Streaming Subscriptions Jump Up by 70% in South Africa

FNB, one of the largest banks in South Africa, says that consumer spending on audio and video streaming services such as Apple iTunes, Spotify, Google Music, Deezer, Amazon Prime, ShowMax, Netflix, and YouTube has increased by 70% from the period before Covid-19 up to the end of June 2022.

Raj Makanjee, CEO of FNB Retail, says their Retail customers spend up to R190 million ($11.2-million) per month on audio and video streaming subscriptions.

“The flexibility of these platforms allows families to customize their own experience and playlists, with the convenience of consuming content whenever they want. The use of content-on-demand platforms is likely to continue as more providers introduce services to give consumers more choice,” Makanjee says.

 Raj Makanjee, CEO of FNB Retail
Raj Makanjee, CEO of FNB Retail

“As part of our efforts to help our customers better manage their money, we offer them several ways to manage their streaming subscriptions. This includes enabling them to load subscriptions on their FNB Virtual Card with rewards of up to 40% back in eBucks on Netflix and Spotify. In the past year, our customers earned over R16 million (almost $1-million) back in eBucks on these services,” he adds.

Read also : How Bankingly is providing Solutions to Transform Africa’s Fintech Industry

Ashley Saffy, Business Development Head of FNB Card says overall Virtual Card spend on streaming and subscription services has also grown approximately 600% year-on-year.

“With the creation of Virtual Cards being free on our platform, we see more customers creating separate Virtual Cards dedicated to streaming subscriptions, and this makes it easy for them to track and manage their spend. Our Virtual Cards are also preferred for eCommerce, other subscription payments and QR payments via Scan to Pay on the FNB App,” Saffy explains. 

She also mentioned that since the launch in 2021, over 3 million FNB Virtual Cards have been activated and customers enjoy better safety against fraud when they use a Virtual Card as it has features like the dynamic CVV number that changes regularly.

Read also : Current Global Economic Crisis, a Wake up Call to Africa to Adopt Technological Development– Bawumia

“We have fully embraced the reality that customers want the liberty to choose and customize the content that they and their families consume across various streaming services. While our tools and services have empowered customers with the power of choice, we are equally delighted with the rate at which our customers continue to embrace our digital solutions, complementing their lifestyles,” Saffy says.

Kelechi Deca

Kelechi Deca has over two decades of media experience, he has traveled to over 77 countries reporting on multilateral development institutions, international business, trade, travels, culture, and diplomacy. He is also a petrol head with in-depth knowledge of automobiles and the auto industry