Vodacom plans to introduce a video-on-demand (VOD) offering for its customers early next year, says the company's spokesperson.
The telecoms operator enters a market that already has several players in the VOD space, as South Africans become more comfortable with the idea of streaming TV from the Internet.
A recent Frost & Sullivan report forecast high growth in the use of VOD services in SA, due to the increasing popularity of ShowMax and Netflix.
Last year, Naspers launched streaming service ShowMax, and this year international VOD service, Netflix, launched in 130 countries worldwide - including SA.
Vodacom spokesperson Byron Kennedy says with the VOD offering, customers will be able to add the entertainment charges directly to their Vodacom bill.
In addition, customers will have the option to purchase movies without the need to subscribe to a particular service, he says.
Kennedy explains: "We want to offer our customers additional value by bringing great entertainment services. Furthermore, we see valuable opportunity in using content - such as music, streaming, gaming, TV and video, news or sport - to drive an increase in data uptake and revenue.
"In addition to driving data sales, the distribution of content provides the opportunity to grow service revenue such as billing content and in-app purchases to a user's account, as well as providing the infrastructure to service providers to distribute their services."
Yesterday, Vodacom reported its interim results for the six months ended 30 September, which showed the company added 2.3 million more active customers in the last six months.
According to CEO Shameel Joosub, data remains a key contributor to growth, driven by high demand for data services.
Service revenue grew 5.6% to R25.5 billion, aided by strong customer net additions and increased data demand, the company's results show.
"We are actively driving down the cost of data, encouraging more customers to use bundles in order to maximise the value they receive for their money," Joosub said.
Share