Corporate News
DStv subscribers should expect their bills to rise steadily going
forward, inflating their overall entertainment budgets. PHOTO | FILE
By WAINAINA WAMBU
In Summary
- This means that DStv subscribers should expect their bills to rise steadily going forward, inflating their overall entertainment budgets.
- The price alert comes after the company implemented higher fees for its various bouquets starting this month.
MultiChoice Africa, the owner of pay- TV brand DStv,
has warned its subscribers of annual fee increments in what it blames on
higher operating costs.
This means that DStv subscribers should expect their bills
to rise steadily going forward, inflating their overall entertainment
budgets.
The price alert comes after the company implemented higher fees for its various bouquets starting this month.
“Unfortunately, it is necessary to implement a
price increase on an annual basis due to rising costs to the business,”
the company said in a statement.
The announcement by DStv, which has the biggest
market share in Kenya, comes at a time when the pay TV market has
attracted new players including StarTimes which are luring customers
with lower-priced bouquets.
DStv’s new fees will see customers pay between
Sh930 and Sh8,200 per month depending on the number of channels and
premium content in their bouquets. This represents a price increase of
between Sh50 and Sh800.
Those subscribing to the Premium bouquet will now pay Sh8,200 while those on Compact Plus will pay Sh5,500.
The Personal Video Recorder (PVR) access fee has also increased to Sh1,020 a month, up from the previous Sh880.
MultiChoice attributes the rise in the fees on
several cost items including satellite, content and devaluation of
currencies against the dollar. The company buys most of its content
based on the dollar and charges subscribers in local monies, exposing it
to currency risks.
“In determining a price increase, MultiChoice takes
into account many factors including the impact on the subscriber,
current inflation and efficiencies effected within the company that may
offset the necessity for a price increase,” the firm said in a
statement.
MultiChoice added that it also needs to set rates
which allow it to maintain reliable and high quality content while also
earning a return on capital.
The digital migration wave has attracted new
entrants in the pay- TV market, signalling increased competition for
established firms like MultiChoice and Wananchi Group which runs the
Zuku brand.
Standard Group,
for instance, has announced plans to enter the pay TV business through
partnerships. StarTimes is seeking to grow its market share by offering
packages at lower prices including one dubbed Nyota which costs Sh150
per month.
No comments :
Post a Comment