Tuesday, October 10, 2023

Paramount+ for South Africa: We asked, they didn't answer - but here's our guesstimates.


by Thinus Ferreira

With Paramount Global announcing that its streamer Paramount+ will launch on 1 December in Japan in partnership with a pay-TV service there, where is Paramount Africa with its plans for Paramount+ for South Africa? 

When will Paramount+, as a late-market entrant finally launch in South Africa, will it be as a so-called "hard-bundle" package tied to MultiChoice's DStv, what work has been done, and how will the content on it compete with what's already out there in terms of a Netflix or a Showmax or a Disney+ or Amazon Prime Video?

Most importantly: Will it come in below the asking price of existing streamers to entice potential consumers to give it a try when South Africans already have access to a gamut of streamers from Disney+ and MultiChoice's Showmax, to eVOD, Amazon Prime Video and Netflix? 

TVwithThinus in a media query sent these 6 questions below to Vuma Reputation Management representing Paramount Africa's corporate communications and followed up repeatedly over weeks. However, neither Vuma nor Natalie Mdladla, senior director of communications at Paramount Africa, ended up responding to the media query.

Since Vuma Reputation Management and Paramount Africa's spokesperson didn't want to directly answer any of these questions, we've put our own thinking cap on to try and answer these same questions, with our own best "guesstimate" based on what we know, and think might likely happen.


1. What work has Paramount done since February 2022 to bring Paramount+ to South Africa and Africa and what has the process been since then specifically to roll out the service here?

Paramount Africa answer: No response.
Our guess and what we know: Paramount+ and Warner Bros. Discovery's Max (previously HBO Max that also incorporates discovery+) are really the last two global streaming services, from America left to launch in South Africa. 

It looks unlikely that Peacock from NBCUniversal will launch as a separate streamer in South Africa, given that Comcast and NBCUniversal are working with MultiChoice to relaunch Showmax within months. 

Peacock content will undoubtedly be folded into whatever new platform version of Showmax is unveiled. 

There's even a chance, however weird, that Paramount+ could debut in conjunction with the relaunched Showmax, and get added as a streaming partner with MultiChoice at the same time (Netflix, Disney+ and Amazon Prime Video already have such partnership deals).   

Why the long wait for the remainders? The reasons are three-fold: Two types of money as well as resources, technical logistics and content.

Firstly the money issue: Running streamers isn't cheap. Rolling out Paramount+ will cost money, and with it still running at a loss in America, it's a given that Paramount+ will run at an operational loss (for years) in South Africa whenever it launches here. 

Like Disney and others, Paramount must crunch the numbers and decide how much money it's willing to "lose" for how long, to invest in rolling out Paramount+ in the country. Secondly, Paramount Global will be wondering how much money it will realistically be able to make in South Africa and how subscriber gains will look - the holy grail of legacy media companies transitioning to video streaming products. 

It also requires a lot of expertise and resources to roll out a streamer in a specific geographical territory - look at how Disney stumbled when India was put in charge of rolling out Disney+ in South Africa and the technical problems, bugs and litany of consumer complaints that led to.

Third is content. Paramount+ can't launch in South Africa without good or enough content. 

The content and licensing rights are often a byzantine maze to navigate and clear. Perhaps Paramount+ is clearing and clawing back rights, similar to what Disney did, and that takes time. With some content, there are existing contracts and there's nothing to do but wait for those contract to run out before content revert back to Paramount to then place it on a version of Paramount+ for South Africa. 

Paramount+ will eventually be in South Africa - it's a certainty - since video streaming is the future.
 
Paramount has however been slow and behind the curve in relation to its competition, in launching in South Africa as the continent's most sophisticated and most established TV market. It will make its incline in trying to get and grow a subscriber base even steeper than the others.


2. When is Paramount+ envisioned to launch and become available to South Africans?

Paramount Africa answer: No response.
Our guess and what we know: Quick fact: South Africa's linear primetime TV ratings are now equal to that of a country like the United Kingdom - in other words, roughly the same number of people in South Africa watch TV at night as do in the UK. 

Extrapolate from that, that roughly the same available TV audience, or video content consumers exist here as there - who are available as potential Paramount+ customers. And South African consumers do have money. Paramount+ launched in the UK in June 2022.

While we don't have any exact or confirmed date for Paramount+ to launch in South Africa, it's a case of better late than never, but also the sooner the better. 

As Netflix, Amazon Prime Video, Apple TV+, Disney+ and MultiChoice's Showmax trawl to scoop up available streaming subscribers, Paramount+ as a Johnny-come-lately cannot really afford to lose much more time in launching in the country.
 

3. Paramount said it's launching Paramount+ as part of a so-called "hard bundle" in conjunction with their existing linear channels on pay-TV operators globally. Will Paramount+ launch in partnership with MultiChoice's DStv in South Africa?

Paramount Africa answer: No response.
Our guess and what we know: With metaphysical certitude, the answer is 100% yes. Paramount Africa will latch Paramount+ onto MultiChoice's traditional pay-TV service in South Africa (and maybe the rest of sub-Saharan Africa) since that's what Paramount said their strategy is in rolling out their streaming service globally.

Paramount works with existing partners in different territories, so again it will depend on when carriage agreement talks for its traditional channel bundles come up for renewal, who is the biggest (in this case MultiChoice), technology platforms and existing IT structure, as well as established relationships (which Paramount and MultiChoice City has). 

Paramount+ will eventually sit as a tile on the DStv Explora Ultra or the DStv Glass or the DStv Streama exactly like the other streamers, exactly like elsewhere in the world. 
 

4. As a late market entrant, Paramount+ will compete with the existing Netflix, Showmax, Amazon Prime Video and others. How does Paramount plan on "sweetening the pot" or entice consumers to add or sample yet another streamer? How does Paramount+ plan to differentiate itself? Also, will it try and come in below the asking price of existing streamers?

Paramount Africa answer: No response.
Our guess and what we know: When you're at a disadvantage (Paramount+ is late to the race), you need to either run faster or be smarter. Paramount Global and Paramount Africa will have to ensure extremely competitive pricing and consider extreme promotional or discount pricing, or pull some other rabbit out of the hat to start sprinting like a hare with the catch-up it needs to with the streaming distance it's behind in South Africa's video streaming wars. 

Paramount has a large library of quite enticing content - it just needs to make sure that it's all available on Paramount+. 

Halo that was/is on Showmax actually belongs on Paramount+, Paw Patrol is Paramount, and so is Star Trek, NCIS and Spongebob Squarepants, as well as the upcoming reboot of Frasier


5. In terms of content, how does Paramount+ see itself or position itself as different to what is available or done by other streaming services? What does Paramount+ feel that it offers content-wise (no need to mention specific shows) that is a competitive advantage over other services?

Paramount Africa answer: No response.
Our guess and what we know: There's enough on Paramount+ to make it worthwhile as a four-quadrant, family-oriented streaming service, similar to Disney+. If you like or use Disney+ in South Africa, you'll get the same type of offering but different content on Paramount+.

Like Disney+, Paramount+ (Paramount, really) has a massive amount of kids content. 

It also has a massive number of TV episodes from multiple, multiple series. Netflix on the other hand grabs attention for "buzzy" films or series (Paramount has started on that path with shows like Halo). 

As with any streamer, it will depend on what you're looking for as a consumer and whether it speaks in content to your specific needs: Do you want to keep the kids busy while you wash your hair? Are you looking for edgy, thrilling TV shows? Are you more of a film buff? Do you prefer documentaries, or foreign shows with subtitles? Do you want broad, mostly family-friendly TV dramas?


6. Why does Paramount see South Africa and Africa as a worthwhile market in which to launch Paramount+ and why does it see the market as a place where Paramount+ will have a future and will be able to scale in terms of subscribers?

Paramount Africa answer: No response.
Our guess and what we know: Again, streaming is the future. Paramount+ will supplant, in time, traditional linear pay-TV channels (yes, you BET; yes you MTV; and you Nickelodeon). 

In the way you have a satellite dish today to get a bundle of pay-TV channels into your home in South Africa - and several years of that remain - the future is digital, streaming, on-demand and live viewing of sports, news and events.

From that perspective alone, a streaming future for Paramount content in Africa is well, paramount.