Broadcasting14.05.2010

DStv decoder and installation price cut

On Digital Media (ODM) launched their TopTV service recently, offering South Africans pay-TV bouquets from as low as R99 per month. 

MultiChoice was quick to react, and launched their DStv Lite service, also priced at R99 per month, only one day before TopTV officially hit the shelves.

One of the biggest value propositions of ODM’s new TopTV service is the low barrier of entry.  The company launched an all-inclusive promotional offer for its decoder, dish and installation for R499. The standard price for the decoder and installation – which one would assume will kick in after the launch special expires – is R699.

DStv strikes back

MultiChoice has now fired back with its own bundled decoder, dish and installation package, priced at R649.  This is higher than TopTV’s launch special, but below the standard TopTV price of R699.

MultiChoice however warned that this is also a promotional special, and that the price will only hold whilst stocks lasts. “Customers can get this special package at all major retailers and furniture groups,” MultiChoice said.

“The instructions for installation are contained in an installation voucher that is sold with the special package. A toll-free number is displayed on the voucher, which customers can call to get the number of their nearest installer,” explained Jackie Rakitla, GM for Corporate Affairs at MultiChoice.

Competition at work

This bundled DStv decoder special and the new R99 per month DStv Lite offering are clear signs that MultiChoice is keeping a close eye on the competition and will react to protect its pay-TV dominance in the local market.

Despite the quick reaction by MultiChoice TopTV is enjoying a massive response from South Africans.  The company’s initial batch of 50,000 decoders was sold out within hours of their official launch on 1 May, something which illustrates the demand for affordable pay-TV offerings.

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