DStv will add Netflix and Amazon Prime Video to its platforms, in a strategic shift that has seen its parent firm, MultiChoice, sign partnership deals with the giant movie streaming services.
Netflix poses a growing competitive threat to MultiChoice and its own streaming service, Showmax, and the partnership move marks a shift in MultiChoice’s strategy from trying to compete with such players to working with them instead.
The parent company of DStv and GOtv has been facing competition from movie streaming service and internet providers such as Zuku and Safaricom that have enabled access to Youtube by viewers.
The Africa wide deals with Netflix and Amazon were included in the company’s results presentation on its website.
“Whilst we are excited about the recently signed partnership agreements with two major SVOD players, MultiChoice Group will be making an official announcement that will provide more detail in the coming weeks,” Philip Wahome, Corporate Affairs Manager MultiChoice Kenya told the BD.
Though Netflix numbers in Africa have not been formally disclosed, it is still nascent in a continent where it has only been available since January 2016 and where bandwidth costs and speeds could limit its reach.
But it has gathered market share recently and the widespread expansion of cheaper internet is set to drive its growth in the coming years.
MultiChoice reckoned that it has been losing some of its subscribers to over-the-top service providers like Netflix.
Initially, it pushed for increased regulation of Netflix in the hope of derailing its market growth.