This archive report was first published on 11 June 2020.
On June 11, 2020, Multichoice announced a strategic partnership with Netflix and Amazon to integrate their streaming services with DSTV decoders.
This move is part of Multichoice's efforts to grow its streaming services in sub-Saharan Africa, where the market currently stands at only 4%.
According to Multichoice Chief Officer Tim Jacobs, the company will earn commissions on revenue generated by customers accessing Netflix and Amazon through its platform.
"What would typically happen is we would get a commission on whatever revenue gets generated by customers coming from our platform," Jacobs told Bloomberg in a phone interview.
The new integrated services will be available through the DSTV Explora decoder, allowing users to access a wider range of content, including local and international shows and movies.
With this partnership, Multichoice aims to grow its linear business while capturing the streaming media audience, as revealed in its company results.
Currently, Multichoice runs its streaming services through Showmax and DSTV Now, which have seen a 39% growth in user base year-over-year.
Adding Amazon Prime and Netflix streaming services will help diversify its local content on Showmax, with little overlap between content on the two platforms, according to Jacobs.
News of the partnership led to a 8.5% increase in the company's share price, closing at 102.61 rands, a 4-month high.
