Less expensive internet access plus innovation in payments and content are vital for the African video on demand (VoD) sector to grow, say chief executive officers (CEOs).

Two reports in 2013 highlighted potential growth prospects of video as a data consumer and generator of revenues in Africa.

November’s Ericsson Mobility Report forecast that African online video consumption would increase by 55% per year until the end of 2019.

Meanwhile, broadband network solutions provider, Sandline, has said that while video currently only accounts for 6% of African internet traffic, VoD on the continent could grow faster than anywhere else globally.

The potential of VoD in Africa then has seen larger firms swooping in on the space, with the continent’s biggest mobile network MTN reportedly in discussions with an Asian content provider over streaming services.

Also, part state-owned South African operator Telkom launched a tender for VoD services in February, though this was subsequently suspended. South Africa’s Times Media Group has this week launched its ‘VIDI’ VoD services.

But CEOs of African VoD firms have told ITWeb Africa that a lack of connectivity is hindering the growth of the sector on the continent.

These experts have said African audiences are desperate for content, but are often unable to access it because of cost and connection restraints.

“We know that the audiences in Sub-Saharan Africa want the content - there's absolutely no question of that - and not just Nollywood, but quality, awesome content from around the world,” said Jason Njoku, co-founder and chief executive officer (CEO) of iROKOtv.

“The audiences are in place and the content catalogues are expanding, but we're working with a bandwidth-light audience in Africa, so we're waiting on cheaper and better broadband across the continent to make VoD even more successful.”

Simba Mabasha, co-founder of Wabona, agrees there is a need for cheaper and better connectivity, but he says there are other innovations that need to happen first if VoD is to ever really take off in Africa.

“For African VoD services to be more successful we need cheaper and reliable mobile and fixed internet access,” he said.

“We also need more innovation in payment gateways so as to get payments from many under-banked Africans. We need progressive brands to start advertising in this space to allow for more freemium business models. And again we need more internet and lots of it. Finally we need more diverse African content.”

Though there are undoubtedly restraints on VoD, Marie Lora-Mungai, CEO of Buni.tv, says problems with connectivity, payments and local content are expected to be resolved in future years.

Lora-Mungai also stresses that VoD in Africa is a “ten-year play”.

“Time will take care of the infrastructural limitations such as bandwidth, internet speed and cost of data,” she said.

“People also have to get used to paying for content online, and behaviour changes don't happen in a day. And then we need some more truly exciting, must-watch local content to drive audiences to VOD. Developing top quality local content has always been part of Buni.tv's long term strategy.”