MultiChoice has been bleeding DStv Premium subscribers and the company is struggling with its African operations. The reason, independent analyst Chris Gilmour said, is that DStv is simply too expensive.
Gilmour’s view is shared by many South Africans who have dumped their DStv subscriptions for more affordable streaming services like Netflix and Amazon Prime Video.
MultiChoice admitted that increased competition from streaming providers has resulted in a sharp decline in DStv Premium subscriptions.
This, however, did not stop the company from announcing another price hike. On 1 April 2021, all DStv subscribers will pay more for the service.
Speaking to Business Day TV, Gilmour said MultiChoice is a greedy bunch who have implemented “incredible price increases” over the years.
Until very recently they have been getting away with it, partly because MultiChoice operated in a monopolistic environment. This is now changing.
Increased broadband penetration means the home entertainment market is evolving through affordable streaming options.
People can now replace their DStv subscription with Netflix, Amazon Prime Video, and YouTube and still save money.
Gilmour said MultiChoice’s satellite TV technology is still very good and fit for purpose, but its main challenge is affordability.
“They don’t seem to quite get it – at the end of the day there is a price for everything,” he said.
“As the old expression goes, if the ducks are quacking you’ve got to feed them. I think they will be quacking for a wee while yet,” said Gilmour.