Free alternative to DStv in South Africa

South Africans on any of Vodacom’s RED plans can enjoy Amazon Prime for free through the telecoms giant’s partnership with Amazon South Africa. 

This will give many of its subscribers access to the benefits of Amazon Prime, including unlimited free delivery, deals, and Prime Video. 

The partnership ramps up the pressure on Takealot and DStv in South Africa, with Amazon throwing down the gauntlet by bundling its services. 

As part of the offer, Vodacom’s RED Core, RED Flexi, and RED VIP customers will have the benefits of Amazon Prime for free. 

Customers who sign up for a Home Internet, Mobile Broadband, or Fibre plan will be eligible for Amazon Prime from August 2026 onwards. 

RED Flexi customers will receive a free three-month trial, with RED Core customers receiving a 12-month trial. 

Customers who wish to continue with the subscription will thereafter be billed monthly at R59 per month, reflecting the expanded value offering. 

RED VIP, Home Internet and Fibre customers will receive free lifetime access. Vodacom said this is subject to the availability of the service and for as long as the customer remains eligible.

Much focus has been on the impact of the launch of Amazon on Takealot in South Africa, with the American giant opening its doors in the country over two years ago. 

This saw Takealot respond by launching its TakealotMORE offering, with the local eCommerce player trying to front-run the launch of Prime. 

However, with the launch of Prime in South Africa, it is clear that DStv is another target of Amazon, as it makes Prime Video significantly more competitive. 

For R59 a month or R399 for an annual plan, Amazon Prime members can access unlimited free delivery and unlimited streaming on Prime Video. 

This is significantly cheaper than DStv’s current offerings, with its stream-only package going for R99 per month and a decoder-only package on the market for R150 per month. 

For a combination of streaming and decoder, South Africans can pay between R299 per month and R699 per month. 

Blow DStv out of the water

The plan from Amazon seems to be to blow DStv and Takealot out of the water in South Africa by offering Prime at such a low price point. 

Amazon aims to win over customers with the initial price point and effectively ensure the incumbents cannot compete with it. 

The low price point will not last forever, but it just has to last long enough to make sure that Amazon is the dominant player in the market. 

Global Prime chief Jamil Ghani explained to BizNews that Amazon has to try something different to win over customers in South Africa. 

Ghani said that the South African consumer that Amazon is targeting is already well served by existing offerings in the eCommerce and streaming space. 

“We don’t obsess over our competition. However, we are definitely inspired by it, and we want to compete,” Ghani said. 

“We think that more choice for customers is generally a good thing, and we like having strong alternatives for our customers because it forces us to raise the bar.” 

This explains why Prime has launched the way it has in South Africa, with it offering the complete service at a very low price point. 

“You can see it with Prime in the value being offered at the price it is being offered at. That R59 is super intentional,” Ghani said. 

“We want Prime Video members, who are already an established customer base, to say ‘I can get that and more for R59, and I was paying R79?’. We want them to be compelled by it.” 

Ghani explained that the discount offered on the annual package is also one of the largest Prime offers worldwide. 

“That is also intentional. Prime is not something that I can sell you. It is something that you need to experience.”

“The hope is that five years from now, you and many others are telling your friends and family and colleagues about Prime.” 

Ghani said the point is for Prime to be so valuable that the question must be, ‘Why do you not have Prime? As opposed to, ‘Why should I have Prime?’