MultiChoice is testing weekly subscription plans in Uganda, aiming to ease financial pressure on customers struggling with monthly payments. If successful, the pay-TV giant may expand the model to other African markets as it fights to retain subscribers amid economic challenges, according to the Sunday Times.
The company, which operates in 16 African countries, has seen its subscriber base shrink by 1.2 million in the past year, dropping to 14.5 million. Half of those losses came from South Africa, where high unemployment and rising living costs have forced households to cut discretionary spending, including DStv subscriptions.
MultiChoice Group CEO Calvo Mawela confirmed the weekly subscription trial has been running for seven weeks. “Within three to six months, we’ll have a good idea if it’s working,” he told the Sunday Times. “If successful, we’ll expand it to other markets. We believe this approach can help customers in the same way prepaid mobile services revolutionized telecoms.”
While the new payment option could improve affordability, Mawela dismissed the idea of letting users customize channel bundles, stating, “We still don’t think it works.” However, MultiChoice is researching tiered packages, including separate sports and entertainment offerings, to boost revenue.
Economic Pressures and Cost-Cutting
MultiChoice faces financial strain from currency depreciation in key markets like Nigeria, Angola, and Ghana, alongside rising inflation. In South Africa, economic stagnation has further squeezed consumer budgets. Despite a recent 31% price hike in Nigeria, Mawela remains optimistic, noting that the naira has stabilized and subscriber recovery may follow.
The company is also streamlining costs, targeting R2 billion in savings by 2026 through reduced satellite expenses, better content deals, and fewer decoder subsidies.
Streaming Growth and Showmax Challenges
As broadband penetration grows, MultiChoice reports a 38% surge in DStv Stream users. However, its standalone streaming platform, Showmax, has underperformed initial expectations despite a 44% increase in paying subscribers. Mawela admitted the venture’s high costs are unsustainable, prompting talks with partner Comcast NBCUniversal to adjust funding.
“Streaming is the future, but data prices must improve for it to thrive in Africa,” MultiChoice stated. For now, the company hopes flexible subscriptions and cost controls will stabilize its business as it navigates a tough economic climate.
