DStv price evolution from 2000 to 2013

[ToxicBunny]

Can someone please explain the economics to me? DSTV buy their content and distribute it via signal to households. The number of households do not impact their costs. So does it not make economic sense to sell the signal at a much lesser price to much more people? It is a win-win situation. More people can afford DSTV and DSTV make higher profit. Or is DSTV too short sighted by greed to understand this?

There costs do go up unfortunately...

They have to increase their call centre and customer service centre staffing to cope with the potential increased contact points.

 

[Jab]

Year 	DStv Premium Price 	Percentage increase    AVG CPI
2000 	R305.60 	        –                      5.33 %
2001 	R325.69 	        6.57%                  5.73 % 
2002 	R349.00 	        7.16%                  9.47 %
2003 	R360.00 	        3.15%                  5.84 %
2004 	R379.00 	        5.28%                 -0.68 %
2005 	R399.00 	        5.28%                  2.06 %
2006 	R419.00 	        5.01%                  3.24 %
2007 	R439.90 	        4.99%                  6.17 %   
2008 	R469.00 	        6.62%                 10.04 %   
2009 	R499.00 	        6.40%                  7.26 %   
2010 	R529.00 	        6.01%                  4.10 %
2011 	R559.00 	        5.67%                  5.01 %
2012 	R590.00 	        5.55%                  5.75 %    
2013 	R625.00 	        5.93%                  5.47 %

AVG CPI from here

 

[Space_Chief]

There costs do go up unfortunately...

They have to increase their call centre and customer service centre staffing to cope with the potential increased contact points.

Except over the years they have been offloading much of that onto automated telephone systems and web based problem resolution.
If your decoder shows a flashing E7, you can log on the website and do a reset, and you can do the same telephonically WITHOUT
speaking to any support staff. So I don't think that's a significant problem.

Secondly, with more people watching DSTV, advertising revenue goes up.

The only drawback could be cost of licenses. More viewers means Hollywood demands more.

 

[qwertydudeza]

Can someone please explain the economics to me? DSTV buy their content and distribute it via signal to households. The number of households do not impact their costs. So does it not make economic sense to sell the signal at a much lesser price to much more people? It is a win-win situation. More people can afford DSTV and DSTV make higher profit. Or is DSTV too short sighted by greed to understand this?

nah, content providers charge a fee per subscriber

 

[Drake2007]

Sky has a crapload more channels compared to Naspers ****, so you can't compare prices as easily as simple currency conversions.

This complaint has been going on and on but DStv and Naspers DO NOT GIVE A ****!
http://www.igeek.co.za/2011/05/09/dstv-packages-breakdown/

 

[ThinkCentre]

Sky is not the only supplier of Satelite TV in the UK. There are a health competition between suppliers which is not the case in South Africa.