Zoopy is eyeing the wider African social media market, now that Vodacom has increased its shareholding in the Web site from 40% to 75%, for an undisclosed amount.
The online video streaming Web site's CEO, Jason Elk, says Zoopy will leverage Vodacom's technology and reach into the continent in order to tap into the market.
“This deal is good for us because it means that we don't have to go to a third party to build us a new network to increase our reach,” says Elk. “Vodacom has done well in the mobile sphere and we've progressed in new media. So what we hope to do is integrate our services.”
Elk is adamant there is a large enough market for social media in Africa. He points to countries such as Nigeria and Kenya, which he says have burgeoning online communities. Zoopy's goal is to target those communities with its suite of mobile broadcasting services.
Business as usual
Vodacom says it will not make any structural changes to Zoopy, despite buying a controlling share in the online video streaming portal. The mobile operator believes the companies it invests in perform better with their original management and expertise.
The mobile operator explains when large companies absorb smaller organisations and change their business processes and strategies, this tends to have an adverse effect on them. Vodacom will thus aim to interfere as little as possible in Zoopy's affairs.
“Zoopy will remain Zoopy,” adds Elk. “We will not be absorbed or changed in anyway.”
Social networking is king
Elk goes on to say social media is at an advantage in the current global economic crisis. He explains that marketing companies are no longer willing to spend millions on advertising campaigns that are aimed at non-specific audiences.
“Companies are now looking at talking to those communities which are directly related or interested in their products.”
Zoopy believes the investment made by Vodacom into its Web site is a sign of how much social media is valued by large corporations. “Social networking in SA and Africa as a whole has a bright future,” says Elk.
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