A "neutered" Netflix became accessible in South Africa on Wednesday night but South Africans who sign up need to be aware that there's some big content gaps and limitations for the expensive service due to licensing rights for hit shows already gobbled up by existing pay-TV broadcasters and other video streaming services.
Netflix that was available in 60 countries on
Wednesday night launched in a further 130 countries including South Africa but what
viewers and general consumers might not immediately recognise is that the
global video streaming giant's content offering differs from country to country
depending on intricate and complicated broadcasting and licensing deals.
Netflix South Africa's offering is
dramatically curtailed from what Netflix subscribers in the United States or
some other countries are getting.
The result is that South African Netflix users are paying too much at R126 per month for a Netflix version that is limited, underwhelming and not worth the money.
Does Netflix have any previous seasons or the
latest season of its own hit shows House
of Cards or Orange is the New Black?
Nope, because it sold its own shows to M-Net.
Does Netflix have HBO's Game of Thrones or ITV's Downton
Abbey? Nope, those are signed to linear TV channels like M-Net and BBC
Worldwide's BBC First on MultiChoice's DStv with the rights to previous seasons
of both those shows held by Naspers' ShowMax.
In the same way literally hundreds of TV
shows are missing from Netflix's South African version because the global
streaming giant doesn't have the rights and can't show it.
Netflix was clearly more focused on hoping to try and make a splash by launching in 130 countries at the same time than actually caring about South Africa specifically and what specifically its service and content offering in South Africa would be and look like.
Does Netflix have its own buzzy and new Making a Murderer, the great and
hilarious comedies Unbreakable Kimmy
Schmidt and Master of None and
dramas like Marco Polo, Sense8, Narcos and Marvel’s Jessica
Jones? Yes, since Netflix didn't sell those rights of its own original shows.
Will Netflix subscribers in South Africa be
able to watch Fuller House, the Netflix
comedy spin-off of Full House when it
starts in February? Very likely.
Can Netflix users download these shows on
tablets and smartphones in broadband pricey and penetration limited South
Africa like PCCW Global's ONTAPtv.com and ShowMax? No.
When Netflix announced in 2015 that it
planned on launching in South Africa and numerous other territories during
2016, new subscription video-on-demand (SvoD) providers like ShowMax and
ONTAPtv.com jumped to not only quickly create and launch commercial video
streaming services but to sign content deals with distributors.
By going on a content buying spree, signing
content licensing deals for their streaming services with international
distributors and Hollywood studios – and including some exclusive deals for
premium content – in a deliberate and pre-emptive strike they've actually neutered
Netflix's launch proposition.
Strange as it might sound, the result is that
ShowMax now sits with the largest video streaming content offering in South
Africa – not the global Netflix.
Netflix can only add content and make it
available after existing licensing rights agreements for specifically streaming
content – as well as for pay-TV play-out – have lapsed. That's why Netflix for
South Africa doesn't have shows like The
Big Bang Theory or Bubble Guppies.
Netflix wants to make more of its own
original content and is spending $5 billion this year so that it can own its
own shows and movies which it can then launch simultaneously worldwide without
having to struggle with a differentiated service, country to country, depending
on content rights and who has what show.
Netflix says its lowering piracy of TV
content as its rolling out to more countries.
"In the first 6 months after we launched in
Australia and incumbent broadcasters created competing subscription
video-on-demand (SVoD) services, BitTorrent usage dropped by 14%," said Ted Sarandos, Netflix chief content
officer at the CES 2016 keynote address on Wednesday night.
"Global distribution [of TV shows] no longer
needs to be fragmented. It needs that everyone, pretty much everywhere, should
be able to see great films and TV shows at the exact same moment."
"The technology is there, it is the business
models that now stand in the way. That's a big reason why we decided to do
original programming," said Ted Sarandos.
