In a startling revelation, DStv, South Africa’s leading pay-TV operator, has admitted to losing over 1 million subscribers across its Premium, Compact Plus, and Compact services over the last four years. This marks a worrying trend for MultiChoice, the company behind DStv, as pay TV growth has “plateaued,” with global and regional numbers continuing to fall.
The figures highlight a significant shift in the way viewers are consuming entertainment, as MultiChoice now grapples with the effects of this steady decline in subscriber numbers. According to their latest data, the drop in subscribers has been felt across all service tiers, with the mid-market Compact base experiencing the most significant losses.
Since 2020, the number of active subscribers to DStv’s Premium and Compact Plus bouquets has dropped by over 21%. At the same time, the mid-market Compact service has lost hundreds of thousands of customers, further compounding MultiChoice’s financial challenges.
Pay TV’s Crisis: Why DStv’s Numbers Are Declining
MultiChoice’s subscriber base peaked in September 2020, boosted by the COVID-19 pandemic, when more people turned to TV for entertainment during lockdowns. However, as life returned to normal, the company’s numbers have dwindled sharply. This is particularly evident in the Premium segment, which has seen a more than 20% drop in just four years.
For the first time in years, MultiChoice has shifted its focus to “90-day active subscribers” instead of its traditional approach of tracking the total number of subscribers at year-end. This method, according to the company, provides a clearer view of long-term trends, though it has now reversed to showcasing year-end subscriber counts for a more favorable outlook.
“Overall, the company lost half a million subscribers in the past year alone,” says MultiChoice in its latest statement. The drop is significant, given that the company now has 8.1 million active subscribers, down from 8.6 million last year, a loss of 6% in one year.
The Middle-Class Squeeze and Declining Affordability
The loss of DStv subscribers mirrors broader economic struggles. Research from Eighty20 reveals that South Africa’s middle-class income has declined by 10% in real terms between 2022 and 2024. This drop in income has left many South Africans with less discretionary income to spend on luxuries like pay TV.
“Monthly installments for subscriptions are consuming a larger portion of households’ budgets, leaving less room for entertainment like DStv,” said an industry analyst. This is especially true for DStv’s Compact service, which targets the middle-income market. With the rising cost of living, this segment has seen a sharp decline, a worrying trend for DStv.
The company acknowledges this market pressure, with a slow-down in the drop of Premium subscribers, down by just 2% in the past year, compared to 6% the year before.
Rest of Africa Faces Even Bigger Losses
Outside South Africa, DStv’s performance has been even worse, with subscriber numbers dropping by 14% across the continent. Nearly two million subscribers have been lost, with Zambia and Nigeria seeing the largest percentage losses.
In Zambia, the loss has been an alarming 60%, while Nigeria, with a 18% drop, represents the largest absolute loss in subscribers. The situation has raised concerns about the viability of DStv’s services in some of its key African markets.
Despite raising prices—by 5.9% in South Africa and 17% in other countries—the company has struggled to maintain its subscriber base. The increasing inflation rates across Africa, with many countries facing inflation above 30%, have made DStv’s services even harder to afford for the average consumer.
MultiChoice’s Plan to Offset Declining Subscribers
In an attempt to offset these declines, MultiChoice has focused on diversifying its revenue streams. This includes expanding its services beyond traditional pay TV. The company has launched Showmax 2.0, an improved streaming service, alongside its betting platform, KingMakers, and decoder insurance.
“Showmax is central to our future,” said a company spokesperson, highlighting the 50% year-on-year growth in its paying subscriber base since the service’s relaunch earlier this year. This has provided a much-needed revenue boost for the company, as DStv’s traditional pay-TV base continues to shrink.
The company is also aiming to cut costs aggressively across its business. In fact, MultiChoice’s recent cost-saving initiatives have been more successful than expected, with R1.33 billion in savings in just the first six months of the year.
The Hybrid Model: Pay TV and Streaming for the Future
With pay-TV subscriptions steadily declining, MultiChoice is shifting its focus toward a hybrid model that combines traditional pay-TV with streaming. This model reflects the changing media landscape, where streaming services are increasingly seen as the future of entertainment.
“The future of TV is streaming,” said Tim Jacobs, MultiChoice’s CFO. “We’re positioning ourselves to thrive in a market where streaming is king, and we believe Showmax will help us grow alongside the changing needs of consumers.”
