In South Africa, DStv, which is owned by MultiChoice, has started offering bundles that include DStv streaming bouquets and unlimited fiber internet at lower prices. This is to get more people to sign up for streaming services.
The packages, which will only be accessible to streaming subscribers, will cost R699 (about $39) for the Compact package and R999 (about $56) for the Premium package. They include a DStv Compact or Premium subscription, a DStv Streama streaming box, and a 25/10Mbps fiber connection. In collaboration with unidentified fiber network providers, the bundles will be made available.
MultiChoice recently revealed pricing reductions for its standalone streaming service, which it introduced at the end of 2020, during its annual media showcase event. Its strong drive into streaming looks to be out of need and survival.
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DStv Premium subscribers reportedly fell from 2.35 million in 2015 to 1.92 million in 2018 and are now expected to reach 1.4 million by 2022, according to talk. MultiChoice’s most recent annual financial report also shows that sales of Compact and business packages have dropped by 6%.
The average revenue per user (ARPU) of DSTV has been falling as the number of users has decreased, falling from R317 per month in March 2018 to R269 per month in March 2022 for 90-day active customers.
MultiChoice new choice
MultiChoice’s newest bundles seem to be an effort to kill two birds with one stone after realizing that consumers are abandoning its satellite TV offerings: supply customers with fast, inexpensive, uncapped internet and then combine it with customers’ other preferred streaming goods.
In theory, this seems like a great plan, but it will be hard to tell how well it works over time because MultiChoice doesn’t include streaming data in its financial reports.
DStv’s nine million South African customers might fuel the country’s battles between fiber network operators as they compete for the DStv subscribers’ business. The company says that users can choose between the top two FNOs in South Africa, Openserve and Vumatel, in order to get the new packages.
MultiChoice hopes this latest wager pays off since it has few options left. If streaming fails, the company could be bought by Canal+, which has been buying ordinary shares of MultiChoice and now owns 26% of the company.