MultiChoice bleeds subscribers as 400 000 more say goodbye

MultiChoice has recorded a 9% year-on-year slump in subscribers as it battles difficult trading conditions in SA and the rest of Africa.

As streaming platforms continue to gain popularity worldwide, SA audiences are increasingly turning away from DStv Premium subscriptions. Image via Multichoice

MultiChoice Group has recorded a 9% year-on-year slump in active subscribers as the JSE-listed broadcaster battles difficult trading conditions in South Africa and the rest of Africa.

According to Duncan McLeod of Tech Central, the ‘rest of Africa’ business, which excludes South Africa, saw a 13% fall in subscriber numbers year-on-year.

The worst performances came from its Nigeria, Angola and Zambia operations.

MultiChoice subsciber base dropped by 400 000

The South African business was more resilient, declining by ‘only’ 5%, MultiChoice confirmed when releasing its annual results for the year ended 31 March 2024.

The South African subscriber base stood at 7.6 million households at the end of March 2024.

That is down 400 000 subscribers from 12 months ago.

The Premium tier, which includes the DStv Premium and Compact Plus bouquets, declined by 5%, continuing the group’s struggle to hold on to its more affluence customers.

This latest drop in DStv Premium subscribers follows declines of 6% in the same group in both the 2022 and 2023 periods.

MultiChoice laid part of the reason for the drop at the door of severe load shedding during the reported period which “further discouraged potential subscribers” from signing up.

The decline in subscription revenue and softer advertising income weighed on the segment’s total revenue which was down 2% to R33.6 billion.

“Four years after setting out a clear strategy of building Africa’s entertainment platform of choice and investing in services to support a broader ecosystem, our three core segments are now fully operational: video entertainment, interactive entertainment and fintech. Our focus now shifts to building on these solid foundations to drive growth in these new areas, and on further enhancing business efficiency across our operations.

While we are not alone in feeling the challenges of a weak consumer environment, I am proud of the speed and effectiveness of the team in implementing strategic actions to retain customers, safeguard cash generation and drive costs savings which surpassed our targets. It is the strength of this team, the quality of the underlying business and the clarity of our strategy which underpins my confidence in delivering on our potential,” said Calvo Mawela, MultiChoice Group CEO.

Download the full document: https://apo-opa.co/4cj3eXQ

Depending what you read – and who you believe – the MultiChoice Group is in the process of being acquired by France’s Groupe Canal+.

Meanwhile, as reported by The South African website, a Nigerian consumer tribunal has fined the local unit of Africa’s biggest pay-TV company MultiChoice Group, 150 million naira (R1.77 million) for contempt of court and ordered the company to offer its subscribers one month of free service.