From TNW

Global data use through the consumption of video is set to increase by around 55 percent per year until the end of 2019, according to research by Ericsson, while in Africa video is the fastest-growing internet activity. Yet it is smaller companies that are leading the field in the growth of video on demand (VoD) platforms on the continent, with larger African firms playing catch-up while a launch for global giants such as Netflix is still some way off.

Another report, released at the end of last year by broadband network solutions provider Sandvine, said the growth of video was expected to be faster in Africa than any other region, with the African market unique globally as most users are connecting to the internet for the first time through mobile devices rather than fixed networks.

This growth has not been lead by multinationals or even African pay-TV companies, with the innovations on the continent instead coming from startup companies in countries such as South Africa, Kenya and Nigeria. Rather, the larger firms seem to have only just awoken to the opportunities of VoD.

South African pay-TV giant MultiChoice only this year began accelerating its multi-screen strategy. South African operator Telkom launched a VoD tender in February but withdrew it in May. Times Media Group, owner of a range of newspapers and other media assets, has made the most progress, and will this month launch its Vidi service. There were unfounded rumours earlier this year Netflix was set for an African launch, but that seems a way off.

Little guys leading the charge

Instead, the African VoD space is led by first-to-market startups such as iROKOtv,Wabona and Buni.tv, all of whom see the opportunities for VoD in offering easy access to the content Africans desire at a cheaper rate than pay-TV platforms. Jason Njoku, founder and chief executive officer of iROKOtv, told TheNextWeb a recent poll by his company had revealed 80 percent of its viewers did not have access to pay-TV due to prohibitive costs.

Read more at TNW