DStv subscribers decline in South Africa as more people shift to online streaming

South Africa’s television landscape is experiencing a significant shift as DStv, once the dominant pay-TV provider, sees a steady decline in its subscriber base. With the rise of affordable and flexible online streaming platforms, more South Africans are opting for digital alternatives, leaving traditional satellite services like DStv struggling to keep up.

This trend marks a pivotal moment in the country’s entertainment consumption habits, signaling a growing preference for on-demand, personalized content.

According to MultiChoice’s latest annual report, the company has experienced a sharp decline in active DStv subscribers, dropping from 8.0 million to 7.6 million over the past year.

While South Africa accounts for only 48.5% of MultiChoice’s active subscriber base, it generates 60% of the company’s revenue, making the region vital to its financial stability. However, all DStv subscriber segments have seen notable declines:

• DStv Premium fell by 8% year-over-year.
• DStv mid-market dropped by 9%.
• DStv mass market decreased by 1%.

MultiChoice cites economic pressures like rising living costs, interest rates, and frequent load-shedding as factors contributing to the decline. However, the key driver is the rapid expansion of affordable fibre and wireless internet, enabling South Africans to switch to streaming platforms such as Netflix, Amazon Prime, and free content services that meet their entertainment needs.

The challenge is intensifying as fibre providers like Vumatel and Herotel extend services into lower-income areas, further threatening DStv’s customer base. MultiChoice’s own efforts to compete by bundling streaming and internet packages have struggled, leading to the discontinuation of its DStv Internet fibre offerings.

To complicate matters, Telkom is set to launch a content platform bundling popular streaming services like Netflix, Disney+, and Amazon Prime, posing another significant threat to MultiChoice’s market share.

For years, MultiChoice has warned of the existential risk posed by over-the-top (OTT) streaming services, and that threat is now becoming a reality. Unless the company can strengthen its streaming offerings like Showmax and DStv Stream, its dominance in South Africa’s entertainment industry will continue to diminish.