The weakest link in MultiChoice’s DStv business is defending itself from Netflix. Netflix was picking some of its best customers in South Africa. Also, because Netflix was not under the high voltage searchlight DStv was subjected as a local operating company, by regulators, the cost was not optimized to compete against the global juggernaut which does not need to open many African locations to do business in the continent. No matter how you look at it, DStv was going to struggle for years to manage the problems from Netflix.
Fast Forward your decoder: DStv parent company, MultiChoice, has signed distribution agreements with Netflix and Amazon. This is a very strategic one by the South African company. Yes, it is better you have your enemy closer than losing sight of him or her. Netflix comes home to DSTv and from there both will enjoy mutually beneficial relationships.
MultiChoice has signed a deal with Netflix and Amazon to bring the streaming services operated by these companies to its Explora decoder.
The company referred to this transaction in its annual results for the year ended 31 March 2020.
In the South African division of its annual results presentation, MultiChoice Group referred to a number of initiatives that it had implemented to improve retention in the country.
These included the following statement:
Signed deals with Netflix and Amazon to integrate service onto new Explora decoder.
Of course, there is one outcome for customers: higher costs with better products. Netflix needs subscribers and can give DStv a percentage of the cuts while it focuses on dealing with the competition in the U.S. from Disney and others which are coming. The African voyage was becoming a huge distraction looking at the revenue that was coming from the continent. But now that DSTV has done it, Netflix can put its focus on where it matters most: Europe and North America.
From fair play perspectives, this deal should not stand. But the problem is that DStv does not have a competitor which anyone would like to protect. So, you just allow it to keep enjoying the free plays. Turn on your decoder, and start watching ‘The Domination by DStv”. But it would help many people in our low-bandwidth Africa.
Another collaboration… it may be favourable for countries where internet service is still expensive. Also, the cost of subscription and streaming is expensive for an average person resident in countries where internet is not freely available. Pay your DStv subscription and you see movies from both Netflix and Amazon..[on TV]