By Ghazali Ibrahim
MultiChoice, Africa’s leading entertainment provider and operator of DStv, has issued a warning to its shareholders to prepare for challenging times ahead as the company grapples with a significant decline in its subscriber base and increasing regulatory scrutiny.
According to the company’s latest voluntary operational update, MultiChoice’s subscriber base has plummeted from over 23 million to 19.3 million in less than two years, with a significant portion of the losses occurring outside of South Africa.
Reports indicate that over 84% of the affected users were DStv customers.
The company attributes the decline to economic pressures in key markets, particularly Nigeria, where inflation has remained above 30% for most of the last 12 months.
Additionally, extreme power disruptions in Zambia have also contributed to the decline.
MultiChoice’s latest update highlights the severity of its current challenges, noting that the “challenging consumer environment has resulted in a decline in subscribers and limited revenue growth.”
This development comes amid increasing regulatory scrutiny, with Nigeria’s Federal Competition and Consumer Protection Commission (FCCPC) recently filing charges against MultiChoice for allegedly violating local regulatory directives.
As the company prepares to release its financial results for the year ending March 31, 2025, shareholders are bracing for tough times ahead.
