The Rise of Local Streaming Services in South Africa
The latest trends in streaming services have revealed a shift towards local content among South African audiences. Research conducted by BB Media, a global data science company, indicates that within subscription streaming services, DStv streaming service has taken the lead with a net penetration of 16% as of Q3 2024. Showmax follows closely behind at 11%, while Netflix holds a 10% market share.
BB Media monitors over 500 streaming platforms available in South Africa, with only seven of them being local: DStv, Showmax, SABC+, eVOD, Todazon, AfriDocs, and Freevision Play.
Despite the limited number of local platforms, they cater to a significant portion of the South African audience. Most of these platforms offer free or ad-supported options, with SABC+ being a public broadcaster.
The Preference for Local Content
South African viewers have shown a strong preference for homegrown entertainment. According to BB Media, 76% of viewers who have watched online content in the past three months have streamed local content during that period.
Among viewers consuming local content, Action is the most popular genre (76%), followed by Crime (57%) and Romance (47%). On the other hand, viewers who haven’t watched local content recently prefer Adventure (82%), Action (82%), and Drama (78%).
South Africa boasts 259 local movies and 55 local series titles, compared to over 15,000 titles originating from the US. The local content is diverse, with Comedy accounting for 13% of South African titles. Drama emerges as the dominant genre overall, representing 23% of all titles available in the country.
The Issue of Illegal Streaming
Piracy remains a significant challenge in South Africa’s streaming landscape, with illegal platforms holding a 13% market share. Goojara leads in illegal streaming with a 12% penetration rate.
< p>Many consumers resort to illegal streaming services due to financial constraints. This presents an opportunity for platforms to expand their ad-supported offerings and attract cost-conscious viewers.
Cost concerns are a major factor for former Netflix subscribers, with 40% citing financial difficulties as the reason for cancellation, and 27% finding the platform too expensive.
Competitors like Showmax have capitalized on this trend, offering an average price of $4.83 (R89) at the end of 2024, compared to Netflix’s $6.75 (R124) price point.
