DStv Glass: is Multichoice Smart TV well connected to the reality of African markets?

Following the launch of the British Sky Glass Smart television in various European countries (UK, Italy, Ireland), it is now the turn of the South African group MultiChoice which announced the launch of its connected TVs for 2023. The aim is to bolster its streaming offering by giving access to TV channels, streaming platforms and third party applications on the same device. DStv Glass will be equipped with a 4K flat-screen and sold in partnership with the British Sky. With a television household penetration rate of less than 50% in Sub-Saharan Africa in 2021, the South African company could have a card to play to combine the important households’ equipment needs with the purchase of its services, provided that customer groups converge. Could African countries be the most adapted markets for these fully integrated pay TV services? Of the 117 million televisions installed in Sub-Saharan Africa, only 14% are Smart TVs in 2021. Most of the televisions installed in the region are basic SD CRTS, which account for about 60% of the total. For potential end-users, DStv Glass would represent the advantage of gathering the most advanced features, notably in terms of navigation, recommendation and voice control, to bring all the desired OTT services together on one source and combined with the end device. Through this offer, DStv maintains its control over the full environment of its pay TV offer, in a context of surging competition from Smart TV and media streaming device providers, which are granting access to video content services, aggregating platforms and billing customers in a similar way to pay TV operators. Beyond the evolution in distribution that could threaten set-top boxes’ role as key distribution devices within homes, Smart TVs also represent a significant strategic advantage to track additional consumer data and implement targeted advertising options. This could represent a promising opportunity for operators to generate additional revenues. However, in sub-Saharan Africa, the development of fully integrated TV services is hampered by two major obstacles: the relative cost of equipment and the lack of connectivity. The low purchasing power of households in the region scales down target customers' figures, as non-equipped households are expected to buy less expensive devices. The connection needed to take full advantage of the Smart TV proposition represents an additional hurdle since less than 5% of households are connected to fixed broadband throughout the region in 2022. Although forecasted to fade gradually in the coming years, these limits will make it difficult for DStv Glass to find a mass market in the entire region in the short run. The envisioned TV Eldorado for DStv might not be found in the significant equipment needs recorded in African homes but in the awaited transformation...