Pay-TV operator, MultiChoice revealed that online video streaming providers including Netflix, Apple and Google, pose ‘real threat’ to the South Africa’s subscription broadcasting industry.
Imtiaz Patel, Group CEO of MultiChoice South Africa, said that while MultiChoice and rival, e.tv, are locked in a high-stakes battle over the use of encryption in free-to-air digital terrestrial television, big international competitors are plotting their entry in country.
He claims that while the international content players do not pay tax in South Africa, they can afford to compete aggressively with local companies. “The department of communications has not fully accepted and understood what this threat really means,” said Patel. “If you lock yourself in with set-top box control, these guys will get an even bigger leg-up.”