Harare – The airwaves are buzzing with discontent as MultiChoice Zimbabwe, the dominant pay-TV provider in the country, has announced yet another price hike, leaving subscribers fuming and questioning the value proposition of their subscriptions.
The announcement, delivered with a mere week’s notice, has sparked a wave of criticism, with many subscribers expressing their frustration at the rising costs, particularly in the face of a struggling economy and a newly introduced local currency that is still finding its footing.
“Please note that MultiChoice will implement a price adjustment on its DStv packages effective 1 August 2024,” read the statement issued by MultiChoice Zimbabwe on Tuesday. The company cited “rising operating costs” as the justification for the increase, stating, “We have tried our best to keep our expenses low but our operating cost continue to rise. We have thus reviewed our subscription fees with effect from 1 August 2024.”
However, this explanation has fallen on deaf ears for many Zimbabwean subscribers who are already struggling to make ends meet. The move comes at a time when Zimbabwe is grappling with a severe economic crisis, characterized by soaring inflation, a depreciating currency, and widespread unemployment.
“It’s a slap in the face,” fumed one disgruntled DStv subscriber. “They are charging us in US dollars, a currency that is increasingly out of reach for many Zimbabweans, while their programming remains largely unchanged. It’s simply not sustainable.”
The price increases have affected most DStv packages, with the most significant hikes seen in the lower-tier packages, which are popular amongst budget-conscious subscribers. DStv Access, the entry-level package, has seen a 15% increase, rising from $13 to $15. DStv Lite, the next tier up, has also experienced a 12.5% increase, moving from $8 to $9.
While the subscription fees for DStv Premium and DStv Compact Plus remain unchanged, DStv Compact has been bumped up from $29 to $30, and DStv Family from $19 to $20.
| DStv Package | Old Price | New Price |
|---|---|---|
| Premium | 75 | 75 |
| Compact Plus | 45 | 45 |
| Compact | 29 | 30 |
| Family | 19 | 20 |
| Access | 13 | 15 |
| Lite | 8 | 9 |
| Indian Stand Alone (Premium) | 37 | 39 |
| Indian Add-on | 23 | 25 |
| Portuguese Stand Alone | 44 | 45 |
| Portuguese Add-on | 23 | 25 |
| HD PVR Service | 13 | 13 |
The move has been met with a chorus of disapproval from subscribers who feel that MultiChoice is taking advantage of their limited options. The company, however, maintains that the price increases are necessary to ensure the sustainability of their business.
“We understand that these price adjustments may not be welcomed by all our customers, but we believe that they are necessary to ensure that we can continue to provide our customers with the best possible entertainment experience,” said a MultiChoice spokesperson.
However, the company is facing a growing challenge from a multitude of competitors, both local and international, who are offering alternative entertainment options at a fraction of the cost.
OpenView, a free-to-air satellite television service, has gained significant traction in Zimbabwe, offering a range of channels without any monthly subscription fees. Zim Digital Transmedia Decoder, another local alternative, has also been dubbed “Zimbabwe’s OpenView” for its subscription-free model.
Streaming services like Netflix and Showmax are also gaining popularity, offering a vast library of movies, shows, and documentaries at a significantly lower monthly cost, averaging less than $10.
The rise of illegal streaming sites like Goojara, which offer pirated content, has also contributed to the erosion of DStv’s subscriber base. These sites have become increasingly popular amongst Zimbabweans seeking access to the latest movies and shows without the financial burden of a DStv subscription.
The growing competition has put MultiChoice in a precarious position. The company is caught between the need to increase prices to cover rising operating costs and the reality of losing subscribers to more affordable alternatives.
The company’s FY24 report, published last month, revealed a concerning trend. MultiChoice reported a loss of 1.2 million subscribers outside South Africa in just one year, bringing their total subscriber base down to 8.1 million from 9.3 million in 2023.
This decline in subscribers, coupled with the rising cost of operation, has forced MultiChoice to make a difficult decision. The company is now facing a critical juncture, where they must decide whether to continue raising prices, potentially alienating more subscribers, or find a way to adapt to the changing landscape of the entertainment industry.
The price hike has sent a clear message to Zimbabwean subscribers: the days of unchallenged dominance for DStv are over. The company is now facing a battle for survival, and the outcome will depend on their ability to adapt to the changing needs and preferences of their audience.
