MultiChoice keeps losing thousands of DStv Premium subscribers - this DStv top-end churn is putting its slate of premium content at risk.

by Thinus Ferreira

MultiChoice keeps losing its most-valuable DStv Premium subscribers who no longer see the expensive offering as providing enough value for money - something that puts pressure on budgets and spells danger for the future existence of the existing slate of premium content and TV channels available to its top-bouquet customers.

Just as MultiChoice and M-Net once grew in top-end DStv subscribers leading to increased budgets - justifying the risk of bigger spending on more expensive shows catering to a more discerning and upmarket audience and in turn attracting more lucrative advertisers willing to pay more for more expensive DStv Media Sales ad spots - there is now the danger of the opposite happening.

As MultiChoice's percentage of DStv Premium and DStv Compact Plus subscribers keep falling as part of the overall subscriber mix due to MultiChoice's shift in focus to rather offer a bigger value proposition to mass-market customers on lower-tiered DStv bouquets, this shift will sooner or later have a knock-on effect and start to impact premium content budgets.

It will likely become increasingly more difficult for MultiChoice content cost centres - specifically M-Net, kykNET, MultiChoice's streaming service Showmax, as well as the division working on acquiring and retaining premium third-party linear TV channels carriage agreements on DStv - to justify spending on big-budget items, shows, projects and expensive TV channels if this premium audience is small and dwindling.

MultiChoice already ran into trouble with Blood Psalms from Yellowbone Entertainment that was supposed to have started last month on Showmax, with the October debut of the most expensive TV series yet filmed in South Africa now delayed by several months to possibly February 2022.

Blood Psalms is due millions of rand in unpaid money it requires to complete post-production work. The due payouts, as part of South Africa's stalled film rebate scheme, ran by the department of trade, industry and competition (DTIC), were abruptly cancelled.

MultiChoice isn't able to simply take over Blood Psalms enormous production costs financed through the film rebate scheme. 

The Blood Psalms scandal has led to warning lights flashing for possible future big-budget local productions for pay-TV that might not be deemed feasible or worth the effort to make in South Africa if top-end subscribers don't exist in big enough numbers to justify the spending and trouble.

While MultiChoice's overall content cost and spending on general entertainment and sports content continue to grow, it also means that MultiChoice is facing increasing internal pressure on the type of content the pay-TV operator will and can spend money on.

The likely outcome, if DStv Premium subscribers continue to decline, is that less money will be allocated for the production of expensive local shows like Survivor SA on M-Net (DStv 101) only accessible for DStv Premium subscribers; with the loss of more premium third-party TV channels like BBC First, and more money allocated for mass-market shows like Uyajola 9/9 on Moja Love (DStv 157).

Showmax growing but DStv Premium under pressure

On Thursday afternoon MultiChoice released its interim financial results for the 6 months until the end of September 2021 that revealed that the pay-TV operator not only continues to bleed top-end DStv subscribers but that mid-tier subscribers are also abandoning its offering.

Overall MultiChoice added 1 million subscribers in the 6 months to the end of September 2021 and now has 21.1 million pay-TV subscribers.

South Africa remains the pay-TV operator's country with the largest subscriber base (12.2 million, 58%) with 8.9 million subscribers (42%) across sub-Saharan Africa (RoA).

In the 6 months under review, MultiChoice however lost over another 100 000 DStv Premium and DStv Compact Plus subscribers decreasing another 5%, and DStv Compact and DStv Commercial customers declining by 1% from 2.9 million to 2.8 million subscribers.

The top-end loss is made up for ongoing lower-tiered subscriber growth, increasing from 8.7 to 8.9 million subscribers. The number of mass-market DStv Family, DStv Access, and DStv EasyView subscribers grew by 6% from 4.4 million to 4.7 million.

The result is that MultiChoice's monthly average revenue per user (ARPU) continues to decline, this time by another 2% from R278 to R273. 

What it means is that although MultiChoice continues to have more subscribers, it makes less money per subscriber since it keeps losing DStv Premium and DStv Compact Plus subscribers who are its most valuable subscriber segment. 

Showmax subscribers are growing, however, with paying Showmax subscribers increasing by 42% and with overall online users increasing 33% from the prior period, "representing a 3% gain in share of the African OTT market since December 2020," MultiChoice says.

Sport is not luring DStv Premium subscribers back or stemming DStv subscriber churn as MultiChoice suggested would be the case earlier this year.

In June, MultiChoice Group CEO Calvo Mawela told investors that rugby broadcasts are one of the biggest drivers of DStv Premium uptake and that the loss of rugby because of the Covid-19 coronavirus pandemic was a very big reason behind the ongoing decline in DStv Premium subscribers in the previous financial year.

"What we've seen is that as a result of the lack of rugby, you see people coming down, but as soon as rugby comes back, you see people going up," Calvo Mawela said,.

However, while rugby and other sport did return to SuperSport the past few months, DStv Premium subscribers didn't.

MultiChoice: Local content remains important

About its latest 6-month financial results, MultiChoice says that local content continues to be "a core part of the group's differentiation strategy".

MultiChoice says that it has "stepped up its investment in local content by producing 2 692 additional hours (41% year-on-year growth). As a result, the total local content library is now approaching 66 000 hours and represents 45% of total general entertainment content spend, which was the group's full-year target".

"In South Africa, local documentary Devilsdorp became the most viewed programme of all time on Showmax."

"In Nigeria, Big Brother Naija delivered record viewership and advertising revenues and has become one of Nigeria's most loved reality brands."

"Reyka, a global co-production with Fremantle was broadcast to critical acclaim during Sunday night prime time, while a further four co-productions (Recipes for Love and Murder, Crime and Justice season 2, Pulse and The Fix) are currently in production. Interest in the group's content is at an all-time high, with 121 series sold to international buyers, seven times more than last year."

"In addition to compelling local stories, MultiChoice continues to broadcast the best of sport. The group renewed the rights to Serie A,  the FA Cup, the European Football Championship and the new United Rugby Championship."

Disney+ won't bedevil DStv

Hidden away in the small print of MultiChoice's 6-month financial results is relief for DStv subscribers fearing that they will lose The Disney Channel, Disney Junior or National Geographic when The Walt Disney Company launches its Disney+ video streaming service from around June 2022 in South Africa. 

Disney's channels were culled elsewhere as linear pay-TV channels like in the United Kingdom when Disney+ launched, forcing traditional pay-TV subscribers to switch to streaming, although DStv Premium subscribers won't abruptly lose access to Disney - at least not initially.

"On the international content front, channel agreements with Disney (including the kids and National Geographic channels) were secured to 2024," MultiChoice says.

Meet the next 10 men who are taking part in the first season of The Bachelorette SA on M-Net with Qiniso Van Damme.

by Thinus Ferreira 

After it released the names and identities of the first 5 men last month, M-Net (DStv 101) on Thursday night revealed the identities of a further 10 men who are taking part in The Bachelorette South Africa during the season's premiere episode on Thursday night.

The localised version of the reality love format of Warner Bros. International Television Production (WBITVP) is produced by Rapid Blue, with Qiniso Van Damme from the second season of The Bachelor SA as the bachelorette looking for love. 

Beyond DStv Premium subscribers, the season's episodes of The Bachelorette SA will be available to DStv Compact Plus subscribers as well, who will be able to watch every Thursday night's episode when the M-Net channel will be unencoded for the duration of the weekly episode.

On Wednesday, M-Net revealed the identities of a further 10 men who are taking part in the show:

Lunga Kupiso (30), Idutywa (Eastern Cape)

Height: 1.91m

Described as a "quiet, gentle introvert with a colourful personality".

Lunga is a village raised, city groomed Xhosa herd boy who grew up with a passion for livestock farming before moving to the big city at age 14 as the very first time he ever left his village.

Growing up he lost his only friend to an accident. He was raised by his "uGogo" (great-grandmother) and "uMakhulu" (grandmother),” whilst his mom trained as a nursing specialist, and only when she qualified, did his big move to Johannesburg come about.

He is a double graduate from a Johannesburg based university with a diploma in public relations and communications as well as a BA degree in strategic marketing communications. 

"Lungsta", as his friends call him, consults with a continental government agency, which sees him split his time between Mzansi and Ethiopia regularly. 

Besides surviving the city, his biggest career moment was 2 years ago when he was given the opportunity to join Australia’s most loved sport - as a communications assistant - an opportunity inspired by the infamous "sandpaper gate".

He is described as well-spoken, articulate, and a high calibre man who is "ready to love and hopes to be the one Qiniso says she is looking for".

Marc Coetzee (41), Johannesburg

Height: 1.88m

A dad of two boys, aged 11 and 15. Marc is described as "an overall lover of life who strives to lead a healthy and balanced lifestyle.

He is also a lifestyle and transformation coach and has a passion for working to change people’s confidence and outlook.

Marc is an adaptive business developer, brand strategist and serial entrepreneur at heart and says that he "loves pushing boundaries in everything he does".

"Having played all his cards at love, ready to try something different to meet someone he doesn’t normally look for, Marc wants to complete his idea of the ultimate power couple. Marc is in it to win it and is ready to give the other guys a run for their money."

Franco Basson (26), Johannesburg

Height: 1.76m

Franco grew up in Magaliesburg and had to build himself up. His parents are divorced and he studied law at the University of Johannesburg.

After some time in the legal field, he realized he was not passionate about it and he now works at Discovery as a financial consultant and runs a podcast named The Weekly Order with two of his best friends.

He is described as "a lover of music, he also plays the guitar and drums. He has a passion for the arts and expresses his creativity through photography and videography".

Franco had a high school sweetheart at 16 who he broke up with and has spent the past 8 years trying to win her back. 

"He used his Instagram to send her subliminal love letters. After a long wait, they saw each other again and realised that they had both grown and moved on. Now he is ready to find love again and wants to ultimately get married."

Aviwe Mahlakatha (25), Johannesburg

Height: 1.88m

Described as an introverted extrovert, mature and curious, he was born and partially bred in Mthatha in the Eastern Cape and then uprooted for primary and secondary schooling to Johannesburg with his family.

A jack of many trades, Aviwe is a media studies graduate who works as a radio producer for an online station. He also works as a freelance video editor in-between and is a full-time fashion runway model who has worked with some of the top brands on the African continent.

Aviwe comes from a close-knit family and keeps a tight group of friends who support each other. He says that he "loves what Qiniso stands for and her feisty personality. Perhaps maybe, just maybe they could be a perfect match.

Henk "Swazi" Nel (28), eMkhondo

Height: 1.94m

Described as a "soft natured Swazi often gets noticed by taking on leadership roles".

Originally from Cape Town, he lived in eSwatini for eight years. 

Henk then spent a season in Waterlooville, Hampshire in the south of London while advancing his cricketing career. Swazi captained most of the cricket teams he played for and the eSwatini Under-19's.

He currently runs his own cricket academy that serves to help junior players throughout Mpumalanga and eSwatini. 

"He has a wild party side that comes out as soon as cold tequila is involved. He has a highly competitive drive and does not like to lose. He is charmingly quirky and quick to grow on you. "In a group of men, he will make sure he is noticed," he says.

He still lives with his parents and says that he realises he is too old for that but that he is comfortable with the status quo.

Vuyani Mashego (28), Johannesburg

Height: 1.92m

He is a weightlifter, crossfitter and a strength and conditioning expert and has his eyes set on the Commonwealth Games in his weight class.

Vuyani gives back to the sport and is part of the non-governmental organisation Lifting Dreams Soweto. 

He lives the bachelor life, mostly training and working at a functional training gym he owns called Urban Shack Benoni. He has been dealt a few not so great cards in the relationship department and says that "he likes to believe he can close a deal with any lady and is charming and in tune with his emotions".

He says he has "a really good vibe, is a good listener, has high emotional intelligence and is a fashionista".

Keelan McManus (26), Cape Town

Height: 1.88m

Keelan is a sporty, active guy that loves adventures and the outdoors.

His backstory includes losing his father at a young age and growing up with an empowered single mom. He represented his country playing badminton and had his eyes set on going to the Olympics but he, unfortunately, injured his lower back while training.

Keelan has a culturally diverse family and he says that "family means everything to me". 

He is now seeking a partner that can enjoy a healthy and responsible lifestyle with him and that can keep up with his adventurous nature. His party boy habits are still there but he is looking for inspiration to change that and describes himself as a "sweet and humble guy with a big heart".

Peter Roos (27), Johannesburg

Height: 1.82m

He is climbing the corporate ladder and is described as "a gentle soul, and just truly a nice guy".

He would make for a good partner but has been very unlucky in finding love. He is very close to his mother and 2 sisters and is very family-orientated.

Peter says that he is genuinely looking for love and someone to settle down with and wants to share his journey with the right woman. He enjoys playing sports daily and regular exercise. He describes Qiniso as charismatic and bubbly. 

Peter appeared on First Dates SA, and is half-English, half-Afrikaans.

Justin Lakey (26), Johannesburg

Height: 1.82m

Justin is a track and field specialist and competes on the local stage and is aiming for the Olympics in the next 4 years.

He works as a sports conditioning coach and a sports massage therapist. His guilty pleasure is junk food, and he expresses his creativity "through sketching and draws amazing cartoon characters".

Justin was in a long term relationship before but has been single the past 3 years and describes himself as an "easy-going, competitive and funny guy".

Kyran Wright (32), Cape Town

Height: 1.87m

Kyran says he is "at his best when he is surrounded by nature".

He became a father at a young age and says that this forced him to grow up fast. He returned to university to pursue an education and a career in ecology.

He manages important terrestrial and aquatic sites in Cape Town and works to protect and rehabilitate the ecosystems in these spaces. He says that he has been following Qiniso since The Bachelor SA and sees potential for romance with her, given the opportunity.

He is planning to move into a residence on his nature reserve in preparation to settle down. He says that he is "very clear of who he is and what he wants out of life" and that "this will be a true journey to find love with Qiniso".

ALSO READ: Meet the first 5 men who are taking part in the first season of The Bachelorette SA on M-Net.

ALSO READ: From a mysterious 'Prince Harry' to 'the most awkward kiss': Here are 9 big reveals from the first episode of M-Net’s The Bachelorette SA.

ALSO READ: INTERVIEW. Qiniso van Damme of The Bachelorette SA starts her love journey: 'I hope brown girls see another brown girl who is bubbly and loud and has a right to have her love story be seen as something important'. 

Coronavirus: MultiChoice gives a free month-long upgrade to DStv Compact subscribers, M-Net extends its M-Net Binge pop-up channel for a further 2 months until 28 June.

by Thinus Ferreira

MultiChoice is giving a free month-long upgrade to all DStv Compact subscribers to the next higher bouquet because of the Covid-19 lockdown situation in South Africa while M-Net is extending its M-Net Binge pop-up channel for DStv Premium subscribers for a further 2 months that will now run until the end of June.

From today, 1 May, the Randburg-based pay-TV operator is giving a free bouquet upgrade to DStv Compact Plus. 

Until 29 May DStv Compact subscribers in South Africa will be able to watch additional TV channels available to DStv Compact Plus subscribers and above, including 1Magic, M-Net Binge, Comedy Central, kykNET, Africa Magic Urban Movies, CBS Justice, Curiosity Stream, History, Nickelodeon, Nick Jr., CBeebies, MTV Music, SuperSport 8, SuperSport 12, SuperSport 13, and Sky News.

"It’s exciting to bring new content to our DStv Compact package subscribers," says Ntsika Msuthu, DStv South Africa PR manager.

"During this time, we aim to keep our customers entertained with the best available local and international content available to us and we are excited that we can give our customers exclusives such as the Somhale’s The Union which was dubbed as the wedding extravaganza of the year."

Meanwhile M-Net execs have decided to extend its M-Net Binge Home of HBO (DStv 114) pop-up channel with a further 2 months for DStv Premium and DStv Compact Plus subscribers with the channel that will now run until Sunday 28 June.

From today the opening time of M-Net Binge will change with the channel's schedule that will now start at 20:00 on weekdays and 19:00 on weekends because of the high age-restricted content.

Series added that will run from their first seasons from this month include True Blood, Silicon Valley, Ballers, The Wire, True Detectives and Big Love.

MultiChoice opens some further channels to lower-tiered DStv subscribers, will make upcoming Nigerian love reality competition series Ultimate Love available to South African viewers.

by Thinus Ferreira

MultiChoice is opening access of 3 TV channels to lower-tiered DStv packages, adding two pop-up channels and will be making the upcoming new Nigerian love reality competition series, Ultimate Love available as a channel to South African viewers.

The Nick Jr. (DStv 307) channel from ViacomCBS International Media Networks is made available for DStv Compact Plus subscribers, while DStv Family subscribers are getting access to the National Geographic (DStv 181) channel from Fox Networks Group as well TRACE Urban (DStv 326) supplied by TRACE.

M-Net Movies is running the M-Net Movies Blackout: The Leading Men Edition (DStv 109) pop-up channel for DStv Premium subscribers between 24 January and 16 February 2020.

The channel will showcase some of Hollywood’s greatest black actors in their biggest films with over 100movies starring actors like Morgan Freeman, Samuel L. Jackson, Martin Lawrence and Eddie Murphy.

MultiChoice is opening the Moja Love (DStv 157) channel from SiyayaTV to DStv Access subscribers from 7 February until 6 March 2020.

MultiChoice is also making its new Big Brother Naija-type love reality show, Ultimate Love, available in South Africa. 

The Ultimate Love channel (DStv 198) will run from 9 February until 5 April 2020 in what the pay-TV operator says is a "first-of-its-kind Nigerian reality show".

Sixteen contestants - 8 men and 8 women - will be living together for 8 weeks in an isolated mansion looking for love until there is only one potential couple left who could win a traditional wedding and a home. 

According to the producers "participants will be paired based on their mutual attraction to one another and will compete to emerge as the ultimate couple of the competition".

Mark Rayner, MultiChoice South Africa CEO, says "We are continuously looking at ways that will ensure that customers across all our packages are able to access some of the great content that is available on our platform".

"Having these channels available for our customers is part of our ongoing commitment to bringing a wide variety of the best in local and international content that touches the lives of our viewers."

MultiChoice and M-Net widen 1Magic access, are making the TV channel available to DStv Compact Plus subscribers as well.

M-Net is widening the reach of its 1Magic (DStv 103) TV channel that has been made available from Thursday 18 April to DStv Compact Plus subscribers as well.

The channel, carrying shows like the local telenovela The River, has until now only been available for DStv Premium subscribers, the top-tier package, when the VUZU AMP channel was rebranded as 1Magic.

The bigger accessibility comes one day before the launch of the new format reality show produced by Rapid Blue, One Night with My Ex starting on Friday 19 April on the channel and in which ex-lovers shack up for one night a cameras roll to see if there's any love left.

"Last year, we announced that 1Magic would replace VUZU AMP to make the channel a new home of entertainment for our DStv Premium viewers. This was informed by our drive to invest in local content by showcasing local hit shows alongside international content," says Nkateko Mabaso, M-Net CEO.

"Now as our own way to turn up the heat this winter and keep our viewers on their couches, we have decided to give an added incentive for our DStv Compact Plus subscribers to bring the best entertainment to their living rooms."

MultiChoice confirms 2019's DStv price increases from 1 April that will range from between 1.96% to 6.42%.

MultiChoice on Tuesday confirmed 2019's DStv price increases for its pay-TV packages to TVwithThinus, that will see an annual subscription increase of between 1.96% and 6.42% from 1 April 2019.

The monthly subscription fee for MultiChoice's most expensive and cheapest packages will remain unchanged, while there's a price hike for all of the other DStv packages.

The monthly subscription fee for DStv Premium will remain unchanged at R809, and the subscription fee for DStv Easy is unchanged at R29 per month.

The Access Fee of R90 is also being increased to R95 per month that subscribers must pay if they want to use a personal video recorder (PVR) decoder like the DStv Explora.

DStv Family, aimed at the mass market, will see an increase of 6.42% from R249 to R265 per month - the DStv package with the biggest increase, followed by DStv Access that will increase from R99 to R105 - an annual increase from 2018 of 6.06%.

The monthly price of DStv Compact Plus will increase by 1.96% from R509 to R519 per month.

The percentage increase of all of the DStv packages this year is lower than the percentage increase from 2017 to 2018, except for DStv Access that will see a 6.06% increase whereas the price remained unchanged last year.

                                      Now       1 April 2019       % increase    2017 - 2018 %
DStv Premium          unchanged - R809
DStv Compact Plus   R509       R519                       1.96%                 4.1%
DStv Compact            R385       R399                       3.63%                5.5%
DStv Family               R249       R265                        6.42%                6%
DStv Access                R99         R105                        6.06%                0%
DStv EasyView        unchanged - R29

Access Fee                   R90         R95

MultiChoice cuts Showmax price in half for Compact subscribers; price dropped from R99 to R49 per month.

MultiChoice has decided to cut the price of its Showmax subscriptions in half for its largest group of subscribers with DStv Compact Plus and DStv Compact subscribers who will see a price drop from R99 to R49 per month.

Top-tier DStv Premium subscribers already get access to Naspers' subscription video-on-demand (SVOD) service for free until March 2019, with Showmax that was folded in under MultiChoice in September 2017.

"More and more customers are telling us they love to binge-watch box sets on DStv Catch Up and Showmax," says Calvo Mawela, MultiChoice South Africa CEO. "It's the way the world is moving and that's why we're offering all our Compact Plus and Compact customers Showmax at a big discount, so they can enjoy this exceptional experience".

A Showmax subscription gives users access to two concurrent streams on different devices. Parents can watch their shows on a flatscreen TV while the kids watch cartoons on their tablet.

Showmax allows customers the option to download up to 25 TV shows and movies to their smartphone or tablet for viewing later.

A link has been added to the DStv Now app with DStv subscribers who can use up to 4 mobile devices such as smartphones and tablets to access the DStv Now app, stream live television channels, and stream or download Catch Up content linked to their packages.

MultiChoice does a positive name change and switches DStv Extra to DStv Compact Plus; 'upgrades DStv Compact subscribers to Compact Plus for September.

On Tuesday the satellite pay-TV service MultiChoice did a positive name-change in South Africa to one of its DStv bouquets, changing its second-tiered DStv Extra bouquet offering to DStv Compact Plus.

MultiChoice has been offering, and using, a DStv Compact Plus bouquet elsewhere in Africa and the "introduction" of it through a name change in South Africa is a good service adjustment to align its second best offering in South Africa with what it is called on the rest of the African continent.

MultiChoice quietly launched DStv Extra just over 4 years ago in June 2013 but based on the brand name alone, consumers struggled to know where exactly it would fit into the tiered DStv offerings.

The renamed DStv Compact Plus makes it clearer that it's an enhanced "plus" version of DStv Compact.

From 1 September to 31 September all existing DStv Compact subscribers - DStv's third-tiered bouquet - will be "upgraded" and get access to the DStv Compact Plus (or old DStv Extra) channels without being charged more as a consumer sampling exercise.

DStv Compact Plus costs R489 per month and these DStv subscribers get access to DStv BoxOffice, DStv Catch Up and DStv Now online and on the app for smart devices.

DStv Compact Plus contains more channels than DStv Compact and additionally has channels like Comedy Central Africa (DStv 122), ITV Choice (DStv 123), Lifetime Africa (DStv 133) and the Afrikaans channel kykNET (DStv 144), as well as SuperSport 7 (DStv 207), SuperSport 8 (DStv 208) and BBC Worldwide's CBeebies (DStv 306).

"DStv Compact Plus is a great solution for our Compact customers looking for more entertainment for their family," says Mark Rayner, MultiChoice South Africa CEO in a statement.

"We strive to continuously enhance our DStv packages to give our customers more entertainment value for their money."

MultiChoice says the change from DStv Extra to DStv Compact Plus will also eliminate confusion between the DStv Extra offering and MultiChoice's XtraView service which allows customers to connect more than one decoder under one subscription.