Page 100 - CJ 2019 INTEGRATED REPORT

9 8 TELECOMMUNICATIONS MEDIA AND IT CLUSTER PERFORMANCE OUTLOOK AND STRATEGIES
MC VISION
OPERATING ENVIRONMENT IN IN 2019
• In recent years traditional Pay TV TV and linear linear TV TV began experiencing the “cord-cutting” phenomenon with a a a a a a a a a a a a growing number of of of consumers favouring non-linear forms of of of content like video streaming streaming services With faster and and more more reliable Internet connections coupled with the the the proliferation of of of smartphones and and other streaming streaming streaming devices consumers consumers can watch TV on on on on on on on on any screen Today the the the streaming streaming streaming industry is is more more competitive than
ever and and and and consumers consumers are are spoilt for choice: established global streaming streaming giants Amazon Prime and and and and Netflix are are facing new new heavyweight entrants such as as Apple and and and and Disney This trend has given rise to to great great challenges and and and and greater opportunities: the the the the challenge challenge with new new players launching means that viewers have to to pay for for yet another subscription in in in in a a a a a a a a a a a a a a a a a a a a a time where they are already overwhelmed by multiple services the the the the the the upside for for CJ in in in in particular is is the the the the rise of tactical partnerships between the the the the content and and broadband industries • The increased and widespread availability of of video video streaming streaming has shifted consumer consumer habits to a a a a a a a a a a a a a a a a point
where video video entertainment is a a a a a a a a a a a a a a a a a a a a a a a mainstream consumer consumer activity As streaming streaming offerings become more convoluted subscribers are enticed away from legitimate services services towards grey services services creating a a a a a a a a a a a a a a a a a a a a climate in in in which piracy has has flourished: the quality of of pirated content has has improved tenfold and and consumers have instant access to to to new new movies and and and TV series—for free This new new form of of of illicit competition poses a a a a a a a a a a a a a a a a a a a a a daunting challenge for for for operators who are revisiting their business models to to to stay ahead of of legal legal and and illegal competition • The local market has experienced a a a a a a a a a a a a a a a gradual revolution over the the the years evolving from terrestrial TV via satellite and continuing the the the mutation towards OTT television television (television by ‘Internet’) at at at at the the the same time moving moving from from analog analog to to to to digitalisation Currently for a a a a a a a a a a a a a a a a a a a a a a a a potential of of 300 000 households five companies offer Pay TV Our national television has also had to to to to to follow the the trend by moving moving from from analog analog to to to to to digital digital broadcast The market is is is more dynamic than
ever and relies heavily on on on on the the the the ability of of of service providers to to to to adapt to to to to technological requirements in in in a a a a a a a a a a a a a a a a a very short time At the the the the end of of of of 2019
the the the the penetration rate of of of of pay television in in in in in homes stood at at at at 87% The The sector is is is dominated by MC Vision and and my t t t t t t t t t t t t t t t t t t t t t t which control nearly 80% of of of the the the market Parabole Maurice and and DSTV share less than
3% The The remaining households do do not subscribe to to to pay TV • With the the democratisation of of the the Internet access to to to content broadcast by OTT is is is made easier which provides more opportunities for service providers to to to to to innovate in in in in in this sector To date some 80% of of of households are connected to to to to to the the Internet Internet The market is is constantly reinventing itself in in in in in order to to to to to offer offer mobile content (ATAWAD: Any Any Any time Any Any Any Where Any Any Any Device) to to to to subscribers Broadband Internet Internet offered by the the two main providers notably my t t t t t t t t and and and Emtel is expanding with offers of of up to to 100 MB • The mobile mobile phone phone penetration rate is more than
152% in in in Mauritius Mobile Internet offers have also diversified increasing the use of of mobile mobile phones and tablets as as a a a a a a a a a a medium for video content • The emergence of of new new new data products have also led to to to a a a a a a a a a a a a a convergence between the content content content and and and and broadband industries giving rise to to to new new new forms of of of of content content content (linear and and and and non-linear) and and and and to to to new new new ways content content content is is is being consumed The consumer business business of of of Emtel and and and the the the Pay TV business business of of of MC Vision are therefore working
in in in in in in in collaboration OTT-era media companies must partner with with OTT OTT providers to to bundle their services with with connectivity subscriptions as as 5G is is set to to to roll out and viewing over the the the internet becomes mainstream As the the the the market evolves towards unlimited content content not surprisingly content content costs are increasing substantially and directly impacting margins since the the the industry in in in in in in in in in the the the face of aggressive competition is is unable to to increase prices CURRIMJEE JEEWANJEE AND COMPANY LIMITED