DStv package changes are at least five years too late
A 'Sports Plus' option between Sports and Premium could be quite compelling indeed
MultiChoice unveiled new DStv packages on 17 September, claiming it was the "most significant product update in 15 years." However, this statement belies the stagnation of its offerings for the past decade and a half. Netflix, which has been operating in South Africa for a decade, introduced its services in the same week as the DStv updates, casting doubt on MultiChoice's leadership and decision-making.
Instead of addressing the core pay TV product, MultiChoice invested heavily in Showmax, its Netflix competitor, and SuperSport channels, which only further diluted the weak core offering. Annual subscription increases and a lack of decisive action allowed competitors like Netflix, Disney+, and Amazon Prime Video, as well as non-traditional streaming services like YouTube, to lure away Premium customers, particularly those uninterested in sports.
The Covid-19 lockdowns provided a temporary boost to DStv, but this should have been a pivotal moment to launch the new packages that were announced five years too late. By Byron du Plessis, CEO of SA Pay-TV at Canal+ Africa, the future plan is to reduce complexity by offering fewer add-ons and integrating more content into base packages.
The current system, with 17 different price points for DStv packages in South Africa, is confusing for customers and does not generate significant scale. Despite the opportunity to simplify the system, MultiChoice instead introduced more complexity. The new packages, such as Movies & Series, left existing customers like Compact Plus subscribers in a limbo, forcing them to either upgrade temporarily or select another package.
Prices varied between satellite and streaming subscriptions, except for the new Movies & Series option. The Sports package, priced at R399 per month on streaming, is considered a "fantastic deal" due to its value for money, particularly for sports enthusiasts. However, critics argue that it is misleading, as it doesn't offer access to all sports and heavily favors football.
A more differentiated approach, such as a Sports Plus package at R599 per month, could have addressed this issue.
Written by urgent.news from The Citizen's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
