Product details

By continuing to use our site you consent to the use of cookies as described in our privacy policy unless you have disabled them.
You can change your cookie settings at any time but parts of our site will not function correctly without them.

Abstract

When Multichoice Group (MCG) made a loss of USD180 million for the period ending 31 March 2023, some analysts believed the company was losing its place as a broadcasting giant of Africa, with video streaming services gaining popularity and taking over some market segments that had previously been held by MCG's Pay-TV subsidiary, DStv. Since its establishment in 1985, the company has been a dominant enterprise in the Pay-TV market, enjoying early-mover advantages based on technical competence, distribution clout, exclusive broadcast rights to sporting events, and an understanding of local tastes and preferences strengthened by the development of local content. However, technological disruptions created new sets of customers, new ways to consume services, and new business models. The streaming business models became effective competitors to the Pay-TV model. The company's Group CEO, Calvo Mawela pondered strategic choices and their implementation to enhance profitability. Also in focus were the special characteristics of African markets and dynamic business environments, as well as the effectiveness of the challenge of emerging competitors. The case sought to interrogate the adequacy of MultiChoice's response to these challenges.

Teaching and learning

This item is suitable for postgraduate and executive education courses.

Time period

The events covered by this case took place in April 2022 - March 2023.

Geographical setting

Region:
Africa
Countries:
South Africa; Ghana; Nigeria; Tanzania; Zimbabwe
Location:
Johannesburg

Featured company

MultiChoice Group Limited
Employees:
5001-10000
Turnover:
USD 48.4 billion
Type:
Public company
Industry:
Entertainment
Other keywords:
Listed on JSE, founded in 1994

Featured protagonist

  • Calvo Mawela (male), Group Chief Executive Officer

About

Abstract

When Multichoice Group (MCG) made a loss of USD180 million for the period ending 31 March 2023, some analysts believed the company was losing its place as a broadcasting giant of Africa, with video streaming services gaining popularity and taking over some market segments that had previously been held by MCG's Pay-TV subsidiary, DStv. Since its establishment in 1985, the company has been a dominant enterprise in the Pay-TV market, enjoying early-mover advantages based on technical competence, distribution clout, exclusive broadcast rights to sporting events, and an understanding of local tastes and preferences strengthened by the development of local content. However, technological disruptions created new sets of customers, new ways to consume services, and new business models. The streaming business models became effective competitors to the Pay-TV model. The company's Group CEO, Calvo Mawela pondered strategic choices and their implementation to enhance profitability. Also in focus were the special characteristics of African markets and dynamic business environments, as well as the effectiveness of the challenge of emerging competitors. The case sought to interrogate the adequacy of MultiChoice's response to these challenges.

Teaching and learning

This item is suitable for postgraduate and executive education courses.

Settings

Time period

The events covered by this case took place in April 2022 - March 2023.

Geographical setting

Region:
Africa
Countries:
South Africa; Ghana; Nigeria; Tanzania; Zimbabwe
Location:
Johannesburg

Featured company

MultiChoice Group Limited
Employees:
5001-10000
Turnover:
USD 48.4 billion
Type:
Public company
Industry:
Entertainment
Other keywords:
Listed on JSE, founded in 1994

Featured protagonist

  • Calvo Mawela (male), Group Chief Executive Officer

Related