MultiChoice is Bleeding Subscribers: Kenya, Zambia, Nigeria Lead the Decline

MultiChoice, the parent company of DStv and GOtv, is grappling with a significant and accelerating decline in Kenya. According to its H1 FY25 results, MultiChoice reported a 19% YoY decline in its subscriber base, with GOtv subscriptions plummeting by 23%. These figures highlight the challenges the company faces in retaining its dominance in an increasingly competitive and price-sensitive market.

Across the Rest of Africa (RoA), the numbers reflect a similar trend. MultiChoice says that the RoA segment saw an 18% YoY decline in subscribers, with key markets like Zambia suffering a 60% subscriber drop due to claims of power outages and economic challenges. Despite these challenges, MultiChoice has raised prices repeatedly in Kenya, making its services less accessible to many households.

A Perfect Storm of Declines

1. The Price Problem

MultiChoice continues to hike DStv subscription prices in Kenya, making it increasingly unaffordable. As of November 2024, prices for DStv packages in Kenya are as follows:

• Premium: KES 11,000 (up from KES 10,500 in April 2024, and KES 9,900 in 2023)
• Compact Plus: KES 6,800 (up from KES 6,500 in April 2024, and KES 6,200 in 2023)
• Compact: KES 3,900 (up from KES 3,700 in April 2024, and KES 3,500 in 2023)
• Family: KES 2,100 (up from KES 2,000 in April 2024, and KES 1,850 in 2023)
• Access: KES 1,350 (up from KES 1,300 in April 2024)
• Lite: KES 750 (up from KES 700 in April 2024)

As we stated in a previous article, three price hikes within a single year have alienated Kenyan customers, particularly those in the mass-market segment who are already struggling with rising costs of living. These repeated increases have driven many to seek cheaper alternatives, such as free-to-air channels and piracy.

2. Showmax’s Fall From Grace

Showmax, once heralded as MultiChoice’s answer to the streaming revolution, has failed to live up to its potential. MultiChoice says that Showmax experienced a 50% YoY increase in paying customers, but its H1 FY25 report also revealed a ZAR 2.4 billion trading loss, largely due to investments in platform improvements and high marketing costs.

Key frustrations with Showmax include:

• Sports Limited to Mobile: Showmax 2.0 restricted live sports streaming to mobile devices, alienating households that prefer watching on larger screens. This decision has significantly undermined its appeal to sports fans.
• Poor User Experience: Customers continue to report bugs, a clunky interface, and inconsistent streaming quality, making it difficult to compete with global giants like Netflix and Disney+.

As we previously noted, Showmax’s potential as a saving grace has been squandered by poor execution and a lack of understanding of its audience’s needs.

3. Outdated Streaming Practices

In an era defined by multi-device streaming and seamless interfaces, MultiChoice has failed to keep pace:

• Single-Device Access: Customers paying full satellite subscription fees for DStv Stream are restricted to streaming on a single device at a time. This inflexibility is particularly glaring when compared to competitors like Netflix, which allow multiple streams.
• Poor App Design: The DStv app is criticized for its cumbersome sign-up process, unintuitive interface, and frequent technical issues, making it a frustrating experience for users.

MultiChoice argues that these limitations are tied to maintaining content security, but customers view them as barriers to value and convenience.

4. Reliance on Football Rights

MultiChoice continues to rely heavily on exclusive football broadcasting rights, particularly for the English Premier League (EPL), to retain subscribers. While this strategy has kept some customers onboard, it is unsustainable in the long term. The company’s report highlights the growing threat from global streaming platforms like Netflix and Amazon, which are rumored to be exploring sports broadcasting.

As we’ve previously argued, losing these rights would be catastrophic for MultiChoice, as football remains the primary reason many subscribers stay with DStv.

5. Piracy Thrives Amid Poor Value

Rising subscription prices, coupled with declining service quality, have driven many customers to illegal streaming platforms. MultiChoice acknowledges that piracy is a growing issue, but its strategy of raising prices and offering limited value has only exacerbated the problem. Customers see little incentive to pay premium prices for a subpar experience when free, high-quality streams are readily available online.

What MultiChoice Says

MultiChoice claims it is taking steps to address these challenges:

• Cost Savings: The company reported ZAR 1.3 billion in savings in H1 FY25 and is targeting ZAR 2.5 billion for the full year.
• Price Increases: MultiChoice argues that its repeated price hikes are necessary to offset inflation and local currency depreciations, despite Kenya’s shilling appreciating 9% YoY against the USD.
• Investments in Showmax: MultiChoice has ramped up investments in Showmax to create “growth capacity” and partnered with Comcast, which now shares 30% of its losses.

The Bigger Picture: A Shifting Entertainment Landscape

MultiChoice’s struggles reflect a larger shift in consumer behavior:

• Streaming Growth: Platforms like Netflix, Prime, and Disney+ in the countries it is available, continue to gain ground in Africa by offering flexible pricing and superior user experiences.
• Economic Pressures: In markets like Nigeria and Zambia, power outages, inflation, and currency devaluation have driven significant subscriber losses, with Zambia losing 60% of its subscriber base.

As the entertainment landscape evolves, MultiChoice faces growing competition from global players and the persistent challenge of piracy.

How MultiChoice Can Survive

To remain relevant, MultiChoice must address its core issues:

1. Reevaluate Pricing: Introduce affordable packages to retain cost-sensitive customers.
2. Improve Streaming Services: Fix the technical issues and restrictive practices plaguing Showmax and DStv Stream.
3. Invest in Local Content: Strengthen its library with high-quality, localized productions to differentiate from global competitors.
4. Combat Piracy: Provide better value to discourage illegal streaming, including ad-supported tiers and more flexible plans.

Conclusion: A Crossroads for MultiChoice

MultiChoice is at a pivotal moment. Its reliance on outdated practices, coupled with rising prices and a flawed streaming strategy, has alienated its customer base. Unless it adapts to the needs of modern consumers, MultiChoice risks being left behind by a fast-evolving industry.