DStv at a Crossroads as Pay-TV Faces the SABC Moment

South Africa’s pay-TV giant, DStv, is facing a defining moment as rapid technological change, global streaming competition, and internal restructuring threaten its long-term relevance. According to veteran television journalist Thinus Ferreira, MultiChoice must urgently and radically reimagine DStv if it hopes to avoid the same fate that befell the South African Broadcasting Corporation (SABC) when it failed to keep pace with industry evolution.

Speaking to MyBroadband, Ferreira warned that the first three months following Groupe Canal+’s takeover of MultiChoice have been marked by internal conflict, cultural clashes, and uncertainty. These challenges, he said, come at a time when traditional pay-TV is already under severe pressure from streaming platforms that are reshaping how audiences consume content.

“Some radical transformation and reimagining of DStv will be required for it to sidestep the trajectory that traditional pay-TV is on,” Ferreira said, noting that subscriber erosion is no longer a future risk but a current reality. South Africa and the broader African market, he explained, are following the same downward curve seen in the United States and other developed markets, where cord-cutting has become the norm.

Ferreira stressed that Canal+ now faces a strategic test: defining what DStv, M-Net, Showmax, and SuperSport should look like not only in the near future, but decades from now. “What is DStv in 2026? How does DStv look in 2036? How does it meet future consumers at a price point they still find valuable?” he asked.

Drawing parallels with the SABC, Ferreira cautioned that complacency in broadcasting is fatal. “In the perpetual race in broadcasting, the SABC stopped running with many things and fell behind. The same danger confronts Canal+ and DStv,” he said. Once an industry disruptor that eclipsed free-to-air television, DStv now risks being eclipsed in turn by more agile global players.

The acquisition of MultiChoice by Canal+ was finalised in September 2025 after a lengthy mandatory buyout process, with the final phase beginning in October. Since then, Ferreira said, MultiChoice has been shaken by cost-cutting measures and internal tensions. Canal+ initially instructed MultiChoice to reduce supplier and service provider contracts by 20%, a move that was later reversed, highlighting uncertainty in the post-takeover strategy.

Beyond internal issues, the external competitive landscape poses an even greater threat. Ferreira described global streaming giants such as Netflix and Amazon Prime Video as “bigger fish” with vastly deeper pockets. These platforms, he said, are increasingly targeting premium content, including sports, which has long been the lifeblood of traditional pay-TV.

“WWE already jumped to Netflix. In Australia, the English Premier League moved from traditional pay-TV to a streamer, along with large portions of rugby and virtually all cricket going to Amazon Prime Video,” Ferreira noted. He warned that similar shifts could occur in South Africa, where escalating sports rights costs already place premium content beyond the reach of broadcasters like the SABC and e.tv.

Historically, SuperSport has dominated the local sports rights market, but Ferreira believes this dominance is under threat. “A bigger fish is moving up from the depths and will start snapping up what SuperSport used to feed on,” he said, suggesting that DStv could face the same displacement it once imposed on the SABC.

The result for consumers, Ferreira argued, has been a “double-whammy”: premium content is steadily eroding, while subscription prices continue to rise. This has made DStv increasingly vulnerable, particularly among Premium subscribers, who are often the first to migrate to streaming services. That migration, he said, is now spreading across lower-tier subscribers as well.

“Competitors like Netflix, Disney+, and others are offering new value propositions at a lower price point that look more attractive than DStv,” Ferreira said. He added that DStv’s channel-heavy model has become bloated, diluting its value at a time when consumers want flexibility, affordability, and on-demand access.

While cost-cutting is common after a major acquisition, Ferreira warned that it will not be enough to secure DStv’s future. “Canal+ isn’t going to save DStv by cutting its way to profitability or more subscribers,” he said. “It needs innovation, new ideas, dynamic out-of-the-box thinking, and an end to the same-old approaches that have damaged DStv.”

As the global television industry accelerates towards streaming and personalised content, DStv’s challenge is no longer just about competing—it is about survival. Whether Canal+ can successfully reinvent the platform, restore its value proposition, and prevent DStv from becoming “the next SABC moment” remains one of the most pressing questions in South Africa’s media landscape.