Cell C's subscription video streaming service, Cell C black, has gobbled up a whopping R523.9 million as Cell C spent big in licensing and distribution right costs to buy and maintain TV channels and content.
Cell C's financial report for the year ending 31 December 2018 published on shareholder Blue Label Telecoms' website, reveals that the SVOD service that carries both a collection of linear TV channels as well as a trove of on-demand series and films, splashed R523.9 million as part of "contractual obligations for programme and film rights, acquired for the period between 3-to-5 years", contributing to Cell C's total loss of R1.27 billion.
Cell C black is swimming in increasingly shark infested video streaming services water where Showmax and DStv Now from the just-listed The MultiChoice Group, Netflix South Africa, Amazon Prime Video, along with a litany of other services like Acorn TV, TV2GO, and even PCCW Media giving it a second try with Viu.
The R523 million is slightly less than the R528.3 that Cell C spent on Cell C black content licensing in the 2018 financial year.
