DStv is losing ground as South Africans increasingly turn to online streaming services, driven by the widespread availability of affordable uncapped broadband.
MultiChoice’s latest annual report reveals a sharp decline in active DStv subscribers in South Africa, dropping from 8.0 million to 7.6 million over the past year.
Despite accounting for just 48.5% of MultiChoice’s active subscribers, South Africa generates 60% of the company’s revenue, making it critical to its financial health. However, all segments of DStv’s subscriber base saw declines:
DStv Premium dropped by 8% year on year.
DStv mid-market fell by 9%.
– DStv mass market dipped by 1%.
MultiChoice attributes the losses to economic pressure, high living costs, interest rates, and frequent load-shedding. But the real culprit is the rapid growth of affordable fibre and wireless internet, enabling South Africans to switch to streaming services like Netflix, Amazon Prime, and even free platforms that meet all their entertainment needs.
The company is now facing accelerating challenges, with fibre providers like Vumatel and Herotel expanding into lower-income areas, further threatening DStv’s subscriber base.
MultiChoice’s own attempts to compete through bundled streaming and internet packages have failed to gain traction, forcing it to discontinue DStv Internet fibre products.
To add insult to injury, Telkom plans to launch a content platform bundling popular streaming services like Netflix, Disney+, and Amazon Prime, positioning itself as a formidable competitor in the shifting entertainment landscape.
MultiChoice has long warned of the existential threat posed by over-the-top (OTT) streaming services, and that reality is now unfolding. Unless the company can scale its streaming efforts with platforms like Showmax and DSTV Stream, its dominance in South Africa’s entertainment industry will continue to erode.
