DStv will soon make its online offering known, to modernise and keep up with technology. The company insists that streaming services like Netflix and other Over-the-top operators are killing its business. Many consumers believe it’s the exorbitant cost of the premium service, constant repeats and lack of interesting content that’s doing that. The consensus for many is that without the superior sports programming propping DStv up, there’s little reason to keep subscribing.
It’s led to numerous calls for an “a la carte” style of service where users can pick the channels they want, instead of the bundles and bouquets we’ve had for years. It’s an idea that Multichoice CEO Calvo Mawela has repeatedly shot down, saying that it’ll end up being more expensive for most consumers.
“No, we won’t be doing that. That is not our business model and all over the world we have been proven right that this is not going to fly because people end up paying more,” Mawela told SowetanLIVE in May.
That’s certainly been the case in Canada, where lawmakers made it a legal requirement that consumers be able to pick their own channels. What they failed to do was set maximum limits on channel prices, so for most consumers, it has ended up costing them more. Many of the bigger channels are used to subsidise the smaller ones that you never really watch. Still, I think that what consumers want is for that choice to be theirs.
The model doesn’t work. The model just doesn’t work
In an interview with SABC (via Channel 24) Mawela reaffirmed his position on A la carte channel offerings.
“The model doesn’t work. The model just doesn’t work,” said Mawela. He asserts that in the case of Canada, they “went through a very rigorous, time-consuming regulation change in Canada where they insisted that pay-TV operators need to do a la carte. Guess what? Today there is no uptake because consumers end up paying more for the same number of TV channels that they’re getting today.”
“So it came up to a zero-zero sum where they went through this whole process. What consumers don’t understand is that we look at our research across the market and then what we do is that we bring everybody together with different tastes of content.”“In that way we attract a much larger audience and then prices come down. That’s how we do our packaging in order to ensure that we keep prices down, that will attract a bigger audience because we’ve got children, we’ve got sport, you’ve got movies and all other content that we have.”
For most consumers – especially in households with multiple family members who have varying tastes – it likely will end up being more expensive. That said there are solutions that seem to work, like “skinny bundles” where consumers get locked into selecting a certain amount of prime channels along with a selection of lesser ones.
Still, what most people want is to be able to only buy the sports channels – and that has to cost less than the premium subscription right now, right?
Last Updated: June 26, 2018
G8crasha
June 26, 2018 at 13:46
I think the sports channels are the biggest bones of contention. I am pretty positive they could offer these channels to lower packages, but they keep them only in the higher tier to milk the consumer for all they’re worth, and to force them to pay for the Premium package if they want the benefit of watching major sports matches and events! That’s what irritates me. All the other entertainment they offer I can get elsewhere at a cheaper price. Netflix has a ton of quality programming, and even though Showmax is also part of the Naspers family like DStv, they do have most of the other AAA programming that is broadcast on DStv, so I use them as a substitute for DStv. Multichoice are delaying the inevitable – they will have to eventually break sports off to another package as more and more people subscribe to VOD services.
Gavin Mannion
June 26, 2018 at 11:39
I get how it can end up costing more. However it should be pretty easy to say like
R80 per channel, up to a maximum of R800 at which time you get our entire bouquet.
So for me who only wants the sports I can buy all 10 sports channels and the family gets the rest
Or for people who only want a specific sports channel they can pay just R80 a month
For the Emperor!
June 26, 2018 at 13:38
Supersport 1 (main Rugby channel), Supersport 2 (main Cricket channel), perhaps 5 or 7 as well since I believe that is where some of the “extra” Rugby or Cricket appears. Those 4 Channels, that is all I want.
BakedBagel
June 27, 2018 at 07:34
Custom bundles.
Blows his entire argument out of the water, You cant just have 1 channel. You have to select x amount and pay extra… He is the opposite of Todd Howard “It just doesn’t work”
Lord Chaos
June 26, 2018 at 11:55
Someone should tell him the model of trying to enforce a monopoly in a free market also doesn’t work.
I’m surprised they haven’t been fined for noncompetitive behavior
TheEscapedOne
June 26, 2018 at 11:57
LOL, you have no idea what a bargain DSTV is compared to what happens in the US and EU….
You get ALL La Liga, EPL, NFL, NBA, UFC etc etc you name it on ONE subscription…. Take the UK & ireland for example, to JUST watch the EPL, you need a Sky sub, a BT sport sub and NOW also an Amazon prime sub…. oh and guess, what, you STILL do not see all the games.
Gavin Mannion
June 26, 2018 at 12:00
Yeah Supersports coverage is mindblowingly good for football.. I’m swapping between subscriptions like a loony tune trying to watch all the world cup, and it gets so much worse when I need to watch Premier League stuff
Tarisma
June 26, 2018 at 13:53
If you’re in the UK it should be the cost of your TV licence. its split between itv and BBC.
Ahh just seen your in Spain, ignore me
Gavin Mannion
June 26, 2018 at 15:34
yeah I’m not in the UK… but that is also exactly how I’m watching it online… Premier league is much worse though
Tarisma
June 26, 2018 at 15:46
I’ve found I use nowTV a lot for the rugby as its expensive having BT and Sky. You buy a daily weekly or monthly pass and you can find discount codes easily online.
Grant [_G_] Hancock
June 26, 2018 at 12:02
I don’t even care about having all the sports channels. I just want to be able to watch specific sporting events or fixtures. Tour de France, Olympics, Football World Cup… the occasional weekend sports-ball match etc. i.e. Pay-per-view.
Glenn
June 26, 2018 at 12:17
I’m sick and tired of reading these stories. I have no problem with Multichoice. I understand why there are repeats, I need them even as normally I have recording clashes. The sports variety is probably the BEST IN THE WORLD and although some shows take to long to get to broadcast we do get to see them and all of this in HD!!
If I was Multichoice I’d offer the pay per channel option. Guaranteed people drop this option fast, just like in Canada which will then kill this question/debate/moan session
Lord Chaos
June 26, 2018 at 12:27
The problem is with them trying to run a monopoly in a free market and trying to enforce BS regulations on international companies.
They do their utmost to stifle any competition and have already been caught with their hands in the government cookie jar with the digital set top fiasco.
HvR
June 26, 2018 at 13:17
I understand the concept, what pisses me off is that they are paying that premium to cover almost everything as to lock out competitors from the local market.
Also why do they not allow short couple week subscriptions on prepaid basis like they do in other African countries?
For the Emperor!
June 26, 2018 at 13:29
I am one of those who ONLY wants the sports channels. The rest is worthless to me.
G8crasha
June 26, 2018 at 13:46
I think the sports channels are the biggest bones of contention. I am pretty positive they could offer these channels to lower packages, but they keep them only in the higher tier to milk the consumer for all they’re worth, and to force them to pay for the Premium package if they want the benefit of watching major sports matches and events! That’s what irritates me. All the other entertainment they offer I can get elsewhere at a cheaper price. Netflix has a ton of quality programming, and even though Showmax is also part of the Naspers family like DStv, they do have most of the other AAA programming that is broadcast on DStv, so I use them as a substitute for DStv. Multichoice are delaying the inevitable – they will have to eventually break sports off to another package as more and more people subscribe to VOD services.
Kromas
June 26, 2018 at 13:47
I watch E-Sports on Twitch etc. So my Netflix Amazon and HBO GO accounts costs less and do more.
And before you shout “yeah but you don’t consider the internet” I don’t consider power draw either. I did not get the internet for Netflix I got it because I am a gamer and use the internet for a myriad of things.
Guz
June 26, 2018 at 16:27
Here here
Kenn Gibson
June 26, 2018 at 14:19
netflix, showmax and amazon prime subs cost R400 odd all together, add R60 for spotify and you pretty much have all the entertainment you need.
DSTV makes sense for one thing. Sport. If its not your thing, it’s no loss.
Richard Scott
June 26, 2018 at 15:51
Model doesn’t work?? well then how about changing the model?
If a channel is not getting the support it needs perhaps it’s because people don’t care for the content and why not just shut it off..
Honestly I don’t think there’s anything DSTV can do to make me join them in the first place, I can’t stand TV with all their ads. I just don’t have time to spare for diapers, tampon and spur adverts…
Craig "CrAiGiSh" Dodd
June 26, 2018 at 17:06
Internet/Streaming > DSTV
Steffmeister
June 26, 2018 at 17:57
I disconnected DSTV more than 3 years ago and don’t miss it at all.
R850+ pm is ridiculous if you don’t watch sport.
Steffmeister
June 26, 2018 at 18:06
Multichoice can only blame themselves. They knew on-demand streaming services were coming to SA eventually. Why couldn’t they have offered similar affordable services before they lost all their subscribers? This is like taxi’s complaining about Uber.
Steffmeister
June 26, 2018 at 18:17
They will be losing more subs soon, with faster internet becoming more accessible in more areas.
Even the small farms area where I live is getting Fiber now.
BakedBagel
June 27, 2018 at 07:40
Netflix.
No ads
Full shows, New shows almost monthly
Makes its own content
R50 a month
DSTV
Ads every 6 minutes
Episode per week, Endless repeats
Buys other content
R600ish a month
Gee i wonder why DSTV is trash