Video-On-Demand

Netflix’s Impact On South Africa’s Movie Theatres

According to research done by MyBroadband, the affordability and mass access that is provided by streaming services like Netflix and Showmax has South African cinema facing arguably its most critical challenge yet.

The streaming services give users the ability to sit on their couch and scroll through a vast catalogue of high-definition movies, all for a monthly price that is similar to only a single trip to the cinema.

MyBroadband spoke to Nu Metro to find out how much the South African cinema business is being affected by streaming services.

Chantelle Burrows, Nu Metro’s Marketing and Content Executive said that the company is still showing growth locally.
Burrows said that Nu Metro had seen increases in box office sales and in average customer spend over the last year.

In 2018, Nu Metro launched new cineplexes in Maputo and Mamelodi, Pretoria and is scheduled to open others in Giyani in Limpopo and Zambia over the coming months.

The Marketing and Content Executive added that Nu Metro does not perceive legal streaming services like Netflix as a significant threat to its business.
Burrows explained that these streaming industries operate in a domain that is parallel to the cinema industry and that streamers also happen to be ardent cinemagoers.
According to research, covered by Variety, people who go to the cinema nine or more times per year watch more streamed video content than people who only visit the movies once or twice a year.

Burrows added that comparing Netflix or Showmax to cinema is like comparing live music shows to buying or downloading music.
She said that the experience of enjoying a movie in a cinema on a big screen with premium sound quality completely overshadows viewing a film on a TV screen, laptop or mobile.

According to Burrows, the more pressing issue is piracy. She added that Nu Metro supports the efforts that have been taken by authorities to deal with piracy.
Nu Metro said in 2018 that they were in full support the blocking of piracy sites in South Africa.

Nu Metro’s comments followed a report by Russia’s telecommunications regulator, which declared that cinema attendance and revenues had increased by 11% after 8,000 pirate sites were blocked in Russia.

Credit: This article originated from www.mybroadband.co.za

 





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