South Africa
MultiChoice South Africa's activities involve the operation of Pay-Television and internet subscriber platforms. The MultiChoice South Africa group includes the digital satellite Pay-Television business, which has been in operation since 1995.
We sell Decoder Insurance to existing customers. The insurance covers Multichoice Hardware and ranges from different prices R20 to R35. We are a cold calling environment which offers the insurance cover in the event of theft, flood, technical malfunction ect... We have over 1.4 million customers on the books, which took us over 7 years to achieve. Our claims ratio is less then 5% making this a cash cow for the business. Multichoice in total has over 6 million customers which means there is still a lot of potential to grow and focus on getting all customer covered under Decoder Insurance. The insurance is unique and there are no other players in the market which is 100% focused on Multichoice hardware. The insurance market which is flooded focuses more on vehicle and home insurance and even if home insurance covers the hardware, the excess is very high. With our insurance we have no excess, we pay 100% of claims, with over 50 staff selling we exceed 1 000 sales per day. In total this department contributes over 300 million Rand in profit per year.