MultiChoice SA performance review continued Our premium tier (i.e. Premium and Compact Plus packages) decreased by a further 6% YoY in FY23. However, in terms of the underlying components of our premium tier, we are seeing a further deceleration in subscriber losses in our Premium base, which is indicative of both our focused work behind retaining and engaging our Premium base by enhancing our consumer value proposition, and a trend towards a core segment of households that want to have the best of what the South African market can offer in entertainment. In contrast, our Compact Plus base is under the same pressure points as our Compact base and is weighing on the performance of our premium tier. Encouragingly, our Premium package on DStv via Streaming re ected a healthy increase YoY. We continue to build out our OTT and aggregation strategy We introduced several product additions and improvements during the year such as, Disney+, Universal Plus, and 4k football for the 2022 FIFA World Cup, together with returning content after the COVID impact and production hiatus, and recorded a strong year of growth in our DStv via Streaming product. In order to support our customers on their digital enablement journey, while also creating opportunities to offer them bundled service savings, we further enhanced our DStv Internet offerings in FY23. Our DStv Internet xed-wireless LTE service, which we launched in FY22, saw encouraging traction this year. As a result, we launched a DStv Internet bre service in the second half of FY23, which shows promise based on early customer engagement with the product offering. ZAR256 average revenue per user (FY22: ZAR269) The ongoing shift in subscriber mix, with growth in the base predominantly driven by our Access package at a ZAR120 price point in FY23, resulted in blended average revenue per user declining by 5% from ZAR269 in the prior year to ZAR256 in FY23. While there is still a healthy base of Premium subscribers, we continue to see a gradual shift in revenue mix, as the mass market maintains healthy growth momentum. Short-term pressure in our mid-market is negatively impacting mix trends, while the impact of loadshedding on activity rates has also weighed on our average revenue per user. MultiChoice SA performance Phuthuma Nathi Investments (RF) Limited Integrated annual report 2023 56
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