MultiChoice considering job cuts as DStv struggles
MultiChoice is considering job cuts in an attempt to deal with the effects of increased competition.
According to a report by the Sunday Times, the company has asked many employees to reapply for their positions.
Up to 200 jobs could be affected, according to a source.
“We are creating a leaner and more agile organisation in order to remain globally competitive,” said a MultiChoice spokesperson to the publication.
The news comes at a time when DStv – particularly its Premium satellite service – is under pressure, due to declining subscriber numbers. At its year-end in March, MultiChoice said it lost 41,000 Premium subscribers in the preiod.
Lower-tier DStv packages, however, have seen user growth – but these bring in less revenue.
This is thanks to increased competition from the likes of Netflix and Amazon Prime – with MultiChoice stating that Netflix poses a big threat to its business.
In a recent MyBroadband survey, taken by 9,857 tech-savvy readers, Netflix came out as the clear favourite in terms of entertainment service – ahead of DStv.
MultiChoice SA CEO Calvo Mawela has also stated that Netflix has an unfair advantage over DStv in South Africa, and that a regulatory change is needed to address this problem.
He has called for Netflix to pay taxes in South Africa and abide by local broadcast regulations, which DStv is subject to.
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