Altron has announced that it will be closing its Altech Node video on demand business. No new subscriptions are being entered into with immediate effect, while those who already have subscriptions will be refunded.
Robert Venter, chief executive officer of Altron, explained: “Unfavourable conditions such as the current economic environment which is putting pressure on the consumer and increased competition in the video-on-demand (VOD) environment have necessitated us to make the difficult decision to close the Altech Node business.”
The company said that from 31 October 2015, all Altech Node services will be suspended, and subscribers will be refunded R1 999 per Altech Node device. “Refunds will be processed through the normal payment mechanism presented by the customer (i.e. directly paid into a credit card or digital wallet) during November 2015,” explained Altron.
“We overestimated the readiness of the South African market for such a pioneering service, combining both VOD and smart home services. The technology in the Altech Node is highly innovative and world class and will continue to be owned by Altron,” added Venter.
Altech Node could also be feeling the pressure from competitors entering the market. As they make an exit Naspers enters with a new video on demand service (ShowMax) in South Africa. In addition Netflix will be coming to South Africa in 2016.