MultiChoice reported a 5% decline in DStv subscribers for 2024, with drops across all packages due to economic challenges like inflation, rising interest rates, and load shedding.
The 2024 financial statement reveals a year-on-year decline in MultiChoice's DStv subscriber base due to economic factors like inflation, rising interest rates, and load shedding.
The overall subscriber base declined by 9%, with a 13% drop in the Rest of Africa and a 5% decrease in South Africa, as customers prioritised essential needs over entertainment.
In 2023, the total subscriber base was around 8 million, resulting in a loss of 400,000 subscribers over the year.
The company cited declines across all DStv packages: premium tier (Premium and Compact Plus), mid-market tier (Compact), and mass-market tier (Family and Access).
According to their 2023/24 financial year statement, the significant decline in subscriber numbers was caused by economic issues such as inflation, rising interest rates, and load shedding.
In the financial year ending in 2024, DStv’s overall active subscriber base declined by 5%, dropping from 8 million to 7.6 million.
The premium tier saw a significant decline of 8%, the mid-market tier fell by 9%, and the mass-market tier experienced a reduction of 2%.
“Subscriber growth is typically more muted in a year that follows the FIFA World Cup, but FY24 came in below trend as the subscriber base declined year-over-year in the face of a deteriorating macro and consumer environment,” said Calvo Mawela, MultiChoice CEO.
This constant decline highlights the ongoing economic struggles faced by customers, which have continued unabated from 2023 to 2024.
The South African economy has been strained with high inflation, rising interest rates, and squeezed household budgets.
Ongoing load shedding has created uncertainty around power availability, discouraging new subscribers and prompting existing subscribers to reconsider their plans.
Many consumers find it challenging to justify the cost of premium packages in such an unstable economic environment.
To retain subscribers, MultiChoice is improving its mid-market packages and offering new promotions.
They are also investing in new technology to enhance the viewing experience and make it more flexible and affordable. As economic pressures continue, DStv will need to keep adjusting its strategies to retain and attract subscribers.
The company might need to introduce cheaper packages or improve existing ones to stay competitive.
Overall, the drop in DStv subscriptions reflects the financial difficulties many South Africans are facing.
By adapting to these challenges, MultiChoice hopes to improve its subscriber numbers and remain a key player in the entertainment industry.
IOL