Altron, a subsidiary Altech – which last year launched the Node video-on-demand service – will terminate the service on 31 October, 2015. From now, new subscriptions will not be accepted and customers will be refunded an amount of ZAR1 999 (US$149.57) per Altech Node device in November, 2015.
“Unfavorable conditions such as the current economic environment, which is putting pressure on the consumer and increased competition in the VOD environment, have necessitated us to make the difficult decision to close the Altech Node business. We overestimated the readiness of the South African market for such a pioneering service, combining both VOD and smart home services,” said Robbie Venter, CEO of Altron.
Nevertheless, the VoD service appears to be booming in South Africa. Since the introduction of Node, the country has seen the launch of Vidi, FrontRow, ShowMax and more recently OnTapTV. In addition, Netflix and Orange have confirmed their entry in the South African video streaming market by the end of next year.