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.


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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.