Weak rand has big impact on DStv

[greg_SA]

Weak rand has big impact on DStv

MultiChoice buys most of its international programming in foreign currency, which means that the exchange rate has a big impact on its business.

The same will apply to any goods bought in foreign currency - not sure why this is singled out?

 

[Thor]

Fck you MonoChoice!

Die!

 

[Ho3n3r]

Fck you MonoChoice!

Die!

For some of us, they're already dead.

 

[dualmeister]

Have never used DSTV. Never will. Can increase fees all they like.

/don't care.

 

[Kloofvreter]

This has no impact on me.

 

[BBotha]

The US TV shows only works out around R250 of the cost of the subscription, the other R175 goes to SuperSport and other local channels the rest of fee for infrastructure, and staff. (This is based on that staff only pays only half of what you pay, so that would be the content cost and not their own costs. So I can see the R250 go up by 30% and the rest by CPIX. So expect the price rise of about R100 next year.

 

[noxibox]

Rand or EBucks?

Springbok.

 

[Ninja'd]

Waits for the it's still a great deal, I would pay double that not to have to lift my arse out of my couch crowd… aka the SuperSport fanboys.

I mean, seriously, how are you not able to afford season tickets for the Currie Cup, Super Rugby, Tri-Nations, PSL and T20? Filthy peasants.

 

[bwana]

I mean, seriously, how are you not able to afford season tickets for the Currie Cup, Super Rugby, Tri-Nations, PSL and T20? Filthy peasants.

Are you suggesting they don't bathe either?

 

[Gaz{M}]

How is Showmax R99 a month, yet the same content on DSTV costs 8 times as much (ok,ignoring sport for a second).

 

[lexis]

This country is becoming too expensive for its own citizens.

 

[Stalker]

Ag shame, I still feel nothing for this company...

Agreed

 

[TEXTILE GUY]

How is Showmax R99 a month, yet the same content on DSTV costs 8 times as much (ok,ignoring sport for a second).

Its like the cost of Nene vs the cost of van Rooyen .... both Finance ministers, both do the same dog and pony act, one just costs more

 

[Dave]

I do.

bwana sits and claps as the GBP rate climbs?

 

[Rocket-Boy]

A $10 Netflix sub will also be more expensive now. Wishing for a Google streaming service with Youtube red and Play music all access fir $10. Will come sooner rather then later.

No hassles for me for a couple of months still. Used a gift card which will see me through quite a while still.

 

[Mike Hoxbig]

They increase prices every year in April, but if the Rand continues to nosedive we can even expect two or more increases next year.

This happened once before.

And they can expect two or three times fewer subscribers. The current price is probably near the top end of what people are willing to pay. R799 and it starts to look unaffordable...

 

[KleinBoontjie]

@Multichoice......running out of excuses, ek sê

/hands out vaseline to subscribers

Is it locally sourced vaseline?

 

[midnightcaller]

/hands out vaseline to subscribers

/hands out profits to shareholders

 

[midnightcaller]

How is Showmax R99 a month, yet the same content on DSTV costs 8 times as much (ok,ignoring sport for a second).

IMO
It's priced for reaching critical mass on subscriptions before break even can be reached and moved the business model into profit.
Showmax must have already priced in the weakening rand into the financial model and plans to expense the losses while reaching break even.
Best guess. I'm no accountant. Maybe someone can critique my guess constructively.

 

[Arthur]

DStv keeps the wife happy.

Happy wife, happy life.