DStv increases prices
J- MultiChoice seems undeterred by declining subscriber numbers and announced that it will increase the price of most DStv bouquets on April 1, 2024.
The company said the price of its DStv satellite pay-TV packages will increase by between 3.1 and 7.8 per cent. DStv’s streaming-only packages will remain unchanged.
These price increases come amidst a concerning decline in DStv satellite subscribers in South Africa (SA) – especially on high-end packages.
Revealed
MultiChoice’s results for the half year ended September 30, 2022 revealed that middle-class South African continue to dump DStv in preference of streaming services.
DStv’s premium segment – Premium and Compact Plus packages – declined 3 per cent year-on-year from 1.4 million to 1.3 million subscribers.
DStv’s mid-market segment – Compact and Commercial packages – declined by 4 per cent year-on-year from 2.8 million to 2.7 million subscribers.
MultiChoice explained that its premium and mid-market segments came under pressure due to a tough consumer environment.
An even bigger concern is that the average revenue per user (ARPU) in all of DStv’s segments is declining.
Declined
Despite price increases last year, mass-market ARPU declined by three per cent, mid-market by two per cent and premium by four per cent.
This means many DStv subscribers are dumping the more expensive packages or downgrading to cheaper options.
The result of the lower ARPU saw MultiChoice’s revenue in SA decrease two per cent year-on-year – from R17.8 billion to R17.4 billion.
SA consumers are stretched financially and cannot afford more expensive DStv services.
However, MultiChoice is in a pickle. It faces declining revenue in SA and the expedient way to address this decline is through higher prices.