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Multichoice Subscriptions in Kenya Decline by 19% Amid Operational Difficulties - Kenyan Wall Street - Business, Markets & Finance Insights

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class="container"><div class="jeg_ad jeg_article_top jnews_article_top_ads"><div class='ads-wrapper '></div></div><div class="entry-header"><h1 class="jeg_post_title">Multichoice Subscriptions in Kenya Decline by 19% Amid Operational Difficulties</h1><div class="jeg_meta_container"><div class="jeg_post_meta jeg_post_meta_2"><div class="meta_left"><div class="jeg_meta_author coauthor"> <img alt='Brian Nzomo' src='https://kenyanwallstreet.com/wp-content/uploads/2024/03/PHOTO-2024-03-05-17-47-18-e1709738386959-150x150.jpg' srcset='https://kenyanwallstreet.com/wp-content/uploads/2024/03/PHOTO-2024-03-05-17-47-18-e1709738386959-150x150.jpg 2x' class='avatar avatar-80 photo' height='80' width='80' /><span class="meta_text ">by</span><a href="https://kenyanwallstreet.com/author/brian-nzomo/">Brian Nzomo</a></div><div class="jeg_meta_date"> <a href="https://kenyanwallstreet.com/multichoice-subscriptions-in-kenya-declines-by-19-amid-operational-difficulties/">November 15, 2024</a></div><div class="jeg_meta_category"> <span><span class="meta_text">in</span> <a href="https://kenyanwallstreet.com/category/kenyan-news/" rel="category tag">Kenyan News</a><span class="category-separator">, </span><a href="https://kenyanwallstreet.com/category/technology/" rel="category tag">Technology</a> </span></div><div class="jeg_meta_reading_time"> <span> Reading Time: 3 mins read </span></div></div><div class="meta_right"></div></div></div></div><div class="row"><div class="jeg_main_content col-md-8"><div class="jeg_inner_content"><div class="jeg_featured featured_image "><a href="https://kenyanwallstreet.com/wp-content/uploads/2022/08/DStv.jpeg"><div class="thumbnail-container" style="padding-bottom:50%"><img width="750" height="375" src="https://kenyanwallstreet.com/wp-content/uploads/2022/08/DStv-750x375.jpeg" class="attachment-jnews-750x375 size-jnews-750x375 wp-post-image" alt="Multichoice" decoding="async" fetchpriority="high" 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4px;vertical-align:middle;background-repeat:repeat;overflow:hidden;padding:0;cursor:pointer;box-sizing:content-box"><svg style="display:block;" focusable="false" aria-hidden="true" xmlns="http://www.w3.org/2000/svg" width="100%" height="100%" viewBox="0 0 32 32"><path fill="#fff" d="M25.515 6.896L6.027 14.41c-1.33.534-1.322 1.276-.243 1.606l5 1.56 1.72 5.66c.226.625.115.873.77.873.506 0 .73-.235 1.012-.51l2.43-2.363 5.056 3.734c.93.514 1.602.25 1.834-.863l3.32-15.638c.338-1.363-.52-1.98-1.41-1.577z"></path></svg></span></a></div><div class="heateorSssClear"></div></div><div class='heateorSssClear'></div><br/><p>The South African Pay-TV service Multichoice has lost more than 1.8 million subscribers in its continental markets due to inflationary pressures and free-to-air alternatives.&nbsp;</p><ul><li>Subscription growth in Kenya dipped by 19%, while in Nigeria, Angola, and Zambia &#8211; subscription fell by 18%, 8%, and 60% respectively.&nbsp;</li><li>The decline in subscriber base was further attributed to the hikes in subscription fees for both DSTV and Go-TV packages in its various markets, prompting a 10% revenue decline for the group.&nbsp;</li><li>The Group&#8217;s loss for the half year (2024/2025 FY) stood at KSh 12 billion (1.8 billion rand) prompted by forex depreciation in Nigeria and other interest expenses.&nbsp;</li></ul><p>&#8220;While we have made huge inroads to reduce our cost base, there is still more work to be done. However, our focus extends beyond cost efficiency &#8211; we are equally committed to grow the business,&#8221; Multichoice Group CEO, Calvo Mawela said.&nbsp;</p><div class="jeg_ad jeg_ad_article jnews_content_inline_ads "><div class='ads-wrapper align-center '><div class='ads_code'><SCRIPT language='JavaScript1.1' SRC="https://ad.doubleclick.net/ddm/trackimpj/N1741099.5084810ADVERTISINGOPS/B32246848.400359255;dc_trk_aid=592686366;dc_trk_cid=219727396;ord[timestamp];dc_lat=;dc_rdid=;tag_for_child_directed_treatment=;tfua=;gdpr=${GDPR};gdpr_consent=${GDPR_CONSENT_755};ltd=;dc_tdv=1?"attributionsrc ></script></div></div></div><p>The Pay-TV industry globally is facing immense challenges due to the influx of streaming services and short-form video content on social media platforms. Multichoice has also grown more unpopular in key markets like Nigeria and Kenya after increasing prices of Pay-TV packages in April, July, and November.&nbsp;</p><p>Multichoice has justified these <a href="https://kenyanwallstreet.com/multichoice-to-hike-dstv-packages-in-november/">hikes</a> to the rising cost of doing business in these markets, with the Nigerian inflation sitting above 30% f0r most of the year. In Zambia, where revenue and subscription declined considerably, extreme power outages have further cratered the company&#8217;s fortunes in the continent.&nbsp;</p><p>The group&#8217;s revenue increased by 4% Year-On-Year (YoY) to KSh 177 billion (25 billion rand). The company&#8217;s cash flow and liquidity status remained positive due to cost optimisation efforts that saved the business KSh 9 billion (1.3 billion rand).&nbsp;</p><p>&#8220;We are making good progress in addressing the technical insolvency that resulted from non-cash accounting entries at the end of the last financial year. We expect to return to a positive net equity position by the end of November this year, supported by a number of developments and initiatives,&#8221; Mawela added.&nbsp;</p><p><a href="https://www.multichoice.com">Multichoice</a> streaming platform &#8216;Showmax&#8217; recorded a 30% growth in paying subscribers. The platform is still trying to improve its payment channel integrations and optimise efficiency in its continental markets. Showmax revenues for the Year-on-Year basis were still down 40%, mainly due to the hitches experienced during rebranding and migration to the Peacock tech stack.&nbsp;</p><p>Sports content remains a crucial lifeline for Multichoice. Through SuperSport, audiences peaked during the EURO 2024 tournament driving ratings up. Pirate websites remain a challenge for Multichoice despite introducing a cheap mobile plan for football lovers on Showmax. </p><p>Multichoice is gearing up for an acquisition by French media giant Canal+. The offer is worth US$3 billion and would expand Multichoice services to Francophone Africa where Canal has a dominant footprint. The deal awaits approval after Multichoice accepted the shares buyout in June this year. </p><p>&#8220;This merger allows us to secure better content rates and drive more revenue, especially given our combined presence in both French and English-speaking Africa,&#8221; Mawela said.&nbsp;</p><figure class="wp-block-embed is-type-wp-embed is-provider-kenyan-wall-street-business-markets-amp-finance-insights wp-block-embed-kenyan-wall-street-business-markets-amp-finance-insights"><div class="wp-block-embed__wrapper"><blockquote class="wp-embedded-content" data-secret="hM8WxoxOPX"><a href="https://kenyanwallstreet.com/multichoice-to-hike-dstv-packages-in-november/">MultiChoice to Hike DSTV Packages in November</a></blockquote><iframe class="wp-embedded-content" sandbox="allow-scripts" security="restricted" style="position: absolute; clip: rect(1px, 1px, 1px, 1px);" title="&#8220;MultiChoice to Hike DSTV Packages in November&#8221; &#8212; Kenyan Wall Street - Business, Markets &amp; Finance 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