The Looming Collapse of Multichoice's Monopoly In Kenya & Africa: What Happens If The English Premier League Streams Direct-to-Consumer?
Moses Kemibaro
Founder & CEO @ Dotsavvy | Blogger @ MosesKemibaro.com | Podcaster | Analyst | Trainer | Speaker
For decades, South Africa’s Multichoice has been synonymous with premium sports broadcasting in Kenya and across Africa, securing its dominance through exclusive rights to marquee sports events, including the English Premier League (EPL) and the UEFA Champions League. Through DSTV and ShowMax, Multichoice has become the gateway to live sports for millions of fans across 50 African countries.
However, a seismic shift in the sports broadcasting landscape threatens to unravel this dominance. In November 2024, the Premier League announced plans to take its global media production in-house by the 2026/27 season, signaling a potential move toward direct-to-consumer streaming. For Multichoice, this represents an existential threatthat could upend its business model and redefine how sports content is consumed across the continent.
As a past DSTV and ShowMax user, and a keen observer of Africa’s digital transformation, I believe this shift could be a watershed moment for Multichoice. But to understand the gravity of the situation, we need to examine the broader context of why Multichoice charges so much for its services, the lessons from Kenya’s and Africa’s football ecosystem, and the opportunities for Multichoice to pivot and thrive.
Why Does Multichoice Charge So?Much?
Multichoice’s pricing structure has been a persistent point of contention for Kenyan and African consumers. In Kenya, DSTV Premium, which includes full SuperSport coverage of the EPL and other premium content, costs approximately KES 11,000 per month. Even ShowMax Mobile, a more affordable option at KES 500 per month, limits users to mobile devices and tablets?—?a frustrating limitation for fans who want the full experience of watching live matches on larger screens.
These high prices stem from the enormous costs Multichoice incurs to secure exclusive broadcasting rights in Africa. Consider these staggering figures:
These deals are among the most expensive in global sports broadcasting and explain why Multichoice has relied on premium pricing to recoup its investments. However, this pricing model is increasingly unsustainable in Kenya and Africa, where affordability is a critical factor for most consumers.
The Untapped Potential of Small Payments: Lessons from SportPesa
One of Kenya’s and Africa’s most successful examples of leveraging small payments comes from SportPesa, a leading sports betting company in Kenya. SportPesa capitalized on the passion of millions of young Kenyan men for the EPL, enabling them to place bets as small as KES 50 or KES 100 on individual matches. This ‘trickle-up effect’ generated massive revenues, allowing SportPesa to expand across Africa and even sponsor Racing Point, a Formula 1 team that later became Aston Martin F1 Racing Team.?
This example highlights a crucial insight: Kenya and Africa has a massive, engaged market for Premier League content, but cost remains a significant barrier. If Multichoice were to adopt a similar model, allowing fans to pay for individual games or team-specific seasons, it could unlock this market and generate substantial revenues from millions of small payments.
Why the Premier League’s Streaming App Could Be a Game-Changer
The Premier League’s decision to take control of its global media production signals a shift toward a direct-to-consumer streaming model. This approach has already been successfully implemented by other major sports leagues:
A Premier League streaming app could allow fans worldwide to access matches directly, bypassing traditional broadcasters like Multichoice. Such an app could offer flexible pricing options, including:
For Kenyan and African consumers, these options would likely be more affordable and accessible than DSTV’s and ShowMax's current offerings. For Multichoice, this could result in a significant loss of market share unless they adapt.
Strategic Recommendations for Multichoice
To navigate this disruption, Multichoice must rethink its approach to pricing, partnerships, and platform accessibility. Here are five strategies to remain competitive:
1. Unbundle Sports Content and Introduce Pay-Per-Game Pricing
Multichoice should embrace a more flexible pricing model:
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This approach could replicate SportPesa’s success, attracting millions of consumers who are priced out of current DSTV and ShowMax packages.
2. Strike Partnerships with Betting Companies
The strong synergy between football and sports betting offers an untapped opportunity for Multichoice:
3. Leverage Mobile Money for Micro-Payments
Kenya’s M-Pesa ecosystem provides an ideal platform for micro-payments:
By integrating mobile money, Multichoice can lower entry barriers and attract a broader audience.
4. Expand Device Accessibility
Multichoice must enhance its platform to support seamless streaming across all devices:
This would cater to both mobile-first users and traditional TV viewers, providing a more inclusive experience.
5. Collaborate with Mobile Networks
Data costs remain a barrier to streaming in Kenya and Africa. Multichoice should:
Why Multichoice Must Act?Now
The Premier League’s potential streaming app represents more than just a threat?—?it’s a glimpse into the future of sports broadcasting. Kenyan and African consumers are increasingly demanding flexibility, affordability, and accessibility, and Multichoice’s traditional model is ill-suited to meet these expectations.
If Multichoice fails to adapt, it risks being sidelined in a post-monopoly world where Kenyan and African consumers have direct access to the content they love. However, by embracing innovation and prioritizing customer needs, Multichoice can turn this disruption into an opportunity to reinvent itself and secure its relevance in Kenya’s and Africa’s digital-first future.
Conclusion: A Crossroads for Multichoice
Multichoice’s dominance in African sports broadcasting is under threat, but the path forward is clear. By unbundling sports content, collaborating with betting companies, leveraging mobile money, and expanding device accessibility, Multichoice can unlock Africa’s vast football market and remain a leader in the industry. The stakes couldn’t be higher. The Premier League’s “Netflix of Football” is coming, and Multichoice has a choice: evolve, or die!?
Mechanical Engineer | Advanced Manufacturing | B2B Technical Content Writer | White Papers| SEO
1 个月Multichoice has never shown any particular interest in making their 'premium' offerings available to a wider customer base. Their pricing model has never made financial sense and this article is far too kind to them.
SEO Specialist | Helping eCommerce Brands Rank Higher & Get More Sales
1 个月The other day I was having a similar conversation with a friend and we couldn't understand why Multichoice continues to insist on the steep price points. Yet, it is very clear that Africa is a highly price-sensitive market. Worse, was when they limited Showmax sports viewing to mobile devices... Who wants to watch a 90 minute match on a 5" screen? Again, you're spot on with the prediction. If the Premier League decides to go DTC, then Multichoice will be as good as gone. That sounds like a bold claim, but ask 5 friends paying for their subscriptions and 3 will confirm they only pay for DSTV because of the premier league and/or champions league.
Digital Marketing & Program Management Professional | Experienced in Crafting Compelling Stories, Driving Engagement, and Scaling Programs Recruitment | Empowering Brands That Drive Africa and Youth Impact
1 个月The pay-per game and team specific access would be a game change if implemented well. The biggest downfall of Multi choice strategy was you were only guaranteed to watch your team play with the premium package alone. The rest of the packages would be a guessing game.
Fintech | TechInnovator | Account Management | Project Management | Strategy
1 个月Honestly, Multichoice needs to quickly change their strategy, urgently. A start would be to throw away the decoders and go mass market, grow the Showmax solution, pay per view. Hope the new owners Vivendi SE’s Canal+ have a plan.