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.

Now read: The SABC calculated how much your TV licence fee should be – and it’s way more than what you pay now

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MultiChoice considering job cuts as DStv struggles