CASE STUDY - IT'S NOT ALL DOOM AND GLOOM FOR MULTICHOICE The South African broadcaster has lost more than 100,000 customers, while many others are downgrading their packages. The rising cost of living coupled with more hours of load-shedding and high unemployment has led many consumers to terminate their pay TV subscriptions while others are downgrading to more affordable packages. In June 2023, MultiChoice reported that it had lost more than 100,000 subscribers at the end of March (2023), adding that customers are more selective when signing up to avoid periods of excessive load-shedding. MultiChoice has 9.3-million subscribers in South Africa (SA), 57% of whom are subscribed to cheaper packages such as Family, Access, and Easy View. The broadcaster said blackouts have hammered its SA subscriber base and activity levels, with a noticeable effect when load-shedding reaches stage 4 and above, "even when consumers have disposable income". The company's premium segment, which includes Compact Plus packages, recorded a 6% decline in subscribers to 1.3 million, but MultiChoice CEO Calvo Mawela said the losses are slowing. "It is plateauing. We managed to arrest [the decline] to reasonable levels," he said. The premium segment, which costs about R900 a month, has been on a downward trend for several months as consumers switch to international streaming platforms. However, Mawela said eight out of 10 people on streaming platforms have kept their DStv subscription. The hardest hit DStv segment is the middle market, which includes Compact, while the mass market continues to demonstrate room to grow, said Mawela. The mid-market has been the most exposed to the macroeconomic pressures." The changing mix of subscribers, combined with the lower level of subscriber activity, has resulted in monthly average revenue per user (ARPU) declining 5% from R269 to R256. As the SA business matures, MultiChoice is focusing on generating additional revenue streams in areas such as sport betting, insurance, and internet service to offset declining ARPU and margin pressure. MultiChoice will also launch the new-look Showmax after a partnership with international production group NBCUniversal Media. Showmax competes directly with Netflix, Disney, and Amazon Prime Video. So much has been made of customer relationship management and customer retention, especially in highly competitive industries. 1 Justify the following statement: "In order for Multichoice to incorporate CRM effectively, they need to make use of technology". State whether you agree or disagree with the statement and motivate your answer. 2 Technology (including artificial intelligence) has brought significant modifications to the way business and CRM can be conducted. Although management may embrace new technologies in the implementation of their CRM strategy, the people required in the implementation thereof may have contrasting feelings. Critically discuss the underlying reasons why such individuals may be resistant to change and approaches that Multichoice management/ leaders can use to counter their resistance to change. 3 Online technologies (web, email, social media) are set to have an impact on an organisation's/ brand's CRM. Outline an assessment using examples of how online technologies will affect the planning and implementation of Multihoice's CRM strategy.