Video on demand shows future of TV

Two million subscribers

MultiChoice SA announced recently that its subscriber base on the African continent had reached the two million mark while in SA alone this figure had topped 1.5 million. The one million subscriber target was reached in 2005.

There were 235 000 PVRs in Africa – 205 000 of these in South Africa.

The advent of the PVR and its subsequent sales popularity has had very little to do with viewers wanting to avoid advertising and promotional breaks but rather to be able to watch programmes when they felt like it.

This follows media industry predictions of a trend towards video on demand. While it has always seemed logical that viewers would want to dictate the time at which they preferred to watch specific programmes, it has only been since the advent of the PVR that this trend has acquired any sort of definition in SA.

Interestingly enough, while the PVR was initially perceived to be something that would eliminate commercial breaks altogether, this has not been the case. Advertisements are simply viewed much faster. A lot less efficient of course but ads are not lost completely.

Rethinking strategy

But nonetheless, video on demand and TV advertising clutter has led a lot of major brands to re-think their television advertising strategies. It has become quite clear that numerous alternative options to the traditional 30-second commercial have arisen – such as branded television, product placement, subscripting discounts in exchange for advertising delivered via cellular telephony and a host of other imaginative and efficient solutions.

And now, with the licensing of more subscription TV channels in SA, the race will be on not only for market share but for the introduction of technology that puts TV viewing firmly in the hands of the viewer.

So much so that in a decade from now or even a lot earlier, it will be highly unlikely that anyone will be rushing home or downing their dinner in a hurry to be in time to watch their favourite programmes.

It is going to be interesting to see whether the advent of competition on the subscription television market will lower subscription prices but even more so, through higher volumes, lower the prices of PVRs and particularly subscriptions that allow for video on demand. Because right now price is the only thing stopping PVR sales from skyrocketing.