A big concern for MultiChoice is that the ARPU of DStv subscribers in South Africa has been declining for years.<\/p>\n
MultiChoice increases prices yearly to increase ARPU, but it is not working. As prices rise, DStv subscribers dump the service or downgrade to a more affordable package.<\/p>\n
DStv is also facing increased competition from affordable streaming services like Netflix and Disney+, making increasing prices even more difficult.<\/p>\n
The lower ARPU puts pressure on MultiChoice\u2019s margins, and it is no surprise that its profit after tax is declining.<\/p>\n
Although the blended ARPU in the RoA increased by 3% over the last year, the decline in the premium and mid-market segments has already begun.<\/p>\n
In the RoA, the premium segment\u2019s ARPU declined by 3%, mid-market ARPU declined by 4%, and mass-market ARPU increased by 4%. It is, therefore, following a similar trend as South Africa.<\/p>\n
MultiChoice has no easy way to address this problem, and the management team does not seem to have a strategy to reverse the trend.<\/p>\n
The charts below show MultiChoice\u2019s ARPU challenge in South Africa and the Rest of Africa.<\/p>\n
\n
ARPU in South Africa<\/h2>\n
This article was first published by Daily Investor<\/a><\/strong> and is republished with permission.<\/em><\/p>\n MultiChoice has an average revenue per subscriber problem.<\/p>\n","protected":false},"author":341108,"featured_media":464421,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[80335],"tags":[85,35,475],"class_list":["post-471845","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-investing","tag-dstv","tag-headline","tag-multichoice"],"_links":{"self":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts\/471845"}],"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=471845"}],"version-history":[{"count":1,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts\/471845\/revisions"}],"predecessor-version":[{"id":471875,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts\/471845\/revisions\/471875"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/media\/464421"}],"wp:attachment":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/media?parent=471845"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/categories?post=471845"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/tags?post=471845"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}![\"\"](\"https:\/\/mybroadband.co.za\/news\/wp-content\/uploads\/2022\/11\/DStv-ARPU-in-South-Africa.jpg\")
<\/a><\/p>\n
\nARPU change in South Africa<\/h2>\n
<\/a><\/p>\n
\nARPU in Rest of Africa<\/h2>\n
<\/a><\/p>\n
\nARPU change in Rest of Africa<\/h2>\n
<\/a><\/p>\n
\nNow read:\u00a0DStv pirate slapped with 7-year jail sentence<\/a><\/h2>\n","protected":false},"excerpt":{"rendered":"