SA's content consumption trends: Why TV is here to stay

Streaming platforms were once hailed as the future of content consumption, promising a competitive earnings model. However, the sector is now facing challenges with profitability as content continues to reign supreme. In a recent interview on CNBC Africa, digital media strategist Herman Degener shed light on the evolving landscape of TV and streaming in South Africa, emphasizing the enduring relevance of traditional television. According to Degener, TV remains a staple in South African households, offering a familiar and cherished viewing experience for many families. While streaming services have gained popularity, TV continues to command a significant share of viewership, fueled by compelling content that captivates audiences across the nation. Degener pointed out that the key to winning viewers lies in the battle for engaging and high-quality content, reaffirming the age-old adage that 'content is king.' One of the key insights from Degener's research is the emergence of 'subscription fatigue' among consumers. As more subscription-based video-on-demand services enter the market, users are faced with an overwhelming array of choices, leading to subscription exhaustion. This phenomenon is particularly prevalent in markets like North America, where major content producers are reclaiming their content to launch their own exclusive streaming platforms. The proliferation of subscription services has created a saturation point, prompting consumers to reevaluate their spending on multiple platforms. In response to the shifting dynamics of content consumption, ad-supported video-on-demand (AVOD) services are gaining traction in South Africa. These platforms offer a viable alternative to traditional subscriptions, allowing viewers to access content for free with targeted advertising. The rise of connected TV and the transition to digital terrestrial broadcasting are further driving the adoption of AVOD services, providing advertisers with valuable insights into consumer behavior. By leveraging data analytics and tailored advertising strategies, businesses of all sizes can capitalize on the advertising opportunities presented by video-on-demand platforms. The accessibility of connected TV and the lower barrier to entry have democratized the advertising space, enabling smaller brands to reach a wider audience through TV advertising. As the advertising landscape continues to evolve, the focus is shifting towards delivering more relevant and personalized ads to enhance the viewer experience. Overall, the coexistence of traditional TV and streaming services offers a diverse range of options for consumers and advertisers alike, creating a dynamic media ecosystem that caters to the evolving preferences of South African audiences.