DSTv, StarSatand new video-on-demand (VOD) players may soon have a serious competitor if YouTube's "Unplugged" plans come to fruition.
The world's largest video portal is reportedly working on a paid subscription service, called Unplugged, which will allow customers to purchase a bundle of TV channels. These channels will be streamed over the Internet, allowing customers to watch on mobile devices and smart TVs.
The project is a top priority for YouTube, according to a widely reported-on anonymous interview done by Bloomberg. Unplugged is expected to debut next year. The product has apparently been in the works for five years.
Major media companies, including Twenty-First Century Fox and CBS, are allegedly in talks with YouTube to offer their services. Other details in the report include the expected price of $35 (R525) per month and how the TV channel bundles will work. No mention was made of if the service will be available worldwide.
Crowded VOD space
Arthur Goldstuck, World Wide Worx MD, commenting on the South African landscape, says: "VOD services in general do not pose an immediate threat to DStv, and the like, for two reasons: they need high-speed broadband and a small proportion of households in SA have that capability."
The second reason, Goldstuck says, is that VOD cannot offer live sports, "which is the primary strength of DStv. YouTube specifically does not pose an immediate threat, as Google does not market its consumer services heavily in SA, while DStv has a massive marketing machine."
An estimated one million South African households have the bandwidth speed to stream videos, as was reported last year, but this number is expected to swell in coming years as fibre-optic Internet providers race to roll out new services.
In February, Google launched Google Play Movies in SA. The service allows viewers to rent or purchase movies to watch on their phones, tablets, computers and smart TVs.
Last year, Naspers launched streaming service ShowMax at R99pm, and in January, international VOD service Netflix launched in 130 countries worldwide - including SA.
The crowded VOD space has been a topic of debate since the introduction of these services.
Goldstuck says: "There is never a need for more entertainment channels. It is about how much demand one can create. Even 10 VOD services would not be enough if none of them could create demand, while one would be enough if it generated enough demand."
Unplugged will be the second paid-subscription service from YouTube. Last year, it introduced YouTube Red, which allows users to watch YouTube videos ad-free.
The service costs $9.99 (R150) a month, only available in the US at the moment, and gives members access to YouTube's entire video archive as well as new exclusive content - all without having to wait a few seconds to 'skip' adverts to view the videos.
Two weeks ago, Google released a research report showing adverts on YouTube are far more effective than traditional TV adverts.
Facebook vs YouTube
Last month, Facebook launched its own dedicated video hub.
YouTube will continue to be the leading video platform, as it has been for the past 10 years, local YouTuber Liron Segev said previously.
"But it will soon have to do something to differentiate itself within the video space. Other social networks are all moving in that direction."
It was announced at Facebook's results presentation this year that 100 million hours of video are now being watched daily on the platform. YouTube has said there are six billion hours of video watched on its service each month.
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