The largest pay-TV operator in Africa, MultiChoice, has reported a staggering loss of 1.2 million linear DStv subscribers over the past financial year, which ended on March 31, 2025, in a stark reflection of shifting consumer behaviors and mounting competition.
This 8% decline highlights a concerning trend for the company, which now finds itself at a crucial crossroads amidst what it has termed ‘unprecedented headwinds, Cape Town Etc reports
The loss of subscribers is particularly alarming as it eclipses the entire remaining base of DStv Premium and DStv Compact customers, which collectively stands at just over 1 million.
This troubling trajectory has led to a total decline of approximately 2.8 million linear subscribers over the last two financial years, illustrating a growing challenge for MultiChoice as viewers increasingly turn away from traditional pay-TV services.
During this tumultuous period, the group managed to achieve R3.7 billion in cost savings, significantly exceeding its revised targets and almost doubling the figure from the previous financial year.
Despite these efforts, MultiChoice reported a substantial loss of R0.8 billion, attributed to a combination of lower trading profits and adverse hedging impacts, further compounded by a weak consumer environment across various markets.
CEO of MultiChoice Group, Calvo Mawela, has acknowledged the dual pressures of macroeconomic challenges and currency volatility while expressing optimism about the company’s future. ‘Our performance reflects both the challenges we’ve faced and the resilience of our teams. Our disciplined execution, cost management, and investment in new long-term growth opportunities position us well for the future,’ he stated.
Mawela also highlighted the company’s commitment to evolving its strategy in response to rapid technological advancements and changing consumer demands. ‘We remain focused on being Africa’s entertainment platform of choice,’ he noted, before referencing the rising challenges posed by piracy, streaming services, and social media.
New product offerings have seen significant growth, demonstrating the company’s adaptability in the face of mounting competition. Revenue from DStv Internet surged by an impressive 85%, while the KingMakers gaming platform saw an increase of 76%.
Additionally, the recently launched DStv Stream service experienced a 48% growth, alongside a 44% year-on-year boost in active paying customers of Showmax, the group’s streaming service.
Despite the subscriber losses, MultiChoice achieved a positive equity position through strategic cost-cutting measures, the stabilisation of currency exchanges, and an accounting gain from divesting 60% of its insurance business shareholding to Sanlam.
Notably, the rate of subscriber decline has shown some signs of deceleration, with the active linear pay-TV subscriber base now at 14.5 million, reflecting an 8% decrease compared to the sharper 11% drop the previous year.
However, the ongoing consumer pressures raise concerns about future growth as MultiChoice navigates an increasingly competitive landscape.
First published by: Cape {Town} Etc
Words compiled by: Sibuliso Duba
Also see: Kagiso Rabada gains mzansi’s favour back after impressive 5-wicket game
