DStv Suffers Subscriber Slump: What's Happening at MultiChoice?
Colaboradores
MultiChoice Group, the parent company of DStv, is facing significant challenges as it reported a loss for the year ending March 31, 2025. The pay-television broadcaster revealed a decline of 1.2 million linear broadcasting subscribers, representing an 8% year-on-year decrease. This paints a concerning picture for the company amidst increasing competition and economic pressures.
Currently, MultiChoice boasts 14.5 million active subscribers. The subscriber losses are evenly distributed between South Africa and the rest of Africa, indicating a widespread issue affecting the entire customer base. MultiChoice acknowledged the challenges in a statement to investors, noting, "Although reflecting an improvement on FY24 trends, this indicates ongoing broad-based pressure across the group’s entire customer base."
The company attributes these poor financial results to a combination of factors, including fierce competition from streaming giants like Netflix and a generally weak consumer spending environment across its operating markets. They describe these challenges as "unprecedented headwinds." Furthermore, the rise of piracy and the growing popularity of social media as entertainment sources are contributing factors.
Adding to the company's woes, the depreciation of African currencies against the US dollar has had a substantial negative impact. Over the past two years, this depreciation resulted in a R10.2-billion dent in MultiChoice's revenue. The company has lost 2.8 million linear (broadcast) subscribers during the same period.
Despite efforts to mitigate the negative impacts, including raising prices to keep pace with inflation, MultiChoice's full-year results remain deeply in the red. The group's cash position has also deteriorated significantly, experiencing free cash outflows of approximately R500-million compared to an inflow of R600-million the previous year.
Amidst these difficulties, MultiChoice is working to finalize the sale of the business to Groupe Canal+. The French broadcaster's offer of R125 per share has helped to maintain MultiChoice's share price.
What does this mean for DStv subscribers?
The subscriber decline signals a shift in the entertainment landscape, with more viewers opting for alternative streaming services. MultiChoice needs to adapt quickly to retain its existing customer base and attract new subscribers. It remains to be seen how the acquisition by Groupe Canal+ will impact the future of DStv and its offerings in South Africa and across Africa.