Multichoice has signed a deal with Netflix and Amazon to allow its users to access their services through DSTV decoders. The deal will not only help Multichoice retain its subscriptions but also earn commissions. The agreement follows Multichoice’s strategic objective to grow streaming services in sub-Saharan Africa, currently at only 4%.
“What would typically happen is we would get a commission on whatever revenue gets generated by customers coming from our platform,” Multichoice Chief Officer Tim Jacobs told Bloomberg in a phone interview.
The new integrated services will be available through the new DSTV Explora decoder.
The deal aligns with Multichoice’s bigger picture, to grow its linear business while capturing the streaming media audience. Company results reveal that the agreement will “position the business for the future, leverage on the group’s scale, and enhance the product ecosystem by providing access to a variety of content.”
Currently, Multichoice runs its streaming services through Showmax and DSTV Now. The streaming service user base grew by 39% YoY. Adding Amazon Prime and Netflix streaming services will help diversify its local content on Showmax.
“There is little overlap between content on Showmax, that is now 50% local, and a service like Netflix at the moment, hence we find deals with other video-on-demand services complementary”, Jacob added.
News of the partnership grew the company’s share price by 8.5%, closing at 102.61 rands, a 4-month high.