DStv PRICES INCREASE

Photo: File

DStv versus Netflix: Multichoice cry foul over online market

Multichoice CEO has some fighting words for online competitors Netflix.

DStv PRICES INCREASE

Photo: File

Multichoice South Africa CEO Calvo Mawela came out swinging against chief online competitors, Netflix, in an interview on SABC News. Mawela said the online entertainment giant has an unfair advantage over DStv, one which is threatening local Pay TV’s survival.

As reported by Business Tech, although Mawela says he is not afraid of competition in the online entertainment industry, he points to rapidly declining DStv subscriber numbers as troubling.

Read: Why DSTV does not allow you to pick your preferred channels

He took shots at Netflix, accusing them of being unregulated in South Africa, saying:

“They do not pay a cent in this country for tax. They do not pay income tax.”

He also begrudged Netflix’s employment bias, saying:

“[Netflix do not employ locals], that, we think, is an unfair advantage.”

‘Level the playing field’ – Multichoice to ICASA

Mawela complained bitterly about the Independent Communications Authority of South Africa (ICASA). Particularly about the transition regulations between Pay TV and online, in which ICASA has requested the former to share content with a third-party platform.

Netflix, which spends $8 billion annually, is not at held to the same account, with Mawela chiming in:

“That gives them a nice advantage to capture the audience. You are strangling us more and more, while you are giving them free rein”

DStv losing premium subscribers at a record rate

The figures do not lie. In the past year alone DStv has lost 100,000 premium subscribers, which has, in turn, impacted greatly on revenue. Mawela blames Netflix.

In truth not all the blame can be put on Netflix however; yes they do offer a far superior service for online users, but DStv has repeatedly been accused of being a monopoly in South Africa.

Mawela defended DStv against accusations of monopolising the Pay TV market by saying:

“We are giving entertainment for the whole family.”

On the issue of subscribers not being able to pay for specific channels they want, Mawela said:

“The model doesn’t work.”

Mawela is calling on ICASA to hold Netflix to account with its operations in South Africa.