South Africa: MultiChoice Losing Premium Subscribers To Netflix
Approximately 20% of South Africans who sign up for Netflix or Showmax, do so with the intention of cancelling their DStv premium subscription.
The sudden launch of subscription video on demand services in South Africa has undoubtedly had a negative impact on DStv’s number of cancelled premium subscriptions but this is not the first time that MultiChoice has witnessed a decline in the premium band because DStv premium subscribers all over the African continent have been declining for the past three years.
DStv’s overall subscriber base is still growing year on year, but it seems that the majority of this growth stems from lower-end subscribers. All in all, MultiChoice’s mass-market continues to grow in total even though its high-end subscribers are rapidly declining.
The annual results that Naspers submitted for the year ending 31 March 2018 revealed that MultiChoice had lost a staggering 41,000 DStv Premium subscribers.
In the year before, the pay-TV group lost 135,000 DStv Premium subscribers. Last year’s annual results from Naspers also revealed that approximately 255,000 DStv Premium subscribers had cancelled their subscriptions between April 2015 and March 2016.
It is important to note that Netflix was launched in South Africa in January 2016.