If there something that Multichoice must have seen coming was the emerging of disruptive over-the-top (OTT) providers like Netflix, AppleTV+, YouTube, Disney+, HBO Max, and Peacock pose– pose an existential competitive threat to its DStv product. In our July 2020 article, we highlighted all the ways Netflix is slowly killing DStv, and a few months later Multichoice is admitting the fact.
The information was found in a 15th January 2021 presentation by MultiChoice’s where it said OTT operators like Netflix and YouTube are their biggest competitors and a real threat. “Currently the competition is fierce and will continue to grow rapidly and in a disruptive way, We consider providers like Netflix, YouTube, Disney+, HBO Now & Peacock to be an existential competitive threat,” MultiChoice said.
MultiChoice argued that streaming services like Netflix, Direct, YouTube, Showmax, and Startimes ON already offer linear content. It added that non-linear viewing offers a competing option to any linear time-slot – with massively greater options – and is therefore a particularly powerful constraint.
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“OTT entrants follow a powerful and competitive business model that is reshaping the competitive landscape,” MultiChoice said. The SA based company said it is directly affected by growing competition from Netflix, YouTube, and other streaming services.
This is seen in the sharp decline in premium subscriptions. “The four largest DStv bouquets across all levels have seen significant falls in real prices in the last three years,” MultiChoice said.
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