No impact to DStv as MultiChoice looks at transforming business

MultiChoice has told MyBroadband that its DStv service will not be impacted in any way as it looks to transform the business.

MultiChoice is reportedly 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.

“We are creating a leaner and more agile organisation in order to remain globally competitive as we continue to deliver a world-class entertainment experience to our customers and value to our 90,000 BEE shareholders,” MultiChoice told MyBroadband.

MultiChoice stated that while it is transforming its business to be “fit for the future”, customers will continue to receive their services as per normal.

Increased competition

Following the arrival of streaming services like Netflix and Amazon Go in South Africa, DStv has come under pressure.

Its Premium satellite service appears to be the biggest casualty, with the company losing 41,000 Premium subscribers in its previous financial year.

While lower-tier packages are showing growth, high-end users without the need for live sport now have a multitude of entertainment options to choose from thanks to new streaming services.

Not only does Netflix offer an array of content for around R100 per month, it does not operate under the same conditions as DStv, said MultiChoice SA CEO Calvo Mawela.

Mawela previously said 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.

MultiChoice parent Naspers also recently created a new video entertainment unit called Connected Video, which will take on the likes of Netflix.

The Connected Video unit will run the Showmax and DStv Now services in South Africa. It will also be responsible for developing new over-the-top services for the MultiChoice group.

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No impact to DStv as MultiChoice looks at transforming business