Samsung has entered into a partnership with ShowMax, Naspers's newly launched subscription video-on-demand (VOD) service.
The partnership will see all 2015 Samsung smart TV buyers receiving a three-month subscription to ShowMax worth R297.
ShowMax has been positioned as a competitor to Netflix. It is available via a wide range of smart devices with an Internet connection. This includes mobile phones and tablets via iOS and Android apps, laptop and desktop computers using a range of Web browsers, and Samsung and LG smart TVs.
According to Richard Boorman, ShowMax head of communications, this partnership helps raise awareness of the ShowMax and smart TV combination, and helps potential buyers understand the benefit of not needing to plug in a computer or use any other hardware.
"In short, we're hoping that we'll see increased take-up of subscription video-on-demand due to the partnership."
There's currently a boom in connectivity going on in SA, with more affordable mobile data services including things like fixed LTE, and then of course there's the massive investment in fibre connectivity, says Boorman. "We do think that we'll see uptake of both smart TVs and services like ShowMax accelerating."
World Wide Worx MD Arthur Goldstuck, says the rapid roll-out of fibre to the home will drive the uptake of VOD.
According to Goldstuck, ShowMax reflects the awareness of Naspers that VOD will attract many DStv subscribers who pay for the service mainly for movies and series.
"Rather than watch its subscribers jump ship to a competitor, it is creating its own natural alternative, cannibalising itself before someone else does."
ShowMax usually costs R99 a month and Samsung SMART TV cost from about R8 575 (Samsung ua46F6100 46" 3D LED TV) to R154 866 for Samsung UE78JS9500 78" curved 3D LED TV.
Goldstuck says the smart TV market will be driven to some extent by VOD. However, it is not a single service that will drive it as much as the emergence of numerous options, he explains. It also requires technologies and services that take advantage of both smart TV capabilities and the rapid growth in high-speed broadband in SA, says Goldstuck.
He notes ShowMax is the most well-rounded of the local VOD services and already has strong growth momentum.
"The question isn't whether South Africans will take to the service but how strongly. Obviously more will subscribe, as the service is in the early stages of its build-out and marketing."
However, consumers won't buy smart TVs purely to watch ShowMax, nor will they subscribe to ShowMax purely because they have smart TVs, says Goldstuck.
"It is a good marketing exercise for both, but neither depends on the other. People will take up each on its own merits."
The one key area where VOD can't compete is live sports, says Goldstuck. That's also one of the big appeals of smart TVs, so it is clear that there is no one offering that will drive the smart TV market, he adds.
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