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TV is the new battlefield

Nicola Mawson
By Nicola Mawson, Contributor.
Johannesburg, 31 Oct 2014
Tuluntulu has been downloaded 40 000 times in three months and aims to take broadcasters head-on, says founder and CEO Pierre Van der Hoven.
Tuluntulu has been downloaded 40 000 times in three months and aims to take broadcasters head-on, says founder and CEO Pierre Van der Hoven.

More and more players are entering the television content delivery space, with viewers now able to choose from offerings via several satellite players, online and even via a mobile app.

Satellite is still the gold standard, with several other entrants making an entrance, with the latest being MobileTV, which is set for launch soon via Sentech's satellite platform, although a mobile version is also in the offing. Other new players include Times Media's Vidi and Altech's Node offering.

One recent entrant in the market, Tuluntulu, aims to steal market share from traditional broadcasters through its free mobile app. Founder and CEO Pierre Van der Hoven, who is now on his fifth start-up, having set the ball rolling for entities such as etv and YFM, notes the app went live in June and has seen 40 000 downloads since. Although it currently has only 10 channels - including Al Jazeera, ANN7, Mindset Learn and Africa4U.tv - it aims to have 50 within a year, he says.

Head-on

Tuluntulu, which aims to earn its keep through advertising, is "taking on all players", says Van der Hoven. He adds the free app is targeting the 200 million to 300 million smartphones on the continent as its audience. "We believe Africa is a mobile-only continent."

If the app hits just a 1% response rate, that will give it two million to three million viewers, says Van der Hoven. Currently, it is being downloaded about 600 times a day and 1 200 people are watching daily. "100 000 and we'll be pumping."

Van der Hoven does not believe any television offering that requires payment will work on the continent. He adds growing WiFi installations make the concept entirely free, as the user does not pay for the app, nor to watch channels.

Tuluntulu is now almost at the point where it can sell advertising, and is also looking at providing a content platform on a paid basis for those who wish to pay it to offer their content, says Van der Hoven. He notes, however, the project - which was two years in the making - is currently running at a loss. "It's in a start-up phase."

Van der Hoven explains the company took a lean start-up approach and is now seeking to raise capital. He is confident it will be successful because it has already gotten off the ground and is no longer only a concept.

Tuluntulu, which means 'streaming' in Zulu, took off faster than Van der Hoven anticipated, even though the company has not been able to afford an advertising campaign.

Challenging environment

World Wide Worx MD Arthur Goldstuck notes, however, the "massive growth" currently being seen in online consumption is coming from video, and not TV, and explains the two are different concepts. He says TV is about live broadcasting, while video is about consuming content.

The app is a great option, and now is a good time to get in on the ground, says Goldstuck. However, it will face challenges because most smartphones on the continent are sub 4-inches, and not ideal for viewing, and it will be difficult to monetise, he says. "By no stretch of the imagination can it be competition to broadcasters."

Goldstuck adds, however, that TV delivery methods are increasing and a fascinating landscape is emerging with several available options - online, satellite and aggregation - although satellite is still tops.

Ovum analyst Richard Hurst adds content delivery will be one of the emerging battlefields as mature players like Spotify have been wary of entering emerging markets, leaving a gap for "home-grown" players.

However, notes Hurst, the issue with mobile TV will be the cost of broadband, which is not declining fast enough.

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