As JOOX celebrates its second year in South Africa, the music streaming service, says continued rise in entry-level smartphone sales and their DStv partnership are key indicators for its growth.
JOOX, owned by Tencent Africa, was first launched in South Africa in June 2017 as one of the first major music streaming services, with local offices set up, to enter the local market. Their subscriptions, globally, have amassed over 100 million subscribers since launching globally, in January 2015.
“There are three main factors that we believe will help us further grow our market share locally,” says Milton Smith, Chief Operations Officer at Tencent Africa. “First is the positive growth of smartphone sales, particularly within the low-end market, which is bringing South Africans closer to digital streaming,” says Smith.
Market research from one of the largest market research organisations in the world, Growth for Knowledge (GfK), showed that low-end smartphones (R1499 and below) accounted for 61% of unit sales in 2018, giving more people access to apps, content and services.
“Second is our partnership with DStv” adds Smith. Last year, JOOX partnered with DStv to give over 20 million South Africans free access to unlimited music, through their DStv Compact, Compact Plus and Premium subscriptions for the account holder and four family members.
Multichoice’s recently published annual financial results showed a majority of growth has been within the lower-end subscriber segment including DStv Compact, which grew from 37% to 42%. This also opens up JOOX to a bigger user base who before may not have had access to a music streaming service.
“Lastly is the very noticeable growth of streaming globally, and more importantly in South Africa and the African continent. This has opened up a market of consumers who are looking for added value especially during these hard financial times,” comments Smith.
Industry data from Tunecore, an independent digital music distribution, publishing, and licensing service, has indicated to a surge in streaming, globally, with Africa seeing the most notable growth, 146%, in 2018. Of the top 5 countries South Africa has the second most growth at 125%, second to Morocco at 243%.
As more and more South Africans enter the smartphone market (low, middle or high entry smartphones) particularly Generation Z, JOOX sees the opening within the market. The brand’s partnership with Multichoice represents a new era of service bundle subscriptions in giving consumers value for money.
For more information on JOOX visit www.joox.co.za.