Thursday, March 3, 2016
MTN and Discovery Digital's MTN VU video-on-demand service struggling; MTN admits the underperforming MTN VU isn't working as envisioned.
MTN and Discover Digital's video-on-demand service MTN VU is struggling and has been underperforming - the latest South African VOD service to admit that the roll-out of its streaming service is not yielding results and not working as envisioned.
After Altron's disastrous Altech Node abruptly shut down after a year and Times Media's VIDI tanked, MTN VU is the latest South African VOD service admitting trouble and a tepid uptake under users.
MTN VU, the rebranded service that originally launched as MTN FrontRow and quietly changed in December 2015, primarily competes in South Africa with Naspers' ShowMax, PCCW Global's ONTAPtv.com, and Netflix South Africa.
MTN announced its bad financial results today that included a profit plunge - the cellular operator continues to be hammered by ongoing major trouble in Nigeria and other problems and challenges capping a terrible year for the company it calls "one of the most difficult in its history".
MTN says MTN VU is performing below expectations which is troubling for the company. It signals yet another radical shake-up soon for its struggling video-on-demand service.
MTN meanwhile hopes to get a new CEO in the second part of 2016.