MultiChoice’s recent claim of losing over R2 billion annually due to piracy is grabbing headlines, but is piracy the root cause of its troubles—or merely a convenient scapegoat? While unauthorized access to DStv content undoubtedly impacts revenues, the broader issue lies in the shifting dynamics of the pay-TV industry, both locally and globally.
The Subscription Model Under Pressure
For years, MultiChoice thrived on a high-priced subscription model that delivered steady annuity income. However, the rise of streaming platforms like Netflix, Amazon Prime Video, and Disney+ has fundamentally disrupted this model. These over-the-top (OTT) services offer affordable, flexible, and ad-free options that appeal to modern consumers, many of whom are “cord-cutting” and abandoning traditional pay-TV.
In South Africa, the high cost of DStv subscriptions—coupled with limited customization—has alienated many customers. With flagship packages costing well over R800 per month, the appeal of cheaper, globally competitive streaming platforms becomes hard to ignore.
A Ticking Time Bomb?
Piracy may indeed cost MultiChoice billions, but it’s worth asking whether these “lost customers” were ever viable subscribers. Many of those accessing illegal streams likely fall outside the company’s target market due to affordability constraints. The real concern is that even paying subscribers are increasingly seeking better value elsewhere, turning to platforms with wider content libraries, more user-friendly interfaces, and the freedom to watch on-demand.
The Bigger Picture
The issue isn’t just piracy or even competition—it’s sustainability. Streaming media in South Africa may itself be facing an unsustainable revenue model. Local broadband costs remain high, and the reliance on international streaming services creates economic leakage. As more South Africans migrate to global platforms, the local industry faces further pressure to adapt.
The Road Ahead
To remain relevant, MultiChoice may need to rethink its pricing, diversify its revenue streams, and embrace the inevitability of a hybrid model that incorporates streaming. Its recent ventures into fintech hint at a willingness to innovate, but whether these efforts can offset the broader decline remains to be seen.
