The Netflix website in South Africa has already gone up only a few hours after an announcement at the Consumer Electronics Show (CES) in Las Vegas that the TV and & movie streaming service would be available.

Netflix CEO Reed Hastings announced the service would be made available in over 100 countries globally and described the advent of Netflix as the "birth of a global TV network".

Netflix in South Africa is priced at just under R130.00 (US$7,99) for the basic package, which allows one to engage the service on one screen at a time.

The number of screens for viewing is increased to two on the standard package and four on the premium package. The standard package costs R164,99 (US$9,99) while the premium option is sold at R199,99 (US$11,99). The variation in pricing between the packages looks to be based on the number of screens for viewing as well as the quality of viewing.

HD and Ultra HD viewing is only available on the premium package, HD only on the standard package and none of the two on the basic. All the plans come with an option to watch on either a TV, laptop, phone or tablet as well as the option to cancel at any time including at the end of the free one month trial.

Local SVoD providers not under direct threat - yet

World Wide Worx MD Arthur Goldstuck believes there is still much more to play for in the South African market, even as Netflix has finally gone ahead with its long-awaited launch.

"The marketing power and global reputation of Netflix will be a major advantage, but the fact that it has arrived almost by stealth does not bode well for cleaning up the market."

Goldstuck believes the proliferation of subscription Video on Demand (VoD) services and acceleration of Fibre to The Home (FTTH) led Netflix to fast-track its launch in South Africa.

"Although South Africa is one of many new territories added by Netflix, there was also a greater sense of urgency to launch here than had been the case when the company first announced it would enter this market. The market has exploded with competitors and options, meaning that many of the most likely users would already be grabbed by the end of 2016. Showmax has made tremendous strides in bolstering its offering, OnTapTV is moving in aggressively, MTN has re-launched its FrontRow service as VU and Times Media's VIDI remains an option."

There are other advantages for local players according to Goldstuck.

"Showmax has a heavy marketing presence here and, along with the other local players, has a strong emphasis on acquiring and generating locally relevant content. That means it will own many niches before Netflix even realises they exist. DStv is unlikely to be threatened in the short term, but it's clear Naspers started Showmax as an insurance policy against Netflix and other Video-on-Demand players. The thinking is that, should people migrate from DStv to Video on Demand, try to keep them within the same stable. However, the real strength of DStv lies in its live sports coverage, and that's an area where no Video on Demand service can compete at this stage. People who subscribe to DStv only for movies and series can be expected to migrate rapidly to VoD, because it will simply make more sense both economically and in terms of choice of content and viewing time."