Following MyBroadband’s survey on the entertainment preferences of tech-savvy individuals, MultiChoice was asked whether it plans to introduce genre-specific packages.
In particular, whether subscribers could obtain a SuperSport-only package, or a premium entertainment package without sport.
“We understand that some of our customers are of the view that they’d save money if they could choose a genre-specific package like sport, or put together their own package with only the channels they want. Unfortunately, this view is incorrect,” said MultiChoice.
The company said a large portion of its costs are from the acquisition of the rights to broadcast live sports games, and premium entertainment content.
Content rights extremely expensive: MultiChoice
“Acquiring these rights is extremely expensive,” said MultiChoice.
It said its business model was structured on the basis of a number of pre-determined packages.
Bundling channels into packages gave subscribers the benefits of economies of scale, it said, since the costs of acquiring content were spread across many customers on many packages.
“In this way, we are able to offer customers a wide range of channels, with the variety they seek, at various price points which are attractive and affordable to a variety of potential customers.”
It said this is the standard business model internationally for pay TV, and was the most effective way of meeting consumer demand for sport and entertainment, at the lowest possible cost.
“Offering a genre-specific package (for example sport) will actually end up costing the customer more than the current subscription for the Premium package,” said MultiChoice.