{"id":568313,"date":"2024-11-05T17:00:44","date_gmt":"2024-11-05T15:00:44","guid":{"rendered":"https:\/\/mybroadband.co.za\/news\/?p=568313"},"modified":"2024-11-05T17:00:50","modified_gmt":"2024-11-05T15:00:50","slug":"multichoice-adapts-to-a-competitive-media-landscape","status":"publish","type":"post","link":"https:\/\/mybroadband.co.za\/news\/broadcasting\/568313-multichoice-adapts-to-a-competitive-media-landscape.html","title":{"rendered":"MultiChoice adapts to a competitive media landscape"},"content":{"rendered":"\n

MultiChoice has adapted its strategy and launched new business ventures to create new revenue streams, navigate economic setbacks, and adapt to a competitive media landscape.<\/p>\n\n\n\n

MultiChoice’s DStv service has dominated the South African pay-TV market for two decades. Its unmatched sports offering and quality entertainment made it a must-have for most families.<\/p>\n\n\n\n

However, the Internet changed everything. Streaming services like Netflix disrupted traditional pay-TV operators, and people could stream sports for free online.<\/p>\n\n\n\n

This sparked a global decline in pay-TV subscribers, known as cord-cutting. The United States, the home of Netflix, set the trend.<\/p>\n\n\n\n

Cable and satellite TV providers have lost over 20 million subscribers in the United States over the last decade, and this trend is accelerating.<\/p>\n\n\n\n

Young people aged 18 to 29, who have grown up with the Internet and streaming services, are the most prolific cord-cutters.<\/p>\n\n\n\n

MultiChoice’s situation was even tougher than\u00a0its counterparts in the United States. In addition to increased competition, it faced a sluggish economy and load-shedding at home.<\/p>\n\n\n\n

Local households are under financial strain, and they are cutting many luxuries, including pay-TV and other subscription services.<\/p>\n\n\n\n

Despite these challenges, MultiChoice has been surprisingly resilient compared to most global pay-TV players.<\/p>\n\n\n\n

MultiChoice’s group revenue increased by 3% on an organic basis, and subscription revenue grew by 2% on an organic basis. Group trading profit increased 24% on an organic basis.<\/p>\n\n\n\n

The tough environment saw active subscribers decline by 9%, mainly due to a 13% decline in the Rest of Africa. The South African business was more resilient, declining by only 5%.<\/p>\n\n\n\n

MultiChoice knew it had to transform into a modern entertainment company rather than just a pay-TV operator.<\/p>\n\n\n\n

It has launched Showmax 2.0, SuperSportBet, and Moment, all of which are now revenue-generating and supporting the group’s future growth prospects.<\/p>\n\n\n\n

MultiChoice CEO Calvo Mawela said these initiatives form part of their strategy to build Africa’s entertainment platform of choice.<\/p>\n\n\n\n

“Our three core segments are now fully operational: video entertainment, interactive entertainment and fintech,” he said.<\/p>\n\n\n\n

“Our focus now shifts to building on these solid foundations to drive growth in these new areas and on further enhancing business efficiency across our operations.”<\/p>\n\n\n\n

He added that their strategy to retain customers, safeguard cash generation, and drive cost savings surpassed their targets.<\/p>\n\n\n\n

The future MultiChoice<\/h2>\n\n\n\n
\"\"
Calvo Mawela, MultiChoice CEO<\/figcaption><\/figure>\n\n\n\n

There is a strong focus on original content on the African continent to retain DStv customers and grow its Showmax subscriber base.<\/p>\n\n\n\n

MultiChoice is the continent’s largest original content producer. Over the last year, it produced over 6,500 hours of local content and its library now has more than 84,000 hours of content.<\/p>\n\n\n\n

SuperSport broadcast 34,490 live events during the year, which is more live sport than any other broadcaster in the world.<\/p>\n\n\n\n

SuperSport Schools more than doubled its registered user base and displayed more than 49,000 hours of live programming across 43 different sports codes.<\/p>\n\n\n\n

The company’s exclusive sports rights and original content give it a significant edge over its international competitors.<\/p>\n\n\n\n

However, it is not only about content. MultiChoice has expanded its product offering to include technology, sports betting, and fintech.<\/p>\n\n\n\n

MultiChoice’s technology platform, Irdeto, is the market leader in managed security services for video with a 22% market share.<\/p>\n\n\n\n

Irdeto’s revenue increased by 17%, driven by external customers in video entertainment, gaming, and connected transport.<\/p>\n\n\n\n

The company’s sports betting business, KingMakers reported strong growth in the online business in Nigeria, with monthly active users up 37%.<\/p>\n\n\n\n

KingMakers launched the SuperSportBet business in South Africa in January 2024. It became the official betting partner of local soccer clubs, Kaizer Chiefs and Orlando Pirates.<\/p>\n\n\n\n

MultiChoice’s fintech platform, Moment, played a vital role in the Showmax relaunch, stepping up to fill a critical payments gap.<\/p>\n\n\n\n

In January 2024, Moment also began processing MultiChoice’s payments for DStv, reaching a milestone of processing R1.5 billion in payments in early March 2024.<\/p>\n\n\n\n

So, while video entertainment remains the mainstay of MultiChoice’s operations, the company is rapidly expanding its products.<\/p>\n\n\n\n

The new streaming, interactive entertainment, fintech, and connectivity services are having a positive impact on the business.<\/p>\n\n\n\n

Going forward, the group will focus on scaling Showmax, Moment, and SuperSportBet and driving growth in insurance (NMSIS), DStv Internet, and DStv Stream.<\/p>\n","protected":false},"excerpt":{"rendered":"

MultiChoice has adapted its strategy and launched new business ventures to create new revenue streams, navigate economic setbacks, and adapt to a competitive media landscape.<\/p>\n","protected":false},"author":23,"featured_media":557086,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[24],"tags":[24196,475,2054,32140],"class_list":["post-568313","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-broadcasting","tag-calvo-mawela","tag-multichoice","tag-netflix","tag-showmax"],"_links":{"self":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts\/568313"}],"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\/23"}],"replies":[{"embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/comments?post=568313"}],"version-history":[{"count":4,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts\/568313\/revisions"}],"predecessor-version":[{"id":568377,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts\/568313\/revisions\/568377"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/media\/557086"}],"wp:attachment":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/media?parent=568313"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/categories?post=568313"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/tags?post=568313"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}