More than 400,000 people in South Africa have dumped DStv, MultiChoice’s annual report shows. The report showed that the pay channel’s subscribers had declined to 7.6 million in the year ended 2023/24, compared to 8 million in the previous financial year.
It seems that more and more South Africans are letting go of their DStv contracts as they move to more affordable uncapped internet solutions and other streaming services like Showmax, Netflix and Disney+.
According to MultiChoice’s annual report for the year ended 31 March 2024, active DStv subscribers in SA declined from 8 million to 7.6 million over the last year.
“Active subscribers declined from 8.0 million to 7.6 million, while the 90-day active base reduced from 9.3 million to 8.6 million,” MultiChoice noted.
This means that the company has lost around 400,000 subscribers this last financial year.
South Africa accounts for 48.5% of MultiChoice’s active subscribers and makes up around 60% of the company’s revenue.
The 2024 financial results also noted that MultiChoice recorded a R4.1 billion loss and therefore has become technically insolvent.
The business was hit with a 9% decline in active subscribers, mainly due to a 13% decline in the Rest of Africa business and a 5% decline in South Africa.
Investing in Showmax’s streaming services
Last week, MultiChoice said it and NBCUniversal Media (NBCU) had since April 1, 2024, substantially ramped up their investment by R2.83 billion to make Showmax the leading streaming service in Africa.
The two companies had provided R2.07 billion in equity funding over a year, each in proportion of their respective shareholdings, to develop Showmax’s services.
MultiChoice had entered into an agreement with Comcast Corporation (Comcast), a subsidiary NBCU and Sky in March 2023 to form a partnership with the aim of driving Showmax to become the leading streaming service in Africa.
NBCU acquired a 30% equity stake in Showmax Africa Holdings (SMAH), and provided support through the licensing of its Peacock platform and content from NBCU, Universal Pictures, Peacock and Sky.
MultiChoice, through a subsidiary, MultiChoice Group Holdings, and Comcast, through NBCU, were providing funding to SMAH during its investment phase.
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