Multichoice To Add Netflix, Amazon Contents Into New Decoder

FUNSHO AROGUNDADE

Multichoice Group has stated that it had signed a deal with Netflix Inc. and Amazon.com, its US rivals to offer its streaming services through its new decoder.

The deal was disclosed in MultiChoice’s results presentation, tagged ‘Improve Retention’ shared recently on its site.

This move, no doubt, would help Africa’s largest pay-TV firm retain teeming subscribers and attract potential viewers.

MultiChoice already runs Showmax its own subscription video-on-demand (SVOD) streaming service.

By adding international streaming services to its existing DStv platform, MultiChoice has now clearly decided that it will go the “super aggregator” way, similar to what pay-TV services ranging from the United States, United Kingdom, and New Zealand have done over the past year.

In this way, existing subscribers get access to further streaming services through DStv, paying their monthly bill in local currency for the add-ons, lessening payment friction and providing one place for subscribers to find and watch the content they like.

“We have long been a content aggregator, and this is proof of our aggregator model at work – providing simplicity, choice and convenience for our customers,” said Calvo Mawela, MultiChoice CEO.

“As our industry evolves, we believe that we are well-positioned to benefit from both worlds – a large, growing pay-TV market in Africa, as well as an emerging over-the-top (OTT) opportunity, where our own OTT services and aggregation capabilities can drive success.”

Besides adding two global streaming services, MultiChoice is also getting ready to roll-out and launch its as-yet-unnamed “DStv dishless”, stand-alone DStv streaming service that will mimic its existing direct-to-Home (DTH) service but without the need for any installation.

MultiChoice added that over the last financial year it has produced 3,850 additional hours of local content with its local content library that now exceeds 56,800 hours.

This means local content now accounts for 40% of its total content spend.

The company plans on doing two new co-productions, Blood Psalms and Rogue, launch four new local content TV channels including a new action movie channel and plans to further ramp up local content production in 2021.

The Group has recorded 22 per cent growth in subscribers revenue in Nigeria, and expects new bouquets and 1H FY2020 migration to drive further growth.

Meanwhile, when the shares of Multichoice Group jumped by 8.5% to 102.62 rands on Wednesday at the Johannesburg Stock Exchange, South Africa, a lot of observers were shocked by the news, as it had not recorded such feat in months.⁶

The development, some observers said, could be attributed to the 2020 full-year result of the group, which was released on Wednesday.

The pay-TV announced a 5% growth in its subscribers base when it rose to 19.5 million.

While it recorded revenue growth of 3 percent to close at R51.4 billion, its core headline earnings were up by 38 percent.

No wonder, it could afford to pay a dividend of R2.5 billion (N57.9 billion) to its shareholders.

Other observers argue that the development could also be attributed to the news the group broke in the financial report.

Additional reports from MultiChoice FY20 Annual Results