Multichoice holding company Naspers today announced strong growth in the South African Pay TV segment for the financial year ending 31 March 2010.

Overall the segment grew by 12% with regards to revenue, resulting in an overall subscriber growth of 634 000 households.

“After a satisfactory festive season, subscriber growth did slow in the last quarter of the financial year. Operating margins were slightly lower due to the cost of building the subscriber base, as well as higher content costs resulting from increased competition and more local production,” the group commented in its annual report.

Overall Naspers identified more cost effective Pay-TV solutions such as DSTv’s Compact offering as the reason behind the strong growth.

“With a strong content offering of soccer, general entertainment and movies, the mid-priced Compact bouquet attracted many customers. Advertising revenues were marginally better,” Naspers said.

Multichoice also has a strong presence throughout Africa.

These results do not however reflect the impact that new Pay-TV provider Top TV will inevitably have on the local market. Holding company On Digital Media launched its own satellite offering to the South African public in May this year to an impressive response, something which may have an effect on Nasper’s 2010-2011 Pay-TV figures.