Subscribe

Orange to join SA's VOD fray

Bonnie Tubbs
By Bonnie Tubbs, ITWeb telecoms editor.
Johannesburg, 07 Nov 2014
Orange Horizons MD S'ebastien Crozier says, while many doubt the potential for growth in SA, the French company is optimistic around its opportunities here.
Orange Horizons MD S'ebastien Crozier says, while many doubt the potential for growth in SA, the French company is optimistic around its opportunities here.

This year, there has been no shortage of local players looking to board the video-on-demand (VOD) bandwagon - including Times Media Group, Altech, MobileTV and even Project Isizwe - and now French telecoms giant Orange is next in line.

Orange Horizons MD S'ebastien Crozier spent much of this week negotiating with local producers at Discop, Africa's annual content development, production and distribution gathering, with a view to growing its base of content providers for Dailymotion.

Dailymotion is an Orange-owned subsidiary and the world's 12th largest video-sharing site.

Orange quietly launched Dailymotion via a video portal on its local Web site a few weeks ago - a move Crozier says the company initiated to create a platform for local content producers to showcase their work. "There is a lot of content in SA, but much of it is not being seen, because of the lack of an ecosystem. We think we could create an ecosystem for SA."

He says mobile and Internet access in SA - and the world at large - has fundamentally changed the world of TV and the way in which people consume content. He explains there are two markets when it comes to Internet TV; namely advertising revenue sharing and VOD, both of which Orange is interested in pursuing.

"We need to understand the market before we launch a pay-per-view offering - something we already offer in countries where we are a mobile operator." He notes Dailymotion is already "very popular" in certain countries, for example Turkey and France.

"In SA, we are in the process of creating partnerships and will need to increase our audience to gauge the market's interest. VOD is a huge market, but the issue of rights also has to be considered."

Mediamark, a Kagiso subsidiary, is already selling video space on Orange's platform.

Crozier adds Orange plans to leverage what it has determined to be a relatively new consumer trend - particularly among the youth - of short-burst consumption. "We have decided to, at first, launch short videos at no charge. We will see how consumers react to these and then plan on offering premium content at a cost. We first want to gauge the size of the market and how people want to consume their content."

Crozier says Orange's ultimate goal in SA is to be 100% local. "We want local content for local consumers, with only local players providing the content."

Local liaisons

Orange has been trying to etch out a South African footprint since it entered the country's consumer sector at the beginning of last year. So far, the French giant has introduced an online store and local warehouse, WiFi offering and Orange products - up until recently sold in Nashua Mobile stores. In the offing, says Crozier, are own-branded franchise stores and an Internet service provider (ISP) offering.

Another service, which Orange also recently discreetly launched, is Orange Radio - a mobile app initially available for Android devices that gives users access to 20 000 radio stations from across the world, via streaming. Crozier says Orange is in the process of offering Orange Radio in more local languages. The Interface is currently only in English.

The company plans to launch its own branded ISP in SA in the first half of 2015 - a move Crozier alluded to during an interview with ITWeb in April. While Orange is looking to compete with the likes of MWeb and Telkom, Crozier says the company is aware of the possibility of consolidation.

"We don't want to be just another ISP, offering the same services - that won't be of any interest to consumers. Instead we will have innovative offers that go beyond the usual ISP services."

While Orange is currently not involved in any discussions to merge with an existing ISP, Crozier says the company would consider any opportunities that may arise.

Finally, says Crozier, in terms of the company's retail store strategy, it has plans to open a franchise model soon. Apart from selling Orange products, the stores will provide the company with a means of offering a "click and pick" service via its online store - basically a model where consumers pay for products online and collect in store.

"Many are saying there is no growth in SA, but we don't feel it. SA is a good market for us and we are happy with the revenue it is creating."

Share