MultiChoice, the owner of popular cable TV platforms DStv and GOtv, has intensified its efforts against piracy, successfully collaborating with police detectives to apprehend an alleged piracy kingpin in Gauteng, a province in Johannesburg. This arrest is a significant part of MultiChoice's ongoing anti-piracy initiatives. The operation involved a successful raid conducted in Gauteng with crucial support from detectives at the Eldorado Park police station.

The suspect, identified as Jurgen Johannes Potgieter, was arrested for allegedly selling login credentials and internet streaming pirate devices. These illicit tools enabled unauthorized access to premium content, directly contravening sections of the Cybercrime Act. Furthermore, Potgieter faces additional charges of money laundering. He has been detained and is scheduled to appear in court in Lenasia on Friday, with his confiscated equipment slated for thorough analysis by the police.

Frikke Jonker, the director of broadcast cybersecurity and anti-piracy at MultiChoice-owned Irdeto, emphasized that this raid underscores their continuous commitment to dismantling illegal operations that undermine the creative industry. MultiChoice Group CEO Calvo Mawela commended the police for their exemplary professionalism, which significantly contributed to the raid’s success. Mawela also indicated that further raids are imminent as the company steps up its fight against digital piracy.

In a broader strategic move, MultiChoice founded 'Partners Against Piracy,' an Africa-wide, multi-stakeholder initiative. This program aims to work alongside local governments and prosecutors to actively address copyright infringement. It seeks to strengthen government agencies, including the Serious Commercial Crime Unit of the Hawks, the South African Police Service, and cybercrime units in various provinces, through collaboration, information sharing, and more robust enforcement of Intellectual Property (IP) laws.

These robust anti-piracy actions coincide with a challenging period for MultiChoice. The past year has seen a notable 9% decline in its overall group subscriber base. This downturn was largely driven by a 13% drop in the “rest of Africa” segment (excluding South Africa), where consumers, particularly in Nigeria, have been compelled to prioritize essential needs over entertainment. Even the more resilient South African business experienced a 5% decline, settling at 7.6 million households by the end of March 2024.

Several factors contributed to this subscriber erosion. Severe load shedding in South Africa during the reporting period discouraged potential new subscribers. The Premium tier, encompassing DStv Premium and Compact Plus bouquets, saw an 8% decline in South Africa despite targeted retention efforts. The mid-market Compact base, highly exposed to macroeconomic challenges, dropped by 9%, while the mass-market tier recorded a 2% fall due to pressures on the Family base, the persistent impact of load shedding, and reduced decoder subsidies.

Financially, the segment faced a 3% decline in subscription revenues and softer advertising income, leading to a 2% decrease in total revenues to R33.6 billion ($1.82 billion). Group revenue, while growing by 3% organically, declined by 5% to R56 billion ($3 billion) on a reported basis, primarily due to weaker local currencies and overarching consumer pressure. Subscription revenues saw a 2% organic increase but a 7% reported fall, significantly impacted by the devaluation of the Nigerian naira over the past year.

The Nigerian market alone witnessed an 18% decline in active subscribers, causing its revenue contribution to the “rest of Africa” segment to fall from 44% to 35%. Nigeria's severe economic challenges, including inflation exceeding 30%, a crashing naira, and the removal of fuel subsidies, have placed immense pressure on consumer spending, forcing many to forego entertainment. Despite these hurdles, and the Nigerian branch contributing over R4 billion ($216.9 million) in foreign exchange losses, MultiChoice Group remains committed to its operations in the country. Calvo Mawela, CEO of MultiChoice Group, expressed a long-term perspective, stating, “This is short-term pain for long-term gain. Provided they continue with these reforms, it will pay off.”