MultiChoice bleeds 1.2 million linear pay-TV subscribers as DStv owner reports a big loss it blames on 'unprecedented headwinds'

by Thinus Ferreira

Pay-TV company MultiChoice late on Wednesday reported that 8% or 1.2 million of its linear DStv subscribers had cut the cord over the past financial year as it ended 31 March 2025 with a big loss it blames on "unprecedented headwinds".

The 1.2 million subscribers that MultiChoice, as Africa's largest pay-TV operator, lost in total, in a year, is more than the 1 million South African DStv Premium and DStv Compact subscribers which is all that remain on MultiChoice's most expensive premium tier.

Over its past two financial years MultiChoice has lost a whopping 2.8 million linear subscribers.

By 31 March 2025 MultiChoice, which is in the process of a corporate takeover by France's Canal+, had 14.5 million active subscribers across South Africa and the rest of sub-Saharan Africa. A year ago it stood at 15.7 million.

In a statement, MultiChoice said, "The past two financial years have been a period of significant financial disruption for economies, corporates and consumers across sub-Saharan Africa due to challenging macroeconomic factors".

"Combined with the impact of structural industry changes in video entertainment, such as the rise of piracy, streaming services and social media, this has materially affected the overall performance of MultiChoice Group."

According to MultiChoice, subscribers are cutting the DStv cord because "economic hardship and affordability remain a challenge across the board".

"The ongoing cost-of-living crisis has meant that households are struggling to make ends meet and many had no choice but to give up their DStv subscription for the time being." 

MultiChoice subscribers declined by 8% from 15.69 million to 14.51 million, while its 90-day active subs fell 11% to 18.59 million during the period.

"Linear subscribers were down 1.2 million or 8% year-on-year to 14.5 million active subscribers, with the loss evenly split between South Africa (0.6 million) and Rest of Africa (RoA) (0.6 million)," MultiChoice says.

MultiChoice had 7.5 million subscribers in South Africa, and 7 million in the RoA.

"Although reflecting an improvement on FY24 trends, this indicates ongoing broad-based pressure across the group's entire customer base."

According to MultiChoice's 90-days active subscriber metric, it lost 10% DStv premium (Premium and Compact) subscribers in South Africa, while DStv Compact subscribers in South Africa decreased by 6% and mass market decreased by 7%.

In South Africa, MultiChoice now has only 1 million DStv Premium and DStv Compact subscribers left, with 2.1 DStv Compact subscribers and 4.7 lower-tiered subscribers.

MultiChoice's average revenue per user (ARPU) in South Africa for the year until 31 March 2025 increased by 4% for its DStv premium segment (DStv Premium and DStv Compact Plus packages), 2% for its mid-market segment (DStv Compact), and 10% higher ARPU for its mass market (DStv Family, DStv Access, DStv EasyView) tier. 

In the rest of Africa, Nigeria and Zambia are the two markets hampering MultiChoice growth, with Nigeria accounting for 77% of subscriber losses in RoA blamed on very high inflation causing customers to cancel.

Meanwhile extreme electricity blackouts in Zambia, Zimbabwe and Malawi lead to customers cutting the cord.

Streaming customers-wise, MultiChoice saw a 44% jump in Showmax subscribers year-over-year after it relaunched "Showmax 2.0" in February 2024 with Comcast's NBCUniversal and Sky in the United Kingdom.

This 44% Showmax subscriber growth is however below MultiChoice's original projections for its relaunched streamer, with MultiChoice saying the new Showmax "subscriber growth has lagged initial exponential growth targets".

DStv Stream subscribers is up 38% with revenues increasing 48%.

MultiChoice is also no longer technically insolvent.

"Importantly, the group returned to a positive equity position through a combination of cost savings, a stabilisation in currencies, and the accounting gain on the sale of 60% of the group’s shareholding in its insurance business (NMSIS) to Sanlam," MultiChoice says.

According to Calvo Mawela, "Our performance reflects both the challenges we've faced and the resilience of our teams".

"While macroeconomic pressures and currency volatility have weighed on our results, our disciplined execution, cost management and investment in new long-term growth opportunities position us well for the future."

MultiChoice Group's revenues declined by 9% year-on-year to R50.8 billion, primarily due to an 11% drop in subscription revenue.

After incorporating Showmax's trading losses and R5.2 billion in foreign currency revenue losses, and partially offset by the R3.7 billion in cost savings, MultiChoice's trading profit declined to R4.0 billion.

MultiChoice says it added 5 340 hours of local content in the year, bringing the total local content library to more than 91 470 hours. SuperSport broadcast 47 839 hours of live coverage (+7% YoY) and produced 1 029 live events.

It also renewed channel carriage agreements with Paramount for MTV, Comedy Central, BET, Nicktoons, and Nickelodeon, as well as with ZEE.

Notably, its SuperSport Schools app saw 46% growth in registered users to reach 1.2 million, while the platform reached nearly 11 million unique viewers through the app and DStv channel 216 and delivered 50 000 hours of content.

MultiChoice says one of its three "clear priorities" is to"Continue to work with Canal+ towards a successful close of their mandatory offer in order to unlock significant long-term benefits for the combined entities and their respective stakeholders".

This deal is still subject to Competition Tribunal approval and this takeover is expected to close in October 2025.

Muvhango crew and cast unpaid yet again as SABC rips cancelled show's remaining episodes from SABC2 without explanation

by Thinus Ferreira

The crew and cast of Word of Mouth Pictures have been unpaid yet again at the end of May, saying that the production company hasn't been been paid by the SABC, while the South African public broadcaster suddenly also removed the remaining episodes of the cancelled Muvhango from SABC2 on Thursday without explanation. 

While the SABC's cancelled Venda weekday soap on SABC2 is only supposed to end airing on 8 August, the show's remaining episodes abruptly disappeared on the SABC2 on Thursday and Friday 5 and 6 June, with the omnibus repeat block on Saturdays also removed without any explanation to viewers or the media.

According to insiders, the Muvhango crew and cast have gone unpaid at the end of May. 

The crew and cast were told by the production company that they had hoped the SABC would pay last week, so that the people working on the show could be paid by Monday 2 June.

This is similar to what happened after the SABC cancelled 7de Laan on SABC2 when Danie Odendaal Productions went unpaid for the remaining episodes still to be delivered.

Danie Odendaal Productions then refused to send further episodes for broadcast on SABC2 unless payment was received from the struggling SABC.

Mmoni Ngubane, SABC spokesperson, didn't respond to media queries about the non-payment of the Muvhango cast or why remaining Muvhango episodes suddenly stopped airing on SABC2 on Thursday this week.

The Muvhango cast and crew on the Duma Ndlovu-produced show have gone unpaid numerous times in the past - both due to mismanagement at the production company, as well as not being paid by the technically insolvent SABC.

Muvhango extras are also waiting to be paid. 

Muvhango background actors are also demanding payment they haven't received yet from Nonkululeko Ndlovu's  Turning Heads Casting Agency.

Nonkululeko Ndlovu is the daughter of the troubled Duma Ndlovu who created Muvhango. Duma Ndlovu has been charged with tax evasion totalling R25 million and he appeared in court in October 2024.

Muvhango that got cancelled in 2024 when its contract for a shortened 130-episode season ran out but then got a belated one-year new contract of 260 episodes for a 26th season.

That final reprieve for the long-running show has now also ran out and Muvhango is now set to be replaced by a new drama series entitled Pimville Queens.

Pimville Queens is produced by Bakwena Productions which is also notorious for its non-payment of cast and crew as well as service suppliers.

It's still unclear why the SABC have decided to do business with Bakwena Productions of Kagiso Modupe, Rashaka "Rush" Moufhe and Brenda Mukwevho, with SABC executives fully aware of Bakwena Productions' troubled past with payments.

Nomsa Chabeli, SABC CEO, says she believes Pimville Queens will be "successful from a launch perspective".

For SABC2 we're introducing a new telenovela starting in August, which is going to be replacing the existing Muvhango".

She said that "Come August, we are launching a new telenovela called Pimville on SABC2, and based on that we will be really driving that audience share back to SABC2. 

ALSO READ: SABC cancels Muvhango after 28 years, CEO Nomsa Chabeli says replacement telenovela Pimville will hopefully be successful to bring SABC2 viewers back

ALSO READ: 'Final farewell' planned for SABC2's cancelled Muvhango after failed one-year reprieve

ALSO READ: SABC2's Muvhango forced to stop production again after writers, cast and crew again go unpaid by Word of Mouth Pictures

ALSO READ: Rhythm World Productions tells unpaid Umkhokha cast and crew it has 'cash flow' problems as MultiChoice vows stronger checks on growing trend of payment-skipping producers

ALSO READ: Legal action starts against producer Kagiso Modupe after he fails to pay crew and cast of BET Africa's Pound 4 Pound: 'Poor show of morals'

ALSO READ: SABC2 will show the last episode it has of 7de Laan tonight unless the SABC pays the show the outstanding millions it is owed

Primedia Studios' Deal or No Deal Celebrity on SABC1 returns for second season from 14 June for 52 episodes fronted by special highlights debut on 7 June

by Thinus Ferreira

Primedia Studios' Deal or No Deal Celebrity game show is returning to SABC1 for a second season of 52 episodes from Saturday 14 June at 18:00 and will debut with a special season one highlights episode.

Primedia Studios does Deal or No Deal SA, as well as the Deal or No Deal Celebrity version for the South African public broadcaster, with Homebrew Films filming at Atlantic Studios in Cape Town.

Deal or No Deal Celebrity will run for another year and 52 hour-long episodes with a season one highlights episode that will be shown on SABC1 on Saturday 7 June. All episodes are available on the SABC's video streaming service SABC+ after broadcast.

Deal or No Deal Celebrity with Katlego Maboe as host will once again have a crop of South African singers, actors, TV presenters, comedians and sport stars playing with the hope of winning money for charities and other worthy causes.

During the first season run of the show, R2.2 million was paid out to more than 40 charity organisations operating across South Africa. 

Contestants can win anything between R1 to R250 000 with the outcome hinging on which briefcases they eliminate.

MultiChoice adds Presley Chweneyagae's Tsotsi to M-Net, Mzansi Magic and Showmax after actor's death

by Thinus Ferreira

After the death of actor Presley Chweneyagae, MultiChoice has acquired the South African Oscar-winning film Tsotsi and will show it on M-Net (DStv 101) and Mzansi Magic (DStv 161) on DStv, as well as carry it on its Showmax streaming service from today.

Alongside the season finale of the Mzansi Magic drama series Cobrizi, MultiChoice worked to curate a collection of Presley Chweneyagae's on-screen appearances for DStv subscribers.

The world was introduced to a 20-year-old Presley Chweneyagae in 2006, when Tsotsi won the Academy Award for Best Foreign Language Film. 

Based on Athol Fugard’s novel, the film follows a young boy forced to survive alone in the Johannesburg townships, whose life is upended when he finds a baby in the back seat of a car he's stolen.

Directed by Gavin Hood and produced by Peter Fudakowski, Tsotsi stars Presley alongside Terry Pheto, Kenneth Nkosi, Jerry Mofokeng and Rapulana Seiphema.

Tsotsi will be broadcast on M-Net (DStv 101) at 21:00 on 6 June and will be available to stream on Showmax and DStv Stream. It will then be on Mzansi Magic (DStv 161) on Saturday 7 June at 20:00 and M-Net Movies 4 (DStv 108) on 15 June at 20:00.

Mzansi Bioskop will be honouring his work with broadcasts of a series of his films, including Zama Zama (9 June); State of Violence (10 June); iNumber Number (11 June) and Tsotsi, once more, on 11 June, all at 21:00.

In Cobrizi, Presley returned to captivate audiences in a spin-off series named for the nickname his character acquired on The River.

A gritty, heart-wrenching and ultimately hopeful tale of survival, love redemption, Cobrizi showcased the heart, soul and inventiveness of Presley. 

The series comes to an end on 8 June at 20:00 on Mzansi Magic.

• Friday 6 June 2025:

Tsotsi M-Net (DStv 101) at 21:00 and available on DStv Stream and Catch Up, as well as Showmax

 

• Saturday 7 June:  

Tsotsi Mzansi Magic (DStv 161) at 20:00 and available DStv Stream packages and Catch Up

• Sunday 8 June:

Cobrizi season finale - Mzansi Magic, 20:00

• Monday 9 June:

Zama Zama Mzansi Bioskop (DStv 164), 20:00

• Tuesday 10 June 2025:

State of Violence, Mzansi Bioskop (DStv 164), 21:00

• Wednesday 11 June:

iNumber Number, Mzansi Bioskop (DStv 164), 21:00

• Thursday 12 June:

Tsotsi, Mzansi Bioskop (DStv channel 164), 21:00

• Sunday 15 June:

Tsotsi, M-Net Movies 4 (DStv 108), 20:00

OPEN LETTER. South Africa Not at Cannes 2025: How the voices of SA film creatives are sidelined

by Weaam Williams

The Cannes Film Festival remains synonymous with Hollywood glamour, it also serves as a vital  platform for lesser-known filmmakers and actors to gain recognition for their exceptional work often produced on budgets far smaller than those of major studios.

This year was particularly remarkable for Middle Eastern cinema. 

The prestigious Palme d'Or was awarded to Iranian writer-director Jafar Panahi for his gripping thriller Unsimple Accident, filmed without approval from the Islamic Republic. 

Meanwhile, Once Upon a Time in Gaza won Best Director in the Un Certain Regard section, and Iraqi filmmaker Hassan Hadi took home the Camera d'Or for The President’s Cake.

French-Algerian actress Nadia Melliti earned Best Actress for her role in The Little Sister, and Palestinian director Tawfeek Barhoum won the Palme d'Or for Short Film with I’m Glad You're Dead Now.

These triumphs highlight not only the exceptional craftsmanship of Middle Eastern cinema but also the global fascination with authentic, auteur-driven stories from the Islamic world.

In the festival's 78-year history, only two South African films have been selected for the Cannes  Official Selection.

This year, Oliver Hermanus' The History of Sound, a privately funded gay period drama starring Paul Mescal and Josh O'Connor, competed in the main selection. Based on the eponymous short story, the film marks South Africa's second appearance in the Cannes Official Selection.

The first was Elaine Proctor's Friends (1993), a poignant drama about three women from different  factions of South African society sharing a house in Johannesburg at the twilight of apartheid.

Notably, Friends, written and directed by a woman, shot by a female cinematographer  (Dominique Chapuis), and featuring a predominantly female cast, received an Honourable Mention for the Camera d’Or. 

This was a monumental achievement, especially considering that, in its 78-year history, only 82 women directors have been included in Cannes' Official Selection. Today, Proctor is a critically acclaimed novelist based in the UK.

As a writer-director, I was inspired by Proctor's legacy. 

After completing the screenplay for my feature Two Hues, I reached out to her, and to my delight, she responded. She agreed to direct the film, pending funding, after reviewing the script and offering valuable feedback. For any writer, such validation is invaluable.

Bolstered by Proctor's involvement, I applied for funding through South Africa's National Film and  Video Foundation (NFVF). 

Despite her prestige, my applications were rejected.

Through conversations with industry insiders, I learned that the NFVF has, over the past five years,  prioritised a select group of producers and directors, maintaining a status quo that sidelines independent voices, no matter their merit. This raises serious concerns about transparency, panel selection, and equitable processes.

Since its inception in 1999, the NFVF has been mandated to promote equity and inclusion in South  African cinema.

Yet, in 26 years, it has never funded a single South African film selected for The Cannes Official Selection. Instead, millions of rands are spent annually on sending delegations to Cannes, hosting events, and maintaining a presence at the festival, now reduced from a pavilion to a mere stand.

In 2018, my documentary District Six: Rising from the Dust was showcased at the Marché du Film.

While I initially underestimated its significance, the South African press recognised its impact, given its exploration of forced removals and District Six's history.

Navigating Cannes alone was daunting. 

The festival's overwhelming Hollywood-centric atmosphere, red carpets, star-studded premieres, and industry giants, made it clear that independent and documentary filmmakers operate on the periphery.

However, I eventually found my footing at Cannes Docs (then Doc Corner), where Pierre-Alexis Chevit expressed interest in my work and proposed a South African showcase for the following year.

Back home, I facilitated an introduction between the NFVF and Cannes Docs, only to face exclusion from the subsequent call for submissions.

Fortunately, Cannes Docs intervened with a direct invitation, forcing the NFVF to include me. 

Yet, at the festival, our delegation received no logistical or promotional support, no pitch training, no introductions, and notably no attendance from NFVF leadership, despite their presence at Cannes.

This neglect stood in stark contrast to the robust support other nations, like Palestine, provided their filmmakers.

In recent years, the NFVF has funded one documentary annually for a Cannes Docs spotlight - without an open industry call. 

Instead, selections are made in collaboration with Encounters Documentary Festival, raising concerns about fairness and transparency. Why should a festival funded by the NFVF gatekeep such opportunities?

This year (2025), the NFVF was conspicuously absent from Cannes, with only the IDC and KZN Film Commission representing South Africa.

In a letter to the NFVF Council, Minister Gayton McKenzie denied travel approval for NFVF, urging compliance with the NFVF Act, which mandates that 75% of its budget be allocated to film production.

As an industry, we continue advocating for structural reform, transparent processes, adherence to  legislation, and better support for intellectual property. Only then can South African filmmakers truly compete on the global stage.

Weaam Williams is a multiple award-winning filmmaker, actress and tech founder

Urban Brew Studios adds Kids in Faith as One Gospel channel's first kids edutainment series

by Thinus Ferreira

Urban Brew Studios which runs the One Gospel (DStv 331) channel on MultiChoice's DStv is adding the channel's first kids edutainment series, Friends in Faith, from Wednesday 3 July at 15:00.

Urban Brew Studios says Kids in Faith "marks a historic milestone for the channel as it deepens its commitment to nurturing young hearts and minds through faith-inspired storytelling".

Friends in Faith is described as "a joyful, energetic series that blends education, entertainment, and Christian values in a way that’s engaging and meaningful for kids and families alike".

"Each episode is anchored in Biblical principles - love, friendship, forgiveness, obedience, and faith - all presented through fun studio games, music, storytelling, and real-life moments with kids both in-studio and at home."

Yandiswa Nkonde, One Gospel channel head, says "Friends in Faith is more than a show - it's a ministry to our youngest viewers".

"We've had tremendous success with our licensed kids' content over the past three years, and now we are overjoyed to introduce something truly our own - content that speaks directly to the spiritual and emotional growth of children within a familiar and entertaining format."

South African personalities like Candice Modiselle, Dr Katlego Lekalakala and Thando Makhaphela will appear as guests in some episodes.

Calvin Sefala, Urban Brew Studios CEO, says "Partnering with One Gospel to bring this vision to life has been a blessing. This is a show that will plant seeds of faith, kindness, and courage in young viewers."

Pastor Vince Blennies out as NFVF CEO, unqualified exec gives no reason for why he abruptly quit

by Thinus Ferreira

Pastor Vincent Blennies who has no experience in South Africa's film and TV industry and was appointed as CEO of the South Africa's troubled National Film and Video Foundation (NFVF), is out after he quit on 27 May.

Vincent Blennies, who also serves on the board of Boxing SA, gave no reason for why he quit the NFVF CEO post just two months after he was appointed in April. 

He replaced Thobela Mayinje who also abruptly quit and who was acting in the position for over a year and a half, after she was placed on "administrative leave" in July 2024 when the NFVF said it is doing an "investigation for numerous allegations".

Vince Blennies' exit from the NFVF is just the latest chapter roiling the struggling organisation, funded by tax payers through South Africa's department of sport, arts and culture, with the unstable and mismanaged NFVF that continues to lurch from crisis to crisis.

Saudah Hamid, NFVF board chairperson and who also serves on the board of Boxing SA, so far has nothing to say after initially touting Vince Blennies' "extensive executive management experience, with a strong background in organisational leadership, governance, and strategic transformation" when his appointment was announced in April.

Other NFVF board members who also happen to be Boxing SA board members include Mthokozisi Radebe (deputy chairperson and HR chairperson) and Sydney James. 

When Vince Blennies was interviewed for the position of NFVF CEO, it was done by some of his fellow board members from Boxing South Africa who should have recused themselves from the process, although the company secretary failed to enforce this transparent governance process.

The NFVF confirms that Vince Blennies has quit, saying in a statement "Vince Blennies has resigned from his position on 27 May 2025".

"The NFVF Council is addressing the matter with the department of sport, arts and culture and continues to work towards ensuring stability within the organisation." 

In a scathing statement earlier this month, the South African Screen Federation (SASFED) said "While there is now a CEO and council at the helm of the NFVF their legitimacy is deeply tied to this history of interference and manipulation".

"The current leadership cannot be viewed in isolation from how it came into being - through processes riddled with irregularities and violations of governance principles."

"Minister Gayton McKenzie's repeated secondments of department of arts and culture officials into NFVF leadership roles created a cycle of instability that disrupted operations, violated legislative requirements, and eroded trust in one of South Africa's most critical cultural institutions."

SASFED further slammed the "operational stagnation which we have seen at the NFVF over the last year".

"Funding disbursements are delayed. Strategic priorities are misaligned. The cultural economy is left to drift while appointees learn on the job - or worse, don't even show up."

According to SASFED, "Instead of appointing leaders with a genuine understanding of the arts, culture and sport ecosystems, we are handed individuals with no background or interest in addressing the unique challenges of these industries."

"This disregard has led to repeated failures to align key leadership with the needs of filmmakers, artists, musicians and other cultural practitioners."

On Thursday, SASFED told me "The NFVF CEO's resignation is a step in the right direction - but the real issue is the ongoing political interference and the complete breakdown of governance at council level".

"The very fact that the council continues to run back to the minister for direction (as set out in its statement today) - despite its clear statutory mandate - underscores just how blurred the lines of authority have become."

"The current NFVF council has proven it cannot fulfil its legal duties under the NFVF Act, and must be dissolved."

ALSO READ: Vince Blennies is new NFVF CEO with no film biz background

46th Durban International Film Festival: 16th Durban FilmMart's In Conversation adds filmmakers Roger Ross Williams, Dora Bouchoucha and Ramadan Suleman

by Thinus Ferreira

South Africa's 46th Durban International Film Festival (DIFF) is taking place from 17 July, with its concurrent 16th Durban FilmMart that is adding Oscar-winning director Roger Ross Williams, Tunisian producer Dora Bouchoucha and the veteran South African filmmaker Ramadan Suleman to its In Conversation series of panel discussions.

The 46th edition of DIFF is set for 17 to 21 July in Durban in KwaZulu-Natal.

The 16th Durban FilmMart - it's co-production and film finance market - will run from 18 to 21 July at the Southern Sun Elangeni and Maharani Hotels, this year under the banner theme of "Bridges Not Borders: Stories that Unite".

The Durban FilmMart's industry programme includes its own In Conversation series of panel discussions and for 2025 it has added the American Oscar-winning director Roger Ross Williams, Tunisian producer Dora Bouchoucha, as well as the veteran South African filmmaker Ramadan Suleman as speakers.

"The In Conversation stream at DFM 2025 continues our tradition of creating meaningful exchanges between industry veterans and emerging talents," says Magdalene Reddy, director of the Durban FilmMart Institute (DFMI).

"These sessions not only celebrate the achievements of our headline speakers but provide vital platforms for dialogue that build the bridges our theme envisions."

"We are thrilled to present these leading experts who will share their knowledge, helping others navigate Africa's evolving film landscape while fostering connections that transcend borders."

The Academy Award-winning director and producer Roger Ross Williams is a director, producer and writer and the first African American director to win an Academy Award, with his film Music by Prudence. 

Dora Bouchoucha is a trailblazing Tunisian producer championing Arab and African cinema, and is the founder of Nomadis Images and a pivotal figure in North African cinema.

With an illustrious career spanning decades, Dora Bouchoucha has produced award-winning films including Hedi and Dear Son. 

She founded the Carthage Film Festival Projects’ workshop and has served on juries at prestigious festivals including Berlin and Venice.

The veteran South African filmmaker Ramadan Suleman has decades of experience as director and producer of instrumental various works in post-apartheid South African cinema.

Co-founder of Natives at Large, Ramadan Suleman directed groundbreaking films including Fools, Zulu Love Letter, and By All Means Necessary,.

Ramadan Suleman recently served as the co-producer of Canal+ and MultiChoice's co-production drama series Spinners for MultiChoice's Showmax video streaming service which has been renewed for a second season.

MultiChoice Kenya loses case to pay lower value-added tax in the West African country

by Thinus Ferreira

MultiChoice Kenya has lost a case at Kenya's Tax Appeals Tribunal to pay less value-added tax (VAT) after the Kenya Revenue Authority (KRA) slapped the pay-TV operator's business in the East African country with KSh 681 million (R94.2 million) in additional tax, penalties and interest.

MultiChoice Kenya claimed lower VAT in the period between January 2021 and June 2023, and argued that it was properly registered under Kenyan business tax laws and entitled to pay a lower VAT amount after deducting what is called "input tax".

MultiChoice said that it was MultiChoice Kenya, not MultiChoice Africa, that is operating as its local tax agent.

MultiChoice argued that MultiChoice Kenya could therefore deduct input tax in the country - the VAT a business pays on goods or service to produce those - from the VAT it collects and pays on sales.

MultiChoice however had a foreign-entity PIN for tax purposes and couldn't get this foreign-entity PIN to be accepted on Kenya's Tax Invoice Management System (TIMS).

According to the KRA, it was MultiChoice Africa and not MultiChoice Kenya operating the DStv and GOtv pay-TV services, as well as the Showmax video streaming service, in Kenya. 

The KRA said MultiChoice is doing business-to-consumer (B2C) transactions - consumer business that falls under Kenya's taxable digital marketplace supplier VAT laws.

The KRA argued that MultiChoice Kenya isn't eligible for VAT tax deductions since it is MultiChoice Africa operating in the country, and that as a business operating B2C transactions, it doesn't qualify for a lower VAT tax rate as a non-resident supplier or company.

Kenya's Tax Appeals Tribunal sided with the KRA, ruling that "the finding by the Tribunal is that the respondent (KRA) was justified in issuing an assessment and disallowing the input tax claimed by the appellant".