MultiChoice plans to tackle the decreasing number of DStv Premium customers
South Africans are turning their backs on DStv…
It’s no secret that MultiChoice and its DStv service have been hit hard by the introduction and popularity of Netflix in South Africa. With customers turning their backs on DStv Premium, the company has discussed plans to turn things around.
MultiChoice and the issue of DStv
Multichoice South Africa CEO Calvo Mawela recently revealed that the company was feeling rather worried by Netflix and the “unfair advantage” it had in the South African landscape. While the DStv subscriber base is growing overall, the number of Premium subscribers is down.
Read: What’s new on Netflix South Africa in July?
With an overall growth from 11.942m to 13.476m, Premium subscribers reduced from 1.962m to 1.921m, 41 000 less.
For MultiChoice, this means that there is a decline in the average revenue per customer from R353 per month to R344.
While SuperSport remains the company’s biggest asset, Mawela believes that Premium is not expensive “in terms of the full entertainment package”.
With English Premier League matches all being shown in South Africa, UK pay-TV subscribers are unable to get all the matches.
According to Mawela, once someone switches to a streaming service, they do not return to broadcast TV.
Fight Back
So what is the solution for MultiChoice? Apparently, a standalone DStv streaming service is the answer. No, that would not be Showmax.
Mawela says that the company has begun to move towards offering a streaming-only package. The biggest obstacle still to overcome? Securing the streaming rights for all the entertainment content on DStv.
Read – DStv versus Netflix: Multichoice cry foul over online market
During the end of 2018, MultiChoice finally secured the rights for every channel on the service. This means customers can stream all channels on DStv Now
MultiChoice has also appealed to ICASA to not over-regulate the pay-TV service as any step too far could kill the business. Mawela warns that if such regulations are made, South African jobs will be lost to international streaming giants like Netflix and Amazon.
