A recent report from Bloomberg states that Naspers’ Showmax is thinking of expanding its video-streaming competitor to Netflix Inc. into three new continents next year while Samsung Electronics Co. has agreed to include the service on its smart TVs. It has also signed distribution partnerships in South Africa with Samsung and Telkom SA SOC Ltd., the country’s largest fixed-line operator.
Unconfirmed sources state that the company will target more than 15 million customers outside its home market of South Africa, providing content across Europe, North America and Australasia.
While this is commendable, I wonder if it is not too early for the media giant to go outside South Africa. Showmax just started operations in August this year and it was launched when Netflix announced its plans to expand to markets such as South Africa by the end of 2016.
Does Naspers have what it takes to compete outside South Africa? Historically Naspers has not successful in expanding outside South Africa. Its previous attempts with Dealfish, Mocality and Kalahari have all met the same fate. Naspers closed down the businesses outside South Africa. It would seem that they go with same blueprint and mindset for the operating their business in South Africa where they are dominant and are not willing or able to adapt to the local business operating conditions of the new countries.
Well let’s watch and see.
