DSTv has reported that it lost over half a million subscribers in South Africa after it increased its subscription prices.
MultiChoice Group has disclosed its annual financial performance, showing a significant reduction of 1.2 million subscribers across its operations. South Africa accounted for half of these losses, marking an 8% year-on-year decrease in its customer base.
The pay-TV giant now serves 14.5 million active users, with equal reductions occurring in both its domestic and pan-African markets. Company officials stated the downward trend affected all consumer segments without exception.
DSTv Loses Half A Million Subscribers in South Africa
MultiChoice identified South Africa’s challenging economic environment as the primary factor behind the decline in subscriptions.
“The current financial pressures on households have forced many families to prioritize essential spending, making discretionary expenses like pay-TV subscriptions untenable,” explained a company representative.
ALSO READ: DStv Loses 1.2 Million Subscribers In Just 12 Months, Blames Powercuts & Inflation
DSTv Reports Profits And Growth Despite Losing Subscribers
Contrasting the overall subscriber decline, MultiChoice’s digital platforms demonstrated impressive expansion:
- DStv Stream users increased by 38%, with corresponding revenues up 48%
- Extra Stream service grew its user base by 25%, nearly tripling its revenue
- DStv Internet subscriptions surged 45%, generating 85% higher income
Despite implementing a 5.7% average price increase to offset inflationary pressures, MultiChoice saw a 3% drop in subscription revenue. However, hardware sales improved by 17% following strategic pricing adjustments.
ALSO READ: DStv May Soon Let You Drop Sports Channels as MultiChoice Eyes Shake-Up
The company reported several key developments, including acquisition talks with France’s Groupe Canal+ at R125 per share and a return to profitability with R1.8 billion net income
MultiChoice attributed its financial turnaround to operational cost reductions and the profitable divestment of its insurance division to Sanlam. The company continues to navigate challenging market conditions while transitioning toward digital streaming solutions.
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