Cheaper options propel DStv growth

Video-on-demand service BoxOffice is enjoying 300 000 movie rentals a month on average. By Duncan McLeod.

Added by Duncan McLeod on 27 June 2012.
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DStv operator MultiChoice has added 684 000 subscribers to its pay-television base in the past year. It now reaches 5,6m homes in the markets in which it operates.

In SA, it added 492 000 new clients on a gross basis, taking the subscriber base to 4m by the end of March 2012. More than half of that growth — 293 000 subscribers — came from the lower-priced DStv Compact bouquet.

Outside SA, the subscriber base grew to 1,6m homes.

The lower-priced Compact and Family bouquets now account for 42% of the base.

MultiChoice grew its revenues by 15% in the financial year to March, to R24,1bn. Trading profits grew by a slower 11%, reaching R6,3bn. “We continue to reinvest in the business, including upgrading our technology and broadcast infrastructure,” parent Naspers says in a statement accompanying its annual financial results.

“Trading margins were reduced by investment in local content, decoder subsidies and the development of new products,” the media group says.

Digital terrestrial services, under the brand name GOtv, were launched in Zambia, Uganda, Kenya and Nigeria. “We plan to continue investing in the expansion of digital terrestrial networks.”

BoxOffice, the satellite-based video-on-demand service launched last year, has proved popular, with an average monthly rental of more than 300 000 movies. At R25/movie, that suggests BoxOffice is generating as much as R7,5m/month in revenue.  — (c) 2012 NewsCentral Media

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  • Gray

    Over priced, repeats, incorrect programme schedules advertised – what more is there to say.  At least better than the dreadful SABC.

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