by Thinus Ferreira
Utterly shocking pay-TV subscriber losses have been registered in the United States because of the Covid-19 coronavirus pandemic during the first quarter of 2020, portending nothing good for South Africa and Africa where MultiChoice's DStv and StarTimes/StarSat might face similar large churn in subscribers before long.
Decimated by rising unemployment and a lack of actual sports content, American pay-TV subscribers have cancelled their traditional pay-TV subscriptions in droves during the first term - factors that are present and growing within the South African and sub-Saharan Africa market as well.
"It would be unseemly to resort to hyperbole to describe the carnage in pay-TV in the first quarter," the MoffettNathanson analysts Craig Moffett and Michael Nathanson wrote in their Friday report entitled "Pay-TV Catches Covid" about the shocking latest subscribers losses in the United States - a new record.
"Better that we simply report the numbers. Traditional pay-TV subscriptions fell by a record 1.8 million in the first quarter, the worst quarterly result on record, bringing the annual rate of decline to 7.6 percent, also a record," they wrote.
In what's an ominous warning for South African and African brands like MultiChoice, SuperSport, StarTimes and others, they write: "With sports off the air, and with the pain of the tsunami of unemployment just beginning to hit as the quarter ended, all these numbers will get worse in the second quarter."
"Without sports and with economic pressures on families mounting by the end of the quarter, the migration to virtual [pay-TV] absolutely tanked."
"Given the unfortunate rate of United States unemployment the rising cost of pay-TV, the current lack of live sports and much cheaper over-the-top (OTT) alternatives, we expect that rate of cord-cutting to materially accelerate in the coming quarters."
As "distraction-starved, shut-in consumers" are signing up for subscription video-on-demand (SVOD) services like Disney+, Apple TV+, Amazon Prime Video and Netflix, they're leaving the too expensive traditional satellite pay-TV options behind.
"It is increasingly clear that as consumers climb into these lifeboats, they are leaving the sinking motherships behind," the analysts wrote.
Meanwhile, South African DStv subscribers' anger and resentment towards MultiChoice is growing with a petition that was started, that has grown to over 208 000 signatures by Friday afternoon after just two weeks.
DStv subscribers are furious with MultiChoice - which has decided to say nothing and to stay silent and ignore the growing issue.
Sfiso Gwala started the petition entitled "DStv should give S.A. subscribers a payment break or decrease prices during Covid-19" on the change.org platform where it has quickly shot up to become one of the highest "trending" and popular petitions on the platform.
The petition was prompted after South African DStv subscribers discovered that MultiChoice through its MultiChoice Africa division is giving discounts of up to 75% to DStv and GOtv subscribers, as well as automatically upgrading them to the next higher bouquet for free as part of consumer relief because of Covid-19 national shutdowns.
MultiChoice which is not giving South Africa's DStv subscribers the similar free bouquet upgrades across the board because of the Covid-19 pandemic as for DStv subscribers elsewhere in Africa, has now provided relief for its subscribers in a large number of countries, including Nigeria and Namibia, Botswana, Ghana, Zimbabwe, Malawi, Uganda and Zambia.
