The South African retail bank and financial services company, Capitec announced on Tuesday that it plans to launch this service at the end of October.
This initiative aims to attract clients from competing banks and will be exclusively available to its 23.2 million customers, particularly those utilizing its mobile app.
“I am particularly enthusiastic about the DStv stream we are set to launch in October, which allows consumers to avoid purchasing a full DStv package and the associated monthly fee of R1,000,” stated Capitec CEO Gerrie Fourie. “Consumers will have the flexibility to pay only for the content they wish to view.”
“To access the DStv streaming option, one must be a Capitec client. Clients will be able to log into the Capitec app, purchase a voucher, and watch content based on their payment. For instance, a client can decide, ‘I want to watch this specific program tonight and pay for it,’ or opt for a package featuring European soccer,” Fourie elaborated.
This collaboration arises amid a decline in DStv's subscriber numbers. MultiChoice has reported a loss of 1 million subscribers, particularly in Nigeria and South Africa. The company, which is in the process of being acquired by French media giant Canal+, attributed the subscriber loss to challenging economic conditions. MultiChoice recorded a loss of R4.1 billion for the fiscal year ending March 2024, indicating a state of technical insolvency.
The streaming partnership with DStv follows a similar agreement with Showmax established in August. As part of this arrangement, discounted Showmax vouchers are now accessible to all Capitec clients through its banking app.
Capitec customers can purchase Showmax’s standard R99 package for R49, while the R45 mobile option is available for R22. The Showmax Premier League package, originally priced at R65, is offered at R34. Since the launch on August 13, Capitec has sold 47,387 Showmax vouchers through its app.
The TV and video market in South Africa has seen robust growth in recent years, as reported by Statista, influenced by evolving consumer preferences and unique local conditions.
The research firm noted a significant shift in consumer behavior towards on-demand streaming services and digital platforms, resulting in a decrease in traditional television viewership. The expansion of high-speed internet and the widespread use of smartphones have played a crucial role in this market growth.
"Consumers in South Africa are increasingly favoring on-demand streaming services and digital platforms. This trend is driven by various factors, including the convenience and flexibility of accessing content anytime and anywhere," the report stated.
"With the surge in smartphone usage and the growing availability of high-speed internet, consumers are gravitating towards streaming services that provide diverse content options. This shift has contributed to a decline in traditional TV viewership, as audiences are no longer restricted by fixed programming schedules and can select what they wish to watch at their convenience."
Capitec's recent half-year results indicate that the bank is successfully attracting higher-income clients, moving away from its previous image as a low-income, unsecured lender. The data also highlights the bank's strong presence among the 20-60 age demographic, boasting 18.8 million active clients.
The Stellenbosch-based institution has made significant efforts in recent years to roll out value-added services, such as vehicle license renewals. Since launching this service in February of the previous year, it has processed over 170,000 renewals.
Additionally, the lender holds a 40% market share in South Africa's prepaid data and electricity sectors.