[This article is part of the forthcoming OTT Streaming Platforms And Content Management Summit 2023 on 27 – 28 February 2024 in Cape Town, South Africa. Learn more here]
OTT (over-the-top) content streaming and Video-on-Demand (VOD) services are beginning to gain significant market traction across Africa.
However, to truly unlock the potential of the OTT platforms in Africa, players and stakeholders must address the strategic challenges of a) getting their pricing/charges right and b) having a payment (collection) mechanism fit for the market profile.
First, what service providers charge and how they price their services is pivotal to determining the accessibility of OTT and VOD services to consumers. With varying levels of income and purchasing power among different demographic segments on the Continent, it is, therefore, essential for service providers to adopt flexible pricing strategies that cater to the diverse needs of their target audience. Offering tiered subscription plans with different price points allows consumers to choose a package that aligns with their budget constraints while providing access to premium content.
In addition to adequate pricing strategies, convenient and secure payment collection mechanisms are critical for any OTT and VOD service providers that want to thrive in Africa. Since traditional payment methods such as credit/debit cards are not options for many users – particularly in rural and underserved areas- OTT providers must offer alternative payment collection options that cater to African consumers’ unique needs and preferences.
One effective approach has been to leverage mobile money platforms, which, by all accounts, now offer a more convenient and accessible means of conducting financial transactions. A deeper partnership and trusted working relationship between OTT platforms and mobile network operators is needed to offer mobile money as a payment option for OTT services.
BMA believes that through targeted efforts to address and resolve pricing and payment challenges, OTT and VOD services can truly take hold across Africa, become scalable and commercially viable, and play a transformative role in shaping the future of African media consumption.
[This article is written as part of the forthcoming OTT Streaming Platforms And Content Management Summit 2023 on 27 – 28 February 2024 in Cape Town, South Africa. Learn more about the event here]