Capitec DStv streaming products here soon

Capitec will launch a new partnership with DStv stream later this month as the bank looks to expand its value-added services offering. 

South Africa’s largest bank by clients posted strong results for the six months to the end of August 2024. 

Headline earnings surged 36% on the back of strong transaction and commission income growth, while the bank’s credit loss ratio improved significantly. 

The fastest-growing segment of Capitec’s business is value-added services, which encompasses the bank’s efforts to build an ecosystem around its banking offering. 

Its contribution to net income grew 73% to R2 billion for the period under review. 

Ultimately, these services are part of Capitec’s strategy to look clients into its platform and gather as much data as possible about their spending habits. 

This data is crucial for the bank, enabling it to personalise product offerings, encourage better financial habits, and enhance the consumer’s experience. 

One key example of this data being used to inform new product offerings that resonate with clients is Capitec’s partnership with Showmax. 

Launched in mid-August, the offering enabled the bank’s 12 million active app users to buy Showmax streaming vouchers for only R22 a month—less than R1 a day. 

The Showmax discounted vouchers are now available to all Capitec clients via the Capitec banking app. 

The partnership involves the following –

• 50% discount on Showmax streaming vouchers for 12 million Capitec app users.
• Showmax Entertainment Mobile is priced at R22, Showmax Entertainment all devices at R49 and Showmax Premier League mobile at R34 per month.
• Less than R1 a day for entertainment on mobile.
• Capitec clients can also get 5 GB of Capitec Connect data to stream at only R145.

Capitec’s use of its clients’ spending data was spot on, and this offering resonated strongly with its app users. Since the launch on 13 August, 47,387 Showmax vouchers have been sold. 

DStv Stream expansion

The strong demand from clients for the Showmax offering, among other things, has encouraged Capitec to look to replicate this model with another streaming service – DStv Stream. 

During the company’s investor presentation for the six months to the end of August, CEO Gerrie Fourie said the bank would be launching a new product in partnership with DStv Stream in October 2024. 

“The one I am very excited about is DStv Stream, which is launching in October 2024,” Fourie said. 

“This is going to be quite exciting, where I do not have to buy the whole DStv package and pay R1,000, but I can go in and pay for what I want.” 

“That is going to be very exciting and create value for our clients.” 

Fourie gave no further details regarding the product that will be launched in collaboration with DStv Stream, but it will be on a model similar to the Showmax offering. 

DStv-owner MultiChoice told MyBroadband that this was a mischaracterisation of the product that would be launching later this month.

Capitec will offer significantly discounted vouchers for specific DStv Stream packages, including DStv Premium. DStv is not launching a pay-per-view model.

“We’re pleased to announce that from next month, Capitec clients will also benefit from discounted access to DStv Stream plans, giving them more ways to enjoy premium entertainment at a reduced cost,” MultiChoice said.

“This partnership reflects our commitment to making quality content more accessible and affordable for all our customers. More details will follow soon.”

The partnership with DStv Stream will add yet another string to Capitec’s value-added services bow, which includes the Capitec Connect juggernaut. 

Capitec’s mobile virtual network operator (MVNO) has 1.2 million active SIMs in South Africa and has seen strong growth following the launch of new data packages. 

It is set to benefit from the bank’s partnership with DStv Stream, as Capitec plans to bundle data offerings with the streaming service, as it did with Showmax. 

Other parts of Capitec’s value-added services offering, such as vehicle licence disc renewals and prepaid electricity, are showing strong growth. 

Since the launch of the service on 22 February 2024, Capitec has facilitated 174,053 licence disc renewals. 

All of these transactions, including the purchase of Showmax vouchers, happen on Capitec’s app and give the bank vital data which it can use to launch new products targeted at its clients’ needs.