MTN video streaming service details revealed

MTN’s planned video streaming service will not compete with Netflix, Group CEO Ralph Mupita has said.

Responding to questions from media during an event at the mobile operator’s headquarters in Johannesburg on Tuesday, Mupita said they viewed their video streaming play as complementary to existing players.

Mupita revealed that they plan to buy Nollywood content in Nigeria that is not currently carried by streaming platforms.

They will launch the service in Nigeria, evaluate how it performs, and decide whether and how to expand it from there.

“Our role is to curate local content that is not currently on major platforms and take it to our customers. We have 80 million daily customers in Nigeria,” he said.

Mupita’s clarification comes after MTN issued a press release on Monday announcing a strategic partnership with video software provider Synamedia.

MTN and Synamedia announced that they would develop a streaming platform tailored for mobile and fixed broadband subscribers across Africa.

No launch date has been confirmed, but they said the service will offer live-streamed linear television and video-on-demand content.

MTN also said the platform will offer diverse monetisation models, including subscriptions, ad-supported content, and free streaming channels with targeted advertising.

According to MTN’s statement on Monday, its ultimate ambition is to launch the platform across Africa with local content tailored for each market.

“Each market will benefit from a curated content strategy, thoughtfully adapted to local cultures, languages, and viewing habits,” MTN said.

“This would ensure deep relevance and strong audience resonance across the continent.”

Assuming MTN’s announcement that it plans to launch a Pan-African streaming platform was accurate, that puts it on a collision course with Showmax and its partnership with American media giant Comcast.

MultiChoice entered into a deal with Comcast subsidiary NBCUniversal Media and Sky in April 2023 to turn Showmax into Africa’s leading video-on-demand service.

NBCUniversal acquired a 30% stake in Showmax and supported it by licensing content from its Peacock, NBCUniversal, Universal Pictures, and Sky platforms.

Showmax’s ambition is to generate $1 billion in net revenue by 2028 and reach trading profit breakeven during 2027.

Much like MTN has said it would, Showmax has placed a heavy emphasis on local content. However, it also has MultiChoice’s substantial experience with live sports as part of its offering.

As part of its strategy, Showmax launched a mobile-only plan allowing subscribers to livestream all English Premier League football games.

Not MTN’s first video rodeo

This is not the first time MTN has attempted a video streaming service.

The mobile network operator launched MTN FrontRow on 30 December 2014. It offered a subscription video-on-demand service for R179 per month as well as separate movie rentals.

MTN FrontRow later rebranded as VU and dropped its subscription fee to R99 to compete with Showmax and Netflix.

MTN shut down VU on 3 May 2017. It notified subscribers about the shutdown the day before.

Just over a year before pulling the plug, MTN had reported in its full-year financial results for 2015 that VU was performing below expectations.

However, MTN believes that this time around will be different.

“We see a unique opportunity to transform video consumption in Africa with high-quality, accessible, and relevant content,” said MTN Group chief commercial officer Selorm Adadevoh.

“This partnership enables us to leverage cutting-edge technology and deep customer insights to enhance entertainment experiences and drive digital inclusion.”

Synamedia CEO Paul Segre said smartphone owners across Africa will be able to enjoy innovative linear TV and on-demand video thanks to MTN’s leadership and innovation.

“By taking advantage of the breadth of our integrated, cloud-based portfolio to quickly deploy new services at scale, MTN will be able to create a groundbreaking set of offerings for customers and viewers that will drive new revenues,” Segre promised.