As uncapped broadband becomes cheaper and streaming services grow in popularity, more people in South Africa and Nigeria are moving away from DStv. According to MultiChoice’s latest annual report for the year ending 31 March 2024, DStv’s subscriber base in South Africa dropped from 8.0 million to 7.6 million over the past year.
Although South African subscribers represent just 48.5% of MultiChoice’s total customer base, the country remains a crucial market, generating 60% of the company’s overall revenue.
This makes South Africa the cornerstone of MultiChoice’s operations, and any decline here has significant financial implications. However, the numbers suggest that the company is facing a growing challenge to retain its South African subscribers, as more people abandon DStv services.
The report reveals a consistent downward trend across all subscriber segments. Overall, the number of active subscribers in South Africa decreased from 8.0 million to 7.6 million, while the broader 90-day active user base also fell, dropping from 9.3 million to 8.6 million. Worryingly, this decline affected every segment of the DStv user base:
DStv Premium: saw an 8% decline year-over-year.
The mid-market segment contracted by 9%.
Even the mass market, typically more stable, dropped by 1%.
This widespread subscriber loss points to a fundamental shift, with no clear solution to reverse the trend or lure back customers.
In response, MultiChoice attributed the subscriber exodus to a combination of external factors: the tough economic climate, growing financial pressures on consumers, the rising cost of living, and increased interest rates. The company also cited ongoing load-shedding as a major hurdle, explaining that the frequent power outages make customers hesitant to reconnect their service. These challenges, it said, resulted in lower viewership and a decline in overall user activity.
Yet, despite these explanations, the reality remains stark: MultiChoice is losing customers, and its excuses aren’t cushioning the financial blow. The company’s financial statements for the year ending in March 2024 reveal it posted a significant R4.1 billion loss, highlighting a deeper issue. This financial performance has pushed the company into a precarious position, leaving it technically insolvent.
In an era where streaming services offer more flexible, affordable, and user-friendly alternatives, it’s becoming increasingly difficult for traditional pay-TV operators like MultiChoice to stay competitive. Without a solid strategy to adapt to these new market dynamics, the company may continue to see its subscriber base—and its profits—dwindle.