Technology adoption and diffusion in the South African online video Industry: a technopreneurial analysis

Abstract

Over the past few years the South African market has seen the launch of a number of online video services providers. The leading providers in the industry are Vidi, ON-Tap, MTN front row and ShowMax. The industry has also attracted some international competition with big players like Netflix launching its services in the South African market in January 2016. Although this industry has seen the emergence of many new players, it is still in its infacy stages in South Africa and is still to be seen if it will mature into a long term profit making industry.

It is important to research the diffusion of innovation and more specially to look at how technopreneurs that are in this field or considering entering this industry can influence the speed and success of how this new innovation is diffused. This research will focus on two areas. Firstly, it will seek to look at the factors that influence the potential adopter’s propensity to adopt a new product. Secondly the research will look at the role played by the technopreneur in ensuring that online video services are adopted successfully.

Since the online video services industry is not yet mature the research was conducted using the mixed method approach. The quantitative research was conducted by distributing online survey questionnaires. These questionnaires were distributed using email, as well as social media networks such as Facebook, Twitter and Linkedin. The qualitative research was conducted by performing interviews with a predetermined list of respondents. The combination of the two types of research led to a better understanding of this topic. The results the research highlighted the fact that the South African market poses very unique challenges for entrepreneurs that want to enter this industry. South African technopreneurs have an advantage against international players like Netflix because they understand challenges of internet access, payment issues as well as preferred content.