DStv has confirmed a significant subscriber drop in South Africa, losing over 500,000 customers after raising its subscription fees.
According to MultiChoice Group’s recently released annual financial results, the company shed 1.2 million subscribers across all its markets over the past year. South Africa alone accounted for nearly half of the total decline, translating to an 8% year-on-year reduction in its user base.
Currently, MultiChoice serves 14.5 million active customers, with losses evenly split between South Africa and the broader African region. Company executives noted that the downward trend was observed across all customer segments, with no group spared.
MultiChoice pointed to South Africa’s tough economic climate as a key reason behind the drop in viewership.
“Many households are under significant financial strain and are cutting back on non-essential spending, including pay-TV subscriptions,” a spokesperson explained.
DStv Sees Major Subscriber Losses Amid Price Increases
Digital Services Continue to Expand
Despite the dip in traditional subscribers, MultiChoice’s digital offerings showed solid growth:
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DStv Stream saw a 38% increase in users, along with a 48% rise in revenue
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Extra Stream subscribers jumped by 25%, with revenue nearly tripling
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DStv Internet experienced a 45% growth in subscriptions, boosting income by 85%
Although subscription prices were raised by an average of 5.7% to counteract inflation, overall subscription revenue declined by 3%. However, the company saw a 17% increase in hardware sales due to adjusted pricing strategies.
Among other notable developments, MultiChoice is currently engaged in acquisition discussions with France’s Groupe Canal+, with a proposed offer of R125 per share.
The company also reported a return to profitability, recording a net income of R1.8 billion. This turnaround was largely driven by cost-cutting measures and the sale of its insurance business to Sanlam. MultiChoice says it remains focused on adapting to shifting consumer behavior by investing in digital and streaming services.
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