DStv to cut prices with Capitec deal

Capitec and MultiChoice have announced a partnership that will give the bank’s customers access to discounted DStv Stream plans.

A media report about the partnership was published yesterday following remarks by Capitec CEO Gerrie Fourie.

Among other things, Fourie stated that Capitec’s new DStv Stream vouchers would allow customers to buy access to specific programmes or channels.

MyBroadband has learned that this was an incorrect characterisation of what the companies are launching in October.

Capitec will offer significantly discounted vouchers for specific DStv Stream packages, including DStv Premium. DStv is not launching a pay-per-view model.

“We’re pleased to announce that from next month, Capitec clients will also benefit from discounted access to DStv Stream plans, giving them more ways to enjoy premium entertainment at a reduced cost,” the MultiChocie told MyBroadband.

“This partnership reflects our commitment to making quality content more accessible and affordable for all our customers.”

MultiChoice and Showmax CEO Marc Jury has said that further details surrounding the offers will be made public soon, as prices for the discounted DStv Stream vouchers are yet to be announced.

This is the second phase of a partnership between the two, as Capitec announced in August that its customers could purchase half-price Showmax vouchers from its banking app.

Three individual subscription plans were made available: howmax Entertainment, Showmax Entertainment Mobile, and Showmax Premier League.

Showmax usually charges R99 per month for its Entertainment all devices package. It is R49 through the Capitec app.

Similarly, Showmax Entertainment Mobile is R22 per month, and Showmax Premier League is R34 per month through the Capitec app. These usually sell for R45 and R69, respectively.

Showmax confirmed that vouchers bought through the Capitec app are redeemable by anyone.

Therefore, Capitec customers can buy discounted Showmax vouchers for friends, family, and anyone else if they so wished.

They will be able to do the same for the DStv Stream vouchers when they launch later this month.

Showmax pushing for subscribers

MultiChoice has said that it aims to achieve trading profit break-even for Showmax in its 2027 financial year.

The pay-TV operator is also targeting revenue of $1 billion (R18 billion) for Showmax by its 2028 financial year-end.

To generate this revenue, Showmax will need to have around 16 million active subscribers who pay an average of R99 per month.

This is no mean feat. Digital TV Research predicted that Africa’s total number of video streaming subscribers will only be 15.6 million users by 2028.

MultiChoice disagrees with this forecast. It said it expects video streaming uptake to undergo exponential growth in Africa.

MultiChoice is so bullish that it aims to increase its total subscriber base, including Showmax and DStv subscribers, to 50 million users in 2028.

For Showmax alone, the company has indicated that it aims to have 25 million subscribers on the platform by 2028.

Based on this forecast, Showmax would need to grow its subscriber base by around 100% annually until 2028.

To achieve its targets, Showmax is focusing on acquiring and producing local content in the regions it operates.

During the past year, it ramped up its local content alongside M-Net, Mzansi Magic, Africa Magic, and Maisha Magic.

The streaming service released 59 original movies and TV series in South Africa, Nigeria, Kenya and Ghana.

Popular shows that drove viewership included Tracking Thabo Bester, Koek, The Mommy Club, Youngins, Red Ink, Adulting, Outlaws, and its Real Housewives shows.