWeb, Siyo said that Telkom’s goal is to build a content aggregation platform. This service will allow users to subscribe to a bundle of streaming services for one fee, potentially at a lower cost than paying for each platform individually.
“We will aggregate all the streaming services and offer them to you as a bundle. They bring their content, and we bring our platform,” Siyo explained. Telkom will also provide the necessary data to stream the content for its subscribers. This model will function on a revenue-sharing basis, allowing Telkom to benefit from the streaming revenue while focusing on its core telecommunications business.
How Telkom’s Platform Compares to DStv’s Strategy
This isn’t an entirely new idea for the South African market. In 2021, MultiChoice, the company behind DStv, announced a similar strategy. They sought to create a unified streaming platform to make DStv a one-stop-shop for all video entertainment, including services like Netflix. MultiChoice had already integrated Netflix, Amazon Prime Video, and YouTube into its DStv Explora Ultra decoder, and DStv subscribers can currently add Netflix and Disney+ to their subscription bill.
However, the success of this strategy for DStv remains unclear, as there is no detailed data on how many subscribers use the option to bundle streaming services. Nonetheless, MultiChoice’s vision, as described by CEO Calvo Mawela, was to position DStv as a “super-aggregator” where users could access various streaming services on one platform.
Telkom’s approach seems to mirror DStv’s, but with a stronger focus on the digital market. This move is part of the company’s long-standing desire to enter the media space, dating back to its creation of Telkom Media in 2006. The original plan was to invest R7 billion into this venture and launch South Africa’s first IPTV service, directly challenging DStv. However, the initiative was short-lived. Telkom eventually scaled back its funding and sold its stake in the project to Shenzhen Media Group in 2009.
Telkom’s History with Streaming
Telkom’s attempts to break into the media market didn’t end there. In November 2020, the company launched TelkomOne, a streaming service offering free SABC content and paid options, including movies and local reality shows. Despite exceeding usage expectations in its first year, Telkom exited the platform two years later, handing it over to the SABC, which relaunched it as SABC+.
With its latest plan to become a content aggregator, Telkom is once again eyeing a piece of South Africa’s lucrative media market. Its new platform could potentially attract customers looking for affordable, simplified access to multiple streaming services. This competition could challenge DStv’s current position as the leading provider of both traditional and digital television content in the country.
Will Telkom’s New Platform Succeed?
The question remains: can Telkom’s new strategy work where its previous media ventures have failed? By focusing on aggregation rather than content production, Telkom could offer a compelling alternative to DStv, particularly for customers who are already familiar with Netflix, Amazon Prime, and Disney+ but want a simpler way to access them.
Time will tell if this platform can reshape the South African streaming landscape. However, with two major companies now competing for dominance in the digital media space, consumers could benefit from lower prices and more convenient access to their favourite streaming services.