DStv loses 900,000 subscribers as Netflix and other streaming platforms get new subscribers; Here’s what’s happening

MultiChoice is facing financial difficulties following heavy losses of subscribers, according to its 2024 annual report.

Subscriber bases dropped from 3 million to 26.4 million, with a loss of approximately 900,000 subscribers across all regions.

DStv offers various pay TV tiers to its subscribers on the African continent, such as DStv Premium, Compact Plus, Compact, Family and other packages.

The company faces increasing competition from global giants such as Netflix and Amazon Prime, which offer a wide range of services at competitive prices.

Phumzile Ntuli, a former subscriber, expressed her dissatisfaction with DStv’s prices.

“I canceled my DSTV subscription because they often increase the price of the package without offering enough content for us to watch. I felt it was unfair”, and has since moved to platforms such as Showmax, also owned by MultiChoice, and Netflix, which it deems economically viable.

Sphesihle Nkosi shared similar views, pointing out that DStv increases its prices every year without adding programs or movies.

“Their prices keep going up but they don’t give us anything new to look at and just repeat the contents of their packages.

“We still watch TV series and movies that were released or released in 2013, but we pay a lot of money for them. ”

These sentiments show that more and more customers are choosing these services because they are convenient, affordable and offer a wide range of options.

 

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Photo Credit: DSTV

It is preferred with its channels, wide library of movies, series and original works, such as Showmax, Netflix and Amazon Prime, and appeals to different tastes at competitive prices.

In an interview with Jimmy Moyaha, MultiChoice Chief Financial Officer Tim Jacobs acknowledged the challenges we faced throughout the fiscal year. Jacob said, “We have seen that the situation is very bad. We have been suffering from basic food shortages in some African countries for some time.”

Jacobs acknowledged the challenges faced by rivals such as Disney+ and Netflix on DStv. He said: “DStv has a lot of video subscribers. So if you have a challenging environment, we expect our business to do poorly.” He has, however, continually made efforts to transform DStv’s offerings in response to the changing digital landscape.

MultiChoice’s financial statements for the year ended 31 March 2024 showed it recorded R4. 1 billion lost and became technical. MultiChoice reported a 9% decline in active subscriptions, mainly due to a 13% decline in the rest of Africa and a 5% decline in South Africa.

Showmax, which was relaunched in February, saw a 16% increase in the number of paying subscribers from abroad. The combination of exchange rate fluctuations and lower subscriptions caused group turnover to fall by 5% to 56 billion.

Weakening customers and exchange rate pressures affected the group’s trading profit, which fell 21% to R7. 9 billion. These numbers only tell part of the story. The company’s latest earnings report clearly shows poor performance.

MultiChoice’s loss for the year increased by R2. From 9 billion to 4.1 billion, a 42% decrease. This is the worst performance ever.
More about how the owner of DStv got the know-how.

MultiChoice’s total assets decreased from 47. 6 billion increased to 43.9 billion and debts increased to 45 billion. This leaves MultiChoice with balance R1. 068 billion, so he can’t pay. In short, MultiChoice cannot pay all of its debts if all its assets are liquidated. This is an embarrassing situation for the company. One of MultiChoice’s biggest problems is its long-term debt, which rose from $8 billion to $12 billion last year.

MultiChoice announced the completion of the R12. 0 billion mortgage loan to finance the proposed set of projects.

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