Altech Node is dead: Altron's failed video-on-demand (VOD) disaster shutting down at the end of October, giving subscribers a refund for decoder boxes.

The disastrous Altech Node is dead with Altron shutting down the short-lived video-on-demand (VOD) console after failing to find a buyer with users who will get a R1 999 payback per black box.

With no communication about what's actually on the Node in terms of TV content, potential buyers didn't want to fork out money for a device Altron failed to market properly as "was a disastrous failure right from the beginning," according to an insider involved with the launch who spoke to TV with Thinus about the Altech Node at the beginning of this month.

The service did nothing to publicise the actual revolving TV and film content with South Africa's press and TV critics who in turn couldn't be bothered to tell people what the Altech Node contained to watch or why people should bother to watch or get it.


ALSO READ: "If you want to review it go see it in the shop."


The Altech Node launched in September 2014 costing an expensive R3 499 with an additional monthly subscription fee of R299 that was required.

It's now shutting shop after exactly a year, ending subscriptions and shutting down at the end of October, with customer who bought it getting a refund of R1 999 per Node device in November.

The Altech Node's Twitter account has already been dumped.

Altron tried to offload the expensive Altech Node flop but couldn't clinch a successful sale for the consumer technology product which didn't make a dent against MultiChoice's DStv, StarSat or other pay-TV services.

"Unfavourable conditions such as the current economic environment which is putting pressure on the consumer and increased competition in the video-on-demand (VOD) environment have necessitated us to make the difficult decision to close the Altech Node business," says Altron chief executive officer (CEO) Robert Venter in a statement.

"We overestimated the readiness of the South African market for such a pioneering service, combining both VOD and smart home services. The technology in the Altech Node is highly innovative and world class and will continue to be owned by Altron."

"The Altron group deeply regrets any inconvenience caused to our customers through the termination of this service, which was unfortunately necessary, but based on sound and prudent financial principles."

ShowMax to launch in South Africa as a Netflix competitor with free ShowMax Basic and ShowMax Premium for R99 per month.

ShowMax, South Africa's answer to Netflix, will likely launch with a limited free version called ShowMax Basic and ShowMax Premium costing R99 per month.

The launch of ShowMax – will officially be announced on Wednesday in Johannesburg, with the service set to start shortly thereafter.

ShowMax is Naspers' attempt to get traction and a foothold in the over-the-top (OTT) subscription video-on-demand (SVOD) market in South Africa before the coming launch of global on-demand video internet subscription service behemoth Netflix.

While Naspers has remained silent and PR company Atmosphere Communications handling the ShowMax contract hasn't issued any information to the press, information is already leaking impacting the new brand – the word ShowMax apparently an amalgam of the names Showtime and Cinemax both known as premium TV providers in America.

According to the cached information on ShowMax's website at showmax.com and which might still change, the service will launch with two options: ShowMax Basic which will be a limited free subscription service which will give users a taste of the ShowMax library and try to upsell them to tho the second option – ShowMax Premium at what will likely cost R99 per month for unlimited access to all movies and series.

The service will only be available in South Africa at launch with possible expansion into the rest of Africa later.

ShowMax will also be offering a 7 day trial period. People who sign up will get 7 days to try the service and can cancel anytime. ShowMax has categories like Hollywood, Best of British, kykNET, South African content and Kids.

Showmax' cost of R99 – a psychological consumer number – is interestingly compared to the basic monthly subscription fee of R699 for MultiChoice's DStv Premium package. In America Netflix and Amazon subscribers pay around $10 for the streaming service, compared to between $80 and $90 per month for a premium satellite or cable pay-TV service.

‘The face of entertainment is changing’

ShowMax is set to show content through adaptive streaming in high definition (HD) (720p). 

ShowMax says subscribers should have a minimum internet speed of 2 megabits per second (Mbps) but that an uncapped 4Mbps connection or faster is recommended for the best experience.

Viewing is unlimited, but ShowMax is warning that the use of the service is subject to fair usage – although it’s not currently explaining what "fair usage" means.

"The digital experience gives you the freedom to choose when, where and how you watch. The face of entertainment is changing, and you can be part of it," says ShowMax.

According to the indexed site, ShowMax will work on personal computers (through web browsers), iPhones and iPad running iOS7 and higher, Android phones and tablet running Andriod 4.1.0 or higher; Samsung Smart TVs from 2012 to 2015, Samsung Tizen Smart TVs from 2015, LG NetCast Smart TVs from 2012 – 2014 and LG WebOS Smart TVs from 2014 and 2015.

ShowMax subscribers will likely be allowed to watch on two devices simultaneously and will be allowed to register up to 5 devices.

Shows from BBC, SABC, M-Net, international studios

Naspers has culled a massive number of locally produced shows from pay-TV broadcaster M-Net's archives which will be offered to subscribers ranging from M-Net (DStv 101), Mzansi Magic (DStv 161) to kykNET (DStv 144) shows on offer.

Besides programming from BBC Worldwide which has been seen on MultiChoice's BBC channels on DStv like Frozen Planet, a large number of programmes from the SABC archives also appear which will also be available for streaming through the subscription service – some iconic programmes from the public broadcaster like Skoppensboer, Gazette, Vyfster, Agter Elke Man, Arende and several more.

Besides library cult titles like True Blood, ShowMax also features a large number of international shows currently on M-Net, from Arrow and Grey’s Anatomy, The Good Wife and The Big Bang Theory to Suits, Under the Dome, Elementary, Chicago Fire, Teen Wolf and many others.

"See it as the new M-Net but for the internet age," a source told TV with Thinus earlier this week.

"A lot of the prime content that will be on ShowMax people can already see on DStv but it will be a new way for customers to watch. Also the economic model is different – the service is more about enabling people to really go for binge-watching and things a SVOD player are better at than traditional pay-TV operators," said the insider.

ShowMax will be new competition in the growing local VOD field where the Times Media Group runs VIDI, MTN has its FrontRow service which just lowered some of its prices, MultiChoice has DStv BoxOffice and Altron last year launched the flopped Altech Node decoder which it is now getting rid of.

DUMPED. Altron done with the Altech Node; ready to dispose of the expensive video-on-demand failure soon after 'poor uptake' from consumers.

Altron is done with its expensive decoder failure, the Altech Node, and is ready to dump the video-on-demand (VOD) flop it launched last year in South Africa which failed to take off after tepid consumer uptake.

Altron's Altech Node was launched in September 2014, but the expensive black set-top box (STB) which was also a home automation system sold for R3 499 and required a monthly subscription fee of R299 failed to gain traction with consumers.

Altron is now ready to off-load the expensive white elephant consumer product which cut into its financial performance since it was launched.

In a trading statement Altron says its getting rid of the Altech Node because of "poor uptake by retail customers" and is looking to sell the under-performing business venture soon.

"Altron TMT has identified a third party, with whom it is at an advanced stage of negotiations, to acquire this business. It is anticipated that Altech Node will be disposed of in the short-term," says the company.

While the Node launched in 2014 with 200 hours of TV series, 140 movies, 150 hours of kids programming, 150 hours of documentaries, and 30 hours of current affairs programming Altech failed to tell consumers, TV critics, the press and potential subscribers about the content ever again.

Altron mistakenly thought South African consumers would buy a box, forgetting that consumers now buy and keep decoders, smartphones and other internet linked devices not for the actual device but for the content it has access to.

The publicity for the Node was basically non-existent and where there was anything, it focused only on the actual decoder, not telling consumer about the programming.

Big marketing billboards only touted the mysterious black box, while a TV ad focused on the Altech Node's technology features.

Unlike other South African pay-TV and VOD players who issue regular programming publicity alerts, Altron after launch of the Altech Node never told potential buyers and new or existing subscribers about the actual TV content they could get access to and specifically what it was, or the new content as additional programming was acquired and cycled through.

Altech Node consumer console is an expensive video-on-demand (VOD) flop; Altron now looking for alternative after tepid consumer uptake.

Altech's Node, the consumer console launched last year by the division of Altron TMT, is a video-on-demand (VOD) flop with South Africans, with the company now looking for an alternative after a tepid reception from consumers.

When Altron TMT reports its results tomorrow, it will show that the Altech Node was a VOD failure with the company making plans for an alternative.

The Altech Node was launched in September 2014 but the expensive black set-top box (STB) has failed to gain traction with consumers in the 7 months since causing a major underperformance to Altron's initial expectation.

The Altech Node has "performed below expectations with regard to retail customer take-up," says Altron TMT in a trading update, saying the company is "well advanced in terms of exploring alternative opportunities for this business".

While the Node launched with 200 hours of TV series, 140 movies, 150 hours of kids programming, 150 hours of documentaries, and 30 hours of current affairs programming Altech failed to ever tell consumers, TV critics and the press and potential subscribers about the content ever again.

The marketing and publicity for the Node was basically non-existent and where there was anything it focused on the actual decoder, not telling consumer what the actual content is they can get access to.

Altech never said when there's new content on the box which gets updated in cycles and what that watchable content would be, never pushing programming update alerts to the media like rivals.

The Altech Node's surprise launch came a week after the Times Media Group (TMG) launched its VIDI video-on-demand (VOD) offering, the cycled content about which TMG communicates regularly and for which consumers don't need an expensive Node-like device to access.

MultiChoice launched its internet connected DStv Explora and interconnected DStv on Demand services in November which dramatically increased the DStv Catch Up content to subscribers and in December MTN quietly launched its version of a video-on-demand service it called FrontRow.

The global video-on-demand service Netflix told TV with Thinus in January that it is coming to South Africa and that it will definitely be available for South African viewers and launch here before the end of next year.

Altech Node: 'If you want to review the unit go see it in the shop'.

I've answered and responded directly to several readers who asked personally, but just a note as to why there wasn't (yet) any review on Altech's new Altech Node console on TV with Thinus the past two months - and why there won't be one: Altech's PR company told me if I want to review the Altech Node I can go and see it in a store.

Altech and its PR agency used, Atmosphere Communications, in September couldn't be bothered to invite national TV critics to the launch event of the Altech Node, nor even just told them beforehand that it would be launching the new video-on-demand (VOD) console which is now competing with MultiChoice's DStv and Times Media's VIDI.

Those covering TV still reported about the console though, although up until now there's been no definitive list of what the actual TV programming and shows are that buyers and users of the Altech Node costing R3 499 plus a monthly subscription actually get with the device and service.

Don't bother with the Altech Node website, its not there nor anywhere else. Altech didn't release a list of the TV programming and movies available at launch and has not responded to a media enquiry seeking a list way back in September. Even I gave up and couldn't be bothered further.

The company also doesn't deem it necessary to keep the press informed about new content being added and cycled content - something which would presumably help drive sales. Presumably Altech doesn't have a problem selling Altech Nodes and therefore doesn't need press coverage.

Before the mid-September launch of the Altech Node and after, demo models were given and installed for certain tech trade journalists; no journalists covering television however.

TV with Thinus did request a review unit for the purposes of a review after launch and didn't bother again. It took weeks for a response - unintentionally hilarious when it finally arrived:

"Unfortunately we do not have any active Node units available for review at this time," Atmosphere Communications told me and said that if I want to see or test the Altech Node I can go see a demo unit in one of the stores stocking it "if you are interested in experiencing Node for yourself".

So. You can stop asking about why no Altech Node review and have the reason as to why.

Given the price of the Altech Node and its features, as part of the range of options for consumers with some Christmas cash to perhaps burn, my recommendation would be to rather opt for MultiChoice's DStv Explora decoder.

The price point is basically the same and with a DStv subscription comes the latest content in TV shows and movies - something which none of the available video-on-demand services like Altech Node can currently offer.

If you're more into home tech and less about actual television watching and TV entertainment - things like home surveillance, creating a WiFi hotspot or turning your house lights on or off and not perturbed about watching older shows and movies - then the Altech Node might be for you, given some of its other features.

You'll will however have to physically go to a store which sells the Altech Node to check it out for yourself as I have been advised to do.

BREAKING. Altech Node launches in South Africa as brand-new video-on-demand (VOD) consumer console to compete with DStv, VIDI.

Altech is launching the Altech Node in the suddenly white hot video-on-demand (VOD) market with South African consumers and TV viewers who will be able to buy the VOD console, using MultiChoice's DStv dish, from Friday at R3 499, and giving access to 700 hours of entertainment.

The launch of Altech's Node comes a week after the launch of Times Media Group's VIDI with Node viewers who won't suffer buffering issues like VIDI and who will also be able to watch the latest movie releases as well as library TV shows.

Altech didn't release a list of the TV programming and movies available at launch and didn't respond with a list to a media enquiry seeking a list on Thursday.

(Altech didn't make the Node device available for testing ahead of the launch to national TV critics who were not invited to, nor told of, the launch event on Thursday evening).

With MultiChoice's DStvBoxOffice on the one side of the spectrum, Times Media Group's VIDI on the other side and Altech's Node in the middle of the existing - and suddenly exploding - VOD market, South African consumers and viewers suddenly have a lot more choices and options.

Like DStv BoxOffice on the DStv Explora and HD PVR the content on the Node console is updated through satellite and stored on the 1TB internal hard drive and viewable in 1080p high definition (HD).

Unlike VIDI, Node users won't have to pay for massive internet downloads to watch the actual video content.

Like DStv Catch Up and unlike VIDI, the Node includes video-on-demand sports content (80 episodes at launch). It's not live sports content but packaged content.

Node will have 200 hours of TV series at launch, 140 movies at launch, 150 hours of kids programming, 150 hours of documentaries, and 30 hours of current affairs programming that can be watched instantly.

Altech's Node will carry 7 to 10 new movie titles per month at any given time available for rent, as well as 100 titles per year.

In the subscription library there will be 140 movie titles which are available to watch at any time and which doesn't require an additional payment. These will be refreshed at a rate of 10% to 15% per month, says Altech in a press release.

Altech's Node will work with any TV set that has HDMI ports, and the Node console itself has 3 HDMI ports.

Besides the R3 499 cost of the console which includes free installation and which people will be able to buy from Friday at Altech Autopage Cellular, Cell C, Dion Wired, Game, Hifi Corporation, Hirsch's, Incredible Connection, JetMart, Makro and Pick n Pay Hyper, there is a monthly subscription fee of R299.

This R299 monthly subscription fee gives the user access to the majority of the library content on the Node which regularly is cycled through and replaced just like on DStv BoxOffice on DStv PVR decoders.

Similar to the licensing rights agreements of DStv and DStv BoxOffice and VIDI, Altech has licencing rights agreements with Hollywood studios which include Sony, Disney, MGM and Universal.

On the Node the latest blockbuster movies cost R25, compared to the R27 for DStv BoxOffice and R27 for VIDI. This R25 will be in addition to the R299 monthly subscription fee.

Like DStv BoxOffice and VIDI, a movie on Node remains available for a 48 hour period to watch.

Older movie titles on Altech's Node will cost R15.

Subscription and rentals of and through the Altech Node can be paid by using debit and credit cards or Altech's Eyenza wallet.

Older non high definition (HD) content will have a higher bit rate on Altech's Node says the company "to ensure the content still looks great in an HD screen".

"Sound is delivered through 5.1 Dolby. YouTube videos will stream at a minimum of 720p resolution".

"Node is much more than video-on-demand," says Craig Venter, Altech CEO, saying that Altech's Node is "like a DVD store in your home".

"It is an entertainment hub, a streaming server, a Wi-Fi hotspot, an e-commerce platform".

"It is the most sophisticated home gateway in the world and is a true reflection of Altech's mission to provide its customers with value-added products, services and solutions through the convergence of telecommunications, multimedia and information technology".

Movies and library TV series will be updated monthly as older content is replaced with new releases and other TV shows.

The Altech Node come with a built-in 3G modem which enables users to buy data, airtime and pre-paid electricity and pay for municipal services like Eskom and Telkom through using the device.

The Node also allows for consumers to download Android apps, access the internet, access their email and to control certain home appliances through what Altech calls "Node branded Smart Plugs".

Altech's Node comes with a built-in media player, MyMedia, which allows content to be played off other devices, such as the Altech Node branded USB flash drive.

The Node's Wi-Fi- functionality also enables an environment to be turned into a Wi-Fi hotspot where up to 5 devices like the TV set, computer, smartphone and tablet can be connected to stream content to these devices.

Node users who have DStv or had DStv won't need to install a new satellite dish since Altech's Node makes use of the same Intelsat-20 satellite, which means that a existing DStv dish is already aligned.

Although installation cost is included in the R3 499 price, Altech says the Node is easy to install. "Users can do it themselves, even with the most rudimentary technical skills, and install their own automation and security equipment".

Users will have to pay for the data used of the internet return path which enables the rental of titles and on demand content.

"Node has been designed to connect to both Wi-Fi and ethernet networks," says Altech. "Node can also function as a wireless internet access point or hotspot, providing connectivity through its 3G modem. Node does not consume data for movie and series downloads but will consume data for internet access activity and any purchases made".

Node can access the internet through its 3G modem which Altech says is powered by Autopage Cellular. "However you will need a SIM card and your data cost will be in addition to the Node subscription".

"While there are other products currently on the market that offer aspects of Smart TV and video-on-demand content, Node is the first comercially available product that offers a complete, integrated package, incorporating elements of Smart TV and smart entertainment together with a smart home solution," says Altech.

As to why Altech chose satellite downloading like MultiChoice does with DStv BoxOffice to the DStv Explora and HD PVR, Altech says "even though fibre internet is fast and exciting, it is also a new arrival to the South African market".

The Altech Node is however fbire ready with an ethernet and USB modem port.

"Fibre internet is still expensive and can consume a lot of data, which may lead to excessive data costs depending on the customer's internet service provider package. By employing cost-effective and reliable satellite systems, Node can ensure content that is always available for instant play without any time-delays and costly surprises".