To increase their streaming numbers, South African satellite TV service DStv, owned by MultiChoice, has launched packages that will bundle DStv streaming bouquets and unlimited fibre internet at discounted prices.
According to the broadcaster, the packages, which will be offered to streaming subscribers only, combine a DStv Compact or Premium subscription, DStv Streama streaming box, and a 25/10Mbps fibre connection and will cost US$39 for the Compact package and US$56 for the Premium package.
Two weeks ago, at its annual media showcase event, MultiChoice announced price slashes on its stand-alone streaming service, which it launched at the end of 2020.
According to media reports, MultiChoice’s aggressive push into streaming seems to be more out of necessity and survival than anything else.
MultiChoice’s latest annual financial results reveal that DStv Premium subscriptions declined between 2015 and 2018 from 2.35 million to 1.92 million and currently stand at 1.4 million in 2022. The report also shows a 6 per cent decline in Compact and commercial packages.
As DSTV’s subscribers’ numbers take a hit, this directly impacts its average revenue per user (ARPU), which has also been on a downward spiral, declining from US$17.89 per month in March 2018 to US$15.18 in March 2022 for 90-day active subscribers.
MultiChoice’s latest packages seem to be an attempt to strike two birds with one stone: provide customers with fast, affordable, uncapped internet, then bundle it with customers’ other preference being streaming products.
With its nine million subscribers in South Africa, DSTv’s fibre package might intensify the country’s fibre network operator wars as they jump to get DSTv subscribers to opt for their services.