MultiChoice, the parent company of DStv, has reported alarming subscriber losses in South Africa, reflecting broader challenges facing the traditional pay-TV industry amid economic pressures and increased streaming competition.
Steep Decline in Subscriber Numbers
The entertainment giant lost nearly 1.2 million subscribers across its markets during the financial year ending March 31, 2025, representing an 8% year-on-year decline. South Africa bore the brunt of these losses, shedding 589,000 subscribers, with the remaining 591,000 losses spread across the Rest of Africa segment.
The company’s total subscriber base now stands at 14.5 million, with South Africa accounting for 7 million subscribers and the Rest of Africa contributing 7.5 million. When measured by MultiChoice’s 90-day active subscriber metric, the picture becomes even more concerning, with active users dropping from 20.9 million in 2024 to 18.6 million in 2025 – an 11% decline.
Economic Pressures Drive Customer Departures
MultiChoice has directly attributed the subscriber exodus to South Africa’s ongoing cost-of-living crisis. The company stated that “households are struggling to make ends meet and many had no choice but to give up their DStv subscription for the time being”.
The decline affected all market segments, with the mass-market segment suffering the steepest drop of 400,000 subscribers, including Family, Access, and EasyView packages. Both the premium segment (DStv Premium and Compact Plus) and mid-market segment (Compact and Commercial) each lost 100,000 customers.
Historical Context of the Decline
The subscriber losses represent a continuation of a troubling trend for MultiChoice in South Africa. The country’s subscriber base peaked at 9 million in 2022 but has now declined to 7 million. Particularly striking is the premium subscriber segment, which has fallen from 1.6 million in 2019 to just 900,000 in 2025.
Over the past two financial years, MultiChoice has lost a staggering 2.8 million active linear subscribers, highlighting the sustained pressure on the traditional pay-TV model.
Revenue Impact and Strategic Response
Despite price increases of 5.7% on DStv packages in South Africa, subscription revenues still declined by 3% year-on-year. The company’s blended average revenue per user (ARPU) fell 3% to R222 per subscriber, down from R229 in the previous year.
However, MultiChoice has shown resilience in adapting to changing market conditions. The company achieved R3.7 billion in cost savings, well ahead of its revised R2.5 billion target. Additionally, new products demonstrated strong growth, with DStv Internet revenue increasing by 85% and DStv Stream revenue rising by 48%.
Streaming Services Gain Traction
While traditional linear TV subscriptions declined, MultiChoice’s streaming platforms showed promising growth. Showmax active paying customers increased by 44% year-on-year, and DStv Stream subscribers grew by 38%. This shift reflects changing consumer preferences toward on-demand and flexible viewing options.
Competitive Landscape and Future Outlook
The subscriber losses occur against a backdrop of intensified competition from over-the-top (OTT) streaming platforms including Netflix, Disney+, and Prime Video. According to a 2024 survey by the Independent Communications Authority of South Africa, nearly 70% of South Africans aged 18-34 use at least one OTT service.
Despite these challenges, MultiChoice has implemented retention and win-back campaigns, including reintroducing a second concurrent streaming option at no extra cost and reducing the price of its DStv ADD Movies add-on from R79 to R49. The company has also entered strategic partnerships with local brands such as Capitec, MTN, and PEP to expand its distribution footprint.
Financial Recovery Amid Subscriber Decline
Remarkably, despite the subscriber losses, MultiChoice returned to profitability, reporting a net profit of R1.8 billion for the year. This turnaround was largely attributed to aggressive cost-cutting measures and the strategic sale of its insurance business to Sanlam.
The company remains optimistic about stabilizing its core video business through customer-focused innovations while expanding into interactive entertainment, financial services, and insurance to diversify revenue streams. As MultiChoice navigates this challenging period, its ability to balance traditional pay-TV offerings with emerging streaming services will be crucial for its long-term sustainability in the South African market.