Johannesburg, South Africa - The Department of Communication and Digital Technologies (DCDT) has raised concerns that on-demand music and streaming services could pose a severe threat to traditional broadcasters in South Africa. This was highlighted in the department’s annual performance plan for 2024/25, underscoring the growing impact of digital media on the broadcasting industry.
Despite the rising competition, MultiChoice, the parent company of DStv, remains optimistic about its ability to navigate the evolving media landscape. The company acknowledges the disruptive influence of online streaming services but emphasizes its strategic investments and adaptations to maintain its market position.
“Although broadcasting revenues increase every year, on-demand music and video online streaming services are seriously disrupting the industry globally and may soon pose a serious threat to South African broadcasters,” stated the DCDT. The department noted a significant revenue growth from broadcasting services, which increased by 12% from R36.7 billion in 2021 to R41.2 billion in 2022. Advertising and subscription revenues saw substantial growth, with rates of 15.6% and 12.4% respectively, while infomercial revenue declined by 40.7%.
In response to these developments, MultiChoice highlighted its substantial investment in local content as a key component of its strategy. “MultiChoice has increased its investment in local content. We are the biggest funder of local content in Africa and produce thousands of hours of local content annually, further expanding our local content library,” the company said.
MultiChoice’s portfolio includes 42 local channels designed to cater to regional tastes across Africa. The company’s strategy includes rolling out owned formats, strengthening relationships with global co-production partners, and expanding its content repertoire. “Our General Entertainment stable is hugely successful and continues to command significant viewership across the DStv and GOtv services,” the company added.
In addition to local content, MultiChoice has long been a hub for international programming, featuring content from globally renowned providers such as HBO and Disney. This blend of local and international content is seen as a competitive edge in the face of growing digital competition.
The pay-TV broadcaster’s confidence is evident in its plans to enhance and diversify its offerings further. While eMedia, another significant player in the South African broadcasting space, did not respond to requests for comment, MultiChoice’s proactive measures signal its commitment to remaining a dominant force in the industry.
As the media landscape continues to shift with the rise of streaming services like Netflix, Prime Video, and Disney+, the strategies employed by traditional broadcasters like MultiChoice will be crucial in determining their future relevance and success. The ongoing investment in diverse, high-quality content appears to be MultiChoice’s primary weapon in the battle against the digital disruption transforming the global entertainment industry.
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