DStv Premium and Compact bleeds subscribers as MultiChoice hikes prices every year

Despite losing customers, MultiChoice continues to raise the price of its high-end DStv packages every year.

Although it has reigned in the increases since 2018, relatively speaking, premium subscribers keep cancelling or downgrading. MultiChoice also recorded its first decline in mid-market DStv Compact and Commercial subscribers in 2022.

DStv’s premium market segment has lost roughly 300,000 customers since 2018, while its mid-market segment has declined to 2018 levels.

This is despite DStv’s overall subscriber base increasing substantially in 2020 and 2021, driven mainly by growth in entry-level customers.

In the past five years, viewers experienced the highest price hike in 2018 and 2019 when DStv increased prices by an average of 4.52% across its premium and mid-market segments.

In 2020, 2021, and 2022, MultiChoice implemented average price increases of 2.11%, 2.84%, and 3.18% across these market segments.

The broadcaster increased its package prices by an average of 2.7% in 2022, which it noted was significantly lower than the projected consumer price index for the year.

The broadcaster said it had weighed the challenges facing South African consumers and absorbed as much of the increase in the cost of doing business as possible to implement minimal adjustments.

In the mid-market segment, which comprises DStv Compact and Commercial packages, MultiChoice recorded subscriber growth between 2018 and 2021.

However, this customer base dropped from around 3 million in 2021 to roughly 2.8 million in 2022.

At the same time, MultiChoice implemented a price increase 4.89% for its Compact products.

DStv losing mid-tier and high-end subscribers

A recent MyBroadband analysis revealed that the viewership of DStv’s 30 most popular programmes had dropped significantly in the past year.

The Broadcast Research Council of South Africa (BRCSA) publishes monthly TV audience measurement reports using Nielsen’s Peoplemeter technology.

The data showed a decline in viewership on DStv over the past six years, with the drop between July 2021 and 2022 being the steepest.

It should be noted that most of the top 30 programmes on DStv air on Mzansi Magic, which is available on its Compact, Compact Plus, and Premium packages.

The broadcaster’s recent annual results also showed significant losses in these market segments between March 2021 and 2022.

DStv reported a 4% decline in active 90-day subscribers for its Premium segment in the country. DStv’s Premium segment comprises its Compact Plus and Premium packages.

The mid-market segment, which includes Compact, also declined by 6%.

Recently, the broadcaster has been under pressure from international streaming services and local competitors, and is facing increased regulatory scrutiny.

MultiChoice CEO Calvin Mawela said the company plans to gain more viewers by focusing on locally produced content in the markets where it operates.

DStv’s premium and mid-market package price increases from 2018 to 2022 are summarised in the table below.

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