The impact of over-the-top streaming on South Africa’s television broadcasting industry

Abstract

Background: This study explores how the broadcasting industry in South Africa has been affected by the emergence of online streaming services. Various stakeholders have been affected both positively and negatively; hence, the need for innovative ideas and new policy developments to help legacy media to remain relevant.
Objectives: This study aims to understand the landscape of the television broadcasting industry in South Africa and determine the influence of over-the-top (OTT) services as an instance of disruptive innovation.
Method: A multi-method qualitative approach, based on case studies of Netflix and DStv, was employed in this study. Data were collected from OTT and MultiChoice consumers, as well as publicly available industry documents. Thematic analysis, guided by the Technology Acceptance Model (TAM), was used to analyse data.
Results: The study revealed that the technologies behind OTT platforms enhance the quality of experience (QoE) for consumers. These systems are consumer-centric, unlike traditional broadcasters such as DStv, which have rigidly scheduled programmes that may conflict with people’s day-to-day activities.
Conclusion: This study highlights the imbalances caused by the rapid technological changes in South Africa’s media industry and provides recommendations on how legacy media can compete as well as what policymakers can do to promote a level playing field for service providers.
Contribution: The study underscores the need for traditional broadcasters to adapt streaming technologies and modern business models to remain competitive. Policymakers must develop hybrid regulations to adapt to evolving technologies.