JOHANNESBURG, South Africa – MultiChoice is accelerating plans to separate its SuperSport channels from DStv entertainment packages, a move that could reshape South Africa’s pay-television landscape after decades of bundled offerings.
The broadcaster confirmed Thursday it is exploring unbundling options following a 1.2 million subscriber exodus over the past year. CEO Calvo Mawela said the investigation examines offering general entertainment subscriptions without mandatory sports channels.
“We are considering all options as part of a broader product offering going forward,” Mawela said during the group’s annual results presentation. The review draws inspiration from international models like Sky’s flexible packaging structure.
Subscribers would gain ability to purchase smaller entertainment packages and add specific sports content separately. The company hopes to complete its investigation by March 2026.
The strategic shift comes as French media giant Canal+ advances its takeover bid. South Africa’s Competition Commission approved the acquisition in May, with final regulatory approval expected by October 2025.
MultiChoice implemented its latest price increases in April, pushing DStv Premium to R979 monthly. Premium rose R50 (5.3%), Compact Plus increased R40 to R659 (6.4%), and Compact went up R10 to R479 (2.1%).
The company faces unprecedented challenges from Netflix, YouTube Premium and economic pressures squeezing household budgets. Showmax’s sports-only Premier League package at R69 monthly already tests unbundled pricing models.
“Sport is our key differentiator. It drives stickiness,” Mawela emphasized, confirming SuperSport will remain exclusive to MultiChoice platforms despite unbundling considerations.
Canal+ currently operates standalone sports packages in Europe at €34.99 monthly. The French broadcaster’s model could serve as a blueprint for MultiChoice’s restructuring plans.
Industry observers note unbundling fundamentally alters pay-TV economics. “The economics of the bundle make the whole thing work”, according to analysis by Moneyweb, questioning standalone sports viability.
MultiChoice emphasizes any unbundling must increase revenue rather than erode profits. The broadcaster will maintain headquarters in South Africa under Canal+ ownership terms.
Additional VAT increases from 15% to 15.5% in May will further impact subscription costs. MultiChoice will communicate VAT-adjusted pricing during April 2025.
The unbundling investigation represents MultiChoice’s most significant strategic shift since launching DStv in 1995. Success depends on balancing consumer flexibility demands against maintaining profitable operations.
