DStv Premium subscriber bleed slows - but Compact and Compact Plus continue plummet

Jan

Jan

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DStv keeps bleeding in South Africa

DStv Premium gained a few subscribers in South Africa in the past year, but an accelerated decline in Compact Plus subscribers has hurt the company's overall "premium" segment.

That is according to the broadcaster's parent company MultiChoice's latest interim results for the first half of its 2023 financial year (1H FY23) published on Thursday, 10 November 2022.
 
I wonder how many of the lower tier subs with brand new TVs don't realize that they can pick up the digital Free-To-Air stations via their TV's tuner.
 
And they are surprised ... Eish!!

Maybe it is time they proactively started doing something to remedy the trend, but maybe just be better for them to sellout to Canal+
 
So what does this mean?

Could it be that most of the top-tier customers who had access to fibre and who are not die-hard hangers-on to DSTV already left even when fibre was relatively expensive. What’s left could be those who unlikely to ever leave.
Now that fibre is becoming more affordable the value proposition for Compact Plus customers may have changed and is skewed in favour of fibre with streaming, so they are now leaving.

So basically as fibre pricing becomes keener and challenges the price point of the lower package the DSTV customers who want more value will leave in waves by package type as they see that they can justify replacing it with fibre.
 
I think we're on the wrong track.

We're thinking that Multichoice believes their strategy remains the same and sound (because their PR pushes that narrative), and we're calling them out as fools for that.

Is it possible that they (internally) know that, but are simply hyping up their prospects in the hopes of enticing more investors so MC can cash out quietly?
 
lotus123 said:
I think we're on the wrong track.

We're thinking that Multichoice believes their strategy remains the same and sound (because their PR pushes that narrative), and we're calling them out as fools for that.

Is it possible that they (internally) know that, but are simply hyping up their prospects in the hopes of enticing more investors so MC can cash out quietly?
Click to expand...
I would bet they already have that sports-only product developed, priced and ready to turn.

If I were developing their strategy, that is what I would do. They currently still have people willing to pay R1000 a month, but that is decreasing. At some point, that product will no longer be profitable and they will have to replace it with something that is profitable. So string customers on as long as possible on premium, then once it starts to look like the product will lose money, you turn on its replacement.
 
lotus123 said:
I think we're on the wrong track.

We're thinking that Multichoice believes their strategy remains the same and sound (because their PR pushes that narrative), and we're calling them out as fools for that.

Is it possible that they (internally) know that, but are simply hyping up their prospects in the hopes of enticing more investors so MC can cash out quietly?
Click to expand...

Well obviously they want to increase their value as much as possible, before selling out to Canal+
 
Last edited:
lotus123 said:
I think we're on the wrong track.

We're thinking that Multichoice believes their strategy remains the same and sound (because their PR pushes that narrative), and we're calling them out as fools for that.

Is it possible that they (internally) know that, but are simply hyping up their prospects in the hopes of enticing more investors so MC can cash out quietly?
Click to expand...

It could be.

Naspers seems to want all their companies and assets overseas for some reason.
 
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