MultiChoice reported a sharp drop of 1.2 million subscribers, citing rising living costs and economic strain across key African markets.
While traditional pay-TV struggled, streaming services like DStv Stream and Showmax surged.
MultiChoice Group has reported a significant dip in its subscriber base, revealing a loss of 1.2 million users during its financial year ending March 31, 2025. Nearly half of the subscriber attrition, an 8% overall decline, was recorded in South Africa, its largest market, where many households are reeling under financial strain.
According to the company’s annual report, MultiChoice now stands at 14.5 million active subscribers across Africa. The drop was felt across all three of its key market segments. The South African market, in particular, was hardest hit as consumers grappled with surging living costs, forcing many to pause or cancel their DStv subscriptions.
“The persistent cost-of-living crisis has left households making difficult choices. For many, that meant stepping away from DStv temporarily,” the company explained in a statement.
Despite this setback in traditional pay-TV, MultiChoice experienced robust growth in digital offerings. DStv Stream, its on-demand streaming platform, saw subscriber numbers rise by 38%, while revenues climbed 48%. The Extra Stream add-on also enjoyed a 25% user boost, with revenue from the service nearly tripling over its first full operational year.
Similarly, the company’s expansion into internet services yielded positive results. DStv Internet subscriptions jumped 45%, with an accompanying 85% increase in revenue. These gains underscore MultiChoice’s strategy of diversifying beyond satellite broadcasting into more flexible, internet-based services as consumer preferences shift.
To combat inflationary pressures, MultiChoice implemented an average price hike of 5.7%. However, this was not enough to offset subscriber losses, as overall subscription revenue dropped 3% compared to the previous year. Decoder sales, on the other hand, rose 17%, aided by revised pricing strategies to better manage subsidy expenditures. Nevertheless, revenue in the South African segment dipped 1% on an organic basis.
One notable highlight from the company’s report is the 44% year-on-year increase in active paying users on Showmax, its streaming competitor to platforms like Netflix. MultiChoice attributed this surge to a pricing revision in March 2025, aimed at covering escalating operational costs, particularly higher content licensing fees for sports and continuous technology upgrades.
Amid these developments, MultiChoice is also navigating a major ownership transition. The company is in the process of being acquired by French media conglomerate Groupe Canal+, which has offered R125 per share in a proposed buyout deal. If completed, this acquisition could significantly alter the company’s strategic direction and market positioning.
In a year of mixed fortunes, MultiChoice managed to swing back into profitability. The group reported a net profit of R1.8 billion (over $100 million), marking a strong recovery from prior financial setbacks. This turnaround was mainly driven by aggressive cost-cutting initiatives and the divestment of its insurance arm to financial services giant Sanlam. The sale played a key role in bolstering its bottom line.
Despite shrinking viewership in its core satellite business, the company’s results reflect a pivot toward digital transformation and value-added services. Still, challenges remain, particularly in navigating economic headwinds and maintaining subscriber growth in a competitive media landscape.
Analysts suggest that MultiChoice’s future will likely hinge on how effectively it scales its streaming services, adapts pricing models, and manages competition from international platforms. The proposed Canal+ deal also raises questions about potential restructuring and regional strategy alignment.
As the cost-of-living crisis continues to weigh on consumers, MultiChoice may have to strike a delicate balance between affordability and profitability to retain market share and remain relevant across a rapidly evolving entertainment landscape.
