MultiChoice is considering offering smaller, cheaper channel bundles, (“Skinny Bundling”). However, it is merely just a consideration, and no decision has been made yet, said Calvo Mawela, the CEO of the MultiChoice Group. In his words, “It’s continuous research in a number of areas, including skinny bundling, and no decisions have been made,”
In an interview with Tech Central, Mr. Mawela explained that Multichoice is conducting research with some customers to test the idea of Skinny Bundles, to determine if Skinny Bundling would have merit in the African markets in which Multichoice operates.
In the interview, Mr. Mawela explained that Multichoice is experienced some strain as a result of the inability of customers to afford premium-tier subscriptions thereby leading to cancelling premium-tier subscriptions. However, Multichoice is not “sitting in its laurels” and is working hard to retain such customers by adding value-added services such as free access to Showmax. Multichoice is also working to add new content to “ensure we stay competitive in this segment”. Mr. Mawela said the rate of decline of premium-tier customers has improved, “This first half (of the financial year), the number (of premium-tier customers) declined by 5%. Previously it was 8, 9 or 10%.”
By March 2022, Multichoice would be able to provide a clearer picture as to whether MultiChoice has been able to manage the decline in premium subscribers. Currently, “some premium-tier subscribers who had left returned in the most recent reporting period due to a strong slate of sport, particularly rugby, whereas a year ago, during the height of the Covid-19 pandemic, very few live sports were being played.”