How our activities added value for our stakeholders
Value created for our partners
Our core business of aggregating and delivering exceptional content and relevant value-added services to our customers relies on our execution, as well as the support of our many suppliers and partners. We provide value to them through the fees we pay and the scale we offer, and we also seek to nurture longer-term collaborative relationships to support the ongoing development of the industries and value chains in which we participate. Going forward, our group will increasingly draw on the expertise of dedicated joint venture partners in our Showmax and Moment businesses and aim to create value for our co-investors too. We have also announced a syndication partnership with Sky for the Sky Glass connected smart TV device, which we plan to launch in the coming years.
Given our focus on driving efficiencies and cost controls, we must ultimately ensure that the prices we pay are supported by the economics of our contractual relationships. Therefore, in the spirit of preserving mutually beneficial relationships, we adopt a firm but fair approach when engaging with our suppliers, as well as our wholesale and distribution partners.
Our largest categories of procurement are content (ZAR20.9bn), set-top boxes (ZAR6.6bn) and transponders (ZAR2.5bn). Other critical third-party suppliers and partners include our agent and installer network, and our third-party payment partners.
We also rely on typical enterprise services and consultants across the legal, accounting, regulatory, IT and banking fields.
Within our overall procurement spend, we support local, upcoming and previously disadvantaged operators in the film, TV, media, and information and communication technology industries. In South Africa, our preferential procurement spend amounted to ZAR12.0bn in FY23, ZAR7.7bn of which was allocated to BBBEE-compliant suppliers, while ZAR2.6bn was directed to small, medium and micro-enterprises, and ZAR2.0bn went to suppliers with at least 30% black women ownership.

From a governance perspective, all our suppliers are subject to comprehensive background checks set out in our third-party risk management framework. They are expected to be aware of and adhere to our code of ethics and conduct, and related group policies. Reference to our code of ethics and conduct is also included in third-party procurement contracts for major subsidiaries.
(1) Overall supplier spend decreased due to budget efficiency and tighter cost controls.

Content
Set-top boxes
Transponders and other transmission channels
Agency, installers and payment partners
Critical systems
Content
Content is our key differentiator and includes locally produced content that we commission and own, co-productions with third-parties, third-party content which we license and package into our own channels and licensed pre-packaged third-party channels. We also supplement direct content licensing and production through distribution partnerships with third-party content providers in the SVOD space, with these services made available to our customer base through our connected devices.
Our general entertainment and sports rights suppliers help us provide our customers with the best in video entertainment. In return, we enable them to reach millions of viewers and build their brands across sub-Saharan Africa by leveraging our platform. We typically have excellent relationships with our content partners, built on a foundation of mutual respect and trust.
We work with industry participants in our largest markets to deliver compelling local language content and channels. Our investment in these local content industries supports local production houses and creative talent and is fundamental to the prosperity of Africa's video entertainment industry as a whole. Similarly, partnerships with various local sport federations are critical to their success and the funding of sports codes across the continent. In turn, we benefit from their success, as do our customers and communities.
We see significant opportunity in sub-Saharan Africa
We remain focused on our core entertainment businesses
We are building our broader platform to address customer needs
We have an exciting roadmap and outlook ahead
Content negotiations
From time to time, we are not able to reach timely agreement with content rights holders on an appropriate price for the broadcast of their rights. As a case in point, we could not initially reach agreement on commercial terms with the sub‑license holder for the IPL rights renewal. Following a public announcement to our customers, a late deal was fortunately struck to broadcast the IPL.
How the group is adapting to OTT
OTT services created disruptive changes in the traditional linear pay-TV landscape in developed markets where broadband penetration, speeds and affordability sufficiently support scale uptake. These trends impact content producers, satellite transmission systems providers and set-top box manufacturers, among others.
MultiChoice's cost savings agenda
MultiChoice has embedded an aggressive cost savings culture into its business to ensure fit‑for‑purpose operational efficiencies. This can create an environment of uncertainty for suppliers.


Key focus areas going forward
- Looking ahead, we will continue investing in local content with local producers and sourcing world-class entertainment from our international partners.
- We will continue engaging with global and local sports bodies to deliver excellent sport to our viewers.
- We will aim to secure relevant contracts that come up for renewal, and wherever possible negotiate the sharing of foreign currency risk with our suppliers and partners.
- We will proactively pursue opportunities for new or enhanced partnerships, especially for co‑productions, payments and expanding our entertainment ecosystem.
- We will support our newly created equity joint ventures. We will bed down our partnership with Comcast, NBCUniversal and Sky with the aim of launching our new service in the second half of FY24, while also supporting the integration of Moment with our existing payments infrastructure to drive initial scale into its platform.
- We will continue developing our ecosystem by expanding our products and services through ongoing innovation, strategic partnerships and select investments, providing customers with a wider array of complementary entertainment options and consumer services. In this regard, we will work on the development of the Sky Glass syndication roadmap for our video business.
- We will continue driving transformation through our supply chain responsibly and sustainably.
- Finally, we are in the process of a multi-year systems improvement process, including a business-as-usual hardware refresh cycle of our IT systems, as well as implementing a technology modernisation programme to futureproof our customer service, billing, data and other capabilities, and a finance system upgrade to support a consolidated and harmonised technology stack. We will continue to focus on successfully implementing these projects with the assistance of our implementation service providers.