Vodacom seeks partnering with Naspers on video content

Vodacom. (Duncan Alfreds, Fin24)
Vodacom. (Duncan Alfreds, Fin24)

Johannesburg - Vodacom is exploring a partnership with media and TV company Naspers to deliver video content onto mobile devices.

Vodacom is considering charging a fixed price to download a movie onto a customer’s smartphone or tablet device rather than billing per megabyte, the mobile network's chief executive officer Shameel Joosub said in an interview on Monday.

The company will also sell its own content, he said.

“That’s where we’ll evolve,” Joosub said in the interview at the company’s headquarters in Johannesburg.

Customers who want to download films or other content from the DStv unit of Cape Town-based Naspers would be able to do so through Vodacom’s network, he said.

Vodacom, 65% owned by Newbury, England-based Vodafone, is expanding its services in sub-Saharan Africa to offset falling revenue in South Africa.

Naspers, the continent’s largest company, provides satellite TV in 50 sub-Saharan African countries through DStv, making the company the biggest provider of pay-TV in the region.

Vodacom full-year earnings declined as increased competition and regulatory changes weighed on call prices, the company said earlier on Monday.

The Democratic Republic of Congo and Tanzania were affected by tougher price competition, while the company has further operations in Mozambique and Lesotho.

The shares pared declines after Joosub’s comments on Naspers. They traded 0.4% lower at 143.48 rand as of 3:37 p.m. in Johannesburg on Monday, having earlier dropped 1.5%.

“It’s been a tough year, probably one of the most challenging we’ve ever faced,” Joosub said on a conference call with reporters.

Vodacom’s customer numbers rose 7.2% in the year through March to 61.6 million.

*Fin24 is part of Media24 which is owned by Naspers

ZAR/USD
17.68
(-0.09)
ZAR/GBP
23.11
(-0.25)
ZAR/EUR
20.76
(+0.24)
ZAR/AUD
12.64
(-0.02)
ZAR/JPY
0.17
(-0.03)
Gold
2025.92
(-0.05)
Silver
28.92
(+2.85)
Platinum
987.00
(+2.48)
Brent Crude
44.55
(0.00)
Palladium
2229.99
(+2.42)
All Share
56757.73
(-1.56)
Top 40
52435.65
(-1.72)
Financial 15
9897.96
(+0.10)
Industrial 25
74671.49
(-1.98)
Resource 10
58948.78
(-1.89)
All JSE data delayed by at least 15 minutes morningstar logo
Company Snapshot
Voting Booth
Do you think it was a good idea for the government to approach the IMF for a $4.3 billion loan to fight Covid-19?
Please select an option Oops! Something went wrong, please try again later.
Results
Yes. We need the money.
11% - 943 votes
It depends on how the funds are used.
74% - 6288 votes
No. We should have gotten the loan elsewhere.
15% - 1293 votes
Vote