Things are not easy for DStv. Back then Multichoice enjoyed a kind of monopoly in offering satellite broadcast to sub-Saharan Africa. Well, technology caught up with them and now they are feeling the pressure from new age media such as Netflix and Amazon. We should not forget that ShowMax is also here to have a share of these business segment that has been lucrative for DStv for quite a while.
“Our biggest competitors are the Netflixes and Amazons, not other channels.”
-M-Net CEO Yolisa Phahle
Just recently CapeTalk, a South African Radio Station, interviewed M-Net CEO Yolisa Phahle in The Money Show by Bruce Whitfield. It was during this show that the CEO revealed the present strategy and future goals that DStv has in store. One of the most notable mentions was that DStv was looking at the possibility of allowing subscribers to choose their own channels and ultimately paying for only those channels alone.
This will be a major win especially to Kenyan subscribers who are mainly interested in the Supersport channels. Now they will be able to choose the sports packages that they prefer and henceforth only pay for what they will consume. No need to pay for 100 channels if only you view about 10. Unfortunately there seems to be a catch. There is possibility that you might pay more for three channels than you would for 100 channels due to influence from content rights.
Back then Multichoice was reluctant in granting users this option. According to DStv this move will not necessarily translate to cheaper subscription rates. Multichoice claims that choosing specific channels and paying for them would will not ultimately lead to reduced DStv payments but rather will raise them as the cost of content rights were too expensive.
DStv business model is structured on the basis of a number of predetermined packages. A previously statement from Multichoice claims that bundling channels into packages gave subscribers the benefits of economies of scale. That way, they are able to offer customers a wide range of channels with the variety they seek at various price points which are attractive and affordable to a variety of potential customers.