MultiChoice grows subscriber base, sees TelkomOne competition as 'opportunity'
The MultiChoice Group (parent company of MultiChoice South Africa) has exceeded the 20 million subscriber "milestone" for the first time.
The group released its financial report for the six months ended September 2020.
It reports that 1.2 million 90-day active subscribers were added year on year to close the period on 20.1 million households.
The South African business (operator for DStv locally) delivered subscriber growth of 7% year on year or 0.5m subscribers on a 90-day active basis.
The rest of Africa grew this subscriber base by 6% (0.6m subscribers).
This is even without being able to screen live sport.
Bruce Whitfield asks Tim Jacobs (MultiChoice Group CFO) what's driving subscriber growth.
It's a combination of things. Certainly, we benefited from the lockdown... but equally we've been driving a significant amount of retention in the residential market, specifically to offset the weakness that we've seen in the commercial side of our business.Tim Jacobs, CFO - MultiChoice Group
Where we saw the impact [of no live sport] was... in the upper-tier packages where subscribers have downgraded through the last six months, and as the sport has come back we've seen a migration of some of that back up.Tim Jacobs, CFO - MultiChoice Group
If we look across the continent, a lot of people are motivated to continue to pay but they sometimes need a little bit of a push... We've got dedicated teams that will follow up, trying to understand why people have disconnected and encourage them to reconnect...Tim Jacobs, CFO - MultiChoice Group
The limitation on the Internet side of our business is still connectivity and data costs, but that is slowly changing.Tim Jacobs, CFO - MultiChoice Group
Jacobs comments on the new competition from the SABC-Telkom partnership with the launch of streaming service TelkomOne.
He describes it as both an opportunity and a threat.
On the one side we have a competitor in the market place... but at the same time it's an opportunity because I think for the first time I think consumers in South Africa are able to have a look at what another service provider's got to offer and compare something to us.Tim Jacobs, CFO - MultiChoice Group
We often get criticised, for example, for repeats or not having fresh content and the reason for that criticism is because there's no basis for comparison.Tim Jacobs, CFO - MultiChoice Group
On Thursday MultiChoice also announced announced the launch of its new DStv Explora Ultra decoder which provides access to Netflix.
Find out more here.
Listen to the conversation in the audio below:
This article first appeared on 702 : MultiChoice grows subscriber base, sees TelkomOne competition as 'opportunity'