MultiChoice's big ARPU problem

[Jan]

DStv's massive price problem

MultiChoice has a problem. The average revenue per user for nearly all its DStv segments in South Africa and the Rest of Africa (RoA) is decreasing despite increasing prices each year.

MultiChoice’s results for the six months ended 30 September 2022 showed an increase in revenue and operating profit but a large decrease in profit after tax.

 

[freematrix]

Whatever you say about these guys failing, they are still milking it. So much profit at the end of the day anyway.

 

[ThinkCentre]

DSTV will be around for another few years but their business model was wrong from the start.

 

[Wysjoumuis]

"MultiChoice has no easy way to address this problem, and the management team does not seem to have a strategy to reverse the trend."

Give people a sport package and charge R400-R500 for only the sport channels.
Why not MultiChoice? Busy milking the premium subscribers until you die?

 

[deweyzeph]

There's no problem, I cancelled and am paying nothing. Best deal ever.

 

[elf_lord_ZC5]

"MultiChoice has no easy way to address this problem, and the management team does not seem to have a strategy to reverse the trend."

Give people a sport package and charge R400-R500 for only the sport channels.
Why not MultiChoice? Busy milking the premium subscribers until you die?

What it tells me, is, that the shrinking, number of DSTV Premium subscribers, left are enough to cover their costs, but the margin is getting rather thin ... , waiting to see which "bulking" diet they will choose to follow.

 

[MEG101]

"MultiChoice has no easy way to address this problem, and the management team does not seem to have a strategy to reverse the trend."

Give people a sport package and charge R400-R500 for only the sport channels.
Why not MultiChoice? Busy milking the premium subscribers until you die?

Easy solution. Allow general public to subscribe to the Stay Essential package that is available for Guest houses, Retirement Villages etc, then you will see a massive jump in new and existing subscribers. This package includes Mnet, Kyknet and ALL the Sport channels and many more @ R390 per month.

 

[ISP cash cow]

DSTV will be around for another few years but their business model was wrong from the start.

I think their model was perfect when they were the monopoly,

The warning signs were there when fibre came into the country and people started finding means of streaming and the writing was on the wall and people warned multichoice about their model. Being the twats they are they ignored it

Now that the numbers are reflecting reality they are crying

Hell even Sky and Virgin (and others around the world who had set boxes) were able to amend their model to reflect new age

 

[Johand]

It also doesn't help to cut what is available on lower tier packages to force people to upgrade. They just dump Dstv altogether.

I pay for my mother's dstv compact. But she told me it is a waste because she gets more YouTube Tennis highlights than from Dstv. And no way Dstv premium makes sense for her...

 

[elf_lord_ZC5]

Easy solution. Allow general public to subscribe to the Stay Essential package that is available for Guest houses, Retirement Villages etc, then you will see a massive jump in new and existing subscribers. This package includes Mnet, Kyknet and ALL the Sport channels and many more @ R390 per month.

If they did this, and manage to get their DSTV app to work properly, minus the all to frequent "outages" and buffering. I might very well reconsider, a subscription from them.

 

[deweyzeph]

Easy solution. Allow general public to subscribe to the Stay Essential package that is available for Guest houses, Retirement Villages etc, then you will see a massive jump in new and existing subscribers. This package includes Mnet, Kyknet and ALL the Sport channels and many more @ R390 per month.

I'm pretty sure the management of Multichoice know what the solution is, they just can't stomach it.

 

[elf_lord_ZC5]

I'm pretty sure the management of Multichoice know what the solution is, they just can't stomach it.

They have a problem, the worshippers, of the Golden Eagle, called share holders. And they are scared, of losing their big fat bonus'es.

Edit:

They are flying the kite on thinner and thinner string an preying like demons, that the string does not break, before they are ready to jump ship.

 

[ThinkCentre]

@Jan can make a comparison between the percentage rise of Netflix's fees compared to that of DSTV. It will prove DSTV is milking the country!

 

[jezzad]

Has anyone done the maths on their decline rate to see how long Dstv will still be around for

 

[Heisenborg]

There's no problem, I cancelled and am paying nothing. Best deal ever.

Slow clap

 

[Skerminkel]

.... of losing their big fat bonus'es.

There's a new use of the apostrophe. MC could do with your innovative thinking.

 

[LazyLion]

The problem, as always remains the monopoly on sport.
Where else can you get all that sport under one roof for that price?
The moment DSTV loses that monopoly, the sport market is going to fragment and we will be paying R150 to R300 a month to four or five different providers....

 

[Gudnews]

Nothing strange to see. Just an overdue market correction taking place.

 

[elf_lord_ZC5]

The problem, as always remains the monopoly on sport.
Where else can you get all that sport under one roof for that price?
The moment DSTV loses that monopoly, the sport market is going to fragment and we will be paying R150 to R300 a month to four or five different providers....

Problem with a monopoly is, you need a market to make it valuable. And if you keep pricing yourself out of the maketplace, you are well and truly screwed, because you have no where else to go. Fortunately not my Problem.

 

[elf_lord_ZC5]

There's a new use of the apostrophe. MC could do with your innovative thinking.

There is no place for innovative thinking at Multichoice. Greed has blunted and killed it totally.