Trouble for DStv one-stop shop
DStv’s plan to become a one-stop shop for a wide range of entertainment services has run into a money problem.
In the past few years, DStv’s parent company, MultiChoice, has increasingly adopted a role many industry experts believe should be its focus — content aggregator.
Instead of trying to rival international video streaming services, many of which have the financial backing of media giants, the proposed idea was to leverage DStv’s extensive reach to offer as many of these services in one place.
MultChoice chief financial officer Tim Jacobs previously explained that creating a unified streaming platform would provide users with simplicity, choice, and convenience.
The plan has seen some progress through the rollout of several third-party streaming services to DStv’s Explora Ultra decoder and the Streama smart streaming TV box.
Subscribers can watch Netflix, Amazon Prime Video, Disney+, and YouTube directly through these devices, in addition to MultiChoice’s Showmax service.
DStv also allows customers to add subscriptions for some of these services to their DStv bills, simplifying the onboarding and payment process.
However, another key platform for hosting all these services together was a planned 4K Smart TV dubbed the DStv Glass, to be manufactured in collaboration with Sky TV.
The TV was announced in September 2022 and was set for launch before the end of 2024.
It would feature built-in support for DStv Stream and a range of third-party applications.
While MultiChoice was coy on details for many months, the DStv Glass was still featured in the presentation of MultiChoice’s latest annual results.
However, Jacobs has since confirmed to News24 and television journalist Thinus Ferreira that the product was cancelled due to consideration for consumer affordability and MultiChoice’s cost-cutting measures.
Jacobs explained that the broadcaster’s current strategy was splitting up some of its previous bundled offerings to make its products more affordable for cash-strapped customers.
Offering a TV that offered an all-in-one solution would go against that strategy.
Jacobs also said that MultiChoice was halting development on two big tech modernisation plans — the DStv Glass and a new customer billing engine.
“The number of years it’s going to take to complete and the cost to complete is too much in an environment where the customer just simply can’t afford to absorb more price increases so we then have to cut the cost on our side,” said Jacobs.
Jacobs said MultiChoice would try to replicate as much of the functionality and user experience as would have been available in the DStv Glass in the next-generation DStv Stream.
“We’re trying to now build a lot of the features and functionalities in but at a much lower price point,” he said.
MyBroadband asked MultiChoice whether its content aggregation plans had delivered any significant revenue growth and if it was planning to add any new third-party services to its existing devices. It did not provide feedback by the time of publication.
Potential takeover could advance content aggregation
French media giant Canal+ is currently in the process of acquiring MultiChoice.
The transaction will still need to clear several hurdles — including regulatory approval from the Independent Communications Authority of South Africa (Icasa) and Competition Tribunal.
While the company’s chairman and CEO, Maxime Saada, has suggested that Canal+ does not share MultiChoice’s view on diversification and that it will refocus the company’s attention on content distribution, the one-stop shop plan aligns well with Canal+’s strategy in its major markets.
The broadcaster offers several packages that bundle linear TV channels with video streaming services at discounted rates.
On several of its subscriptions, it offers Apple TV+, HBO Max Standard, and Paramount+ Standard, OCS, and Netflix Standard.
The Canal+ Cine Series Essential plan includes all these services and ten channels for €39.99 (R792).
When taken separately in Europe, the third-party streaming subscriptions alone would cost about €53.45 (R1,059).
MultiChoice does not currently offer any discounts on the streaming services users can access on its decoders or add to their bills.
Therefore, there is little reason for DStv subscribers to add the services to their bills rather than simply paying with a bank card.
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