Overview

Our business model

External landscape

Key global and local trends Our response
  • According to Digital TV Research, global pay-TV subscribers are expected to reach 1.1bn by 2023, with the majority of growth in Africa forecast in the middle and mass markets
  • MultiChoice is well positioned to grow market share in the middle and mass markets, which aligns well to our value strategy in the Rest of Africa. The group added 1.6m subscribers in FY2019 well above historic averages
  • Local content will remain a key differentiator in video entertainment as local stories resonate well with subscribers
  • MultiChoice makes significant investments in high-quality local productions to cater for indigenous languages and preferences. We increased our local content percentage of general entertainment content from 38% to 40% in FY2019, and we are targeting 45% by FY2022
  • Audiences will continue to expect value-for-money programming packages
  • We continuously revisit our cost structures to make programming more affordable to customers, a key pillar of our strategy. Our investment in DTT networks in eight African countries, spanning 130 cities and 163 sites enables us to offer quality services to subscribers in the mass market at affordable prices
  • The global shift towards OTT will continue
  • This year MultiChoice's online platforms doubled the number of monthly active users

We make significant
investments in high-quality local productions

INPUTS – What we use to create value   OUTPUTS – What we deliver   OUTCOMES – Our impacts
Financial capital
MultiChoice Group is a for-profit company. We buy goods and services, provide employment and pay taxes and invest in our corporate citizen programmes. We contribute to economic growth, employment and development opportunities in the countries where we operate.		  
What we deliver
  
Financial capital
  • R50.1bn total revenue
  • R7.0bn trading profit
  • R1.8bn core headline earnings
Manufactured capital
To operate effectively we require offices, contact centres, distribution networks, inventory and specialised equipment and technologies.		  
What we deliver
  
Manufactured capital
  • R54m building and infrastructure spend
Intellectual capital
Our business revolves around the acquisition and development of content, patent, copyright and trademark rights, and industry and market expertise.		  
What we deliver
  
Intellectual capital
  • R5.5bn spent on local content
  • 40% of total general entertainment content spend spent on local content
  • 90+ international channels
Human capital
Employees are essential to our business as employee skills and experience are needed to drive our business forward. We are committed to employee empowerment, transformation and the development of our employees.		  
What we deliver
  
Human capital
  • 7 053 fulltime permanent employees
  • R126.5m total investment on skills development
  • 4 849 employees trained
  • 53% of our employees are men and 47% are women
Social and relationship capital
We see beyond business priorities and deliver value to stakeholders by adding economic value, enhancing our employees’ lives and making a lasting impact on communities. Our initiatives aim to deliver real benefits to the communities in which we operate while being mindful of our planet’s sustainability. The nature of our operations means we connect with people from all walks of life and our involvement goes beyond our core business.		  
What we deliver
  
Social and relationship capital
  • 15.1m customers
  • R10.3bn spent with local South African suppliers, including R3.4bn on South African small and medium enterprises
  • R1.7bn with South African suppliers who are at least 30% women-owned
  • R148m spent on significant CSI initiatives across the group
  • Additional 5% shareholding in MultiChoice South Africa issued to Phuthuma Nathi companies as part of unbundling from Naspers for no consideration payable by Phuthuma Nathi shareholders
Natural capital
We rely on continued electricity usage, which includes other fuels consumed like diesel generators during electricity outages. Many of our employees are based in regions where water usage and waste removal are primary concerns.		  
What we deliver
  
Natural capital
MultiChoice as a technology-driven entertainment group, has a low impact on natural resources compared to other industries.

The following practices and initiatives are applied by MultiChoice to minimise impact on natural capital: energy saving, water saving and waste recycling. MultiChoice City, our Johannesburg office, received a 5-star rating from the Green Building Council.