With the rising cost of living coupled with a high unemployment rate and more hours without electricity, many consumers are terminating their pay TV subscriptions while others are downgrading to more affordable packages.
This week MultiChoice said it lost more than 100,000 subscribers at the end of March, adding customers are more selective when they sign up to avoid periods of excessive load-shedding.
MultiChoice has 9.3-million subscribers in South Africa with 57% of those subscribed to the cheaper packages such as Family, Access and EasyView.
The company said electricity blackouts have had a negative impact on its South African subscriber base and activity levels, with a noticeable affect when load-shedding reaches stage 4 and above, “even when consumers have disposable income” .
Its premium segment, which includes Compact Plus packages, recorded a 6% decline in subscribers to 1.3-million but MultiChoice CEO Calvo Mawela said the losses are slowing down.
“It is plateauing. We managed to arrest (the decline) to reasonably levels,” he said.
The premium segment, which costs about R900 per month, has been on a downward trend for a number of years as consumers switched to international streaming platforms. However, Mawela said eight out of 10 people on streaming platforms have kept their DStv subscription.
The hardest hit DStv segment is the mid-market, which includes Compact, while the mass market continues to demonstrate room to grow, said Mawela.
“The mid-market has been the most exposed to the macroeconomic pressures.”
The changing mix of subscribers, combined with the lower level of subscriber activity, resulted in monthly average revenue per user (ARPU) declining 5% from R269 to R256.
As the South African business matures, MultiChoice is focusing on generating additional revenue streams in areas such as sport betting, insurance and internet service to counteract declining ARPU and margin pressure.
MultiChoice will also relaunch the new-look Showmax following a partnership with international production group NBCUniversal Media. Showmax competes directly with Netflix, Disney and Amazon Prime Video.
The company said: “The exciting launch of new products and price points are set for Showmax to show strong future growth.”
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MultiChoice loses more than 100,000 subscribers as economy and load-shedding bite
Image: Picture: 123RF/SERGEY RUSULOV
With the rising cost of living coupled with a high unemployment rate and more hours without electricity, many consumers are terminating their pay TV subscriptions while others are downgrading to more affordable packages.
This week MultiChoice said it lost more than 100,000 subscribers at the end of March, adding customers are more selective when they sign up to avoid periods of excessive load-shedding.
MultiChoice has 9.3-million subscribers in South Africa with 57% of those subscribed to the cheaper packages such as Family, Access and EasyView.
The company said electricity blackouts have had a negative impact on its South African subscriber base and activity levels, with a noticeable affect when load-shedding reaches stage 4 and above, “even when consumers have disposable income” .
Its premium segment, which includes Compact Plus packages, recorded a 6% decline in subscribers to 1.3-million but MultiChoice CEO Calvo Mawela said the losses are slowing down.
“It is plateauing. We managed to arrest (the decline) to reasonably levels,” he said.
The premium segment, which costs about R900 per month, has been on a downward trend for a number of years as consumers switched to international streaming platforms. However, Mawela said eight out of 10 people on streaming platforms have kept their DStv subscription.
The hardest hit DStv segment is the mid-market, which includes Compact, while the mass market continues to demonstrate room to grow, said Mawela.
“The mid-market has been the most exposed to the macroeconomic pressures.”
The changing mix of subscribers, combined with the lower level of subscriber activity, resulted in monthly average revenue per user (ARPU) declining 5% from R269 to R256.
As the South African business matures, MultiChoice is focusing on generating additional revenue streams in areas such as sport betting, insurance and internet service to counteract declining ARPU and margin pressure.
MultiChoice will also relaunch the new-look Showmax following a partnership with international production group NBCUniversal Media. Showmax competes directly with Netflix, Disney and Amazon Prime Video.
The company said: “The exciting launch of new products and price points are set for Showmax to show strong future growth.”
TimesLIVE
Support independent journalism by subscribing to the Sunday Times. Just R20 for the first month.
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