MultiChoice's programming cost for its DStv satellite pay-TV platform keeps rising significantly - and at a much higher percentage than South Africa's inflation rate of 5,5% - driven by more, and the rising cost of, local TV content, the weaker rand as well as additional satellite uplinking costs.
Programming cost has soared to 17% year-on year (YoY) from September 2012 to September 2013, reaching almost R7 billion (R6,935 billion) by the end of March this year.
This programming cost includes the cost associated with acquiring TV shows and movies exclusively and in a first-run window for territories; as well as the sports rights to major sporting events.
MultiChoice's DStv Compact bouquet has shown strong growth in the financial half year to end September 2013.
Naspers announced today that its pay-TV revenue from its MultiChoice arm grew 18% to R17,1 billion for the 6 months to end September 2013 and that DStv subscribers grew another 560 000 during the same period across Africa.
