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In response to a rapidly shifting media landscape, African pay-TV giant MultiChoice has outlined a bold, five-point growth plan aimed at securing its long-term sustainability. The strategy, detailed in its latest annual report, sees the company aggressively pivoting beyond its traditional satellite TV roots to become a diversified technology leader, capitalizing on opportunities in streaming, sports betting, and fintech.
The company, which launched its DStv service nearly three decades ago, is actively rationalizing its portfolio to focus on these core opportunities. This includes enhancing its DStv Internet fixed-wireless LTE offering while shutting down its fibre service, and exiting minor stakes in non-core assets like fintech firm Stitch.
By Gamuchirai Mapako
MultiChoice has identified five key opportunities it believes will drive its future growth the first being a large and growing pay-TV market. With a current installed base of 14.5 million subscribers, MultiChoice is targeting a vast addressable market of 57 million households in sub-Saharan Africa by 2025, growing to 64 million by 2030. The company aims to continue driving subscriber growth in its traditional, yet still lucrative, pay-TV business.
Secondly, they are also acknowledging the profound changes sweeping the industry, the group is focused on a fundamental reset of its operations. This involves adapting its cost structure and business model to thrive in the new video entertainment ecosystem.
The linear and video-on-demand (VOD) over-the-top (OTT) streaming market is exploding across the continent. MultiChoice sees technological developments that lower the cost of connectivity and devices as a key tailwind for its Showmax and DStv Stream services.
The other point of focus is the high-growth sports betting arena. Through its investment in and partnership with KingMakers, MultiChoice sees significant scope for expansion in the interactive entertainment and sports betting sector, both geographically and in its service offerings.
The last but not least being the massive fintech potential. As Africa becomes more connected, MultiChoice is positioning itself to benefit from the need for comprehensive financial solutions. Its foothold in this space is secured through the Moment fintech joint venture and a strong position in insurance via its partnership with Sanlam and Santam.
“Our shareholding in KingMakers, Moment, and related companies positions us well to take advantage of these opportunities,” the company stated in its report.
The strategic shift is a direct response to what MultiChoice Group CEO Calvo Mawela describes as “profound changes” in the competitive environment. The company is facing unprecedented pressure from global streaming behemoths like Netflix, Amazon Prime Video, YouTube, Disney+, and Apple TV+.
The rapid growth of broadband penetration across South Africa and the rest of the continent has fueled the adoption of these services, threatening the sustainability of traditional broadcasters. In addition to global SVODs, services like TikTok are also capturing increasing audience attention.
“This is forcing companies like MultiChoice to embrace change and reinvent themselves to remain relevant,” the report notes.
MultiChoice’s history is one of continuous evolution. Tracing its roots to pay-TV channel M-Net launched in 1986, the company established the MultiChoice brand in 1994 and launched DStv in 1995. It expanded to digital terrestrial television with GoTV in 2010 and entered the SVOD market in 2015 with Showmax.
Recent moves signal an acceleration of this transformation. The 2023 joint venture with Comcast to supercharge Showmax’s development is a core part of the plan to make it Africa’s leading streaming platform. The investments in KingMakers (betting) and Moment (fintech) demonstrate a clear intent to diversify revenue streams far beyond traditional television.
MultiChoice expresses confidence that this multifaceted approach, leveraging its deep understanding of the African market and its strategic partnerships, will ensure its position as a leader in the African entertainment and technology landscape for years to come.
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