DSTV has argued that the company has kept prices low for a very long time. But the weaker rand has forced their hand. Duncan McCLoud editor of TechCentral, provides us with some analysis around these sharp increases.
Top content like TV series hot out of the stables of the US and UK cost is astronomically expensive. Multichoice pays for premium international shows in dollars and euros - and with the weak rand has made this increasingy costly for Multichoice.
So obviously its operating costs have increased substantially over the past year and it is seeking to pass some of those increases through the various subscription fees for the various bouquets it offers— Duncan McCloud, TechCentral Editor
With the arrival of pay per view offerings like Netflix and the local ShowMax platform, South Africans have an alternative to DSTV for the first time. And the latest price hikes may push people in that direction.
I've got no doubt that the DSTV management is going to be watching very closely to see what impact this price increase has on the subscriber base. Whether there is a sharp increase in churn, where the consumers vote with their wallets and cancel their services.— Duncan McCloud, TechCentral Editor
McCoud says there probably won't be a huge amount of cancellations, especially among sports lovers, because if you want access to cricket and rugby you have no option but to fork out for the DSTV premium bouquet.
R844 for DSTV PVR decoder premium package may sound like a lot but for those at the top end of the market it will probably not make much difference
But lower down the rung there is going to be a lot of pressure felt. People who are on packages like DSTV Compact where there is an increase of 8.2%. Or people on DSTV Family where there is a 10% increase. This is where the pain is really going to be felt— Duncan McCloud, TechCentral Editor
This article first appeared on 702 : Multichoice's mammoth price hike shocker