e.tv to launch its video streamer eVOD in July, Openview now seen in 2.36 million homes.

by Thinus Ferreira

e.tv plans to finally launch it's own video streaming service eVOD in July this year with the service that has now undergone a name change after it missed its planned launch date in October 2020 of what it originally planned to call Openview Plus.

If eMedia manages to launch eVOD in July it will pip the South African public broadcaster to the post that is also furiously working on its own video streamer that will work similarly to the BBC's iPlayer and that the SABC plans to launch before the end of this year.

On Thursday eMedia Holdings released its annual financial results for the year that ended 31 March 2021 and said that "The new financial year will also see the launch of the group's over-the-top (OTT) service eVOD in July 2021".

eMedia didn't specify any eVOD pricing or reveal any further details about its planned video streaming service and whether it would be a using a subscription video-on-demand (SVOD) model where users will have to pay to watch, or if it will go the advertiser-funded "freemium" route.

eMedia said that South Africa's "television market is facing numerous technology and viewership challenges which will require the group to continually assess its strategic alternatives".

eMedia recently launched its Openview Connect dongle as a new broadband internet service - something that will help to carry and funnel eVOD as a content service into viewers' internet connected homes. 

eVOD will join and compete with a crowded space of VOD services available in South Africa including Netflix, MultiChoice's Showmax, Amazon Prime Video, Apple TV+, Acorn, Vodacom's Video Play, Telkom ONE, VIU and a few smaller services.

Some international services like Disney's Disney+, WarnerMedia's HBO Max, Discovery Inc.'s Discovery+ and ViacomCBS Networks' Paramount+ haven't yet launched in South Africa, with BritBox, the joint 50/50 streaming venture between BBC Studios and ITV, that plans to launch in the country later this year.

eMedia originally planned to call its video streaming service Openview Plus as a content extension of its existing free-to-air, direct-to-home (DTH) satellite-TV service. Khalik Sherrif, eMedia Investments CEO, said in a CEO report in September 2020 that "by October 2020 the group will launch its own over-the-top (OTT) offering called Openview Plus".

Speaking about Openview, eMedia said that it is "looking to launch a few more channels on the

Openview platform in the new financial year". 

According to the company Openview set-top box activations continue to grow at an average of 35 000 per month. At the end of March 2021 a total of 2 361 443 decoders have been activated, compared to 1 992 844 a year ago.

eMedia said that its spending on content costs for Openview, including its e.tv multichannel business, increased from R366.9 million to R308.7 million the previous year and that "The increase is attributable to the additional sports on the news and sports channel as well as the addition of the Afrikaans block on eExtra".

eMedia however dropped and ended the subsidy on Openview decoders that it used to offer to help drive sales, something that helped to decrease Openview's operating expenses by 7%.

The group’s television advertising revenue is approximately 8% better than the market and said that this can be attributed to the increased prime time market share from 24.6% in March 2020 to 29.6% in March 2021 - an increase of 20.33%.

About its TV news channel eNCA (DStv 403) that it provides to MultiChoice's DStv satellite pay-TV service, eMedia said that although eNCA "is not offered on all DStv bouquets yet it was be the most watched 24-hour news channel in the country among LSM8 to LSM10 and was the most watched news channel among all adults as well at the end of March 2021".

"Through the pandemic eNCA has achieved its advertising revenue targets while its costs were being well maintained."

ALSO READ: eMedia Investments to launch Openview Plus as streaming service, Openview Connect as a new broadband internet service.

Where’s SABC3? Why no SABC News? Why R7 a day? Where did the name come from? TelkomONE answers what you’re wondering about the new video streaming service.

by Thinus Ferreira

Where's SABC3? Why no SABC News? How did the name of Telkom's new TelkomONE video streaming service come about? Why R7 per day? I went looking for answers.

Telkom this week launched its new subscription video-on-demand (SVOD) service that costs R7 per day or R49 per month, offering a collection of streamed linear TV channels from SABC1 to TRT World, and a library catalogue of shows from Generations to MTV Africa's Lasizwe: Fake it Till You Make it.

While Telkom addressed and issued most information about TelkomONE, some questions remain and TVwithThinus went looking for answers.

For instance, although several SABC channels are included in the 5-year deal, and although TV news channels like Al Jazeera and TRT World are available as linear TV channels, the SABC's own TV news channel SABC News is conspicuously absent. But why?

"SABC News is currently under an exclusive agreement," says Wanda Mkhize, Telkom's executive for smart home and content. 

It means that SABC News, although it's the South African public broadcaster's public TV news channel, can only be streamed through the SABC's own SABC News app, and is of course carried on MultiChoice's DStv satellite pay-TV platform.

How did Telkom arrive at the R7 per day price point, and what factored into the decision to arrive at the subscription price of R7 per day and R49 per week? 

Wanda explains that a number of factors were taken into consideration: input costs - both content and data, the current offering in the market and their price points, as well as who the targeted customer segment - the youth market - is.

Another channel that is missing is SABC3. Does TelkomONE have plans to add this TV channel? Wanda says yes. "Yes it will be shortly included once certain property rights have been cleared," she says.

While the majority of the emphasis has been placed on the deal that Telkom has signed with the SABC specifically, the streaming service has more than just SABC content. But what are these?

Wanda Mkhize says that "Telkom has aggregated content from a variety of local and international content providers such as ViacomCBS, Fremantle, Discovery Inc., and a host of local independent producers who meet our focus area of music, comedy, lifestyle, and series".

How did the brand name of TelkomONE come about and what were other shortlisted contenders? While Wanda doesn't want to say what names made second and third place - and there definitely were, she says that Telkom "worked with our agencies in the development of the brand name".

When Cell C launched Cell C black and MultiChoice launched Showmax they did so with a big catalogue of content that they then gradually started to scale back when they saw that it was too much - or in other words, that a lot of people all watch only a smaller chunk of content. 

How did Telkom make the decision of "how big" the launch catalogue content offer would or should be so as to not "over-offer" but to still have a big enough variety?

"The TelkomOne platform offers a variety of content mix, live TV and catch up, as well as a specially curated library of video-on demand assets," says Wanda. "However, our approach to VOD content on the service has been to not try and be everything to everyone but to rather focus on the youth market."

"This has allowed us to focus less on quantity but more on quality content specifically tailored to this market," she says. "We're committed to adding in new content on a very regular basis inline with the learnt customer likes and preferences".

And as Cell C, Showmax and others have said where they want to be after a year, what subscriber number target does TelkomONE have for its 1-year anniversary or by 5 years? What would mean success?

"The launch of TelkomONE free and the TelkomONE AMP propositions are just the start," she says but doesn't want to mention any numbers for now. "We are within the upcoming year looking at expanding our value proposition to cater for a varied customer base. Whilst we have set aside certain targets for each of these, we are not at liberty to disclose these."

ALSO READ: Telkom launches its TelkomONE video streaming service including linear TV channels with free package and R7 per day subscription; plans more bouquets and says 'we're here for the long run'.

ALSO READ: Youth-focused, mobile-focused video streaming service TelkomONE with linear TV channels set for launch on 5 November 2020; Telkom says it won't be competing with Netflix and Showmax. 

Telkom launches its TelkomONE video streaming service including linear TV channels with free package and R7 per day subscription; plans more bouquets and says 'we're here for the long run'.

by Thinus Ferreira

Telkom that initially promised to do so on Thursday last week, on Monday launched its new TelkomONE streaming service, offering some linear TV channels in its offering, with a free version as well as a TelkomONE Amp subscription package that will cost R7 per day or R49 per month.

While currently only offering the free package that will carry advertising and one AMP subscription package, Telkom says it will expand over time to offer various different subscription fee packages.

The TelkomONE video-on-demand (VOD) service was built by Discover Digital and Telkom signed a 5-year contract with the SABC to carry SABC1 and SABC2 as linear TV channels, as well as a package of library content from the SABC archives for its video-on-demand service. 

TelkomONE however carries more than just SABC content. The heavy local catalogue curated along the genres of lifestyle, comedy, music and reality TV content is flavoured with some international shows from Hollywood and independent overseas studios, and well as from South Africa locally.

TelkomONE is available through downloading it as a mobile app, internet browsers at telkomone.tv on personal computers, Android TV and Telkom's own Telkom LIT set-top box. Payment for TelkomONE can be done with Telkom airtime, adding it postpaid to fixed and mobile Telkom contracts, credit and debit cards, vouchers or cash.

Telkom declined to answer when TVwithThinus on Monday asked what the financial investment in rand has been so far in establishing TelkomONE as its video-on-demand service and for what period it will definitely be running it before evaluating its prospects and return on the investment to the telecom's bottom line.

Linear TV channels that will be streaming on TelkomONE include SABC1, SABC2, Kaya TV, SABC Sport, SABC Education, Mindset, Al Jazeera, africanews, Deutsche Welle, euronews, France24, RT, GOD TV, Hope Channel, Inspiration TV and SonLifeBroadcasting Network (SBN).

The SABC's 19 radio stations will also be streaming on TelkomONE including MetroFM, RSG, Umhlobo Wenene, 5FM, Thobela FM and Ukhozi FM. 

Included in the TelkomONE AMP package users get an additional 30 curated audio playlists that is done by a Canadian service provider packaging and distributing African content.

Notably absent from TelkomONE is SABC3 because the streaming licensing rights for international content on the channel couldn't be cleared, as well as the SABC's own TV news channel SABC News. 

Neither Telkom nor the SABC explained why SABC News isn't available although it's likely that although it is a public broadcaster channel, it was commissioned and is being paid for by MultiChoice for its DStv service.

The SABC will receive an annual channels carriage licensing fee for its linear TV and radio channels, as well as for the on-demand archive content, 10% of which the SABC will cycle and change monthly to keep it fresh. This deal includes 1000 of hours of VOD content. 

The SABC will also share in the TelkomONE advertising revenue.

The SABC placing its content on TelkomONE is separate from the SABC's plan to launch its own SABC iPlayer video streaming service in 2021.

Sipho Maseko, Telkom CEO, says "TelkomONE will make it possible for subscribers to pause, go back into the electronic programming guide and time-shift, and instantly watch a scheduled TV show they may have missed. Telkom is making digital TV functionality available to all".

Madoda Mxakwe, SABC CEO, says "We believe that the transition to digital broadcasting and over-the-top (OTT) is a key strategy for the survival and relevance of the South African public broadcaster".

Stephen Watson, founding managing director of Discover Digital that built TelkomONE, says it contains technologies and functions that are first in the African market.

On the AMP package a subscriber can download 5 titles and a user have 48 hours to start watching. 

Users can record content and shows from the live linear TV channels which will be recorded in the could and then appear in the account section under "my recordings".

Interestingly, if you've missed a show, users can now go back into the past with the free package on the EPG for 24 hours and select a show that was already broadcast, and it will play immediately. On the AMP package a TelkomONE viewer can scroll back on a specific linear TV channel as far as 3 days and still watch a specific show.

With TelkomONE the time-shifted PVR function is therefore no longer limited to consumers who can afford a set-top box with a hard drive.

TelkomONE will also offer a 4K channel broadcasting music festivals and says it will build out its 4K content offering over time. Within the free package TelkomONE will offer talk shows and music artists performing live, streamed in 4K resolution, which will be available to Telkom LIT box users.

After Telkom last week said "we're ready" and will launch on 5 November, Wanda Mkhize, Telkom's executive for smart home and content, told TVwithThinus about the postponement that "with us delaying the launch and actually launching today we had some technical and connection challenges on Thursday and unfortunately couldn't launch the platform and as such we made sure that we could at least deliver as soon as possible and that's why TelkomONE is launching today".

TVwithThinus also asked whether the TelkomONE app will also be added to MultiChoice's latest DStv Explora that will carry and offer a carousel of different VOD streaming services like Netflix, Showmax and Amazon Prime Video, or in terms of set-top boxes it will be limited to Telkom LIT.

Wanda Mkhize said that "Telkom and MultiChoice have had a longstanding relationship, we currently carry the DStv application on our Telkom LIT box, and relationships with regards to services and what we produce we would definitely continue having those conversations".

With the South African VOD landscape already littered with failures like VIDI, Altech Node, PCCW's OnTapTV, Kwesé Play and Kwesé TV and most recently Cell C black that sucked up hundreds of millions of rands without a return on investment, Wanda Mkhize, when TVwithThinus asked for how long TelkomONE will definitely be running, said "we're here for the long run".

"We've looked at the strategy, we've framed it in regards to introducing two bouquets right now. We have a future-view of introducing more bouquets, opening up and create greater access specifically to our fixed-line customers."

"We also believe and are following the strategy of being a super-aggregator which means that we believe that our customers need to have choice in regards to the services that they like to take up. Therefore we will be introducing more services onto the platform and giving our consumers- both mobile and fixed - more access."

ALSO READ: Youth-focused, mobile-focused video streaming service TelkomONE with linear TV channels set for launch on 5 November 2020; Telkom says it won't be competing with Netflix and Showmax.

Vodacom adds Amazon Prime Video, gives customers 6-months free and cheaper thereafter than going direct.

by Thinus Ferreira

Vodacom is now offering existing and upgrading contract Vodacom customers 6 months of free access to Amazon Prime Video, which will thereafter be cheaper at R79.99 per month than the existing R95 per month it costs to subscribe to Amazon Prime Video directly.

Vodacom's announcement about the Amazon Prime Video tie-in offer comes on the same day that Telkom plans to launch its new TelkomONE streaming service today. 

Vodacom already operates its own Vodacom Video Play video-on-demand (VOD) service. 

After the 6 month free promotional period, Vodacom will charge customers R79.99 per month for an Amazon Prime Video subscription which will be added as a line-item to a customer's monthly invoice or airtime.

This R79.99 per month to watch Amazon Prime Video through Vodacom - besides the 6-month free trial period - is cheaper than the $5.99 or R95 per month that a customer will pay or is currently paying to sign up with Amazon Prime Video directly. 

Vodacom has now jumped MultiChoice that also planned to offer DStv customers subscriptions to Netflix South Africa and Amazon Prime Video through a DStv Explora decoder, with the option to subscribe and unsubscribe monthly at will for access to these additional streaming services, and pay for it in rand, added to their DStv bill.

MultiChoice's plan to provide customers with third-party streaming services besides its own Showmax through an OTT carousel offer - likely also at a slightly cheaper price than going direct - has been hampered by an investigation of South Africa's Competition Commission that has forced MultiChoice to postpone its roll-out and further announcements about it.

Vodacom and Amazon Prime Video's launch offer is available to all existing and upgrading contract Vodacom customers, as well as to prepaid and top-up customers who have spent a minimum of R150 with Vodacom over the last 30 days.

These Vodacom users will be able to watch Amazon Prime Video series like The Boys, The Grand Tour, The Marvelous Mrs Maisel, Carnival Row or Tom Clancy's Jack Ryan on up to 3 devices at the same time with the Amazon Prime Video app, or any compatible TV, smartphone or tablet.

"We continuously strive to partner with premium content providers to deliver compelling propositions that keep customers connected for a better future," says Jorge Mendes, Vodacom chief officer of consumer business.

"The introduction of this Amazon Prime Video offer for our customers underpins our commitment to enabling a digital society."

Mariam Cassim, chief officer of Vodacom financial and digital lifestyle services, says that Vodacom "strives to work with like-minded partners around the globe to bring innovative digital lifestyle services to South African consumers".

"We are excited to be teaming up with Amazon Prime Video to bring about quality entertainment to our customers."

TV NEWS ROUND-UP. Today's interesting TV stories to read - 22 October 2020.

Here's the latest news about TV that I read and that you should read too:

■ The Communication Workers Union (CWU) threatens a complete SABC blackout at the South African public broadcaster as retrenchment fight turns ugly.

- Unions CWU and Bemawu as well as the SABC Editorial Forum cry foul over SABC dismissal cost and retrenchments.

■ How out of tune is the SABC for wanting viewers to pay the public broadcaster for watching Netflix South Africa? (subscription required).

- Kfm listeners slam SABC's plan to extend SABC TV Licence fee to DStv and Netflix.

- South Africans up in arms after SABC now wants people to pay SABC TV Licence fees for watching DStv and Netflix.

- A SABC TV Licence for your smartphone in South Africa might not be a good ides (subscription required).

- Viewers give a thumbs-down to SABC's latest SABC TV Licence fee collection plan (subscription required).

- SABC's latest TV Licence fee ploy involving Netflix is an absolute joke.

■ "Pay Netflix, not the SABC" online petition started.

■ The SABC wants us to pay more by reminding us of why we shouldn't. (subscription required)

"People Don’t Want To Watch Kak And Thanks To The Internet They Don’t Have To"

■ TV at a tipping point.

How is the traditional pay-TV industry handling this "interim" period where subscription television is far from dead but where subscription video-on-demand (SVOD) video streaming services are rapidly growing their audiences?

■ Netflix versus Amazon Prime Video: The race to 200 million subscribers.

■ SABC in the dudu.

There is a reason the South African public has turned to video streaming services - the SABC isn't just struggling financially, it has a content deficit too.

■ Netflix's cancellations of multiple Netflix Original series show that even video streamers are governed by the very familiar rules of TV production.

■ Reality TV in South Africa: The tribe has spoken.

■ Why strong black stories are rarely seen on television.

■ How did Netflix's expensive $6 million per episode Away science fiction series go from space to flop and cancelled in 6 weeks?

■ Video-on-demand forecast for Africa for 2020 - 2025:

Africa will have 12.96 million SVOD subscriptions by 2025, with South Africa that will supply 3 million and Nigeria that will add 2.1 million. Netflix will remain the biggest, with Disney+ that is expected to start in 2022 in Africa and that will have 2.71 million paying subscribers by 2025.

"Local player Showmax will add more than a million paying subscribers, partly due to the launch of its Pro platform and its lower prices for mobile subscribers."

■ Showmax in Kenya renews drama series Monica for a third season.

■ The Walt Disney Company lost producer and showrunner Shonda Rhimes to rival Netflix over a Disneyland pass.

■ The thing about Netflix that keeps frustrating so many of its subscribers.

■ In America the TV ratings for a lot of sports are down.

■ Did American television ruin US presidential elections?

Vodacom to launch a new video-on-demand entertainment service, including Netflix and Showmax.

The cellular operator Vodacom will launch a new video-on-demand video entertainment service within weeks that will include streaming services like Naspers' Showmax currently run by MultiChoice, as well as Netflix.

"Vodacom will launch a new content service in the coming weeks that will offer a variety of content, a Vodacom video service and access to certain third-party content," Vodacom spokesperson Byron Kennedy told TVwithThinus.

"The new service will be competitively priced and will be supported through discounted data use options such as the recently launched Vodacom Ticket multimedia bundles."

In preparation of its VOD service, Vodacom launched its Social Media Ticket products earlier this month - essentially data bundles that Vodacom users can use to get certain data discounts when they use the data for social media, video viewing, music and gaming when making use of YouTube, DStv, Netflix or Facebook and Apple Music.

Vodacom's as yet unnamed VOD platform has been months in the making and follows the launch of Cell C's black VOD service that launched in November 2017 and that has seen impressive growth.

The third rival, MTN is limping along, after having tried twice with its now shuttered MTN FrontRow that was started in December 2014, relaunched as MTN VU and got terminated in May 2017.

Telecoms and cellular operators are fast ramping up and expanding their video entertainment streaming offering, as over-the-top (OTT) subscription video-on-demand (SVOD) services like Netflix South Africa, Amazon Prime Video, Showmax and others are trying to cash in and make market share inroads as broadband penetration, data costs and speed improve.

Legacy pay-TV operators feeling the heat from the rapidly-expanding SVOD consumer sector are not about to give up their lunch. MultiChoice this week announced that it will launch a dishless streaming-only DStv option sometime in 2019, with increasing budget spending by M-Net on local productions to keep viewers hooked.

Discover Digital to launch a new South African video-on-demand (VOD) streaming service, says 'viewers today want freedom of choice'.

Yet another video-on-demand (VOD) service is set to launch in South Africa next month with Discover Digital that will be making another service available in the country's overheated streamer services arena.

It's not yet clear what exactly Discover Digital's a new video-on-demand content hub will be called, but its Digital Entertainment on Demand (DEOD) service will very likely be offered as a straight-to-consumer service, and also as a flow-through service to other interested operators.

Discover Digital's to be launched service is the latest rival that will compete with video fighters like Naspers' Showmax, the global streaming service Netflix, MTN's limp-along VU, PCCW Global's ONTAPtv.com, and PrideTV all battling for users.

South Africa's cash-guzzling SVOD sector that has seen breathless millions spent since 2016 on content acquisition rights and marketing as streaming services all try to secure a bigger foothold in the door, has already seen spectacular failures like Times Media's VIDI and Altech's Node that both imploded.

While VOD and subscription VOD services are only being used by an extremely small part of the South Africa viewing audience - the latest Television Audience Measurement Survey (TAMS) update used from April 2017 pegs it at only 1% of the total South African TV viewer universe - it is growing fast.

Discover Digital's new on-demand content hub that will have its media launch on 4 May, will be offering a broad bouquet of premium local and international entertainment and educational content and linear channels.

Discover Digital says it is taking its new VOD service to market in partnership with existing mobile operators as well as big consumer brands that may opt to offer its new service as a value-add, or add their own branding to the service.

Now Discover Digital's managing director Stephen Watson says the specialist on-demand company is aggressively entering the African market with a plan to bring fully converged linear on-demand news and entertainment streaming services to viewers across the African continent.

"South Africans will begin to take up paid for on-demand services in greater quantities and I believe this will then start to significantly shift broadcast ad budgets and spend," says Stephen Watson.

"Audiences no longer want to be prescribed extensive, expensive bouquets of channels that they may only watch a small percentage of, or that overwhelmingly do not speak to their interest; they want to be able to choose and so smaller packs of niche focused content or channels is becoming more readily available."

"Viewers today want freedom of choice. They want customisable, affordable access to movies, news, sports, music and TV series wherever they are," says Stephen Watson.

"Disruptive new models are breaking the traditional broadcast and pay-TV moulds by letting viewers choose what packages and genres they want, what subscription models they prefer, and even how they'd like to pay. VOD delivers."

Naspers is reported to be seeking partnerships with mobile operators across sub-Saharan Africa to boost ShowMax and has already concluded a partnership with Safaricom in Kenya with talks underway with other telecommunication operators.

Meanwhile MTN Nigeria recently announced its over-the-top (OTT) VOD service for subscribers, while Ericsson is securing content deals for its NUVU VOD service.

Vodacom and Naspers talking about sharing DStv video content; looking at customers paying a fixed amount for video data instead of per megabyte.

Vodacom and Naspers are having discussions about the possibility of letting their South African customers download movies and episodes of TV shows but paying a fixed amount instead of the exorbitant data costs per megabyte which has held back the uptake and growth of video-on-demand (VOD) and other over-the-top (OTT) services.

Bloomberg reports that Vodacom is having talks with media and TV company Naspers to bring DStv video content through its pay-TV platform MultiChoice to mobile devices like smartphones and tablets.

A deal between the big companies could bring new impetus to South Africa's severely constrained and lagging broadband infrastructure and investment.

The roll-out of new services and video-on-demand growth in South Africa have been slow, hampered by years of government inaction and incompetence, as well as bureaucracy at the country's slow-moving broadcasting regulator.

The consumer uptake of video-on-demand (VOD) and OTT services in South Africa, as well as things like digital video mobile broadcasting or DVB-H, have been severely held back the past decade due to a slow-moving and constricted regulatory environment.

On a practical level, limited broadband availability and roll-out for instance has resulted in extremely high data costs involved for ordinary South African consumers who are scared to make use of it and also don't have the money to pay for it.

With expensive uncapped internet connections in the minority in South Africa, consumers with restrictive capped connections and slow connection speeds who want to use even a little bit of data to make video calls or watch video like a movie or TV shows, quickly run into debilitating price points where making use of these services become too expensive.

Besides paying a rental fee per movie release or making use of VOD services, South African customers are burdened with the additional high cost of the actual data used which is quickly gobbled up when accessing video downloading and streaming services like Times Media's VIDI, MTN's FrontRow or MultiChoice's DStv Catch Up.

Last week for instance, Altron TMT admitted that it's Altech Node which it launched in September 2014 was an flop, with sales for the expensive video-on-demand (VOD) set-top box (STB) and service "below expectations with regard to retail customer take-up".

MultiChoice for instance warns DStv subscribers watching video on tablets and smartphones that it recommends uncapped data accounts because "downloading video consumes large amounts of data so please be aware of your data package limits and costs".

It comes as the global VOD streaming service Netflix plans to enter South Africa soon as a new competitor and market disruptor. Netflix told TV with Thinus in January that it plans to be operational and definitely available to South African customers before the end of next year.

According to Bloomberg, Vodacom and Naspers are now considering allowing customers to download a movie or show to a smartphone or tablet for a fixed fee instead of "billing per megabyte".

A deal would mean that customers would be able to download DStv on Demand movies and shows through Vodacom for a cheaper fixed price, without the insanely high cost that comes with the data use of a 500MB or more movie download or streaming, in addition to the rental fee.

Shameel Joosub, Vodacom's chief executive officer (CEO) told Bloomberg that Vodacom - which recently shocked and angered consumers with a unilateral tariff hike from May - plans to sell its own video content to customers. "That's where we'll evolve," said Shameel Joosub.

A deal between Vodacom and Naspers would be the first new big partnership between the two since Vodacom started selling the two DStv Select bouquet offerings from MultiChoice in June 2007, a packaged product agreement which was terminated in late 2011, with legacy DStv Select subscribers being phased out.

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".

Telkom to change its tender for a partner in providing a possible video-on-demand (VOD) service.

Telkom which is looking to start providing some form of a video-on-demand (VOD) service to customers in South Africa following its failed attempt through Telkom Media to start a video satellite pay-TV service, has retracted and will be changing its tender for a partner to provide a possible VOD service.

In October 2013 the SABC and Telkom signed a multimillion rand deal under which Telkom will get access to SABC content, will see Telkom bring the the SABC's content to South African viewers on mobile devices such as laptops, tablets and cellphones, and under which the SABC and Telkom will jointly try and acquire expensive sport broadcasting rights.

Telkom issued a tender for a partner to provide VOD service, but has retracted that tender which will now be amended. Telkom says it wants to bring a "ultimate connected home experience to South Africans" and wants to start delivering this service "to our customers as soon as possible".