As a follow-up to the article yesterday comparing the price of DSTV bouquets across Zimbabwe, South Africa and Zambia, Techtrends decided to look at other markets. In the article yesterday, we did mention that DSTV Zimbabwe had reduced their prices starting the 1st of November and it looks like they were not alone.
Multichoice has increased the value in its bouquets with more channels. In the press release statement, they stated,
MultiChoice’s priority is to put customers at the heart of our business – and this is exactly what we are doing! In the last 9 months DStv has delivered the world’s best football leagues to DStv Compact customers (February) followed by the DStv price freeze in April – and in the latest giant leap in providing customer value, DStv is offering the best value entertainment by combining both quality and variety to ensure everyone has access to great family entertainment.
That is good news and we appreciate the more channels. However, upon hearing the news of price reductions across the border we decided to look a bit further and see if Zimbabwe was isolated. The sad news is no. Other countries in Africa will receive a discount in bouquet prices on the 1st of November.
DSTV has decided to reduce prices in several African countries from the 1st of November. In 2015 DSTV was under pressure due to the erosion of customers on the back of weakening African currencies and a strengthening greenback. The loss of customers was further exacerbated by the arrival of Video On Demand (VOD) services like Netflix and TV streaming services like Kwese. In 2015, the price hikes resulted in the loss of over 200,000 subscribers.
To cushion customers in certain markets, Multichoice has decided to reduce their prices.
- Kenya, the price reductions are between 5% to 13%
- Uganda, the price reductions are between 5% and 15%
- Zimbabwe, the price reductions are between 11% and 21%
- Ghana, the price reductions are between 8% and 10%
In a statement Multichoice have been quoted as saying:
when reviewing our packages and prices in each country, we take into account local dynamics such as inflation, content costs, foreign exchange rates, local taxes and overheads required for each business
We understand that local dynamics play an integral part in the pricing of products. It is hoped that Multichoice Zambia with its local shareholder ZNBC will find ways to discount pricing to the Zambian consumer.
With ShowMax, Netflix and Kwese competing for our hard-earned money, media delivered by the internet promises cheaper. Now for that cheap fibre to the home!