(Nairobi) – Multichoice, the South African-based Pay-TV service, has faced a significant decline in subscribers across its markets, including a 19% drop in Kenya. This decline, which also affected countries like Nigeria, Angola, and Zambia, is linked to inflation, increased competition from free-to-air TV options, and the rising cost of its packages.
In total, the company lost more than 1.8 million subscribers across its African markets, with the largest drop occurring in Kenya. Nigeria, where inflation has soared above 30%, saw an 18% decrease in subscriptions. Zambia, heavily affected by power outages, also saw a sharp 60% decline. These losses were further compounded by recent hikes in subscription fees for both DSTV and Go-TV packages, which pushed a 10% decrease in the company’s revenue.
For the 2024/2025 financial year, Multichoice reported a loss of KSh 12 billion (1.8 billion rand), largely attributed to foreign exchange depreciation in Nigeria and other financial pressures. Despite efforts to reduce operating costs, the company’s CEO, Calvo Mawela, emphasized the ongoing work needed to balance cost-efficiency with business growth.
“The Pay-TV industry is facing numerous challenges due to the increasing popularity of streaming services and short-form content on social media platforms. In markets like Nigeria and Kenya, our recent price hikes have made us less popular,” said Mawela.
To explain these price increases, Multichoice pointed to the rising cost of doing business in these countries, particularly in Nigeria, where inflation has remained above 30%. In Zambia, where both subscription numbers and revenue have dropped drastically, frequent power outages have further undermined the company’s operations.
Despite these difficulties, Multichoice’s revenue showed a slight increase of 4% year-on-year, reaching KSh 177 billion (25 billion rand). The company’s cash flow and liquidity status remained positive, thanks in part to cost optimization efforts that saved KSh 9 billion (1.3 billion rand).
“We are making strides in addressing the financial challenges we faced last year, and we expect to return to a positive net equity position by the end of November,” Mawela added.
The company’s streaming platform, Showmax, did see growth, recording a 30% increase in paying subscribers. However, Showmax’s revenue remained down by 40% year-on-year, due to difficulties during its rebranding and migration to a new tech stack, which affected payment channel integration and efficiency.
Sports content has remained a crucial part of Multichoice’s offering, with events like the EURO 2024 driving a significant increase in viewership through SuperSport. However, pirate websites continue to present a challenge, despite Multichoice’s efforts to offer a budget-friendly mobile plan for football fans on Showmax.
Looking ahead, Multichoice is preparing for a significant acquisition by French media giant Canal+. The US$3 billion deal is expected to expand Multichoice’s reach into Francophone Africa, where Canal+ has a strong presence. The merger is still awaiting approval, but once completed, it will allow Multichoice to negotiate better content rates and increase its revenue potential in both French- and English-speaking Africa.
“This merger will strengthen our position, allowing us to offer better content and drive revenue growth across the continent,” Mawela said.
Key Statistics for 2024
| Indicator | Details |
|---|---|
| Subscriber Loss in Kenya | 19% decline |
| Loss of Subscribers Across Africa | Over 1.8 million |
| Revenue Decline | 10% decrease due to price hikes |
| Total Loss for H1 FY 2024 | KSh 12 billion (1.8 billion rand) |
| Year-On-Year Revenue Growth | 4% increase, KSh 177 billion (25 billion rand) |
| Showmax Subscriber Growth | 30% increase |
| Showmax Revenue Decline | 40% decrease due to rebranding issues |
| Subscription Decline in Zambia | 60% decrease |
| Power Outages Impact in Zambia | Contributing to the decline in subscriptions |
| Expected Merger with Canal+ | US$3 billion acquisition deal |