MultiChoice Group, a leading South African pay-TV operator, has disclosed a significant decline in its Nigerian subscriber base. In its Interim Financial Results for the period ending September 30, 2024, the company reveals that MultiChoice Nigeria lost 243,000 subscribers on its DStv and GOtv services between April and September this year.
Driving Factors: Economic Instability and Competition
Notably, Nigeria’s soaring inflation rate, exceeding 30%, drives this decline. The rising costs of food, electricity, and fuel force many customers to disconnect from the services. Furthermore, this subscriber loss continues the trend reported in March 2024, where MultiChoice Nigeria experienced an 18% subscriber loss.
Regional Challenges Intensify
Meanwhile, the Rest of Africa operations face similar challenges, losing 566,000 subscribers over the past six months. Zambia and Nigeria contribute significantly to this decline, with Zambia accounting for 298,000 lost subscribers. The primary cause of Zambia’s losses is extensive power outages caused by drought, leaving some regions with up to 23 hours of daily outages.
Recovery Efforts Underway
Despite these challenges, MultiChoice Group CEO Calvo Mawela remains optimistic about the company’s progress. “We are making good progress in addressing the technical insolvency that resulted from non-cash accounting entries at the end of the last financial year,” Mawela states. Consequently, the group’s net equity position is expected to recover by November.
Adapting to Changing Market Dynamics
To stay competitive, MultiChoice invests an additional ZAR1.6 billion in its streaming service Showmax. This strategic move acknowledges the shifting viewer preferences and competition from streaming services. As a result, Showmax reports 50% year-over-year growth. Mawela notes, “Showmax strategically positions the business to actively participate in the streaming revolution as it gains momentum across Africa.”
A Focus on Streaming and Growth
In conclusion, MultiChoice adapts to the changing landscape by focusing on streaming. With Showmax, the company aims to capitalize on the growing demand for streaming services in Africa. Mawela’s statement emphasizes the importance of this strategic move, ensuring MultiChoice remains a key player in the African entertainment market.
Key Statistics:
- 243,000 subscribers lost in Nigeria between April and September 2024
- 566,000 subscribers lost in Rest of Africa operations over six months
- 298,000 subscribers lost in Zambia due to power outages
- 50% year-over-year growth for Showmax streaming service
- ZAR1.6 billion invested in Showmax expansion
You see that Gotv, very messed up company. Poor services
Honestly!!! 😩
Then never even start to lose customers
I swear 🥲