MultiChoice on decline

SUBSCRIBERS: COMPANY HAS BEEN DISRUPTING ITSELF BEYOND PAY TV

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MultiChoice is under tremendous strain. Subscriber numbers are, for the first time, in structural decline.

In the year to March this year, it saw drops in not only its Premium segment (DStv Premium and DStv Compact Plus, down 8%) but also in its mid-market (DStv Compact, down 9%) and mass market segments (down 2%).

The latter, which offers entry-level packages costing as little as R29 per month, has been growing relatively strongly for years and has helped the pay-TV operator offset declines at the top end.

This reversed in the last year as higher interest rates, a stagnant economy and an explosion in other viewing options (many of which are free) hit the business.

Overall, subscribers are down 5% in South Africa - nearly half a million accounts.

It has also been distracted by anything but pay TV, given that it has known for years that the market would turn ex-growth.