DStv hikes prices as costs rise and the rand weakens
MultiChoice is pushing to lock customers into two-year subscriber agreements at 2024 prices, as part of a bid to retain customers and grow revenue.
Earlier, the group announced increased prices for DStv, as the pay-TV operator grapples with rising content costs and a weaker domestic currency.
The company benefited from the remote-working trend, which led to increased demand for its entertainment offerings during the Covid-19 years. However, the recent global economic downturn has battered economies around the world, including in SA, with consumers under increasing financial pressure.
Starting in April 2024, DStv Premium subscribers will soon pay R929 a month, an increase of 5.7% or R50, while the price of the Compact Plus option rises 6.9% or R40. The Compact subscription is up 4.5% or R20, Family increases 3.1% or R10, and DStv Access 7.8% or R10. DStv’s cheapest package, Easyview, remains on R29 a month.
“We certainly have tried to be as fair as possible in terms of our price increases, when you look at it within the context of a depreciating rand and naira against the dollar. A number of our international content costs are in dollars, particularly on the sports rights side,” MultiChoice SA CEO Marc Jury said.
The company has offered a contract package in which customers can commit to a longterm subscription at a fixed price for a number of years. The name has been changed to “Price Guarantee” from “Price Lock”, and the company is hoping to entice customers by making sure they do not face price hikes during the contract period.
In essence, customers who sign up will pay 2024 prices for their subscriptions until 2026.
“We’re excited about DStv Price Guarantee, which secures a price lower than today for our customers who sign up for our 24-month deal,” said Jury.
Customers who opt for the guaranteed contract before March 31 will pay R879 for DStv Premium, R399 for Compact and R109 for Access.
In 2023, prices for DStv increased an average of 4.3%, below SA’s average inflation rate of about 5.8% for the year.
As prices rise for DStv, the group has worked to drop prices on its revamped streaming platform, Showmax.
While rivals such as Netflix have steadily increased their prices, Showmax dropped its main “entertainment” package from R99 to R89 per month in order to draw more subscribers.
Prices had been expected to rise in line with inflation, competitor rates, a bigger content library, local content production and the group’s investment in the platform, among many factors. Showmax’s standard package had been the same since the platform was launched in 2015.
The group said the drop was made possible by sharing expenses across its businesses.
MultiChoice is in the spotlight after a takeover bid by French media group Canal+ which already owns more than a third. It wants to buy out the rest of the company at R105 a share, or just more than R31bn in what would be the biggest merger and acquisition deal in SA in 2024.