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Home Blog Page 6967

The MultiChoice’s 13.9 Million Subscribers

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A securities filing report has revealed that MultiChoice has 13.9 million subscribers, across Africa, implying that many people do not have the choices, yet, to sign-up to many of the company services. In a continent of more than 1.2 billion people, one would have expected a clear category-king and dominant player to have better numbers since it began operations in 1996. This is typical in Africa – projections by pundits are always ahead in multiples when real numbers arrive. Recall the revelation that old Konga had just 350k users via a securities report filed by one of its (then) major European investors. Before that report, everyone had assumed the user base was in millions.

It supported the claim by comparing its subscriber base – which currently stands at 13.9 million across Africa – against those of Canal Plus Afrique, StarTimes and Netflix.

The Guardian checks showed that by late 2017, Nigeria controlled 40 per cent of MultiChoice Africa’s subscriptions.

But StarTimes’ Overseas Public Relations Director, William Masy, disclosed that approximately three million Nigerians are subscribed to the organisation’s services and products.

Netflix rising subscribers in Nigeria are also in millions.

The United States is about 25% of Africa’s population but Netflix alone has about 60 million subscribers, indicating a higher level of penetration. Netflix using the web to distribute has a huge advantage since the delivery mechanism is unbounded and unconstrained with a better marginal cost which helps its scalable advantage. It is possible that the rise of Netflix will remain a continued and sustained challenge to MultiChoice business in Africa. Netflix opened for Nigerians not long ago, and now has 1 million subscribers while MultiChoice despite its long presence has just 3 million subscribers. Yet to confront this challenge with a top-grade online streaming business will bring the innovator’s hangover paralysis within MultiChoice: you cannot destroy the highly profitable cable business for a largely low-margin online one.

Do not bet that Naspers, owners of MultiChoice, might not have given up by this unbundling of MultiChoice as a separate entity in the Johannesburg Stock Exchange. Yes, the firm remains solid, in the short term, but long-term view in the age of the web is severely gloomy.

LinkedIn Comment on Feed

  1. The day we are going to discover the true population figure of Nigeria, and also the number of Nigerians whose annual incomes are from N1 million up; maybe it will help demystify a lot of things about market size here. MultiChoice having less than 4 million subscribers, with good portion on GOtv, not good enough; but that’s the reality. Facebook still has less than 30 million Nigerians, and that’s the platform with largest concentration of Nigerians online, and yet we don’t have 50 million people there yet. We are yet to see any figures close to all the projections about market size and value in this part of the world, aside from NNPC telling us that we consume more 50 million litres of petrol daily. Someone needs to enter the dock and answer some questions…

  2. The coming years may not be funny for them. Seriously considering the disruptive innovations going on with Netflix and other of such businesses and the increase in data availability. Nigeria in particular is a huge market and Multichoice could do better by reviewing their billing pattern. Why would one pay  Naira 18000+ (Which expires active or not) for old movies and regular news channels when Netflix offers unlimited streaming for Naira 4000 or their about for recent and trending movies with even better quality. Multichoice could begin with pay as you watch options. this will give them a chance to fight pending imminent mega disruptions that will follow when other of such ventures like Netflix create the real competition.

  3. The likes of Netflix care for the younger tech savvy generation, while DSTv has the broader family oriented traditional audience. This market share is not going to dissipate overnight. The tech infrastructure in the country is still far behind, but in- line with DSTv audience. Yes DSTv will have to work hard to keep a good percentage of the younger generation, and there is one way rhis is already working. Satellite TV service providers are now embedding the likes of Netflix, Amazon Prime, YouTube, etc into their hardware, providing a onestop service; purchase my service and box and also have access to online streaming as well. This model seems to accommodate both the traditional household and young audience, added with an on-the-go app. We are a very longshot away thinking the model of Netflix will be the traditional means of consuming digital tv screening. 

 

Good News for DStv: South Africa Upgrades Its Tax Policy, Forcing Netflix to Pay VAT

Nigeria Needs World-Class Products Engineered for Local Markets

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By Nnamdi Odumody

Every great nation which has achieved sustainable development is built on a strong foundation of innovation. From when Henry Ford in the early 20th Century pioneered the Ford TT as the world’s first assembly line, to General Motors range of cars targeted primarily at American consumers, and Volkswagen Beetle evolution as the premium vehicle for the Germans during the Second World War due to its shape, size and cost, local brands have defined the economic prosperity of nations.

After the Second World War when the shift in global manufacturing relocated to Japan as a result of the Kaizen Revolution which Dr Edward Deming introduced to the Japanese, Soichiro Honda, Shiji Toyoda, Akiro Morita and Konosuke Matshushita began the development of the now global brands – Honda, Toyota, Sony and Panasonic – by creating world-class products primarily for the Japanese, later Asian and finally global markets.

China’s rise as the world’s second largest economy and major technological player will not have been possible without these brands, engineered primarily for the Chinese consumers

Brand                    Category King

Alibaba               Electronic Commerce

Huawei               Telecommunication Equipment

Xiaomi                Consumer Electronics

Tencent               Consumer Internet

Geely                  Automotive

BYD                    Electric Automotives

DJI                      Consumer Electronics

Baidu                  Consumer Internet

Ping An Insurance            Financial Services

Ant Financial                     Financial Services

Oppo                                 Telecommunication Equipment

Oneplus                            Telecommunication Equipment

Face++                             Artificial Intelligence

 

In Nigeria, a couple of local innovators and businesses have actually come up with world class products engineered for our local market. In Agriculture and Healthcare, FASMICRO’s Zenvus and Medcera are intelligent solutions to transform the Nigerian agricultural and healthcare industries for the 21st century using artificial intelligence respectively.

Dr Collins Agu of I-Habitat has developed the Obuno and Amadioha range with about 80 percent local components for Smart City and other Internet of Things applications in Nigeria. Deji Oduntan and his team at Gokada are trying to redefine the customer experience with motorbikes, a popular means of transportation in urban cities such as Lagos where traffic gridlock is the order of the day.

Marcel Ofomata with his company Amaecom Global has provided a flexible structure of getting finance for your assets. Chidi Ajaere has changed the face of interstate transportation with his GIG Motors offering the best customer service in the industry while Interswitch helped millions of Nigerians enjoy financial services through its platform. Konga has provided Nigerians who cannot withstand the stress of going to markets or shops with a convenient alternative, via e-commerce.

Outside the shores of Nigeria, in Kenya, MKOPA has come up with the most scalable solution to solar energy consumption for homes in Africa while BRCK is an invention borne out of necessity to solve a common problem on the continent by providing access to internet connectivity even in rural underserved locations.

Through the development of world class products engineered for our domestic and African markets, and patronage by Nigerians, local products and services will boom, delivering a highly diversified economy, not dependent on receipts from hydrocarbons for survival. The opportunities and capabilities are there, African policy makers, entrepreneurs and other stakeholders must find all the elements to unlock the promises.

The One Oasis Strategy – A Personal Application

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By David Alade

It was early 2018, while studying the thought process of Prof. Ndubuisi Ekekwe to understand what made him so outstanding, I came across the e-book The One Oasis Strategy. To be candid, I couldn’t drop it midway. I keep reading till I flipped over the last page. After that day, I clustered the strategy in my mind as a strategy best fit for a business.

Indeed, oasis is very critical and every company has oasis. Your best product is the oasis in your business. Every other product feeds on that best product. If you build your investment around that main product, you will find success, because those investments will have a clear “customer”, and that reduces market risks. In other words, if your new business investments are geared to support the best product, and the best product is doing well, it means the risks on the new investments will be easily managed. Provided the best product continues to do well, demand on the new investment is assured. That is the One Oasis Strategy.

Fast forward to late 2018, after a careful study of the process that is shaping who I am, I coined the phrase ‘Success Leverage’ which means moving from where I am, to where I want to be, by leveraging what I have, to my advantage today.

Recently, I had some sort of spark and an eureka moment when I noticed a strong correlation between what Prof. Ekekwe calls the One Oasis Strategy and what I called Success Leverage.

What inspired the spark?

I like you to pay attention to what I call ‘The Story of How I/You Got Here’. It was at this moment that I saw a lot of doors opening up for me because I was successful in one thing already. I realized that a shut door was simply an indication that I had to develop my capabilities in that area. Once I did, that door and other doors also opened. Ultimately, doing this helped me break the cluster I had earlier created and helped me realize that One Oasis is unbounded and unconstrained in its applications as long as one can connect the dots.

Not one to horde knowledge, I really hope that this article will show you the dots on One Oasis and how to connect them to other focus points in your life.

Just for recollection, we will redefine oasis.

In geography, an oasis is an isolated area in a desert, typically surrounding a spring or similar water source, such as a pond or small lake. Oases also provide habitat for animals and even humans if the area is big enough. The location of oases has been of critical importance for trade and transportation routes in desert areas; caravans must travel via oases so that their water and food supply can be replenished. Thus, political or military control of an oasis has in many cases meant control of trade on a particular route. (Wikipedia)

In our life, forces must come together to form a shape before we attain a goal, just as forces of demand and supply must interplay in business. This forces on a personal level are always anchored on one or more few things that can be seen as a strength in personal analysis. The anchor’s behaviour is such that when properly understood and harnessed, it will be the driver of other breakthroughs in our personal life.

Ndubuisi noted, “The best product in a firm anchors its survival, just as oasis does in a desert. And every business must discover its oasis, if it hopes to thrive.” In similar way, an individual who hopes to thrive must know “product” of her/his anchor per time.

One Oasis Strategy, as Ndubuisi explained, “Is the proposition that if the best product drives key investments in a firm, it has the capacity to help other products in the business. Other products would feed from the best product, and on overall, the company would flourish.”

Refining that definition to fit our subject matter will be:

One Oasis Strategy is the proposition that if your greatest success per time drives the opportunity you aim for, the likelihood of attaining or utilizing such opportunities will be great. Those opportunities will form another source of your value proposition which when accumulated can drive another level of success.

A quick example, I started with the narrative of how a spark caused the breaking of the cluster I created. Here’s the detail of the spark, recently I messaged a distant connection to give me the opportunity to speak at one of his events. Without much questioning, he granted me the opportunity. Why? he checked my profile and saw where I work (current oasis) and for him, that was credible enough. Without that oasis, I don’t think that I would have scored that speaking engagement.

Why do I need the speaking engagement? For exposure! This, I believe, will cumulatively form another oasis that can be leveraged upon. Simply put, an oasis and its accompanying value can open up more oasis.

Another example is from a distant fellow, he planned on returning to an organization where he had previously worked. Though he had accumulated skills in other areas, he leveraged on his experience of working with the organization. There were many feet he could have put forward, but he chose this one because it was simply the right one. The result? He got the job.

How can you apply the One Oasis Strategy in your life?

Per time and per opportunity,

  1. Sit down to consider what is really required to get this job done, to get this opportunity, or to get this platform.
  2. Look within and ask, do my current abilities measure up to at least 50% of what is required to get what I want?
  3. Leverage your abilities when speaking or writing to apply or make requests.
  4. The likelihood of you getting what you want is on the high side if you follow through on the three steps above.

N.B. Another approach I use is to start from the inside out. It is all about considering what my oases are in line with whether or not to pursue an opportunity. This has helped me to experience less failures and more successes as I keep trailing more opportunities.

What you also need to note is that if this strategy must work for you, you will need to master the art of building relationships and your capabilities. Capabilities like communication skills will top my list and relationships cultivated when not needed is always effective.

Beyond Health Techs, We Need Health Insurance Plans as Healthpoint Offers

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Good people, we started Medcera with one mission: to build a health operating system in Africa. In our platform, we bring a fusion of doctors, labs, imaging, pharmacy and insurance anchored around patients. One company we admire greatly in helping our mission is Healthpoint which is pushing the nexus of on-demand health insurance plans.

Simply, we believe that not having a formal job should not prevent anyone from having health insurance within HMO. I invite you to check them out.

Yes, the fact is this: innovation on health insurance could be as catalytic as health technology itself. That is why I want you to preach that Nigeria needs to upgrade our health insurance systems. We need innovators in this space – I am learning fast that after the techs, we need the plans.

Learn more here.

LinkedIn Comment on Feed

Most of the things we imported or copied from elsewhere haven’t worked, and yet we are not learning fast.

We argue that the problem with insurance in Nigeria borders on trust and awareness, while perhaps financial inclusion or under-banking was blamed on illiteracy. Yet, the “illiterate” citizens do esusu and its constituents, comfortably handing their fellows huge sums of money, which some run away with sometimes, and yet the contributors haven’t abandoned the practice. Yet we do not seem to innovate around what already works…

In an economy that is largely informal, and yet both the health insurance and pension scheme were skewed towards the small proportion of the population, those in the formal economy. No wonder everything keeps failing, despite investing billions, because we keep formulating policies for aliens.

We seem to have a local model for every challenge we have in the land, but the policymakers keep looking across the Atlantic for answers.

HealthPoint’s Innovation to Scale Health Insurance in Nigeria

Meet Me With Vice President Prof Osinbajo As I Keynote BDA Business Analytics Conference Next Month, Lagos

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The organizers of the Big Data and Business Analytics Conference which comes up in Lagos next month (March 5-6) just informed me that they have discounted the registration amount till Feb 26th. I had passed the notes many shared here for support to make the program. In this event, I will deliver the keynote while our Vice President, Prof Yemi Osinbajo, will deliver the Opening Message.

Zenvus, my AI agtech subsidiary, is one of the lead program sponsors. I will bring Zenvus on stage to show how we are using electronics and AI to improve farm productivity in markets and territories.

Please notice the event is now two days to accommodate the shift in Nigeria’s general elections.

THEME:     Big Data, Analytics and African Development
VENUE:     Radisson Blu Hotel, Ikeja-Lagos, Nigeria
DATE:       March 5th – 6th, 2019

Register here 

Join me with Vice President Osinbajo as I Keynote Big Data Conference, Lagos March 2019