Ahead of its unbundling from parent Naspers and separate listing on the JSE, the bear case for MultiChoice is fairly well understood by the market. The reality, as always, is a lot more nuanced.
MultiChoice will carry losses incurred by Showmax in the “medium term”, but the goal is eventually for the streaming television service to turn a profit once broadband infrastructure in South Africa and the rest of the continent has been built out further to support it.
Streaming services pose a significant threat to MultiChoice’s future growth potential, but they are by no means the only risks exercising the minds of the pay-television operator’s management team.
Netflix and other streaming video providers may be a long-term threat to MultiChoice, but the pay-television operator isn’t seeing too much of a challenge just yet, an analysis of the latest financial numbers from parent Naspers suggests.
Free-to-air satellite broadcaster OpenView is fast closing in on 1.5 million active set-top boxes, growing its customer base by 42% in the past 12 months.