DStv prices hiked up again

Garyvdh said:
yeah, they really are on the ropes financially, that's why they only made more than 6 Billion Rand profit over the last three years. :rolleyes:
I totally see now how you mean they can't afford to keep prices from rising! :p
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How much did you say, is the extra revenue in the 6% increase? What would the equivalent decrease do to their profits, using your maths? I never said they were on the ropes. I'm just saying that their pricing is not as excessive as you make it out to be.
 
Their profit increased 25% year on year.
 
Also remember that DStv make a lot for advertising...if they had 10 million more subscribers, they would make a lot more via ads.

Don't underestimate what multichoice make with advertising...
 
Keeper said:
Also remember that DStv make a lot for advertising...if they had 10 million more subscribers, they would make a lot more via ads.

Don't underestimate what multichoice make with advertising...
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They are not allowed to make too much off advertising. Pay TV operators are only allowed a certain percentage of advertising across their platforms, by ICASA. That is why they mostly advertise their own products during ad breaks.
 
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Their advertising revenue is in the hundreds of millions ..... their show sponsoring saves them more millions and then you get the subscribers. Anyone thinking they are struggling needs to have their heads checked ;)
 
reactor_sa said:
DSTV IS ****!
Just go watch the games at your local pub. All the movies look better on REAL hd bluray too.

Oh and when I was in aus last year, it was 100 dollars for real cable, not this dribble dstv is selling.
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$100 = R800-R900 last year

pubs show HD Bluray movies??
 
Mephisto_Helix said:
Their advertising revenue is in the hundreds of millions ..... their show sponsoring saves them more millions and then you get the subscribers. Anyone thinking they are struggling needs to have their heads checked ;)
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I don't see anyone saying that they are struggling, or that they are not making money off ads. Just saying that their pricing is not excessive for the programming provided. I know there are some technical issues, but they really are working on that. Like I said, big changes coming this year, costing them mega bucks.
 
In June it was reported that DTSV has 4.9 million subscribers across the African continent. And grew by a million in that year. Source: http://teeveetee.blogspot.com/2011/06/multichoice-grows-its-pay-tv-dstv.html
So they proves that they are increasing their subscriber base and should therefore be able to drop prices. Not only do they get more subscription fees every month but they can make more on advertising as they have more viewers.

We have 3.5 million subscribers in South Africa and it increased by 637 000 in South Africa. That disproves the comment that the middle class has to increase. Or maybe it did?

If they drop the prices by 25% they should easily be able to increase their subscribers by 25% The 25% more subscribers will earn them more advertising revenue.

Look at the net profit graph here:http://financialresults.co.za/2011/multichoice01_ar2011/financial.php
It is very predictable. Almost increasing linearly. There has been no impact from any competition clearly. Yet they rake in more every year. Increases in revenue etc. They can afford to no increase prices or to even drop them As explained they will make up for the loss in subs in increased numbers and increased advertising.
 
phoneJunky said:
Guys, they do this once a year. They went up by 6% which is around inflation. If you rent you it will also go up by that much. DSTV employees will also want a raise. This isn't really extortion, just about the inflation increase.

Sure it is expensive, but that is just the way it is currently. Why are they going to incur the extra inflation related expenses and not pass it on to us?
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agreed. If you cant afford it than don't get it.
 
Quantum Theory said:
I don't see anyone saying that they are struggling, or that they are not making money off ads. Just saying that their pricing is not excessive for the programming provided. I know there are some technical issues, but they really are working on that. Like I said, big changes coming this year, costing them mega bucks.
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Of course it is excessive... there are hundreds of other providers around the world that carry far more channels and have thousands more subscribers (much more admin costs) than DSTV and they manage to do it for far less. Their pricing is excessive and it is greedy. It is excessive because they are abusing their monopoly position. Those are the facts.
 
Munch said:
In June it was reported that DTSV has 4.9 million subscribers across the African continent. And grew by a million in that year. Source: http://teeveetee.blogspot.com/2011/06/multichoice-grows-its-pay-tv-dstv.html
So they proves that they are increasing their subscriber base and should therefore be able to drop prices. Not only do they get more subscription fees every month but they can make more on advertising as they have more viewers.

We have 3.5 million subscribers in South Africa and it increased by 637 000 in South Africa. That disproves the comment that the middle class has to increase. Or maybe it did?

If they drop the prices by 25% they should easily be able to increase their subscribers by 25% The 25% more subscribers will earn them more advertising revenue.

Look at the net profit graph here:http://financialresults.co.za/2011/multichoice01_ar2011/financial.php
It is very predictable. Almost increasing linearly. There has been no impact from any competition clearly. Yet they rake in more every year. Increases in revenue etc. They can afford to no increase prices or to even drop them As explained they will make up for the loss in subs in increased numbers and increased advertising.
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Unfortunately, a lot of those subscribers are not on Premium. So a small part of the base (premium subscribers) are paying for the most expensive programming. As explained above, advertising is limited by ICASA. Broadcast licensing increases with subscribers. You are not looking at all the variables. If it was so simple, don't you think they would have done it?
 
Garyvdh said:
Of course it is excessive... there are hundreds of other providers around the world that carry far more channels and have thousands more subscribers (much more admin costs) than DSTV and they manage to do it for far less. Their pricing is excessive and it is greedy. It is excessive because they are abusing their monopoly position. Those are the facts.
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Okay... Foxtel... cheapest package at today's exchange rate is around R620, while the most expensive is around R1070. They have a more subscribers on premium (first world country) and higher subs, that is why they have more programming. Are they also greedy?

Your turn to actually give an example...
 
Actually, don't bother. This thread is tiring. It's like running into a wall... repeatedly. Can't do it anymore ;) As you were.
 
Quantum Theory said:
Okay... Foxtel... cheapest package at today's exchange rate is around R620, while the most expensive is around R1070. They have a more subscribers on premium (first world country) and higher subs, that is why they have more programming. Are they also greedy?

Your turn to actually give an example...
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DSTV Premium = 80 Channels = R590 per month.
Dish.com Everything Pak = 315 channels = R560 per month
DirecTV Ultimate Choice = 225 Channels = R340 per month
Bell Canada = 225 Channels = R410 per month
 
Okay... Last post :D

Those are all North American. Source of most of the programming being watched around the western world. A lot of the content providers are native on those platforms. Direct TV has like 20 000 000 subscribers, of which most will be on premium. They have no advertising restrictions and ads are reaching one of the biggest markets in the world. Imagine the advertising revenue.

Give us an example in a developing or third world (like SA) country.
 
Quantum Theory said:
Okay... Last post :D

Those are all North American. Source of most of the programming being watched around the western world. A lot of the content providers are native on those platforms. Direct TV has like 20 000 000 subscribers, of which most will be on premium. They have no advertising restrictions and ads are reaching one of the biggest markets in the world. Imagine the advertising revenue.

Give us an example in a developing or third world (like SA) country.
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lol... so many demands... you asked for examples, I gave you examples, now quit moving the goal posts!

Anything, I show you, you will have a come back for. Go back to beating your head against the wall, maybe you will knock some sense into it!
 
Quantum Theory said:
Okay... Last post :D

Those are all North American. Source of most of the programming being watched around the western world. A lot of the content providers are native on those platforms. Direct TV has like 20 000 000 subscribers, of which most will be on premium. They have no advertising restrictions and ads are reaching one of the biggest markets in the world. Imagine the advertising revenue.

Give us an example in a developing or third world (like SA) country.
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Good point, but I bet you a good beer that if DSTV had proper competition instead of the piss willy "let's not take a dump in each other's sandpits" arrangement with Top TV we would see lower prices in a heartbeat!

ICASA is the gatekeeper in this claiming for some ethereal reason the right for themselves to defend market players by limiting licensed access to the market instead of allowing open access and letting the market choose... It is all backwards and I suspect pretty corrupt at the moment.

Who lives and dies in the market should be a function and result of good competition without regulatory interference where it isn't needed. ICASA is the **** UP here!!
 
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