MultiChoice, the owner of DStv, has begun testing weekly subscriptions in Uganda. If successful, the company intends to expand this model to other markets, including Nigeria.
The trial, which started seven weeks ago, is part of MultiChoice’s effort to better align its pricing with customer cash flows. “It is a big change and we think when people are struggling, as we have seen, offering them weekly passes will help in the same way cellphone prepaid has changed the mobile industry,” Calvo Mawela, MultiChoice Group chief executive officer, told the Sunday Times.
Mawela said the company expects to assess the success of the pilot within three to six months. He added that MultiChoice is also exploring additional options to retain customers, including a base package that allows viewers to add individual channels based on preference.
These plans come on the heels of the company’s financial results for the year ended March 31, 2025, which show continued pressure on its core pay-TV business. MultiChoice’s revenue dropped 9 percent to $2.87 billion (ZAR50.8 billion), driven by an 11 percent fall in subscription income and persistent currency headwinds across markets.
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Operating profit plunged 34 percent year-on-year to $263.50 million (ZAR4.7 billion), while trading profit declined by nearly half to $228.14 million (ZAR4.1 billion). Over the past two financial years, MultiChoice has lost 2.8 million active linear subscribers as high inflation and currency headwinds erode purchasing power in its key markets.
Since March 2023, MultiChoice has shed 1.4 million subscribers in Nigeria, representing 77 percent of the 1.8 million customers lost in its Rest of Africa (RoA) segment, which includes Kenya, Zambia, and Angola.
“Sizeable customer losses in Nigeria as high inflation adds more pressure on consumers,” the company stated in its earnings report. Inflation in the country stood at 23.71 percent as of April 2025.
Multichoice Nigeria’s subscription revenue fell to $197.74 million (ZAR3.5 billion) in the full year ending March 2025 from $355.93 million (ZAR6.3 billion) in the corresponding period of 2024.
However, despite these headwinds, MultiChoice’s digital and streaming segments are growing. Revenue from DStv Internet rose 85 percent, KingMakers grew 76 percent (in constant currency), and DStv Stream increased by 48 percent. Showmax also recorded a 44 percent year-on-year increase in active paying customers.
“Our strategy is shaped by developments in our industry, such as changes in technology, which are driving shifts in consumer behaviour, as well as the impact of a rise in piracy, streaming services, and social media,” added Mawela.
