How MultiChoice makes money

MultiChoice makes most of its money from DStv subscriptions but also rakes in billions through advertising, decoder sales, technology services, and insurance.

Multichoice released its results for the first half of the 2023 financial year this week, which included a 6.7% increase in revenue to R28.6 billion.

It linear pay-TV subscriber base increased by 5% to 22.1 million households, comprising 9.1 million in South Africa and 13.0 million in the Rest of Africa.

The Rest of Africa maintained its strong growth trajectory on the back of successful local content productions.

In South Africa, growth rates recovered during the second half of the reporting period despite evidence of rising consumer pressure.

MultiChoice CEO Calvo Mawela said the business regained momentum after a slow start to the year due to its engaging local content slate and strong local capabilities.

It continued to pursue its differentiation strategy through local content. It launched two local channels in sub-Saharan Africa and produced another 3,084 hours of local content.

Delving deeper into the finances revealed that South Africa’s revenue decreased by 2% to R17.4 billion. MultiChoice said the off-season for football and load-shedding was to blame for the decline.

The Rest of Africa had strong growth, with revenue increasing by 28% to R10.5 billion with strong demand for locally produced content and sports.

The Technology segment struggled with a 13% decline in revenue as a result of supply chain shortages in silicon materials.

Sports betting revenue grew 62%. However, it reported a R300 million loss as it continues to invest in growth.

How Multichoice makes money

The chart below shows MultiChoice’s main revenue streams and how it spends this money.