The Model T was basic enough to be afforded by everyone, put America on wheels, supercharged the American economy and suddenly spurred innovation, competition as well as rapid advances in the ordinary consumer market for vehicles. TopTV has some major problems and drawbacks for sure, but after having crossed the threshold of 200 000 TopTV decoders in the market in just the four months its been in operation, ODM's TopTV now seems destined to become the new Model T for the South African pay TV market.
Taking a page out of Henry's ''how-to'' book, TopTV is basic enough to be afforded by everyone – even more so now that ODM has dropped the TopTV decoder price to an unheard of R299. TopTV is aggressively switching a major chunk of new South African viewers onto pay TV (in a strained consumer economy no less), is supercharging the South African TV industry in the fields of decoder manufacturing, driving overall South African pay TV subscriber growth, is aiding supercharged TV channel proliferation in South Africa and spurring renewed innovation and competition.
Is it mere co-incidence that Mercedes Benz – that's MultiChoice's DStv pay platform . . .
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Is it mere co-incidence that Mercedes Benz – that's MultiChoice's DStv pay platform – has seen and rolled out more innovative top-of the line services, product offerings and TV channels this year that what subscribers of this premium pay TV operator have experienced in years? Besides adding new TV channels – both international and local like Mzansi Magic, DStv has added several new high definition (HD) channels this year. There was the market release of a new second generation HD PVR, the unveiling of a cheaper bouquet DStv Lite ''co-incidentally'' one day before the TopTV launch and the expansion and roll-out of DStv on Demand on DStv decoders and online. Waiting in the wings are more channels added to DStv soon as well as another HD channel (M-Net Movies 1 HD), and a further refinement and expansion of DStv on Demand with DStv Box Office currently in trial phase which would bring a true ''pay per view'' decoder service to watch movies on demand to DStv subscribers.
While the Mercedes Benz will always be the luxury vehicle and not just outrun the Model T in acceleration, speed and style while making comfort a part of the journey, the mere presence of the Model T is forcing Mercedes Benz to innovate more, forcing it to distinguish itself as being ''so much more'' and enhancing its premium offering from the fine stitching of the leather car seats to what's really under the hood in the engine.
ODM – by taking an astronomical hit to the pocket and the balance sheet by radically subsidizing its TopTV decoders and making installation ''free'' (MultiChoice subsidizes its decoder-bouquet packages too but has never done it to this level) – is in essence completely removing the biggest hurdle faced by first-time consumers who become pay TV subscribers. By not only massively subsidising and discounting TopTV decoders but also completely paying for the dish and installation fee (in reality amounting to thousands of rands as ''loss leading'' on the ODM balance sheet per gained TopTV subscriber) ODM is completely shaking up the existing pay TV market world order in South Africa and putting in place a new economic paradigm. Already MultiChoice has countered with one ''special'' increasing its subsidy of DStv installation. It will not only be interesting to see if ODM can continue to drive aggressive TopTV subscriber growth through swallowing installation cost – but for how long, and also what MultiChoice and other future possible pay TV entrants longterm counter offers will be. Once the consumer know that the car dealer is willing to throw in free air-con, a radio or shiny mags as an optional extra just to sell the car, there is no turning back ever.
Of course more Model T's also spurred deliberate and unintentional knock-on advancements and developments in other areas. More cars beg for more roads to drive on. The addition of TopTV means accelerated fragmentation. Indeed because of the existence of TopTV the number of TV viewers as part of the total TV population in South Africa might actually increase, but with the growth in many more channels it means continued audience fragmentation and smaller audiences for specific channels. Advertisers and ad buyers who's budgets don't grow as quickly as the proliferation of channels will have to make tough choices. Where do you want to reach whom, and are you willing to pay for an audience measuring in the tens of thousands instead of hundred thousands? Broadcasters and pay TV platforms will also have to look at price inflation. Can you really ask ad buyers to fork over the same amount of money for ad spots since the overall TV audience is growing but specific channel viewers are dwindling and fragmenting?
Henry Ford's Model T's kept rolling off the assembly lines just like what is currently happening with TopTV decoders from Altech UEC. It wasn't just what the black box with wheels was, how fast it could go or the wiper blades it had that changed an industry. It was its mere existence and rapid proliferation that spearheaded untold change and revolutionized a staid industry. TopTV as a Model T for the South African pay TV market now seems destined to do the same.
