Founder: Turnaround Talk
Mismanagement is one of the most common root causes of financial distress. If not addressed appropriately, this can cause some of the biggest companies in a market, which have a long history of dominance and profitability, to fall from grace.
While not financially distressed, it can be argued that Multichoice has become a victim of poor leadership. The company chose to ignore Porter’s Five Forces at a time when the entertainment industry was undergoing serious technological disruption, and the company has long been accused of ignoring customer centricity while holding a monopoly when it comes to the African entertainment space.
The company has selected a new Chairperson who will take over from 2024. What will be top of his agenda when it comes to leadership?
PIC heavyweight to chair Multichoice
The article points out that MultiChoice said on Monday it has named board member and former Public Investment Corporation (PIC) CEO Elias Masilela as chairperson with effect from 1 April 2024.
Masilela is an independent non-executive board member and previously served as the head of policy analysis at Sanlam and deputy director-general at National Treasury. He is also the chair of Ingagaru Property Investments and Sanlam, and is a former board member of the South African Reserve Bank and Government Employees Pension Fund.
The article adds that Masilela replaces Imtiaz Patel, who will be stepping down at the end of March 2024.
“Given shareholder preference for an independent chair, it was always envisaged that Patel would step down at the appropriate time once a suitable replacement as independent chair had been identified,” the company said.
“He will remain involved in assisting the group on a consultancy basis until October 2028. His involvement will include Showmax, SuperSport and other operational areas.”
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The leadership agenda
What does Masilela need to address?
Multichoice’s place in the digital revolution: The shift towards streaming is undeniable, and there are a few models that Multichoice can follow. They embrace the traditional Netflix model of allowing consumers to curate lists of content that they can consume at will. Or, they can stick to the current model of DStv Stream which is a hybrid of Netflix’s model and online channels.
The tech must be the best: Anyone who has used DStv Stream on a smart tv will no doubt be frustrated by the slow functioning of the app. Tech best practice points out that if a website doesn’t load within 5 seconds, visitors leave. Consumers don’t have time for sub-optimised tech. If you are going to embrace the tech revolution, you need to have the best tech.
Pricing and service offering: Multichoice has survived off the fact that it refuses to compartmentalise parts of its business. While other satellite television companies have specific packages such as a sports package, a movie package, an entertainment package… etc. Multichoice has refused to let go of its sports package, which is the goose that is laying the golden egg. However, with the Competition Commission hot on its heels, and an end to Multichoice dominance in sight, how will the company compete against streaming services (like Paramount+) which specialise in sports streaming? This is a serious concern. In addition, what is the future of Multichoice when there is genuine competition in the market?
Masilela has a significant task ahead of him.
