London — Issue no. 181 20 June 2014
Since July 2013, MTN has been getting its feet wet with content by piloting a VoD services offer - MTN Play - in Cote d'Ivoire. Balancing Act's associate editor Sylvain Béletre talked to Laurent Duprey, Head of Product & Services Department and Boubakar Sorgho, Manager Consumer Project, at MTN Côte d'Ivoire.
At the end of 2013, Balancing Act launched a market report reviewing all VoD platforms related to Africa. MTN Play in Ivory Coast was one of the 52 platforms we listed.
Nine out of the 52 are set up by telcos. For African Telecoms service providers, there were at least 10 drivers for launching VoD as a value-added service and plenty of case studies showing that VoD generates revenues and attracts subscribers.
MTN has been clever in its recent strategy, signing deals for content such as videos and music with various content providers. The company also signed with mobile content platform Afrinolly.
Afrinolly is a mobile phone app that enables African movies and Entertainment enthusiasts to watch movies, music videos and comedy. Afrinolly is currently the highest downloaded African mobile app with over 3 million downloads across Africa (Oct. 2013). See the video clip interview on this link.
MTN released the 'MTN Play' web portal in Ivory Coast as a test market. The portal offer its paid customers access to music, apps, games, wallpapers, ringtones, e-cards, horoscopes, news, free and paid VoD on streaming or for download. Revenue-wise, music, SMS and ringtones make the bulk of the portal's revenues. VoD comes after them.
MTN has approached audiovisual content right owners with a revenue share offer. Rights owners get between 30 and 60% revenue share depending on the quality of their content and the traffic they get.
Rights owners usually get paid on a quarterly basis. For the time being, revenues represent small amounts but they are recurrent revenues and they should grow up in the future.