South Africa Broadcasting Corporation (SABC) has collaborated with Telkom SA to launch an online streaming service in a five-year deal. The new venture dubbed TelkomONE will air the public broadcaster’s free to air radio and TV channels and offer SABC rich archive and local content.
The move is likely to attract consumers hungry for local content; shows, movies, and music. The service will cost R49 per month for premium access with the free access giving consumers access to more than 20 SABC radio stations and access to TV stations SABC 1 and 2. SABC says the move is in line with the digital strategy and will boost revenues as the broadcaster has been facing acute financial difficulties in the recent past.
The entry of SABC into the streaming service is likely to put pressure on competitors Showmax, Amazon Prime, and Netflix. In this case, the SABC R49 monthly package is in line with the cheapest Showmax option and half the price of Netflix’s cheapest package in South Africa. The premium access offers consumers an extended list of channels, catch-up functionality, video on demand function, and record function for their favorite shows.
SABC had last month lamented of loss in revenues due to still competition from international streaming services that have gained popularity in South Africa. The broadcaster proposed changes in regulation to expand the definition of a TV license in a bid to net video-on-demand providers.
Telkom brings onboard 3G, 4G, and fiber internet connection thus helping the consumers access content across multiple devices; smartphones, smart televisions, tablets, and on the web.
SABC Proposes TV License Fees for Streaming Services to Boost Revenues