Home Business and Technology DStv cuts charges as rivalry heats up

DStv cuts charges as rivalry heats up


MultiChoice Kenya’s DStv service has announced fresh subscription price cuts in the latest attempt to respond to increased competition for pay-TV customers from new Internet-based streaming entrants. DStv, which entered the Kenyan market in 1995, said in a notice to subscribers that it would from September 1 slash its monthly payments by between five and 30 percent.

The company’s move is seen as its latest bid to protect its customer base in the face of increasing competition as home Internet connections from providers such as Wananchi Group and Safaricom push up demand for on-the-go streaming services such as YouTube, Netflix and MultiChoice’s Showmax.

“Our aim is to make great entertainment accessible to more consumers in Kenya and we believe this move will grant more of our customers access to the complete world of exciting entertainment channels at a lower price,” said MultiChoice Kenya in a statement.

Subscribers on the Premium, which is its most expensive tariff plan, will now pay Sh7,500 down from Sh7,900 per month, reflecting a five percent drop. Compact Plus users will now part with Sh4,500 a month down from Sh5,200 representing a 13.46 percent cut.


Customers subscribed to the Compact plan will enjoy a Sh700 or 21 percent drop in monthly charges from Sh3,200 to Sh2,500 while those on the Family bouquet will pay Sh1,200, from Sh1,900 representing a decrease of Sh700 or 36.84 percent. Subscription fees for the cheapest package, Access, will drop by Sh50 or five percent to Sh900 per month from Sh950.

DStv’s latest price cuts point to Kenya’s changing pay-TV landscape, where subscribers are increasingly turning to on-demand streaming content online. Multichoice-linked Video-on-demand company Showmax has been banking on exclusive local content to ward off competition in the Kenyan market by its biggest rival Netflix.

Showmax is owned by Naspers — which is also behind pay-TV company MultiChoice. Using devices such as Android-based TV boxes — which connect to the Internet, customers have been illegally streaming content such as the English Premier League, eating into MultiChoice Kenya’s dominance locally.

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Source: businessdailyafrica