DStv has recently been in the news when it announced its plans to add Netflix and Amazon Prime video to its streaming catalog. This means customers would pay a single bill and get access to all streaming content. If you can get Netflix and Amazon and ShowMax and DStv, you have the biggest platforms in one solution.
But how much would such a package cost? DStv management recently told Broadband that while they are unsure how pricing would work, their best guess is that Multichoice would consider an opening special for the full package that is similarly priced to the current version of DStv Premium.
MultiChoice finds its self in a catch-22 situation that has forced it to change the way it counts subscribers. The number of premium subscribers continues to decline, as illustrated in the table below which shows the total subscribers across all the regions in which the MultiChoice group operates.
| Year | DStv subscribers at 31 March | 90-day Active DStv subscribers | DStv Premium subscribers on 31 March | DStv Premium and Compact Plus subscribers on 31 March | 90-day Active DStv Premium and Compact Plus subscribers |
|---|---|---|---|---|---|
| 2012 | 5,611,000 | – | 2,188,290 | – | – |
| 2013 | 6,739,000 | – | 2,291,260 | – | – |
| 2014 | 8,059,000 | – | 2,256,520 | – | – |
| 2015 | 10,225,000 | – | 2,351,750 | – | – |
| 2016 | 10,411,000 | – | 2,097,000 | – | – |
| 2017 | 11,942,000 | – | 1,962,000 | – | – |
| 2018 | 13,476,000 | 16,400,000 | 1,921,000 | 2,400,000 | – |
| 2019 | 15,097,000 | 18,600,000 | – | 2,500,000 | 2,600,000 |
| 2020 | 15,743,000 | 19,500,000 | – | – | 2,700,000 |
Multichoice will probably have to consider the price sensitivity of local consumers. The platform will likely be priced around bundling DStv streaming with Netflix and Amazon Prime Video, perhaps at a discounted rate. Netflix plans ranges from $8.99 to $15.99 a month while Amazon Prime Video subscription is $12.99 (RAND 208). The least cost you will spend minus Internet data, ShowMax or DStv charges is $21.98 (RAND 308 or UGX 82,000).
Perhaps the platform can be made available where Multichoice subscribers have the option of adding these VoD services on their DStv bill as and when they use them. Another possible option of possible pricing is a pricing model that would cater to different consumer segments.
This means customers who want premium content will pay a set price to perhaps gain access to full content and for some, depending on price point allocated, they will gain access to a select content library.
But it should be noted that Netflix and Amazon Prime have no advertisements. This means that if this deal matures, this model could be supported by adverts on cheaper packages.
DStv has several tricks up its sleeve, they already have another advantage –the fact that they have a billing aggregation system that would allow DStv subscribers to add Netflix and Amazon Prime video to their existing MultiChoice subscription plans
