Facing increased competition from platforms like Netflix, Disney+, and Prime Video, MultiChoice, the operator of DStv, is re-evaluating its content offerings to stay relevant. The company aims to adapt to evolving consumer trends by leveraging its existing linear TV platform and expanding its over-the-top (OTT) streaming service, DStv Stream. While acknowledging the growth of cord-cutting, MultiChoice emphasizes the enduring value of its sports content, particularly its exclusive rights to popular football, rugby, and cricket matches in South Africa. The Independent Communications Authority of South Africa (Icasa) is also examining the competitive dynamics in the pay-TV market, noting the challenges posed by streaming services and the potential impact on sports content rights.
Given increased competition in the pay-TV market with the prominence of services like Netflix, Disney+, and Prime Video, MultiChoice has said it is reassessing its content packages for DStv to compete successfully.
Given the growing trend of cord-cutting — cancelling a linear pay-TV subscription in favour of an Internet-based service, MultiChoice has introduced an OTT service of its own: DStv Stream. A large part of DStv’s appeal to South Africans is its monopoly on sports, as MultiChoice is in the economic position to purchase exclusive sports rights to football, rugby, and cricket content — classified as the most in-demand sports in the country.
Despite this dominance, Icasa says evidence suggests many of DStv’s competitors can still compete “without having to spend significant amounts of money on expensive sports content.”Icasa noted that DAZN has successfully competed with MultiChoice for IPL rights in the past.DStv’s competition is also growing on the linear TV front, with its main broadcasting competitor, Openview, increasing its total number of viewers by over 3 million in nine years.
Although it is not a direct competitor to DStv as a non-subscription platform, Icasa considers Openview a service that the pay-TV operator’s customers may opt to switch to.
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