South African media giant MultiChoice Group is evolving its business model to adapt to changing consumer behavior and industry disruption, according to its latest fiscal year results. While the traditional pay-TV business saw subscriber declines, the company’s strategic investments in streaming video and financial technology paid off with strong growth.
For the year ended March 2024, MultiChoice’s total subscriber base dropped 9%, with particularly steep declines in key markets like Nigeria, Angola and Kenya due to currency devaluations impacting consumer demand. However, the company was able to offset some of the subscriber losses through targeted retention efforts in its home market of South Africa.
The bigger story was the impressive performance of MultiChoice’s revamped streaming platform Showmax and its new fintech vertical Moment. Showmax, which overtook Netflix in subscribers last year, achieved 22% organic revenue growth reaching over $54 million despite initial trading losses from the relaunch investment.
Moment, MultiChoice’s payment processing solution launched to address gaps in digital payments across Africa, is also gaining rapid traction. In just over two months of processing DStv subscriptions, it reached $85 million in payment volumes. An $82 million valuation after raising $22 million highlights investor confidence in Moment’s potential.
“Our three core segments of video entertainment, interactive entertainment and fintech are now fully operational engines driving our business transformation,” said MultiChoice Group CEO Calvo Mawela. He highlighted the company’s increased investment in local content production, live sports broadcasting, and new proprietary channels as further evolution of the entertainment offerings.
While MultiChoice is staying focused on operational efficiency, with a ZAR 2 billion cost savings target, the bigger initiative is remaking the company for the streaming age and tapping new fintech opportunities enabled by its scale and consumer relationships across Africa.
As majority owner Canal+ of France considers taking full control, it has reassured that it plans to retain the highly valuable MultiChoice brands and legacy pay-TV business while allowing the South African company to aggressively invest in future growth drivers like Showmax and Moment.
MultiChoice’s results reflect the challenges and opportunities facing media companies operating amidst sector disruption. By diversifying from traditional pay-TV into streaming video and fintech services tailored for African markets, the company is evolving its business model to drive sustainable long-term growth.
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