Multichoice Group Faces R1 Billion Loss With Subscriber Declines, Mzansi Complains About Closed Channels

• Multichoice Group, a giant entertainment corporation, is not doing well with reports that it has a shrinking audience
• CEO of Multichoice Groups, Calvo Mawela explained their numbers, and it is not good news for their subscriber numbers growth
• Multichoice Group's report shows that their subscription numbers are lagging, and it may be concerning for their many entertainment platforms in South Africa

Multichoice Group is responsible for giving the country services such as DStv, SuperSport and Showmax, which are some of the biggest entertainment platforms in the country.

The entertainment corporation giant is reporting a decline in the company's subscription base. Calvo Mawela discussed some of the reasons for the dips in their finances

CEO of Multichoice Group, Calvo Mawela explains yearly report

According to BusinessTech, Multichoice showed an increase in revenue, but their subscription revenue only increased by 1%. In a similar pattern, their trading profit went down from R12.1 billion by 1% to R11 billion.

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The tough economic climate in the wake of the pandemic affected Multichoice's increase in subscribers. The company had an increase of 900 000 subscribers every 90 days, but this is way less than their usual 5% growth yearly.

The CEO of Multichoice, Calvo Mawela, said that their R1.1 billion loss in subscriber revenue was mostly cushioned through their advertising revenue. He also said that the company plans on improving its entertainment platforms. Calvo said:

“We continued to enhance our video entertainment offering and expanded the variety of services offered to our customers as we grow our entertainment ecosystem,”

Briefly News consulted a Big Four audit manager who clarified that Multichoice's operating profit looks less bleak. She said:

"Their biggest loss was as a result of foreign currency because of a stronger rand compared to the rest of Africa which negatively affects them but it its not a result of their operation."

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The audit manager credits the R1 billion loss to how Multichoice handles foreign exchange prices with other African countries.

Mzansi reacts to Multichoice Group

Netizens reacted to Multichoice's reports. Those who are customers, have criticised Multichoice for closing channels which may explain their stagnant subscriptions.

@GetrudeM tweeted:

"Sports remains their [Mutltichoice] money maker. I don't have it, but pay for my mom's because she's not into streaming."

@Hvocifer commented:

"Multichoice (DSTV) has become so shameless. Increasing premiums yet all they air are repeats except news and sport. What a shame!!"

@FMphafe added:

"DSTV Multichoice what's really going on we paying a lot of money but we losing channels."

“DStv subscription thing is a scam”: SA calls out DStv for scheduled price hike

Briefly News previously reported DStv package prices increased in April 2022 across the board. Prices went up with a 2.7% weighted adjustment, however, the single package increases vary from each other a little.

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DStv made the announcement on Tuesday, 8 February, stating that this year's increase is a little lower than what was projected. The broadcasting company justified the increase in pricing by stating that DStv has been able to offer its customers more in terms of local and international content, reports Channel24.

Source: Briefly News