Altron shuts down Altech Node business

Altech Node (Photo supplied)
Altech Node (Photo supplied)

Johannesburg - Local technology group Altron is closing its video on demand business Altech Node.

Last year in September, Altron launched the Altech Node satellite-connected box which delivers VoD content in high definition to subscribers.

Altron also described the Node as a home-gateway device, which included features such as home security and internet calling.

But the product and service has failed to take off as Altron said its uptake has “not met expectations”.

“Unfavourable conditions such as the current economic environment which is putting pressure on the consumer and increased competition in the video-on-demand (VOD) environment have necessitated us to make the difficult decision to close the Altech Node business,” said Altron chief executive officer Robert Venter in a statement emailed to Fin24.

“We will however retain the technology within the group,” said Venter.

Altron also said that with immediate effect no new subscription agreements will be entered into for the Altech Node service.  

Also, on October 31 2015 all Altech Node services will be terminated while the company intends to refund subscribers an amount of R1 999 per Altech Node device.

Altron said refunds will be processed during November 2015.

Managing director of technology research firm World Wide Worx, Arthur Goldstuck, told Fin24 that awareness of the Node started to diminish in the local market.

"It's been on the cards for a while,” Goldstuck told Fin24.

"Their product has been very limited in terms of content...and you didn't see any marketing for it.

"They must have realised at an early stage that it wasn't working and they pulled out or they decided to limit their exposure,” he said.

The closure of the Altech Node business also comes as Altron streamlines parts of its business.

In May, Altron said it planned to sell the subscriber base of its phone service provider business Altech Autopage.

Do you own an Altech Node? Tell us your thoughts on the unit's closure by clicking here.

We live in a world where facts and fiction get blurred
In times of uncertainty you need journalism you can trust. For only R75 per month, you have access to a world of in-depth analyses, investigative journalism, top opinions and a range of features. Journalism strengthens democracy. Invest in the future today.
Subscribe to News24
ZAR/USD
16.27
(+0.97)
ZAR/GBP
21.41
(-0.46)
ZAR/EUR
19.33
(+0.67)
ZAR/AUD
11.60
(+0.04)
ZAR/JPY
0.16
(+0.17)
Gold
1925.89
(+0.82)
Silver
25.08
(+1.43)
Platinum
888.00
(+1.95)
Brent Crude
43.05
(+1.28)
Palladium
2389.00
(+0.25)
All Share
55345.49
(+0.13)
Top 40
50905.12
(+0.11)
Financial 15
10138.60
(+1.83)
Industrial 25
74577.70
(-1.31)
Resource 10
54447.94
(+1.23)
All JSE data delayed by at least 15 minutes morningstar logo
Company Snapshot
Voting Booth
Please select an option Oops! Something went wrong, please try again later.
Results
Yes, and I've gotten it.
28% - 36 votes
No, I did not.
48% - 63 votes
My landlord refused
24% - 31 votes
Vote