The impact of internet streaming technologies on the television broadcasting industry in South Africa

Abstract

This study explored how the broadcasting industry in South Africa has been affected by the emergence of online streaming services, also referred to as over-the-top (OTT) services. Over the past few years, there has been rapid advancement in technology, which has revolutionised how media content is distributed and consumed across the globe. This revolution has affected the media industry in South Africa in a number of ways, and it has disrupted the business models of traditional broadcasters negatively. Many other aspects, such as policy making, cultural dilution, advertising models and media consumption, have been disrupted by this rapid technological advancement. Netflix and DSTV were used as case studies in this study. The study investigated the technologies that have enabled streaming to disrupt traditional media and how traditional broadcasters, policymakers, advertisers and consumers can respond to the challenges posed by continuous technological advancements. To understand the shift of consumers to online streaming services, the study examined the technologies behind streaming services such as cloud computing, artificial intelligence (AI) personalisation algorithms, adaptive bitrate streaming, content delivery networks (CDNs) and highspeed networks (4G/5G). It was revealed that these technologies enhance the quality of experience for consumers as these systems are consumer-centric, unlike traditional broadcasters like DStv, which have rigid scheduled programmes that can clash with people’s day-to-day activities. Once it is aired, it cannot be viewed again. The findings of the study revealed the need for traditional broadcasters to adapt streaming technologies and modern business models so that they can remain competitive. Policymakers also need to generate hybrid regulations to cope with the ever-changing technologies in such a way that streaming service providers remain in check, the local industry is protected, and a level playing field for all stakeholders is created. It was also revealed that revenue for traditional broadcasters, originally derived from advertisements, has now been shifted to target advertising, which is only possible with streaming technologies and other modern technologies like social media. This study, therefore, highlights the critical role of information technology (IT) in redefining media consumption and the need for traditional broadcasters and other stakeholders to adopt these technologies in order to keep up with emerging technologies.