Africa’s biggest pay-TV provider, MultiChoice, has warned shareholders of more difficult times ahead. The company is battling economic challenges that have led to a sharp drop in subscribers.
MultiChoice, the operator of DStv, has seen its subscriber base shrink dramatically. In less than two years, the number of active customers fell from over 23 million to 19.3 million. Most of these losses occurred outside South Africa, with over 84% of affected users being DStv customers.
One reason for this decline is the tough economic situation in many African countries. In Nigeria, where MultiChoice has a large customer base, inflation has remained above 30% for most of the past year. The company says high costs of living have made it harder for people to afford its services.
“The loss in the rest of Africa has been primarily due to the significant consumer pressure in Nigeria, where inflation has remained above 30% for the majority of the last 12 months and, more recently, due to extreme power disruptions in Zambia,” the company stated.
Regulatory Challenges Add Pressure
Aside from financial struggles, MultiChoice is also facing regulatory issues. Nigeria’s Federal Competition and Consumer Protection Commission (FCCPC) recently filed charges against the company. The regulator accuses MultiChoice of ignoring local consumer protection laws and failing to comply with regulatory directives.
The company acknowledged its struggles in a voluntary operational update ahead of its financial results for the year ending March 31, 2025. MultiChoice stated that the “challenging consumer environment has resulted in a decline in subscribers and limited revenue growth.”
With increasing competition from online streaming services and economic instability in key markets, MultiChoice’s future remains uncertain.
The company may need to rethink its pricing model and service delivery to stay ahead in Africa’s fast-changing entertainment industry.
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