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Netflix to launch in SA - report

Cape Town - Online movie and TV series streaming service Netflix is eyeing a launch in South Africa as the company embarks on a global expansion, a report says.

According to a report on mybroadband, a source from the US-based streaming service confirmed to the publication that SA will form part of an international roll-out. Fin24 has put in a request to Netflix to confirm the information, but the company has not yet responded at the time of writing.

But Netflix on Wednesday announced plans to expand to an extra 150 countries. Currently, Netflix is available in about 50 countries that include the likes of the US and the UK.

“We have not provided details of when we plan to go where, but you can be confident South Africa is among the countries we intend to serve sometime in the next two years,” Netflix told mybroadband.

However, Netflix could face challenges to deliver a comprehensive streaming service in South Africa.

Local streaming players such as Vidi and MTN with its 'FrontRow' offering have launched streaming entertainment services in South Africa in 2014. Vidi, for example, offers streaming of movies and TV shows for R149 per month with an additional charge of renting new movie titles at R27.

Meanwhile, DStv subscribers can also rent movies via the company's Box Office application for R27 each.

Poor broadband infrastructure

Perhaps the biggest challenge to Netflix operations in SA is the country's poorly developed broadband infrastructure. Fast internet speeds are required for the likes of high definition quality video streaming.

According to the former department of communications' presentation to the Portfolio Committee on Communications, in 2013, 33.3% of the South African population had internet access.

However, the department (now renamed the Department of Telecommunications and Postal Services) submitted ambitious targets of 50% access at 5mbps by 2016, 90% by 2020, and 100% at 10mbps by 2030.


Network speed is critical to rich media internet services. (Duncan Alfreds, Fin24)

The government's 'South Africa Connect: Creating Opportunities, Ensuring Inclusion South Africa's Broadband Policy' also says that high-speed cable broadband is hamstrung in the country.

"The slow deployment of fixed broadband services (ADSL), and its relatively high costs, meant that over the last five years mobile broadband rapidly became the primary form of broadband access; rather than providing a complementary service to fixed broadband as it has done in mature economies," says the document.

'Last mile' connectivity

The government policy calls for legacy networks, mainly owned by Telkom, to become open, allowing multiple service providers to compete.

"Neither the Telkom nor the Broadband Infra Co networks are currently available on an open access basis. The current private sector National Long Distance (NLD) projects may have elements of wholesale and open access, but do not presently address demand beyond the main centres."

Some players such as Vumatel, Fibrehoods and even Telkom are engaged in the roll-out of fibre networks. And while the document indicates that 86% of the South African population lives within 10km of a fibre node, the cost of so-called "last mile" connectivity is a challenge.

"What is required are new innovative ways that blend private and government funding sources to fund not only infrastructure roll-out, but also critical content development and the provision of public services online," the policy says.

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