DStv owner, JSE-listed MultiChoice Group, is cutting the price of monthly bouquets in Kenya by as much as 37% as competition from streaming services intensifies.
Various East African media outlets reported that from 1 September, the price of its various bouquets will decline by between 5% and 30% as the company moves to protect its market share as home broadband services proliferate in Kenya. Price cuts have also reportedly been introduced in Tanzania, Uganda and Mozambique.
“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,” the pay-television operator said in a statement.
DStv Premium will get a 5% price reduction, to Ksh7 500/month (R1 110 at the time of writing). The price of Compact Plus will decline to Ksh4 500 (R666), from Ksh5 200 — 13.5% cut. The reduced prices are still significant above what South African subscribers pay: R809 for Premium and R519 for Compact Plus.
DStv Compact customers will see prices fall by 21% to Ksh2 500 (R370), while the Family bouquet will now cost Ksh1 200 (R178), a decrease of 37%. These two packages in South Africa are more expensive: R399 and R265 respectively.
DStv Access, MultiChoice’s cheapest bouquet will get a 5% cut to Ksh900 (R133, compared to R105 in South Africa).
MultiChoice has also been under pressure in South Africa from streaming rivals and the weak economy, narrowing its scope for price increases, particularly for its Premium bouquet, where it has been losing subscribers.
In April, when MultiChoice South Africa traditional hikes prices, it elected to keep the fee for DStv Premium unchanged. Most other packages received small, below-inflation increases.
“We understand that times are tough in South Africa, and that our customers are under pressure to make every cent they spend count. As such, we’re keeping DStv as affordable and accessible as possible to as many households as we can, to ensure they can enjoy great entertainment for their families,” MultiChoice said in a statement in February.
MultiChoice is facing growing pressure at the premium end of the market, with consumers opting for online streaming services from international rivals, including Netflix, and its own Showmax service. — (c) 2019 NewsCentral Media