MultiChoice's big ARPU problem

[zulucat]

South Africans propping up these overpriced bastards

 

[system32]

Where's the AARPU Average Advertising Revenue Per User.

DSTV makes billions from advertising and that does not show in the ARPU.

 

[CataclysmZA]

DSTV will be around for another few years but their business model was wrong from the start.

DSTV's profit margins are dropping and it's going to collapse much faster than you'd think.

We'll soon see news about a crunch, retrenchments, and the discontinuation of some sports rights and more channels being shut down, replaced by cheaper offerings.

I'll link back to my earlier posts on the topic of how they dug this hole for themselves, and they cover three points:

1) Rolling out cheaper bouquets required DSTV to increase the amount of adverts and reruns on the platform: https://mybroadband.co.za/forum/thr...ace-streaming-onslaught.1206358/post-30012728

2) The problem with that strategy is that the service degraded for Premium subscribers too: https://mybroadband.co.za/forum/thr...ace-streaming-onslaught.1206358/post-30018530

3) DSTV bleeding Premium subscribers signifies that their growth period is over. They will soon be unable to afford some up-front contract costs: https://mybroadband.co.za/forum/thr...ace-streaming-onslaught.1206358/post-30012428

Bonus points:

4) Multichoice telegraphed this drop in average subscriber revenues in September, when they celebrated more people signing up for cheaper packages with careful wording to not alarm investors: https://mybroadband.co.za/news/investing/462036-dstv-is-knee-deep-in-trouble.html

If anyone has shares in DSTV, or is invested in something that is also invested in DSTV, you should think about getting your money out of there.

 

[CataclysmZA]

DSTV makes billions from advertising and that does not show in the ARPU.

Advertising spots for DSTV are not profitable in the same way as revenue generated from subscriptions, mostly because they can't do targeted advertising or telemetry collection (ooooh they're trying with their future decoders that will do network scans and telemetry reports).

The bulk of advertising revenues comes from prime time spots and during sports matches, and that won't match or exceed revenues from subscriptions.

The fewer people that sign up for or retain packages that include major channels like SS1, the faster their decline and eventual collapse.

 

[system32]

Advertising spots for DSTV are not profitable in the same way as revenue generated from subscriptions, mostly because they can't do targeted advertising or telemetry collection (ooooh they're trying with their future decoders that will do network scans and telemetry reports).

The bulk of advertising revenues comes from prime time spots and during sports matches, and that won't match or exceed revenues from subscriptions.

The fewer people that sign up for or retain packages that include major channels like SS1, the faster their decline and eventual collapse.

Sounds like there is no hope for DSTV.
Costs > subscriptions + advertising revenue.

In a way it would be good if SS died, as that would force sports right's owners to rethink what they charge.

 

[KEVEQUAL]

DSTV's profit margins are dropping and it's going to collapse much faster than you'd think.

We'll soon see news about a crunch, retrenchments, and the discontinuation of some sports rights and more channels being shut down, replaced by cheaper offerings.

I'll link back to my earlier posts on the topic of how they dug this hole for themselves, and they cover three points:

1) Rolling out cheaper bouquets required DSTV to increase the amount of adverts and reruns on the platform: https://mybroadband.co.za/forum/thr...ace-streaming-onslaught.1206358/post-30012728

2) The problem with that strategy is that the service degraded for Premium subscribers too: https://mybroadband.co.za/forum/thr...ace-streaming-onslaught.1206358/post-30018530

3) DSTV bleeding Premium subscribers signifies that their growth period is over. They will soon be unable to afford some up-front contract costs: https://mybroadband.co.za/forum/thr...ace-streaming-onslaught.1206358/post-30012428

Bonus points:

4) Multichoice telegraphed this drop in average subscriber revenues in September, when they celebrated more people signing up for cheaper packages with careful wording to not alarm investors: https://mybroadband.co.za/news/investing/462036-dstv-is-knee-deep-in-trouble.html

If anyone has shares in DSTV, or is invested in something that is also invested in DSTV, you should think about getting your money out of there.

Well during Co-Vid they force retrenched a ton of staff, they where given 48 hours to sign or get their position made redundant. But weirdly a white woman named Zelda Van Heerden, who was to be pensioned off in 2021 was brought back into a different department @ R200 000 per month, she is very good friends with the Group CFO and worked with him some time ago at a different company.

Sad thing is that DSTV is only Enriching White Friends Lives while the staff who put the company on the map where retrenched. Calvo was consulted but is busy sorting out his wife's stealing ways with Eskom while her dad Gwede Mantasha is trying to broker deals with various companies via Calvo and his wife through Dubai where the money will not be traced.

Plenty stories like these are all common knowledge but nothing will ever be done, paying regulators in other countries stacks of cash.

its a pity and a Sin, f@ck you MCG, will hold the candle high as you dwindle away

 

[PaulMurkin]

MonoChoice has always been a dodgy company.. A while back they even had royal game status on this very forum..

 

[KEVEQUAL]

MonoChoice has always been a dodgy company.. A while back they even had royal game status on this very forum..

Now ask yourself one big question, why would Naspers move away from their cash cow? the company that provide money for all their endeavors and acquisitions incl Tencent.

Easy, Naspers could see that Calvo was climbing rank especially when his father in law was Sec Gen of the ANC, during this period he Calvo rose to fame, google and you will see his movement in the group and what was Gewede in the ANC.

Naspers knew that they had to jump ship or get penetrated by the ANC, they let the cash cow go, first CEO non CA, followed by the other 2 CEO'S from for SA and Africa, non CA's. lots of under hand dealings all covered up if reported or you will be retrenched. Imagine Tims friend is earning R200 000 per month, she did not even earn that when permanently employed. DSTV ENRICHING FRIEND LIVES.

Consultants are all white and had previous senior positions come back into the picture to drain the coffers, buts its only them who is allowed to, every other company gets vetted and never makes the cut.

 

[OCP]

The problem, as always remains the monopoly on sport.
Where else can you get all that sport under one roof for that price?
The moment DSTV loses that monopoly, the sport market is going to fragment and we will be paying R150 to R300 a month to four or five different providers....

Only if everyone wants to watch all sports.

Plenty of people will subscribe to only 1 or 2.