In a press statement, Multichoice says the adjustment is necessary as the costs of providing the DStv and GOtv services in Zambia are predominately US dollar based, a phenomenon consistent with other providers who are importing goods/services and reacting in the same way.
The impact on the subscriber and the current inflation rate were put into consideration when determining the price increments.
From 1st April 2015 until now, the Zambian Kwacha has fluctuated from just below K7.7000 to K12.3900 to the US Dollar, averaging a 61% increase.
The release also stated that “With the price increase being pegged at 30% only, it means MultiChoice’s increase is still well below the US$ to Kwacha exchange rate depreciation and that the business has over this time absorbed the foreign exchange difference for the subscriber. As a consequence, MultiChoice will not recover the full extent of losses arising from the devaluation of the Kwacha. In keeping with current economic trends, MultiChoice, would also like to advise that it may in the interim have to consider a quarterly review of its pricing
Multichoice went on to say “As the leading video entertainment service provider we strive to continuously improve our services and product offering by providing our subscribers with the best television experience supported by great subscriber management services.”
Is the increment too high? Only recently was there another price hike, with many taking to social media to protest the changes, as you can read here. Share your thoughts with us below…