In light of rising competition from pay-TV services like Netflix, Disney+, and Prime Video, MultiChoice is reevaluating its content offerings for DStv to enhance its competitive edge.
This growing competition was underscored in a discussion paper by the Independent Communications Authority of South Africa (Icasa), indicating that DStv is losing customers to various over-the-top (OTT) streaming platforms.
Commenting on this, Byron du Plessis, CEO of MultiChoice South Africa, stated, “Our executive team has been consistently discussing ways to reimagine our market approach. This encompasses how we serve our customers and adjust to the ongoing trends that will shape our future. To ensure our continued success, we must adopt a different mindset than in the past.”
In response to the rising trend of cord-cutting—where subscribers cancel traditional pay-TV in favour of Internet streaming—MultiChoice has launched its own OTT service, DStv Stream.
Current subscribers of the linear TV service can access this for free, while various OTT-only packages are available at discounted rates. Du Plessis highlighted that the platform has seen a remarkable 71% growth year-on-year, with the company’s September 2024 results boasting an average of 150 million monthly views.
DStv’s stronghold in South Africa is significantly attributed to its exclusive sports content, as MultiChoice can afford to acquire rights to popular football, rugby, and cricket broadcasts—deemed the country’s most sought-after sports.
“SuperSport continues to be a vital part of our business, and our capacity to deliver sports moments, both on traditional and streaming platforms, is a key selling point of our service,” Du Plessis added.
Sports broadcasting rights are typically sold exclusively as these packages generate substantial revenue for sports organizations, which is essential for player compensation and developmental investments.
Icasa has not definitively established whether DStv’s dominance is a result of a lack of competitive bidding or its ability to outbid rivals.
Despite its strong position, the evidence cited by Icasa indicates that several of DStv’s competitors can still thrive without hefty investments in expensive sports content. OTT platforms like Amazon and DAZN are among those vying with DStv for sports rights, with DAZN previously successfully acquiring IPL rights.
DStv faces intensifying competition in the linear TV sector, with Openview, its primary broadcasting rival, boosting its viewers by over 3 million in the past nine years.
Openview, a free-to-air satellite television service owned by eMedia, offers users access to 20 channels. Since its launch in October 2013, its subscriber count surged from 112,715 in 2015 to 3,428,523 by March 2024.
While Openview is not a direct competitor to DStv as a non-subscription service, Icasa sees it as a potential alternative for DStv subscribers. Although customers might be hesitant to switch broadcasters due to the expense of acquiring a new decoder, Openview’s impressive growth suggests otherwise.
According to Remgro’s financial results, eMedia grew its user base by 262,000 in just one year—averaging 22,000 new activations per month for the year ending March 2024.
