{"id":565170,"date":"2024-10-14T16:07:11","date_gmt":"2024-10-14T14:07:11","guid":{"rendered":"https:\/\/mybroadband.co.za\/news\/?p=565170"},"modified":"2024-10-14T16:07:18","modified_gmt":"2024-10-14T14:07:18","slug":"netflix-eating-dstvs-lunch","status":"publish","type":"post","link":"https:\/\/mybroadband.co.za\/news\/broadcasting\/565170-netflix-eating-dstvs-lunch.html","title":{"rendered":"Netflix eating DStv&#8217;s lunch"},"content":{"rendered":"\n<p>Streaming services are eating into satellite TV revenue, and MultiChoice-owned DStv is at risk of having its lunch eaten by players like Netflix, Amazon Prime Video, and Disney+.<\/p>\n\n\n\n<p>The pay-TV broadcaster&#8217;s results for the year ended 31 March 2024 reported a R4.1-billion loss and declining subscriber numbers. The results also revealed that MultiChoice is <a href=\"https:\/\/mybroadband.co.za\/news\/broadcasting\/540825-multichoice-goes-technically-insolvent.html\" data-type=\"link\" data-id=\"https:\/\/mybroadband.co.za\/news\/broadcasting\/540825-multichoice-goes-technically-insolvent.html\">technically insolvent<\/a>.<\/p>\n\n\n\n<p>According to Leslie Adams, sales director at Reach Africa, DStv is following a trend observed by satellite TV providers in major Western markets.<\/p>\n\n\n\n<p>&#8220;DStv is following a trend that we&#8217;re seeing in the US and Western Europe, where streaming services are eating some of their lunch,&#8221; Adams told <a href=\"https:\/\/www.primediaplus.com\/2024\/10\/14\/dstvs-r41-billion-loss-is-this-the-end-of-satellite-tv-and-rise-of-streaming-services\" data-type=\"link\" data-id=\"https:\/\/www.primediaplus.com\/2024\/10\/14\/dstvs-r41-billion-loss-is-this-the-end-of-satellite-tv-and-rise-of-streaming-services\">702<\/a>.<\/p>\n\n\n\n<p>He explained that streaming services offer the benefit of tailoring content to your viewing preferences and the flexibility of cancelling and resubscribing when you choose.<\/p>\n\n\n\n<p>&#8220;Your interests will evolve and change and it may be very periodic, but now the option is available to you to just turn on and turn off,&#8221; said Adams.<\/p>\n\n\n\n<p>Looking specifically at DStv&#8217;s operations in South Africa, the pay-TV broadcaster&#8217;s annual results revealed that subscribers in the country declined from 8.0 million to 7.6 million over the last year.<\/p>\n\n\n\n<p>Even South Africa&#8217;s Department of Communications and Digital Technologies has acknowledged the threat international streaming platforms like Netflix pose to satellite TV broadcasting.<\/p>\n\n\n\n<p>&#8220;On-demand music and video online streaming services are seriously disrupting the industry globally,&#8221; it stated in its annual performance plan for 2024\/25.<\/p>\n\n\n\n<p>However, MultiChoice believes its streaming service, Showmax, makes it well-positioned to lead the streaming industry in Africa. It says Showmax is the &#8220;home of local content in Africa&#8221;.<\/p>\n\n\n\n<p>&#8220;Showmax is designed for our markets and brings our subscribers the continent&#8217;s best and most-loved African stories,&#8221; MultiChoice said.<\/p>\n\n\n\n<p>&#8220;It&#8217;s also the home of HBO online in Africa as well as a broad selection of award-winning and blockbuster international movies and series, with an ever-growing catalogue of exclusive Showmax Originals and the best kids shows, as well as live sport from SuperSport on our Showmax Pro package.&#8221;<\/p>\n\n\n\n<p>It noted that it has also made it possible for DStv subscribers to access prominent streaming services like Netflix, Disney+, and Amazon Prime Video using their decoder.<\/p>\n\n\n\n<p>&#8220;The introduction of Disney+ continues to keep us top-of-mind for customers looking to continue enjoying our robust local and international content,&#8221; it added.<\/p>\n\n\n\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"800\" height=\"533\" src=\"https:\/\/mybroadband.co.za\/news\/wp-content\/uploads\/2021\/05\/DStv-streaming-services-Netflix.jpg\" alt=\"\" class=\"wp-image-395671\" srcset=\"https:\/\/mybroadband.co.za\/news\/wp-content\/uploads\/2021\/05\/DStv-streaming-services-Netflix.jpg 800w, https:\/\/mybroadband.co.za\/news\/wp-content\/uploads\/2021\/05\/DStv-streaming-services-Netflix-600x400.jpg 600w, https:\/\/mybroadband.co.za\/news\/wp-content\/uploads\/2021\/05\/DStv-streaming-services-Netflix-640x426.jpg 640w, https:\/\/mybroadband.co.za\/news\/wp-content\/uploads\/2021\/05\/DStv-streaming-services-Netflix-768x512.jpg 768w\" sizes=\"(max-width: 800px) 100vw, 800px\" \/><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\">Premium declines since Netflix&#8217;s local launch<\/h2>\n\n\n\n<p>Netflix launched globally in January 2016. Its launch in South Africa, combined with expanded access to uncapped fibre, was a significant driver behind the decline in DStv subscribers, particularly those in the Premium segment.<\/p>\n\n\n\n<p>As uncapped fibre was initially only available in more affluent areas, DStv Premium was the first segment to see declines.<\/p>\n\n\n\n<p>Between March 2015 and March 2016, the pay-TV broadcaster lost over 250,000 Premium subscribers.<\/p>\n\n\n\n<p>The Premium subscriber base peaked at 2.35 million in March 2015 and declined to 1.92 million in March 2018.<\/p>\n\n\n\n<p>In that year, MultiChoice stopped reporting its Premium subscribers separately and started grouping them with its Compact Plus subscribers in the Premium segment.<\/p>\n\n\n\n<p>Uncapped fibre has also become more affordable with coverage expanding to middle- and lower-income areas. Households in these areas also started dumping DStv&#8217;s lower-tier packages.<\/p>\n\n\n\n<p>MultiChoice focuses on a 90-day active subscriber base metric in its reporting. Its annual results revealed that its 90-day active subscriber base declined from 9.3 million in 2022\/23 to 8.6 million in 2023\/24.<\/p>\n\n\n\n<p>The broadcaster&#8217;s mid-market subscriber base was hardest hit in the last financial year, with a 15% decline in the segment. <\/p>\n\n\n\n<p>Its mass-market segment, which includes DStv Family, Access, and EasyView subscribers, saw a 5% decline over the year.<\/p>\n\n\n\n<p>The Premium segment saw 90-day active subscribers drop 8% from 1.3 million to 1.2 million subscribers.<\/p>\n\n\n\n<p>The chart below shows MultiChoice&#8217;s official Premium-only subscriber declines until March 2018, with estimated numbers for March 2019 to March 2024.<\/p>\n\n\n\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"2000\" height=\"1656\" src=\"https:\/\/mybroadband.co.za\/news\/wp-content\/uploads\/2024\/07\/DStv-Premium-customers-new.jpg\" alt=\"\" class=\"wp-image-543927\" srcset=\"https:\/\/mybroadband.co.za\/news\/wp-content\/uploads\/2024\/07\/DStv-Premium-customers-new.jpg 2000w, https:\/\/mybroadband.co.za\/news\/wp-content\/uploads\/2024\/07\/DStv-Premium-customers-new-483x400.jpg 483w, https:\/\/mybroadband.co.za\/news\/wp-content\/uploads\/2024\/07\/DStv-Premium-customers-new-644x533.jpg 644w, https:\/\/mybroadband.co.za\/news\/wp-content\/uploads\/2024\/07\/DStv-Premium-customers-new-768x636.jpg 768w, https:\/\/mybroadband.co.za\/news\/wp-content\/uploads\/2024\/07\/DStv-Premium-customers-new-1536x1272.jpg 1536w, https:\/\/mybroadband.co.za\/news\/wp-content\/uploads\/2024\/07\/DStv-Premium-customers-new-1200x994.jpg 1200w\" sizes=\"(max-width: 2000px) 100vw, 2000px\" \/><\/figure>\n\n\n\n<p><\/p>\n","protected":false},"excerpt":{"rendered":"<p>South Africa is observing a similar trend to the US, where streaming services are eating into satellite TV revenue.<\/p>\n","protected":false},"author":341076,"featured_media":558130,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[24],"tags":[96407,85,97347,475,2054,53431,97346,32140,52823],"class_list":["post-565170","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-broadcasting","tag-disney-2","tag-dstv","tag-leslie-adams","tag-multichoice","tag-netflix","tag-prime-video","tag-reach-africa","tag-showmax","tag-streaming-services"],"_links":{"self":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts\/565170"}],"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\/341076"}],"replies":[{"embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/comments?post=565170"}],"version-history":[{"count":2,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts\/565170\/revisions"}],"predecessor-version":[{"id":565186,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts\/565170\/revisions\/565186"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/media\/558130"}],"wp:attachment":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/media?parent=565170"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/categories?post=565170"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/tags?post=565170"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}