DStv Stream and Showmax enjoy strong growth

MultiChoice’s streaming platforms, Showmax and DStv Stream, have grown strongly over the last year.

Globally, pay-TV operators have seen a significant decline in their linear TV subscribers as they move to streaming services like Netflix.

Known as cord-cutting, cable and satellite TV providers have lost over 20 million subscribers in the United States over the last decade.

The latest research reveals that there are expected to be 80 million cord-cutting households in the United States by 2026.

Although DStv has been more resilient than most of its global counterparts, it is not immune to the cord-cutting trend.

MultiChoice lost 1.8 million DStv subscribers over the last year. Challenging macroeconomic conditions and lower discretionary consumer spending fuelled the decline.

The company has launched two streaming platforms to counteract the cord-cutting trend and create new revenue streams – Showmax and DStv Stream.

MultiChoice’s financial results for the six months that ended 30 September 2024 showed that its streaming platforms are gaining traction.

Showmax, which positions MultiChoice to participate in the streaming revolution, reported 50% year-on-year growth in its paying customer base.

This growth is expected to accelerate over the next year as many of its strategic initiatives start to bear fruit.

It includes an enhanced content line-up, bedding down distribution partnerships, expanding payment channel integrations, and refining its go-to-market strategy.

MultiChoice is also continuing to invest heavily in Showmax to establish it as the leading streaming platform in Africa.

It said Showmax Originals continued to excel, engaging viewers and earning local and international accolades.

Showmax local content received over 118 South African Film and Television Awards nominations, the most of any streaming platform.

It also added the current Premier Soccer League season in South Africa to the Premier League mobile-only Showmax product for free in September 2024.

The DStv Stream and Extra Stream base was down 2% year-on-year on a combined basis, given the elevated base in 1H FY24 due to the Rugby World Cup.

However, user activity was supported by a 95% increase in combined revenues in 1H FY25 through rebranding and upgrades to the DStv Stream user experience.

DStv Internet, closely linked to DStv’s streaming services, has also enjoyed significant growth over the last year.

The table below provides an overview of the growth of DStv Stream, Showmax, and DStv Internet over the last year.