MultiChoice is facing unprecedented challenges as subscriber numbers continue to fall. In the fiscal year ending March 2024, the company experienced significant declines across all market segments. The Premium tier, including DStv Premium and DStv Compact Plus, dropped by 8%, while the mid-market and mass-market segments fell by 9% and 2%, respectively. The South African pay-TV giant saw an overall 5% decline in subscribers, amounting to nearly half a million lost accounts.
A stagnant economy, rising interest rates, and an influx of free streaming alternatives have contributed to this downturn. Despite these setbacks, MultiChoice has been exploring ways to diversify its revenue streams. To offset losses, it has invested in adjacent businesses such as sports betting, streaming services like Showmax, and even internet reselling. However, these moves have yet to provide the necessary boost.
Canal+’s ongoing acquisition of MultiChoice might lead to further strategic shifts. Industry experts anticipate that the French company will streamline operations, potentially cutting back on non-core ventures.
One of MultiChoice’s most notable partnerships is with Capitec Bank, which recently launched DStv vouchers allowing customers to pay only for specific content. This unbundled approach could further impact subscription models, especially in the mid-market segment. The bank’s CEO, Gerrie Nel, announced this month that it will launch DStv vouchers that will enable customers to access specific content. “A consumer will be in control and pay for only what they want to watch,” said Nel, reportedly.
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As MultiChoice navigates this challenging landscape, its future hinges on whether these diversification efforts can stabilize the business or if the decline in pay-TV subscriptions is will continue to trend.
