South Africans have likened DStv’s major plummet – and being described “technically insolvent – to the ANC, who experienced a dramatic drop in votes in last month’s general elections.
According to Multichoice’s latest financial reports, the company has experienced its “worst financial year” to date. This following another significant decline in subscribers as well as unfavourable foreign exchange rates.
Many consumers have dumped their DStv subscriptions – for good – for various reasons, including a lack of affordability.
MULTICHOICE, DSTV ‘TECHNICALLY INSOLVENT’ AFTER MASSIVE LOSS
According to the Daily Investor, Multichoice recorded a R4.1 billion loss for its latest financial statement, which ended on 31 March 2024. This follows a 9% decline in active subscribers over the last year.
Multichoice’s balance sheet has reflected that the company has technically become insolvent.
According to My Broadband, DStv’s parent company’s total assets have shrunk from R47.6 billion to R43.9 billion. With liabilities rising to R45 billion and negative equity of R1.068 billion, Multichoice cannot settle all its liabilities if all its assets are liquidated.
Nevertheless, Multichoice stated that they have implemented a cost-reduction program, which they believe will save them R2 billion by the next financial year.
It said in a statement: “Clear strategic milestones were reached, with the group successfully launching Showmax 2.0, SuperSportBet, and Moment,
“All of these are now revenue-generating and supporting the group’s future growth prospects.”
‘THEIR ARROGANCE COST THEM’
On social media, news of DStv’s financial woes received little to no sympathy from sympathy. Some even likened their hardship to that of the ANC political party, which for the first time in 30 years, did not win the majority vote.
@Vote4YourLeader: “Good riddance”
@Ed_UberDriver: “Very well, their arrogance got them here.”
@marcgregory_: “Ignore your customers at your own cost.”
@PSAFMophiring: “Multichoice must ask the ANC what happens when South Africans are fed with k*k or no service.”
We’ll do to @MultiChoice what we did to @MYANC
— Ntate Moeletsi (@Ke_Moeletsi) June 12, 2024
WHY MANY SOUTH AFRICANS HAVE DUMPED DSTV
News of a drastic reduction in DStv subscribers was nothing surprising for social media users, many of whom confessed to cutting ties with the broadcaster.
Here are a few reasons why South Africans dumped DStv for good…
Premiums are too high
The cheapest DStv package – Access is R139 per month for 66 channels – while the full bouquet of Premium is the most expensive at R929 per month for 135 channels. This does not include the price of additional decoders or insurance.
Its just too expensive
— Phumudzo Makhani (@makhanip) June 12, 2024
Cannot choose their own channels
Many former DStv subscribers complained that the packages on offer were not tailored to their individual viewing needs.
These guys were once advised that they should let people select the channels they want to watch and only pay for those channels…it doesn’t make sense to pay R470 just to watch football
— Call Me Ish (@ishy_msipa) June 12, 2024
Too many repeats and not enough diversity
Repeats of old content and a lack of in-demand shows were also another gripe.
I’m sorry that this is happening to them. They failed to change their business model, were arrogant with their ridiculous prices, and kept playing repeats of old movies from the 1990s.
— Nhlanhla Gezani Leonard (@BaloyiLeonard) June 12, 2024
Too many advertisements
As compared to streaming platforms, viewers were annoyed by the multiple ad breaks between viewing.
Comparisons to steaming services
Compared to cheaper streaming platforms like Netflix, Showmax, or even YouTube Premium, South Africans found that DStv was lacking.
It took a while. I thought streaming would have taken them out long ago.
— ALETTAHA💎🤗💜🌞 (@ALETTAHA) June 12, 2024
