Our strategic focus

At our core, we strive to be Africa's content gateway of choice, offering a platform agnostic video entertainment service to consumers across sub-Saharan Africa. Our ambition is to retain our leadership position in video entertainment across the continent, scale Irdeto to a leading media and cybersecurity business globally and continue building a sustainable business that delivers value for our stakeholders. Our strategic priorities are critical to ensuring we deliver on our ambition.

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Lead in content and differentiate in local and sport

Pursue a differentiated content strategy through significant investment in local content and securing the best of local and international sport while, at the same time, maintaining a compelling international general entertainment content portfolio to complete our product offering

In an evolving video entertainment industry, a differentiated content strategy is key to remaining relevant. Our strength lies in our local content expertise and our investment in attractive local and international sport offerings. We continue driving these two elements of our content strategy while also maintaining a compelling international general entertainment content portfolio to complete our comprehensive product offering.

Our significant investment in local content sets us apart from international competitors, especially as African viewers love content in their own languages and stories that resonate culturally. In addition, local content is cheaper than international general entertainment content and helps us reduce our exposure to US$ input costs. Owning this content allows us greater control over how we manage and leverage it across our products and services. On the sport front, we remain committed to exciting customers with the best local and international sport while carefully managing the cost of acquiring select sport broadcasting rights. Our sport production capability is unmatched on the African continent as we continue leading in the production of world-class events such as the productions of Super Rugby and international cricket broadcast across the globe.

How we performed
  • Produced 3 850 hours of local content
  • Local content spend accounted for 40% of total general entertainment content spend (41% in constant currency)
  • Local content library increased by 8% (now exceeds 56 800 hours)
  • Renewed all selected sport broadcasting rights available for renewal this year
Looking ahead
  • Substantial ramp up in local content production
  • FY22 goal for local content to comprise 45% of total general entertainment spend
  • Ongoing renewal of selected sport broadcasting rights

Leverage scale and enhance ecosystem

Establish a multidimensional entertainment ecosystem for our customers, seeking out opportunities to expand our product offering, and building aggregation capabilities and partnerships that will position us as Africa's super content aggregator

The digital world has brought with it fundamental shifts in the video entertainment industry and created new ways for us to engage with our customers. Customers are no longer looking for a single video entertainment service but rather an ecosystem of various entertainment options. The opportunity exists for an aggregator like us to provide a single, seamless interface for the customer. Given our scale, distribution capabilities and core competencies, including our proven track record in content curation and investment in our partnerships with content suppliers, our established payment collection capabilities and our ability to manage in-country nuances, we are well positioned to fulfil such an aggregator role in Africa. We intend to set ourselves up for future success in this regard, and we will continue looking for new opportunities to further expand our existing ecosystem, offering new products to enhance our customers' experiences and increase revenues.

How we performed
  • Significant research and development of set-top boxes to enhance functionality
  • Signed distribution deals with two global SVOD providers to integrate their streaming services onto our platform
Looking ahead
  • Continue investigating new product opportunities with a view to launch over the course of the coming year
  • Complete integration of third-party OTT services onto Explora decoder

Drive growth and retention

Continue capturing a large addressable market, leveraging subscriber growth to drive further margin expansion and progress towards profitability in the Rest of Africa

Growing and maintaining a healthy subscriber base has been key to our success in the past and continues to be a critical factor for driving future returns. It is also an essential element of our turnaround strategy for the Rest of Africa segment. Our business is primarily a fixed cost one, meaning growth and scale are imperative for ongoing margin expansion. Leveraging a sizeable subscriber base also brings meaningful opportunities through new product innovation.

We believe Africa offers a large addressable market for our products and is poised for future growth as the prosperity and income levels of African people improve. Our aim is to continue capturing this opportunity with specific focus on markets where we have identified the largest growth potential. At the same time, we remain focused on driving improvements in customer retention and loyalty, which are equally critical to sustaining growth.

How we performed
  • Increased (90-day active) subscriber base by 0.9m YoY (5%) to 19.5m
  • YoY growth affected by weak consumer environment and some country-specific factors
Looking ahead
  • Maintain and grow subscriber base in the context of challenging consumer environment

Accelerate OTT capabilities

Deepen investment in OTT products and platforms, and drive growth, adoption and engagement in key territories

Part of our track record is being innovative in our product and service offerings, and catering for the evolving needs of our customers. Customer behaviour is increasingly moving online. Therefore, it is important that our content is available online and on any device.

While connectivity and the cost of data impact the large-scale adoption of OTT services across a number of our markets, this is changing. We are looking to accelerate the uptake of our OTT products by differentiating and strengthening our content line-up (particularly local content and sport), driving strategic partnerships, improving user experience on our OTT products and platforms, and launching new business models that leverage content assets and serve rapidly changing consumer habits.

How we performed
  • 39% increase in OTT active user base YoY
  • 85% increase in play events YoY
  • 18% increase in average time spent on platform YoY
  • Commencing field trials on new DStv Streaming product
Looking ahead
  • Launch of DStv Streaming product
  • Ongoing product enhancements
  • Targets to grow OTT paying subscriber base and increase in average time spent on platform

Pursue global digital platform security

Become the global leader in content protection/cybersecurity for media and entertainment and a leader in the fast-growing connected industries business

Our aim is to deliver positive operating leverage, keeping the growth in costs below the growth in revenue and thereby driving margin expansion for the group. We continuously strive for operating excellence and optimising cost efficiencies across our businesses. From time to time, this may require some investment upfront as we redesign certain critical systems to support our future business and customer needs. Another key element of this strategy is our ongoing initiatives to embed analytics and AI in the organisation, focusing on improving customer experience, driving revenue, enhancing content discovery and reducing costs.

We also remain focused on returning our Rest of Africa business to profitability by driving subscriber growth and retention and by managing costs effectively.

How we performed
  • Secured nine tier-one customer wins from competitors in the past 24 months
  • Market share in media security increased from 12.7% in FY19 to 13.9% in FY20
  • Major OEM shipped first set of vehicles with Irdeto technology and a long-term win with one of the world's largest automotive manufacturers was secured
Looking ahead
  • Ongoing new customer acquisition
  • Exploring further connected industry opportunities

Maintain operational excellence and sustain cost reduction

Drive ongoing reductions in our cost base and reinvest some savings in critical systems and data capabilities to support customer experience and future operational efficiencies

Our technology business, Irdeto, is one of the leading companies globally in providing digital platform security, content protection applications and cybersecurity solutions for the media and entertainment industry. Our aim is to drive growth, scale and increased market share through new customer wins and enhanced product offerings.

The world of connected mobility presents endless possibilities for manufacturers, consumers and those with innovative new business ideas. While our initial focus is on providing security solutions in the transport sector, we continue seeing opportunities to create, incubate and grow new business in other selected connected industries.

How we performed
  • Achieved ZAR1.4bn cost savings for the year
  • Reduced losses in the Rest of Africa by ZAR0.8bn (ZAR1.8bn organic)
  • Achieved 5% positive operating leverage (growth in revenue > growth in costs) which drove margin expansion of 2% for the group
  • Progress in strategic programmes to enhance critical systems and AI capability
Looking ahead
  • Further cost-saving targets in place
  • Deliver on key milestones for strategic system and AI programmes