MultiChoice is reportedly considering the unbundling of SuperSport from its existing DStv offering in a bold move to reclaim its position in the competitive pay-TV landscape, Cape {town} Etc reports
This strategic inquiry comes as the company grapples with a substantial decline in subscribers, losing 1.2 million linear DStv customers in the past financial year alone.
MultiChoice’s exploration of this option aims not only to address the escalating challenges posed by streaming giants like Netflix and Disney+ but also to potentially rejuvenate subscriber numbers with a more flexible package structure.
Currently, the proposed changes suggest a revamped approach to DStv’s customer offerings. Instead of providing a comprehensive sports package, MultiChoice envisions a tiered entertainment plan.
This model would allow viewers to purchase a more affordable basic entertainment package and subsequently add their preferred sports content, such as cricket or football, as optional extras.
Although this strategy does not immediately create a fully-fledged sports-only packagelong sought after by devoted sports fans, it does represent a significant shift towards a more customer-centric model.
Calvo Mawela, CEO of MultiChoice Group, acknowledged the ongoing challenges that have beset the company, highlighting the combined effects of macroeconomic pressures, currency fluctuations, and rising piracy in the video entertainment landscape.
‘Our performance reflects both the challenges we’ve faced and the resilience of our teams,’ Mawela stated.
He affirmed the company’s commitment to being ‘Africa’s entertainment platform of choice,’ emphasising its adaptability in the face of shifting consumer behaviours and advancing technology.
Despite these challenges, MultiChoice has demonstrated an ability to grow in other areas of its business. The Group reported an impressive 85% revenue increase from DStv Internet, along with significant growth in KingMakers at 76% and DStv Stream at 48%.
Moreover, Showmax, the Group’s flagship streaming service, saw a notable increase of 44% in active paying customers year-on-year. These developments highlight an encouraging pivot towards new growth trajectories as traditional revenue streams from linear DStv subscriptions continue to wane.
As the investigation into the unbundling of SuperSport unfolds, the focus remains on redefining the customer experience and ensuring that MultiChoice can retain and attract subscribers amidst fierce competition.
With many viewers shifting to streaming platforms that offer tailored content at competitive prices, the success of this strategy may ultimately rest on MultiChoice’s ability to leverage its established brands while innovating to meet evolving consumer expectations.
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MultiChoice faces subscriber exodus as South Africans cut the cord
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