5 ways how Video Streaming companies are driving growth in emerging markets

a) Partnering with the Smart/ Digital TV ecosystem  –

Both players gain. Smart TV sales go up with the additional content infratructure built in, and the streaming service gets more subscribers hooked on.

Eg : Samsung Electronics has partnered with iflix in an effort to market its Samsung Smart TV, by incorporating pre-installed iflix app for markets in Indonesia, Malaysia, Myanmar, the Philippines and Thailand
Consumers who purchase designated Samsung Smart TV models will enjoy a complimentary 12-month iflix subscription, sponsored by Samsung.

b) Getting over the barrier of data costs

Lot of the focus is to get decently good steaming quality at low bit rates and also provide an option of download and view later. (Bit rates below 1 mbps)

c) Adapting to Content needs

80% of the Top 10 streamed shows in Indonesia, Thailand, Sri Lanka are locally produced shows, and this trend will continue as more of the middle class get onto using streaming services.
Even Netflix has realised that key to their penetration in India, is high quality locally produced content. Amazon prime has stolen a march on them in this regard.

d) Hyper local in terms of Marketing

– Credit card usage is low in Emerging market economies, players are adapting to this by having Telco tie ups for payment and data related deals with Telco’s.
– Pricing is in the $ 2 range per month, so the service competes with the pirated DVD market, in converting users.
– Content is curated as per local market demands
– Censorship rules are as per local community standards

e) Partnering with the TELCO ecosystem

The partnership with Telco’s is win-win.
Telco’s get access to a huge content library, which is a big differentiator today.
In return, they give preferred access costs to the straming service, which will also increase their data revenue stream, as more and more consumers start to binge watch.
The streaming service gets access to a large consumer base from the start.

5 interesting facts from Africa this week

Below are 5 interesting facts on Africa I picked up –

a) The massive Boom in Chinese products is slowing down, albeit slightly.

Reasons stem from i) the ease of importing Chinese goods into Africa, which is the reason for many to get into the business resulting in cut throat competition, ii) Weakening African currencies, which have made some of the products less affordable.

Interestingly, the proverb – Give a man a fish and he’ll have food for a day. Teach a man to fish, and he’ll have food for a lifetime – is slowly gaining force in Africa. There are entrepreneurs importing Chinese machinery into Africa, for use in local manufacturing bases.

b) Cobalt is seeing massive increases in prices this year

Cobalt is an important ingredient in Lithium ion batteries and batteries for Electric cars, and as demand for these batteries pick up, so does the demand for Cobalt. It was up 60% this year.

The region in the world which accounts for 60% of Cobalt reserves in DRC (Democratic Republic of Congo).

c) Cities in Africa are Urbanizing without Globalization

For a lot of cities in Africa, they are just centers of consumption, not centers of growth. They exist for the few rich to reside in and consume. The growth in population is largely from the poor masses who migrate to live of the scraps. So you find a well developed restaurant and bar scene, but lack of other infrastructure.

d) Recycled dirty water from river Nile is saving thousands of lives in North Uganda

Over 50,000 South Sudanese live at Rhino Camp near Arua. One of the main challenges here is water. The IFRC has resorted to trucked treated water. The water is pumped from the Nile into floatation tanks, and treated with Aluminium Sulphate and Chlorine. A fleet of 30 tankers then ferry the water to the camp.

e) China is depleting fish reserves off West Africa

China accounts for 30% of fish consumption globally, and their reserves off the waters in China have depleted. The Chinese government is subsidizing fishing off international waters. The Chinese have the largest fishing fleet of 2600 and even fuel is subsidized. The target currently in the waters off West Africa.

This is resulting is a much reduced supply of fish to the countries in West Africa, but they cannot do much as China is critically involved in the infrastructure development of the country.