MultiChoice FY profits jumps, add 900K new subscribers

MultiChoice Group, Africa's largest pay TV operator, has reported a significant increase in its annual profits for the 2020 financial year. The company added 900,000 new subscribers, a testament to its strong growth trajectory and strategic focus on the rest of Africa market. In a recent interview with CNBC Africa, MultiChoice Group CEO Calvo Mawela discussed the company's growth strategies, cost-saving initiatives, customer retention efforts, and plans to collaborate with global video streamers. Mawela emphasized the potential for growth in the rest of Africa market, highlighting the importance of a value strategy that targets the middle and mass market segments. By investing in local content and reducing costs associated with international content, MultiChoice has managed to decrease expenses by 40% while offering more relevant programming to its audience. Mawela expressed optimism about the future of pay TV in Africa, citing the strong demand for localized content and the company's commitment to keeping customers engaged. Despite economic challenges in South Africa, MultiChoice has seen growth in its mass market segment, with a 7% increase in subscribers in the past financial year. Mawela acknowledged some cancellations in the premium segment but noted that the overall subscriber base has remained stable, indicating that customers perceive the service as a value proposition. The company has implemented initiatives to retain subscribers, including flexible downgrade options for customers facing financial difficulties. Addressing concerns about the impact of COVID-19 on sports programming, Mawela reassured customers that MultiChoice has been proactive in securing additional content and entertainment options during periods of sporting event cancellations. While contractual obligations require payment for sports offerings, the company has provided alternative programming and received positive feedback from subscribers. Mawela emphasized the importance of customer feedback and the company's commitment to meeting the evolving needs of its audience. In response to inquiries about potential partnerships with global video streamers like Netflix and Amazon Prime Video, Mawela clarified that discussions are ongoing but not yet finalized. MultiChoice aims to broaden its content offerings by collaborating with OTT players and providing a seamless viewing experience for customers. By aggregating content from various sources and expanding its platform to include popular streaming services, MultiChoice seeks to position itself as a one-stop entertainment hub for consumers. Overall, MultiChoice Group's strong financial performance, customer-centric approach, and strategic investments in content and partnerships reflect its ongoing commitment to innovation and growth in the competitive pay TV market in Africa.