Netflix has confirmed it will launch in South Africa by the end of 2016, although there has been no indication of what the local subscription fees for the service will be.
Netflix is currently available in three tiers, and in the United States these are priced as follows: $7.99 for the SD single stream option, $8.99 for the HD two screen option, and $11.99 for the Ultra HD four screen option.
A number of South Africans already subscribe to the service, making use of virtual private networking or other methods to circumvent Netflix’s geographic restrictions. Netflix has warned that bypassing its geoblocking technology is against its terms of service, but that hasn’t stopped subscribers.
To get an idea of the number of South Africans who use Netflix, how they access the service, and how much they would be willing to pay for a local version, MyBroadband conducted a survey among its readers. A total of 2,889 early adopters and tech-savvy individuals responded to the survey, and on average these individuals were willing to pay R124.54 for a monthly Netflix subscription.
Respondents were also asked which video on demand services they currently use, and around 24% said Netflix. Those who said they use Netflix were asked how they stream the service in South Africa.
A New Competitor
A new video-on-demand player backed by PCCW will take on Netflix, Showmax, FrontRow, and Vidi in South Africa. Bloomberg reported that the PCCW service, which is backed by Hong Kong billionaire Richard Li, will be unveiled to South Africa as early as next week.
“PCCW bought a majority stake in mobile video-on-demand service Vuclip in March and plans to expand the service into new markets, including Africa,” Bloomberg reported.
The news follows the launch of ShowMax in South Africa on 19 August, which offers a subscription video-on-demand service for R99 per month.
ShowMax subscribers have access to over 11,000 hours of TV shows – made up of over 750 titles, 850 seasons, and 19,000 episodes.