MultiChoice’s big DStv plan

MultiChoice has ambitious plans to enhance its core value proposition for subscribers and adapt to the shift to streaming through DStv Stream and Showmax.

MultiChoice is Africa’s leading entertainment provider, offering entertainment and consumer services to 14.5 million subscribers across sub-Saharan Africa.

Its core offerings include direct-to-home (DTH) satellite broadcast, digital terrestrial television (DTT) broadcast and over-the-top (OTT) video entertainment streaming services.

It continues to dominate the South African and African pay-TV market through its DStv offerings, which include the world’s best sports offerings through SuperSport.

However, MultiChoice has faced challenges in recent years due to increased competition from streaming services like Netflix and a challenging macroeconomic environment.

It resulted in its linear pay-TV subscriber base declining by 8% over the last year, from 14.9 million to 14.5 million.

In South Africa, DStv subscribers declined from 7.6 million to 7.0 million, and in the Rest of Africa region, it shrank from 8.1 million to 7.5 million.

“The pressure was mainly due to a weak consumer environment across markets,” MultiChoice explained in a statement.

The good news is that the rate of subscriber decline has decelerated, which means that the company’s strategy to stem cord-cutting is bearing fruit.

MultiChoice Group CEO Calvo Mawela said they remain focused on being Africa’s entertainment platform of choice.

“Our strategy is shaped by developments in our industry, such as changes in technology, which are driving shifts in consumer behaviour,” he said.

MultiChoice has also worked on minimising the impact of the rise in piracy, streaming services, and social media.

He highlighted the group’s ability to adapt to these changes in the global video entertainment landscape, with new products and services delivering strong growth.

Revenue from DStv Internet grew by 85%, KingMakers by 76%, and DStv Stream by 48%. Showmax’s active paying customers increased by 44% year-on-year.

Big plans to improve DStv value proposition

In its latest annual report, MultiChoice said it focuses on delivering value to its customers by ensuring they get access to the best content.

It stated that the South African business continues to test upgrade strategies, such as tier-downs of sports and entertainment content.

These campaigns form part of MultiChoice’s plan to enhance the average revenue per user (ARPU) by improving its core value proposition.

This includes embracing the shift to streaming through DStv Stream and Showmax and offering additional value-added services, such as DStv Internet and insurance products.

MultiChoice highlighted that local content remains a key differentiator for its DStv and Showmax video entertainment products.

It added over 5,340 hours of local content over the last year, bringing the total local content library to more than 91,470 hours.

Sport also plays a critical role in DStv’s content offering. SuperSport broadcast 47,839 hours of live coverage and produced 1,029 live events.

SuperSport Schools continue to redefine the landscape of school sports broadcasting. Its app saw 46% growth in registered users, reaching 1.2 million.

The platform reached 11 million unique viewers through the app and Channel 216 on DStv, delivering over 50,000 hours of new content.

MultiChoice South Africa is focused on subscriber retention and win-backs and is identifying remaining growth opportunities.

“To enhance its value proposition, the business tiered down certain channels, reintroduced the second concurrent stream at no extra cost,” it said.

It also entered into new strategic partnerships with Capitec, MTN and PEP to expand its market presence.

MultiChoice has also formed strategic partnerships with telecommunications companies to bundle its Showmax and DStv Stream services with data, making them more affordable.

“Our top priority remains offering South African audiences the best in local and international storytelling, along with world-class sports coverage,” it said.