As the streaming wars continue to get hotter with each passing quarter, Netflix is facing tough competition from Prime Video and Showmax respectively which have taken a significant piece of the market.
In the previous quarter, Netflix was still leading in the South African SVOD market share, taking up a large chunk of the market with strong competitors like Prime Video and Showmax on its heels. However, recent data shows that the competition has only gotten tougher.
According to Q2 data shared by JustWatch, Netflix, Prime Video, and Showmax take up a whopping 84% of South Africa’s streaming market. Prime Video is hot on Netflix’s heels for first place with only a 3% gap between the two streaming giants. Local platform, Showmax, on the other hand, rests easily in third place, almost 6x bigger than its closest competitors, Mubi and Apple TV+.
At the moment, Netflix steadily wins over more shares by the end of June, adding +1%. On the other hand, Amazon Prime Video remains at a standstill as Showmax and Mubi lose ground, decreasing by -1% each. Despite remaining at a standstill in the last few months, Apple TV+ showed a sudden uptick in shares by the end of June.
Netflix, Prime Video, and Showmax are now considered the top three players in South Africa right now, with other streaming services trying to keep up. But, the question is, which streaming service will eventually take the top spot? Our bets are on Showmax, and there’s a reason why.
Showmax Could Win the Streaming Wars In South Africa
Based on the earlier Q1 data, Showmax had steadily grown within the region taking up 25% of the market share beating the likes of MUBI, Apple TV and others. Having launched in 2015, Showmax presented itself as an online subscription video-on-demand service offering unlimited series, movies, sports, kids entertainment programs and much more.
But what made Showmax stand out in the competitive market was its localisation strategy and focus on offering local content which has given it an advantage over other platforms. Aside from that, we believe other factors have contributed to the continuous rise of the platform.
For starters, the recent slump in Netflix users including dropping off several shows from its platform due to a number of factors has given Prime Video and Showmax an opportunity to step up. Then there’s the addition of more African content, the increased access to the service outside South Africa and most importantly the adoption and growth in more local payment methods that have allowed users from different regions to access the service.
One shouldn’t rule out the BB Naija season too, whereby many streamers within the African market prefer using streaming services that offer the show as compared to the rest that don’t. Also, the increase in marketing efforts in form of advertisements on DSTV, BB Naija ads on the show as well as discounts offered to increase adoption has played a crucial role in Showmax’s continued rise.
Even though Netflix still has a tight hold on the market share in South Africa, the Q2 data clearly shows how drastically things can change within a few months. With each streaming platform offering its own features and benefits, users have free reign to pick whatever works best for them.
Content also plays a major role in determining this and Showmax has already proven that its localisation strategy and focus on offering local content has given it an advantage over other platforms.
Also, read:Â The Streaming Wars Hit a New High As Netflix Loses 2% Market Share to Rivals In US
