MultiChoice, the parent company of DStv, is grappling with a significant blow: the loss of 1.2 million subscribers across its operations, dropping its active base to 14.5 million viewers. Revenue and profits have been hit hard, particularly outside South Africa, where inflation and currency depreciation have reduced affordability. Even in its core market, South Africa, competition from streaming platforms and shrinking household budgets are eating away at DStv’s traditional dominance.
This subscriber erosion is not just a reflection of economic pressure — it’s a symptom of deeper structural limitations in MultiChoice’s business model. For years, analysts and consumers alike have asked: why hasn’t DStv fully embraced the triple-play strategy of bundling TV, internet, and voice services like many global telecom-media operators have done?
Why DStv Didn’t Embrace Triple-Play (So Far)
A closer look at the reasons reveals a complex mix of strategic, regulatory, infrastructural, and market-driven constraints:
1. Strategic Focus on Content, Not Connectivity
DStv’s strength has always been exclusive content — sports, entertainment, and local shows — rather than infrastructure ownership. Rolling out broadband and voice would have required a drastic pivot into telecom operations, diverting focus from content acquisition and platform innovation.
2. Satellite-Based Delivery Model
DStv uses Direct-to-Home (DTH) satellite technology. While perfect for one-way video broadcast, it’s not optimized for two-way broadband or voice services, which require terrestrial infrastructure such as fiber or LTE networks. Building or leasing such networks would be costly and time-consuming.
3. Licensing and Regulatory Complexity
Providing internet and voice services in most African countries means complying with telecom regulations, acquiring operating licenses, and navigating spectrum allocation. This would move DStv from the broadcasting regulatory space into the heavily regulated telecom domain.
4. Tough Competitive Landscape
Entering the internet and voice market would pit DStv directly against powerful telcos like MTN, Airtel, Vodacom, and Safaricom — all of whom already have deep market penetration, infrastructure, and distribution networks. Without owning infrastructure, DStv would likely be a reseller, which dilutes control and margins.
Who Got It Right: Global and African Triple-Play Examples
Despite these barriers, other companies globally and within Africa have proven that triple-play can work — and work well:
- PLDT (Philippines) and Deutsche Telekom offer bundled high-speed internet, IPTV, and VoIP in one subscription, increasing average revenue per user (ARPU) and reducing churn.
- In Kenya, Zuku (by Wananchi Group) delivers cable TV, fiber broadband, and voice services in a single package, appealing to urban households.
- Cox Communications in the U.S. pioneered the model as early as 1997 and continues to succeed with it.
- In South Africa, Telkom has also explored bundling broadband with its own streaming service (TelkomONE), though with mixed success.
These models work because they increase stickiness, maximize infrastructure utilization, and offer value-driven convenience for consumers.
Related Story: Why Nigerians Are Turning Away From DSTV
DStv’s Partial Attempts — and the Road Not Fully Taken
To its credit, MultiChoice has dabbled in connectivity:
- DStv Internet: An LTE-based fixed wireless service launched in South Africa via MTN partnership.
- Decoder + Router Bundles: Combined hardware offerings for content + connectivity.
- Strategic partnerships with PEP, Capitec, and MTN to increase customer access and payment convenience.
But these efforts remain peripheral — not the kind of core, fully integrated triple-play offering that can transform the subscriber experience or redefine customer value.
What DStv Could Do Next
If DStv wants to reverse subscriber loss and unlock new growth, it must evolve from a content-only provider to a connectivity-enabled experience platform. Here’s how:
1. Forge Deeper Telecom Partnerships
Rather than build its own network, DStv could deepen partnerships with ISPs or telcos to co-brand TV + Internet bundles, with shared customer data and revenue.
2. Bundle Data with Streaming
Create exclusive DStv Stream + data plans, especially for mobile-first users. Similar to how Netflix is bundled with ISP plans globally.
3. Enable VoIP and Smart Home Add-ons
Introduce DStv-branded VoIP tools or devices to complete the triple-play, or tap into the smart home trend with bundles including smart TVs and routers.
4. Launch Tiered Packages
From basic streaming-only data plans to premium bundles with broadband, TV, and smart decoder integration.
5. Own the Full Home Experience
Position DStv as the digital entertainment hub of the home, not just a satellite TV provider. This shift is already underway globally — and Africa is ready.
Final Thought
DStv’s 1.2 million subscriber drop is more than a financial hit — it’s a wake-up call. The old model of content-only, satellite-first delivery is under pressure from every direction. As global and local rivals capitalize on bundling, mobile access, and digital convenience, DStv must ask itself: Is it a broadcaster, or a digital platform?
By boldly embracing a triple-play strategy through partnerships, DStv has an opportunity to not only regain lost ground but redefine its value in the homes of millions. The infrastructure may not be theirs, but the relationship with the consumer still is.
And that may be their biggest asset yet.
