Global media and entertainment group, Naspers has published its financial report for the year ended 31 March 2018, which shows a massive decline in the premium subscription of MultiChoice’s DStv.
According to the report, over the last year, subscribers on the DStv platform grew by a 13 per cent margin, an increase from11.942 million to 13.476 million with most of this growth coming from lower-end subscribers, which shows that MultiChoice’s mass-market growth is continuing.
MultiChoice’s high-end customers who are DStv Premium subscribers suffered a decline from 1.962 million to 1.921 million over the last year, resulting in a loss of 41,000 DStv Premium subscribers in the previous financial year. This staggering loss of high-end subscribers also nose-dived the average revenue per user (ARPU) from $26 (R353) per month to $25 (R344) per month.
It comes as no surprise to experts in the media and telecommunications sector that with more reliable internet connection in some parts of Africa, terrestrial and pay-tv might become a thing of the past.
In earlier reports Chief Operating Officer, MultiChoice SA Mark Rayner balmed Service-Video-On-Demand platforms for the losses pay-tv is experiencing. He believed that these SVOD brands would fundamentally disrupt the pay-TV industry and that the broadcasting regulatory body in South Africa was not paying enough attention to these alarming developments.