While the percentage of DStv Premium subscribers - the most valuable segment in terms of revenue - as part of MultiChoice's overall subscriber base continues to shrink, the company is looking at cutting as many as 200 staffers from its 7 000 workforce.
The embattled South African public broadcaster is similarly looking at job cuts of its almost 4 000 strong workforce and already let go of fixed-term contract workers and freelancers at the end of August who worked for its SABC News (DStv 404) channel despite getting a multi-million rand channel carriage agreement renewal for this channel with MultiChoice in August.
MultiChoice was asked if the number of 200 is correct and if it's accurate that the company is considering job cuts.
MultiChoice responded to TVwithThinus with a statement saying "we are creating a leaner and more agile organisation in order to remain globally
competitive as we continue to deliver a world-class entertainment experience to
our customers and value to our 90 000 BEE shareholders".
"We
are looking at different ways to transform our business into a more agile and
digitally-focused company."
In its financial year to the end of March 2018, although MultiChoice's overall DStv subscribers numbers continue to grow, it shed another 41 000 DStv Premium subscribers across Africa as consumers no longer see the most expensive package as offering enough distinctive value compared to other DStv bouquets.
While MultiChoice is earning more money overall from more DStv and GOtv subscribers, a growing percentage comes from lower-tiered packages where MultiChoice makes less money per consumer, with the average revenue per user (ARPU) that has slid from R353 to R344 per month due to the decline in DStv Premium subscribers.
