MultiChoice, the parent company of DStv, is weathering a brutal storm. The broadcaster has lost 2.8 million subscribers in just two years, driven by a “perfect storm” of economic hardship, a pivot to streaming, and rampant piracy.
By the numbers: The exodus has hit the company’s balance sheet hard:
- Active Subscribers: Dropped from 17.3 million (March 2023) to 14.5 million (March 2025).
- Revenue: Slid from R58.42 billion to R49.98 billion over the same period.
- Trading Margin: Contracted from 14% to 8%.
- Showmax Losses: The group’s streaming bet saw trading losses widen to R4.9 billion this year.
Why it matters
DStv was once the undisputed king of African media. Now, it is fighting a defensive war on two fronts:
- Macroeconomic headwinds: High unemployment (32% in SA), inflation, and massive currency devaluation in markets like Nigeria are making pay-TV a luxury many can no longer afford.
- The Digital Shift: The “Netflix effect” (which began in SA in 2016) has evolved. Younger audiences are now gravitating toward social media and free—often pirated—content.
The “Quality over Quantity” Pivot
Faced with a shrinking base, MultiChoice is changing its strategy. Instead of chasing raw numbers, it is focusing on “customer quality.”
- The Result: Average revenue per user (ARPU) is up 4%.
- The Trade-off: Linear TV subscribers fell by 8% (589,000 users) in the last year alone.
The Lifeline: Insurance and Assets
Despite the subscriber bloodbath, MultiChoice managed to claw its way back from technical insolvency (where liabilities exceed assets).
- The Sanlam Deal: MultiChoice sold 60% of its insurance business (NMSIS) to Sanlam, netting a R3 billion profit.
- Survival Mode: This deal, combined with R3.7 billion in cost-cutting, helped the group post a R1.78 billion after-tax profit for 2025, returning it to a positive equity position.
The Bottom Line: While the Sanlam deal saved MultiChoice from a technical collapse, the core product—linear satellite TV—is in a structural decline. The company is effectively using its legacy assets to fund a high-stakes transition to a digital-first future.
Source: MyBroadband
