“Problem, what problem?” – That was the message coming across from the MultiChoice Group this week, as they launched their investor presentation on Wednesday. Figures shared with potential backers on the roadshow claim that DStv is faring much better in Africa than Netflix is.
As MyBroadband report, the group includes the likes of MultiChoice South Africa, MultiChoice Africa, and Showmax.
The online streaming service has long been marked as the biggest challenge to the organisation’s monopoly on the TV market. More people are migrating away from traditional media and committing to digital forms of entertainment. However, these fears were dismissed in bombastic fashion by DStv executives.
The company is going to be floated on the Johannesburg Stock Exchange (JSE) for the first time in its history. As they pull out all the stops to sell their brand before going live on 27 February, they’re also not afraid to tear down others in the process. The group lead with these points to show investors they’re ahead of the curve:
Meanwhile, South African Market Insights (SAMI) told us that this is perhaps the best time for Naspers to make this move. While subscriber numbers are up, their total revenue growth has limped along at a slow pace. They also estimate that MultiChoice will be worth R211 a share when they go public.
The move is expected to help the company provide more quality content to its base, as well. By floating the shares on the JSE, an increase in net worth will allow MultiChoice to spend more money on quality programming and it gives them space to further enhance their streaming services. One thing is clear: These guys aren’t running scared of Netflix.