According to industry reports, MultiChoice has recalibrated its approach and initiated new business ventures to generate revenue, adapt to economic fluctuations, and thrive in a competitive media environment.
For two decades, MultiChoice’s DStv service has been the leading player in the South African pay-TV market, thanks to its premier sports offerings and top-notch entertainment that have made it a staple in many households.
However, the emergence of the internet has altered the landscape dramatically. Streaming platforms like Netflix have disrupted traditional pay-TV operators, allowing viewers to access sports and entertainment online for free.
This shift has contributed to a global trend known as cord-cutting, which has particularly affected pay-TV subscriber numbers. The United States, being Netflix’s home ground, exemplified this decline.
In the past ten years, cable and satellite TV providers in the U.S. have lost over 20 million subscribers, a trend that shows no signs of slowing down.
The demographic most affected by this shift is young adults aged 18 to 29, who have embraced streaming from an early age.
The situation has been even more challenging for MultiChoice than for U.S. competitors. In addition to facing fierce competition, the company grapples with a sluggish economy and ongoing load-shedding issues.
As local households tighten budgets, many opt to forgo pay-TV and other subscription services.
Despite these hurdles, MultiChoice has shown remarkable resilience compared to other global pay-TV providers.
The company reported a 3% organic increase in group revenue and a 2% rise in subscription revenue. Group trading profit experienced a remarkable 24% organic increase.
However, the difficult environment led to a 9% drop in active subscribers, driven primarily by a 13% decline in the Rest of Africa. The South African market faced a smaller decline of only 5%.
Recognising the need for transformation, MultiChoice has pivoted toward becoming a modern entertainment powerhouse rather than merely a pay-TV provider.
The launch of Showmax 2.0, SuperSportBet, and Moment reflects their commitment to diversifying revenue and enhancing future growth opportunities.
According to MultiChoice CEO Calvo Mawela, these initiatives aim to establish the company as Africa’s preferred entertainment platform.
“Our three core segments are now fully operational: video entertainment, interactive entertainment, and fintech,” he noted.
The focus is now on leveraging these strong foundations to foster growth in new areas and improve operational efficiency.
The company significantly emphasises producing original content in Africa to retain DStv subscribers and expand the Showmax user base.
As the continent’s largest producer of original content, MultiChoice has created over 6,500 hours of local programming in the past year, yielding a library of more than 84,000.
SuperSport, its sports broadcasting arm, presented 34,490 live events over the past year, surpassing any other broadcaster globally in terms of live sports coverage.
SuperSport Schools’ user base has more than doubled, and the company has showcased over 49,000 hours of live programming across 43 different sports categories.
MultiChoice enjoys a competitive advantage over international rivals with exclusive sports rights and original content.
However, content is just one piece of the puzzle. MultiChoice has expanded its offerings to incorporate technology solutions, sports betting, and fintech services.
Irdeto, MultiChoice’s technology platform, has a 22% market share and is the leading market player in managed video security services.
Irdeto’s revenue grew by 17%, propelled by external clients in video entertainment, gaming, and connected transport sectors.
The company’s sports betting division, KingMakers, reported impressive growth in its online business in Nigeria, boasting a 37% increase in monthly active users.
In January 2024, KingMakers launched the SuperSportBet service in South Africa, becoming the official betting partner for the local soccer clubs of Kaizer Chiefs and Orlando Pirates.
MultiChoice’s fintech platform, Moment, has played a crucial role in the relaunch of Showmax, effectively addressing significant payment gaps.
While video entertainment remains the cornerstone of MultiChoice’s operations, the company is rapidly broadening its product offerings.
