Through this new reporting standard, MultiChoice obfuscated the decline of DStv Premium by bundling Compact Plus bouquets with it.<\/p>\n
Even when asked, MultiChoice refused to reveal its DStv Premium subscriber numbers which faced an onslaught from Netflix.<\/p>\n
However, this strategy backfired in its latest reporting period.<\/p>\n
High-profile sporting events, including the United Rugby Championship and 2022 FIFA World Cup, bolstered DStv Premium subscriptions.<\/p>\n
DStv Compact Plus, in comparison, suffered a significant decline which harmed the premium segment\u2019s subscriber growth.<\/p>\n
In its results presentation, MultiChoice highlighted that DStv Premium was growing again \u2013 something which never happened before.<\/p>\n
MultiChoice is once again talking up its DStv Premium subscriber numbers because of the growth over the last six months.<\/p>\n
Another interesting part of the premium segment is its average revenue per use (ARPU).<\/p>\n Despite a decline in cheaper DStv Compact Plus, an increase in DStv Premium, and a general price increase in April, the ARPU of the premium segment declined.<\/p>\n With a higher ratio of DStv Premium customers, one would have expected the ARPU to increase.<\/p>\n However, the ARPU of the premium segment declined from R587 to R566 per month \u2013 getting closer to the DStv Compact Plus price of R519 per month.<\/p>\n A possible explanation is that MultiChoice bundle streaming services \u2013 which are significantly cheaper \u2013 with the traditional decoder bouquets.<\/p>\n DStv Premium on a decoder costs R799 per month, while the same streaming service costs R699 per month.<\/p>\n So, while DStv Premium subscribers increased, many may be on cheaper streaming packages. DStv Premium decoder users may have also migrated to streaming packages.<\/p>\n Although it decreases revenue, it is not necessarily bad news for MultiChoice\u2019s bottom line.<\/p>\n MultiChoice CFO Tim Jacobs told analysts that while streaming services are cheaper, they are targeted at a different market segment.<\/p>\n \u201cOffering streaming services is not necessarily a cannibalisation of your existing customer base,\u201d he said.<\/p>\n \u201cMany of these customers are a new market segment who don\u2019t want to buy a decoder and are more comfortable in an online environment.\u201d<\/p>\n Another benefit is that the investment in streaming is lower than with the decoder business.<\/p>\n So, while the streaming pricing is lower, the profitability is still making a big contribution to MultiChoice\u2019s bottom line.<\/p>\n MultiChoice’s plan to hide the decline in DStv Premium subscriptions backfired, and it is now trying to bypass its new reporting standard.<\/p>\n","protected":false},"author":341108,"featured_media":440142,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_sma_x_autopost_status":"idle","_sma_x_autopost_error":"","_sma_x_post_id":"","_sma_facebook_post_id":"","_sma_instagram_post_id":"","_sma_threads_post_id":"","_sma_x_attempts":0,"footnotes":""},"categories":[80335],"tags":[12747,35,475],"class_list":["post-468919","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-investing","tag-dstv-premium","tag-headline","tag-multichoice"],"_links":{"self":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts\/468919"}],"collection":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/users\/341108"}],"replies":[{"embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/comments?post=468919"}],"version-history":[{"count":0,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts\/468919\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/media\/440142"}],"wp:attachment":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/media?parent=468919"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/categories?post=468919"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/tags?post=468919"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}![\"\"](\"https:\/\/mybroadband.co.za\/news\/wp-content\/uploads\/2022\/11\/DStv-Premium-segment-subscribers-2018-2022.jpg\")
<\/a><\/p>\nDStv premium segment ARPU<\/strong><\/h2>\n
<\/a><\/p>\n
\nNow read:\u00a0DStv keeps bleeding in South Africa<\/a><\/h2>\n","protected":false},"excerpt":{"rendered":"