MultiChoice may be forced to cut DStv prices in 2019

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Jamie McKane

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MultiChoice may be forced to cut DStv prices in 2019

If international trends are anything to go by, MultiChoice will be faced with a difficult decision in 2019 - continue to hike DStv Premium prices and lose even more customers to Netflix, or cut prices and hope it can make a digital-only version of DStv work.

The impact of rising satellite and cable TV subscriptions - the equivalent of DStv Premium in the USA - has seen customers ditch their packages in droves overseas.
 
bwana said:
They're going to raise their prices on the first of April... I know it, you know it, and they know it.
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Yeah, too far down the line for them to backtrack on price now. Lower prices would just mean lower turnover, not new clients.
 
Accessible quality internet will be the death of them. Lucky for them that's still some time down the road in SA.
 
They have only ever cut prices outside South Africa.
 
bwana said:
They're going to raise their prices on the first of April... I know it, you know it, and they know it.
Click to expand...

They who control the sports controls the price. Premium isn’t marketed by but sold by sports. DSTV only have one option for the consumer to access paid ‘premium’ sports. No choice, the consumer either takes it or leave it.

Their way to retain customers in its pricing model is by value-adding Showmax and now also JOOX. The problem is that it isn't adding value 'over and above' its price point in an internationally competitive market, locally, yes. A price point which as you said is likely to increase next year.

Say they decide to terminate the value-added Showmax next year, then it is basically '**** the loyal consumer'. As long as their on-demand competition reign in our market, services like these need to stay inclusive, and more value needs to be added.
 
They'll most likely raise it by 2-3% and tell you how it's below inflation. Then a bunch of adverts telling you about the 'value' for money. I'll be happy if they start by giving a discount to shareholders next year like they do if you work for Naspers.
 
Fulcrum29 said:
They who control the sports controls the price. Premium isn’t marketed by but sold by sports. DSTV only have one option for the consumer to access paid ‘premium’ sports. No choice, the consumer either takes it or leave it.

Their way to retain customers in its pricing model is by value-adding Showmax and now also JOOX. The problem is that it isn't adding value 'over and above' its price point in an internationally competitive market, locally, yes. A price point which as you said is likely to increase next year.

Say they decide to terminate the value-added Showmax next year, then it is basically '**** the loyal consumer'. As long as their on-demand competition reign in our market, services like these need to stay inclusive, and more value needs to be added.
Click to expand...

I understand the sporting rights are sold via auction. If the subscribers can't afford the DSTV subscriptions then Multichoice has 2 options. Option 1 reduce their profit margin by reducing subscriptions. Option 2 Multichoice should start bidding less when the rights come up for auction again. In those countries where Multichoice is operating there is not much competition for those sporting rights, since they are so expensive.
 
bwana said:
Don’t worry. They’ll get to you eventually.

There are [now] three certainties in life. Death, taxes, and dstv price increases.
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If there was any other way to watch the footy, DSTV would have been banished from our household ages ago.
 
I put in my cancellation on Thursday this past week (luckily I have a backup for watching the spkrt, so I'm sorted). If they debit me for November, I'll just reverse it.

With Netflix, Showmax and uncapped fibre there is more than enough to keep my wife and I preoccupied. If you work it out, its nearly R11 000 a year for DSTV premium which is just insane.

Time for me to join the masses and give DSTV the finger (lol).
 
The kicks of a dying horse. Doubt lowering their prices is enough to save the company.
 
Jamie McKane said:
MultiChoice may be forced to cut DStv prices in 2019

If international trends are anything to go by, MultiChoice will be faced with a difficult decision in 2019 - continue to hike DStv Premium prices and lose even more customers to Netflix, or cut prices and hope it can make a digital-only version of DStv work.

The impact of rising satellite and cable TV subscriptions - the equivalent of DStv Premium in the USA - has seen customers ditch their packages in droves overseas.
Click to expand...
IBIWISI
 
StoneCold said:
I put in my cancellation on Thursday this past week (luckily I have a backup for watching the spkrt, so I'm sorted). If they debit me for November, I'll just reverse it.

With Netflix, Showmax and uncapped fibre there is more than enough to keep my wife and I preoccupied. If you work it out, its nearly R11 000 a year for DSTV premium which is just insane.

Time for me to join the masses and give DSTV the finger (lol).
Click to expand...

School fees :ROFL:
 
Even if they lower prices to R150 per month I still wouldn't get it.

You end up watching DSTV ads, where they advertise DSTV to their paying customers, more than anything else.
"I see you are watching DSTV. Would you perhaps be interested in getting DSTV?"
 
Too little too late. They should have cut prices when they had the financial muscle to carry them through.
 
Raising the price a little will actually raise revenue more than lowering prices a little, either way those are going cancel are still going to cancel.
 
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