MTN One TV has attracted more than 20 000 registered users in South Africa following its recent launch, with the mobile operator preparing to expand its content offering later this year.
The advertising-supported streaming platform was officially launched at the Durban FilmMart earlier this month.
Jason Probert, GM of Digital Services at MTN South Africa, tells ITWeb the company needs more time to establish meaningful audience trends.
“MTN One TV has already attracted thousands of registered users, which is an encouraging early indication of consumer interest. Given the recent launch and the fact that marketing activities have not yet commenced, it is still too early to provide meaningful month-to-month growth trends or active-user metrics,” notes Probert.
South Africa’s video-on-demand (VOD) market has expanded alongside greater broadband access and demand for online entertainment, with subscription services and free, advertising-supported platforms competing for viewers.
MTN One TV faces competition from established global services such as Netflix, Disney+ and Amazon Prime Video, as well as local platforms eVOD and SABC+, which offer varying combinations of local content, international programming and free or paid viewing.
Free content but data costs
MTN says it is positioning One TV as a VOD streaming platform as an alternative to subscription-led streaming services. It offers advertising-supported, on-demand entertainment, including movies, series and micro-dramas, without viewers paying a monthly subscription or individual viewing fees.
The platform combines international and locally-relevant entertainment, including movies, series, sports-related programming and short-form micro-dramas. Initial audience data points to particular interest in international micro-dramas, action and thriller titles, and children's and faith-based content, says the telco.
Registration requires a valid MTN mobile number.
The company is also using data pricing to encourage viewing, says Probert.
“Consumers can access a broad catalogue of advertising-supported content without committing to a monthly subscription, providing greater flexibility and affordability. MTN offers dedicated One TV streaming data at R12 per GB, equivalent to approximately R3 per hour of viewing at 480p. Customers purchasing qualifying MTN data bundles also receive bonus One TV viewing data,” adds Probert.
MTN has not yet introduced paid content, as it is too early to draw conclusions about South Africans' willingness to pay for entertainment through the service, the company says.
Content partnerships vs production
Rather than investing heavily in building a traditional content studio, MTN's strategy centres on aggregating, curating and distributing programming from established producers, broadcasters and streaming partners.
According to the telco, the business model is intended to combine advertising-supported viewing with sponsorships, content licensing and transactional VOD. Planned payment options include access to selected content by episode, series or day, giving viewers alternatives to conventional monthly subscriptions.
“MTN's primary role is to aggregate, curate and distribute content rather than operate as a traditional content studio. The platform is designed to give consumers more flexible and affordable ways to access entertainment, while creating new monetisation opportunities for content creators and rights holders.”
At group level, MTN has opened a commissioning window for African-produced micro-dramas, scripted and unscripted series, limited series and feature-length productions.
The company expects to announce several content partnerships in the near future, although it has not disclosed a budget for original South African productions, or the number of local titles developed since the platform launched.
As of October, MTN One TV has launched in two African countries: SA and Zambia, which were selected as pilot markets for the first phase of its rollout.
“MTN's next steps include growing its content catalogue, recruiting more partners and introducing its first slate of local micro-dramas. It also plans to launch connected TV applications before the end of the year, extending access beyond mobile devices,” Probert concludes.
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