Media company Multichoice reported that close to half a million South Africans have unsubscribed from their pay-TV and DStv in their latest financial report.
The company recorded an additional R1,8 billion in losses in a six-month period ending in September 2024, a 50% loss compared to the same period last year.
In June, Multichoice claimed it had experienced its “worst financial year” to date.
MULTICHOICE REPORTS MASSIVE DSTV LOSS
According to BusinessTech, Multichoice reported that their group revenue was down 11% to R24.8 billion, with operating profit down 49% to R2.45 billion. To make matters worse, 1.8 million subscribers – 400,000 of whom are South Africans – have unsubscribed to the DStv pay channels.
The report attributed the loss to “unprecedented foreign exchange pressures and economic challenges in key markets.”
Moneyweb has claimed that over 1 million South Africans have ditched DStv in the last four years, and even more are expected to do so in the near future.
Despite the decline, My Broadband reports Multichoice’s DStv Internet product offering had surprisingly seen 85% year-on-year revenue growth, making it the highest of all the media giant’s new business operations.
Nevertheless, Multichoice claimed that it was “on track” with its cost-reduction program, which it believes will save it over R2 billion by the next financial year.
MultiChoice Group CEO Calvo Mawela said: “We expect to return to a positive net equity position by the end of November this year, supported by a number of developments and initiatives.
WHY ARE SOUTH AFRICANS UNSUBSCRIBING?
On the X platform, South Africans were unsurprised to hear that Multichoice had lost even more paying customers.
Over the years, many viewers have dumped their DStv subscriptions – for good – for various reasons, including a lack of affordability.
According to social media commentary, there are several reasons why…
Premiums are too high
The cheapest DStv package – Access, is R139 per month for 66 channels – while the full bouquet of Premium is the most expensive at R929 per month for 135 channels. This does not include the price of additional decoders or insurance.
They cannot choose their own channels
Many former DStv subscribers complained that the packages on offer were not tailored to their individual viewing needs.
Too many repeats and not enough diversity
Repeats of old content and a lack of in-demand shows were also another gripe.
Too many advertisements
As compared to streaming platforms, viewers were annoyed by the multiple ad breaks between viewing.
Comparisons to steaming services
Compared to cheaper streaming platforms like Netflix, Showmax, or even YouTube Premium, South Africans found that DStv was lacking.
HAVE YOU UNSUBSCRIBED FROM DSTV?
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