Why DStv launched new bouquet
The “Family pack” will effectively replace the poorly performing DStv Select bouquets. By Duncan McLeod.
Pay-television operator MultiChoice’s new bouquet of channels, the DStv “Family pack”, effectively replaces the two poorly performing DStv Select bouquets it introduced in partnership with Vodacom six years ago.
Although the broadcaster will continue to offer the Select bouquets to existing subscribers, it plans to phase out the products over time in favour of the Family pack, MultiChoice South Africa CEO Collins Khulamo tells TechCentral.
“Customers currently on the Select bouquets will continue to receive them, for now at least,” he says.
The Select packages and the Family pack will both cost the same, R175/month.
MultiChoice’s move comes 18 months after it ended its relationship with Vodacom, taking over management of the customer base from the mobile operator.
The two companies entered into an agreement in 2007 whereby Vodacom would sell the Select bouquets through its distribution channels.
However, the venture never proved particularly successful. By the end of September 2012, the two DStv Select packages had only 145 000 customers between them, compared to 1,5m each for the higher-priced DStv Premium and DStv Compact bouquets.
However, Khumalo says MultiChoice research shows there is a market opportunity at the R175/month price point and he believes the new product will lead to strong growth in subscriber numbers. “We believe customers find this price point quite appealing.”
By contrast, DStv Premium costs R625/month; Compact goes for R275/month.
The new Family pack, which will offer 45 channels, will be launched on 9 April. Channels include Sony Entertainment, Discovery TLC, Nat Geo Wild, KykNet Musiek and Cartoon Network. — (c) 2013 NewsCentral Media