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FNB customers splash R500m on streaming services

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Financial institution First National Bank (FNB) says its customers have paid close to R500 million in subscription and gift card purchases from Netflix, Showmax and Spotify in the last 12 months.

The bank says the use of video and music streaming services is rising significantly in SA, as consumers continue to look for ways to be entertained at a lower cost.

SA has seen an influx of TV streaming in recent months, along with competitive pricing for the services.

According to research group Statista, video streaming revenue in the country will this year amount to R637 million.

Typically, subscription fees for such services can range from approximately R59 to R170 per month.

FNB says it recorded a consistent month-on-month increase in the number of customers who use these services.

According to Raj Makanjee, chief executive of FNB Retail: “The increasing use of content-on-demand platforms is not surprising as consumers are constantly looking for ways to stretch every rand and manage their money a lot better. Our retail transactional activity shows that over 60% of subscriptions are by our premium accountholders who earn a minimum monthly gross income of R25 000.

“The flexibility of content-on-demand platforms allows families to customise their own experience and playlists, with the convenience to consume content as and when they want to. In some cases, families can create secondary profiles for various family members. This can be of great convenience and a cost saving for families that have children in varsities or other parts of the country.”

FNB says beyond flexibility and convenience, access to affordable data and smart technology is a contributing factor to consumer uptake.

Christoph Nieuwoudt, chief executive of FNB Consumer, says in 2019, the bank introduced free telco services for customers who use FNB Connect.

This, he says, “contributes to helping customers save, not only on telco, but in other areas of their lives which are impacted by access to affordable telco services. In the long run, we will continue to invest in our platform to help customers improve the way they manage their money.”

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