How much money you will save if you cancel DStv and get Netflix

Pay-TV services are under big pressure from Netflix and Amazon in South Africa and around the world.

MultiChoice, DStv’s parent, has said that satellite TV is an established, mature industry “looking out over a cliff” thanks to the proliferation of streaming services.

The situation is no different in developed economies like the US, where traditional pay-TV providers in the US experienced a record 3.7% drop in subscribers during 2017.

eMarketer added that 186.7 million adults in the US will watch traditional pay-TV in 2018, representing a 3.8% decline compared to the year before.

There are several reasons for the shift, one of which is the nature of services like Netflix – which let you choose when and where you watch content.

Linear TV does not do this, and you must ensure you are watching the right channel at the correct time to catch your favourite show or movie.

The biggest factor, however, is price.

Leichtman Research Group reported that pay-TV subscribers in the US were spending around $107 per month on their packages. Netflix’s HD service is available for $11 in the US.

The pricing discrepancy is similar in South Africa, where DStv’s top package Premium costs R809 per month – while Netflix is available from R99 per month.

Pricing and packages

To see just how big the price gap between streaming services and pay-TV packages is, we compared the prices of DStv Premium and Netflix.

For the comparison, we looked at how much money you would save in one year if you cancelled DStv Premium and switched to Netflix for entertainment.

The packages compared were the following:

  • Netflix Standard – R139 per month. This offers all content in full HD, which can be watched on two devices.
  • DStv Premium – R809 per month. This is DStv’s top package which offers all the base channels.

Other pricing elements which were taken into account are:

  • The first month of Netflix is free. One year’s cost is therefore 11 months’ subscription.
  • The DStv Premium price excludes the Access Fee of R90 per month. This provides access to PVR usage and DStv Now.

For this comparison, we have included the DStv Access Fee – bringing the total monthly cost to R899 per month.

It must be noted. however, that the DStv price excludes a price hike which is likely to take place in April 2019.

MultiChoice implements a DStv price hike each year in April, and recently told MyBroadband it has not made a decision as yet about its DStv prices for the new financial year.

Users must also take into account that Netflix does not offer live sport and news, which DStv does. This may affect a user’s content consumption and make a simple switch to Netflix unpalatable.

How much you will save

The table below details how much you will save over the course of a year by switching from DStv Premium to Netflix.

DStv vs Netflix
Service Monthly Price Annual Price
DStv Premium R899 R10,788
Netflix Standard R139 R1,529
Total Savings Annually R9,259

Along with the results, it must be noted that the price of a home Internet connection is not included in the calculation.

It is assumed that a DStv Premium subscriber has a home broadband package, which will be used to stream Netflix content.

To see what impact the inclusion of a broadband connection has on the overall picture, we have included the price of a 10Mbps uncapped fibre package in a second comparison below.

A Cool Ideas 10/5 uncapped fibre account on Openserve was used.

DStv vs Netflix
Service Monthly Price Annual Price
DStv Premium R899 R10,788
Netflix Standard + 10Mbps Fibre R139 + R499 R7,517
Total Savings Annually R3,271

As you can see from the results above, even with the inclusion of an uncapped 10Mbps fibre package – which is more than adequate to watch full HD content on Netflix – the streaming package is over R3,000 cheaper than DStv Premium over the course of a year.

Now read: Sony launches two “super-large” 8K TVs

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How much money you will save if you cancel DStv and get Netflix