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Internet streaming service VIDI shuts down

Johannesburg - The first video on demand service to enter South Africa’s market - Times Media Group’s VIDI - has shut down, signalling possible consolidation in the space.

VIDI was launched in September 2014 as a Netflix-type service, providing South Africans with streaming television and movie content. At launch, VIDI offered unlimited subscriptions as well as once-off movie rentals.

But BDLive reported in October 2015 that Vidi had experienced “poor take-up” and that Times Media Group’s owner, investment company Tiso Blackstar, was looking to exit the video on demand business.

VIDI’s website, at the time of writing, is still online but with a notice saying its “video on demand (service) is not available after 26 January”.

The notice also says that “VIDI is transforming: Watch this space for coming detail”. The only other details on the VIDI website pertained to the winner of a Ferrari competition and details about how to win an Audi RS3. According to the ZA Central Registry, the VIDI.co.za domain name is now owned by a wireless access service provider called STS.

Series of launches

VIDI’s closure comes after a series of video on demand launches in South Africa.

MTN launched its video on demand service FrontRow (now called VU) in December 2014 while Naspers launched ShowMax in August 2015. Hong Kong’s PCCW then launched its ONTAPtv service in September 2015 while US-headquartered Netflix switched on its South African offering last month. Orange Horizons also plans launching an internet video offering in South Africa this year.

The closure of VIDI further follows Altron’s exit from its Altech Node business in October last year. The Altech Node - which launched September 2014 - was a satellite-connected box that delivered video on demand content in high definition to subscribers.

Consolidation

Steven Ambrose, the CEO of local technology research firm Strategy Worx, said the local video on demand space is beginning to experience consolidation after a series of launches during 2014 and 2015.

“There were too many players where you could get the same content,” said Ambrose.

Ambrose also said that Netflix’s decision to launch last month in an extra 130 markets was the “writing on the wall” for VIDI.

“Netflix can afford to make it,” Ambrose told Fin24.

“You need a certain scale to make it work. It’s an expensive operation to run.

“We will be down to the big boys,” said Ambrose, as he said one or two players will come to dominate the local market.

What are your thoughts on VIDI's closure? Did you use the service? Tell us by clicking here.

*Fin24 is part of Media24, which is owned by Naspers.

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