Big hike in DStv prices announced

The price of DStv’s most popular bouquets will rise by between 8% and 10% on 1 April 2016, with parent MultiChoice blaming the sharp devaluation in the value of the rand over the past 12 months for the above-inflation increases.

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The price of DStv’s most popular bouquets will rise by between 8% and 10% on 1 April 2016, with parent MultiChoice blaming the sharp devaluation in the value of the rand over the past 12 months for the above-inflation increases.

TechCentral can reveal that DStv Premium, parent MultiChoice’s top-end bouquet, will rise in price from R699 to R759/month on 1 April, an increase of 8,6%.

Premium subscribers with a personal video recorder (PVR) decoder must also pay an R85 access fee (up from R80 now), taking the total cost to R844/month. The fee gives subscribers access to an additional viewing environment in their homes as well as access to services such as DStv Catch Up, BoxOffice and DStv Now.

DStv Compact customers will see their subscription fees climb by 8,2%, while those on DStv Extra and DStv Family will have to fork out 8% and 10% more respectively from next month (see the table below for the full price adjustments).

Those on MultiChoice’s most basic bouquet, DStv EasyView, will see their subscriptions reduced from R39 to R29/month, a decline of more than 25%. The price of DStv Access, meanwhile, will remain unchanged at R99/month.

DStv-prices-2016

The few remaining subscribers on the M-Net terrestrial service will have to fork out more than 10% extra each month, with the fee rising to R369.

Decoder insurance fees remain unchanged.

In a letter being issued to customers today announcing the price increases, MultiChoice said: “We buy most of [our] fantastic content in foreign currency, and due to the depreciation of the rand by 29% since April 2015, our costs have gone up dramatically. Over the past five years, our adjustments have been in line with inflation. We’ve worked really hard to keep this year’s fees manageable.”

In an interview with TechCentral on Tuesday, MultiChoice South Africa chief operating officer Mark Rayner said that the company has been working hard to ensure price increases are kept in check as much as possible.

This has included not renewing certain sports rights, such as the Bundesliga.

“We are having to work very closely with content providers and channel partners to be canny with our spend and be more selective in some regards,” Rayner said. “We obviously want to ensure we still get the best programming we can, but it’s a case of being a little bit smarter.”

He said the company, which is owned by technology and media giant Naspers, has scrutinised all of its operational expenditure and worked closely with suppliers to keep cost increases to a minimum.

“We’ve taken great pain to keep the price increase at a reasonable level,” he said. “It’s interesting to see what Eskom and the medical aids are doing. We want to keep the impact on customers to as little as possible.”  — (c) 2016 NewsCentral Media

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  • jjstccean

    Parasites.

  • Gregg

    Not actually, this is a direct result of horrendous leadership by our president. The plummeting value of the Rand is no fault of DSTV’s.

  • jjstccean

    Do you really have to follow in the presidents footsteps, can’t wait to take advantage. Surely this bizarre increase could be set aside whilst the public’s been bled dry in all aspects of life due to the horrendous leadership.

  • Gregg

    I agree, although DSTV is seen as a luxury not a necessity. The cheapest packages stayed the same price though and one even went down by 25%, so it mainly only affects those with the most disposable income and not the people with less.

  • jjstccean

    DSTV’s greed does not consider the poor, nor those that are already in membership.

  • Greg Mahlknecht

    Actually it seems that DSTV has absorbed much of the increase. If you were a Netflix subscriber, your subscription would have gone up 40% in the same time period. It’s surprising Multichoice managed to keep it <10%.

    While nobody likes increases, DSTV isn't a charity, they're only running at around 15% profit after tax, I highly doubt they could absorb the 40% increase on the majority of their input costs.

  • Angie

    It’s goodbye to DSTV for me!! Too many repeats anyway to warrant their increase. They’re not buying updated material – fooling the consumer again !! Sies!!

  • V.O.I.C.E

    Agree! One only has to look at the Naspers share price to know they are not “in pain” as described.

  • Richard Wickens

    Agree on the repeats, “Who wants to be a Millionaire” was on air for like 11 years, and they keep repeating the same year over and over. It’s kinda pointless watching it when you know all the bloody answers, I cancelled my DSTV ages ago.

  • MelcolmX

    Don’t they discount content value! Its becoming repetitive and uninteresting

  • David

    Good so if the Rand strengthens, the price will go down?……… Haha

  • David

    Yes but if the Rand strengthens you pay less for Netflix.

  • Gregg

    In a perfect world 😀

  • William Stucke

    > they’re only running at around 15% profit after tax
    Wow! They must be very inefficient then, considering that their marginal cost of adding a new customer is little more than simply to bill him …

  • Greg Mahlknecht

    Hmmm do you think Multichoice pay a flat fee for the broadcast rights, or a per-subscriber cost? If it’s a flat fee then you’re right… they need to kick someone in the pants, as they’re failing badly.

  • William Stucke

    Dunno. A bit of each, I suspect. Most likely a flat fee that’s revised from time to time.
    There is no simple linear relationship between the number of subscribers and what they watch. New subscriber A might be into Rugby, new subscriber B might be into cooking.
    I’m sure that there are people lurking here who can give a better answer.

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