DStv is making more money than ever

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Jamie McKane

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DStv is making more money than ever

MultiChoice is set to release its financial results for the year ended 31 March 2019, which will show that the company made a trading profit of around R7 billion.

The company said its trading profit is expected to be between 9% (R0.6 billion) and 13% (R0.8 billion) higher than the prior year´s reported R6.3 billion.
 
But they can still whinge about competition and "giving value because they cant do a per channel model" .. seems the only people getting value are the shareholders
 
jetlee said:
But they can still whinge about competition and "giving value because they cant do a per channel model" .. seems the only people getting value are the shareholders
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You are only measuring one side. That R7 billion profit is evidence that they have provided far more than that in value to their customers.
If they didn't do this, people would cancel.
 
jetlee said:
But they can still whinge about competition and "giving value because they cant do a per channel model" .. seems the only people getting value are the shareholders
Click to expand...

So basically everyone with a pension fund.
 
Unbundling Multichoice seems to have been a good move for the shareholders. It has unlocked the value in MC that was hidden inside the mess that was Naspers.

I still don't necessarily see it being a long term investment unless MC shift their business model quite significantly to embrace streaming and customer choice more fully.
 
konfab said:
You are only measuring one side. That R7 billion profit is evidence that they have provided far more than that in value to their customers.
If they didn't do this, people would cancel.
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They have a monopoly that gives an illusion of value.
If there's an alternative people would drop them like stones.
 
Meh. I've sold my shares that was part of the Naspers unbundling. I'm seriously considering now cancelling my subscription entirely. We don't watch much DSTV in my house any more.
 
konfab said:
It is value because people willingly hand over a scarce resource for it.
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From Wiki as they had a nice graph:
1560239756757.png
Notice how they can charge an increased price with less output due to being a monopoly? This also leads to less consumer demand as it's too expensive, which is why they don't have pretty much every person signed up since there are a lot of people that like watching sports.
 
Jamie McKane said:
DStv is making more money than ever

MultiChoice is set to release its financial results for the year ended 31 March 2019, which will show that the company made a trading profit of around R7 billion.

The company said its trading profit is expected to be between 9% (R0.6 billion) and 13% (R0.8 billion) higher than the prior year´s reported R6.3 billion.
Click to expand...
They are lying lol
 
Johnatan56 said:
From Wiki as they had a nice graph:

Notice how they can charge an increased price with less output due to being a monopoly? This also leads to less consumer demand as it's too expensive, which is why they don't have pretty much every person signed up since there are a lot of people that like watching sports.
Click to expand...
That graph and what it states is not applicable here.
DSTV doesn't limit the quantity of what it sells. Anyone can go to DSTV right now and get a subscription from them if they can pay for it.

Your "argument" applies to any high value item.
Notice how they [The Lamborghini car company] can charge an increased price with less output without being a monopoly. This also leads to less consumer demand as it's too expensive, which is why they don't have pretty much every person owning one since there are a lot of people that like fast pretty cars.
Click to expand...
Should the government nationalise Lamborghini and make sure they cost the same as a BMW 3 series? That is basically what you are arguing for when you argue like the way you did.

The monopolistic tendencies that DSTV displays occurs because of copyright laws and licences for content, but those laws tend to make sure that the content actually gets created in the first place.

Focus on actual monopolies FFS. Monopolies like Eskom where they have made it illegal for anyone to compete with them. Or the price regulation of fuel. Or the public education and health systems.
Those are the actual monopolies that are crippling the country.
 
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