In an attempt to win back TopTV subscribers and entice new viewers, the pay-television operator has launched a prepaid voucher option that enables anyone with a TopTV decoder to “recharge” their satellite TV bouquet.
Positioned by the operator as a first for South African TV, TopTV Prepaid allows customers to activate their subscription via a USSD service. The product is available as of today, after its launch was delayed by over a month, due to vendor issues.
According to a Twitter feed (#TopTVPrepaid), the product was introduced to staff yesterday afternoon, at an internal gathering. Kgomotso Lekola, TopTV COO, was quoted as saying TopTV Prepaid would be in 6 000 retailers by today.
TopTV says its new product, while not much different from the business model it has always worked according to (whereby subscribers do not have to commit to a “lock-in” contract), offers the benefit of mobile subscription activation, with the ability to downgrade or upgrade between two prepaid packages at any time.
Eddie Mbalo, TopTV CEO, says he believes the operator's new payment system is currently in use in only a few pay-TV markets across the globe.
Tuning in
Mbalo says the new product is expected to have a “significant and positive impact” on the operator's subscriber growth - and in turn the business overall. “The South African consumer is already 'prepaid-savvy' and we believe this innovative payment method will encourage subscribers to connect, or reconnect, because of its simplicity that provides instant admission to the 62 world-class television channels and quality programmes that TopTV offers.”
Lekola says the service is cognisant of the fact that a vast number of South Africans - about 40% of adults - are unbanked. “If we are to build solutions that are sensitive to the realities of SA, then an innovation such as this is non-negotiable.”
TopTV says the prepaid vouchers will initially be available from major retail outlets countrywide, with two price and channel package options: the Variety package at R109, for a 30-day period from activation, and the Ultimate package for R279, for 30 days. A R10 administration and distribution fee is included in these two pricing options, because TopTV has to pay the retailers to sell the vouchers on its behalf.
Precarious position
TopTV entered the South African pay-TV space in May 2010 as the country's second satellite operator - after MultiChoice's DSTV service (launched in 1995). The two years that have passed since then have seen TopTV maintaining runner-up status as the company has struggled to make significant inroads in the industry and has had to deal with flailing subscriber numbers, the loss of third-party channels and a controversial attempt to launch adult services that went belly up.
In February, when CEO Vino Govender stepped down from the post, the operator said it was evaluating its operations in light of the fact that of its 360 000 subscribers at the time only 50-55% actually remained active. At the time, then chairman and acting CEO Mbalo said TopTV would study its position and focus on retaining current subscribers and “getting new [ones]”.
Mbalo conceded the broadcaster's lack of sport content could be an exacerbating factor.
However, after today's launch, Mbalo is upbeat and says TopTV is in a “very exciting phase” - with the market offering of prepaid subscriptions to satellite TV being “but one more step in the right direction”.
Click here for a fact sheet on TopTV's new prepaid product.
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