Openview Challenges DStv's Dominance in South African Satellite TV Market

In the competitive landscape of South African satellite television, eMedia’s Openview is making notable strides against the industry giant, MultiChoice’s DStv. The last five years have witnessed Openview's customer activations skyrocket, nearly doubling the net subscriber additions of its key competitor, DStv, and thereby reshaping the market dynamics.

A comprehensive analysis of the operational data from their annual financial results reveals that between March 2019 and March 2023, Openview racked up approximately 2.139 million sign-ups, leaving DStv's gain of 1.095 million subscribers in its shadow. This is a clear indication of Openview's accelerating appeal among South Africans.

The numbers also illustrate a story of resilience and recovery. In the face of a global pandemic that restricted spending and impacted businesses, Openview saw its activation numbers dip to about 369,000 in 2021, only to rebound strongly to 413,000 in 2022, demonstrating agility and adaptability in a crisis. In 2023, the service soared to nearly 514,000 activations, an impressive comeback that signified robust consumer engagement with their offerings.

In contrast, DStv experienced a different trajectory. The satellite service provider had previously held the upper hand with over 526,000 subscriber additions in 2019 followed by 441,000 in 2020. However, the pandemic dealt a harsher blow to DStv with plummeting numbers — a drop to 289,000 additions in 2021, followed by the loss of 161,000 subscribers across 2022 and 2023. The clear dip underlines the challenges DStv is facing in retaining and growing its customer base in an increasingly competitive market.

Openview and DStv both offer a plethora of channels from the SABC and secure a range of content, both local and international, catering to diverse audiences. However, their business models are at polar opposites. eMedia benefits from advertising revenue on its free-to-view Openview platform, while DStv generates income from both subscription fees and advertising. Notably, Openview's model includes a once-off fee for the decoder, dish, and installation, a factor that might play an essential role in the uptake of Openview services, particularly appealing to cost-conscious consumers.

The introduction of "UltraView," a subscription-based option focusing on niche channels, marks Openview’s tentative steps into the paid subscription arena, potentially signalling a new phase in their business strategy. An intriguing aspect of Openview’s reporting is its count of activated boxes, which does not account for deactivations, painting a potentially more optimistic picture of its customer base.

DStv, on the other hand, allows its customers the flexibility to suspend packages temporarily, aligning with fluctuating financial capabilities - a strategy that could potentially retain customers but not necessarily translate into continued monthly revenue.

Despite the inroads being made by Openview, DStv remains the prominent player in South Africa with 7.882 million subscribers as of September 2023. Nevertheless, Openview’s surgical increase in activations—143% between March 2019 and September 2023—points to a serious challenge to DStv's supremacy and shows how rapidly the market can change. This evidences a significant shift in consumer preferences and behaviour, perhaps a rethink of the perceived value of paid television services amid economic pressures and alternative digital streaming options.

In conclusion, Openview is tapping into a segment of the population that values no-frills television service without recurring costs, while also offering an affordable approach to satellite TV. This strategic direction is crucial as it aligns with the broader economic and technological landscape of South Africa, where affordability and access to uncapped broadband remain concerns for many. Openview's recent performance indicates a potential watershed moment for the nation's satellite TV industry, influencing not just consumer choice but the financial foundations of the broadcasting market.