A New Subscription Model for Challenging Times
Amid growing pressure from declining subscriber numbers, MultiChoice Group—Africa’s leading Pay-TV operator—is considering a significant shift in its payment structure: the introduction of a weekly subscription model.
According to Group CEO Calvo Mawela, the pilot phase for the new model began in Uganda seven weeks ago, with plans to expand across other markets, including Nigeria, if the results prove favourable. The proposed model aims to better align with the financial realities of consumers in many African markets, where income is often earned on a daily or weekly basis.
“It’s a big change, and we think when people are struggling, as we have seen, offering them weekly passes will help, in the same way prepaid mobile services changed the telecoms industry,” Mawela told South Africa’s Sunday Times.
Customisation on the Horizon, but No Full Channel Choice Yet
As part of its ongoing efforts to enhance customer flexibility and value, MultiChoice is also exploring more customizable content options. While stopping short of offering full à la carte channel selection, the company is considering a system where users subscribe to a basic starter package, with the option to add individual channels of interest.
In addition, the possibility of unbundling sports content into a separate, standalone package is also under active consideration—echoing a model used by international platforms like Sky. Mawela noted that such structural packaging changes are reviewed annually.
“We’ve always looked at this model… where we could have a basic package, then a sports package, and maybe an entertainment package offered separately,” he said.
Mounting Subscriber Losses, Especially in Nigeria
MultiChoice’s evolving strategy comes in response to a notable subscriber downturn, particularly in its Rest of Africa (RoA) operations. According to the group’s recently released financial results for the fiscal year ended March 31, 2025, the platform lost 1.8 million subscribers across Africa (excluding South Africa) in the past two years.
Of that figure, Nigeria accounted for a staggering 77%, shedding approximately 1.4 million customers between 2023 and 2025. This drastic loss has brought the total number of RoA subscribers down from 9.3 million in 2023 to 7.5 million this year.
Despite this, South Africa saw a slight revenue uptick, with earnings from the region rising to R41.73 billion, offering a degree of financial stability amid broader regional volatility.
Mixed Financial Results: Profit Swings Amid Revenue Dip
Interestingly, MultiChoice recorded a net profit of R2.02 billion for the year, a marked recovery from the R2.52 billion loss posted the year before. This turnaround, however, was largely attributed to the sale of a 60% stake in its insurance business to Sanlam in November 2024, rather than core operations.
Overall group revenue declined by 9%, with subscription revenue dropping 11% year-on-year. Its streaming service Showmax also faced challenges, failing to offset losses in traditional pay-TV markets.
What’s Next for MultiChoice?
As MultiChoice navigates shifting viewer habits, economic headwinds, and heightened competition from global streaming platforms, the success of the Uganda pilot could mark a turning point. If adopted widely, weekly subscriptions and modular channel packaging could redefine how Pay-TV is delivered across Africa.
Whether these innovations will be enough to stem subscriber losses and revive growth remains to be seen—but one thing is clear: MultiChoice is entering a period of strategic transformation in a bid to remain relevant and competitive.