DStv Premium on a downward spiral, warns tech guru

Tech expert Arthur Goldstuck says DStv's current business model for its Premium users needs urgent fixing.

DStv is facing intense competition from streaming service Netflix and other online, on-demand services.

Read: Naspers unbundles MultiChoice to list the new MultiChoice Group in 2019

DStv has lost about 140 000 Premium subscribers to Netflix over the past two years, explains Goldstuck.

He says the MultiChoice subsidiary will have to work on unique content strategies to arrest the decline of its Premium users.

Goldstuck says Multichoice is going to have to take desperate measures in the coming years, in light of news that it will be unbundled from parent company and tech giant Naspers.

He also discusses whether it is feasible for DStv to enter into a partnership with Netflix in the future.

Also read: Impose tougher regulations on Netflix and co, not us, says DStv

Everyone knows that the DStv model for the Premium account, close to R1000 a month, is really a broken model.

Arthur Goldstuck, MD of World Wide Worx

It's going to decline further in coming years in terms of the number subscribers. They've already lost about 140 000 Premium subscribers to Netflix.

Arthur Goldstuck, MD of World Wide Worx

Perhaps some kind of deal with Netflix could potentially save them, but they would also have to give up massive investment that they've into ShowMax - which is [currently] free as part of the DStv Premium account.

Arthur Goldstuck, MD of World Wide Worx

When MultiChoice separates from Naspers, MultiChoice will have to invest heavily in original content. But content that competes with Netflix? That's going to be very difficult.

Arthur Goldstuck, MD of World Wide Worx

Multichoice is going to have to take desperate measures in the years to come.

Arthur Goldstuck, MD of World Wide Worx

Listen to the discussion on The John Maytham Show:


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