The new DStv subscription rates announced by MultiChoice took effect as from April 1st 2015. In defending the price hike, MultiChoice said, “Unfortunately, it is necessary to implement a price increase on an annual basis due to rising costs to the business.” This is not the first time the subscription rates have gone up as it has been an annual phenomenon for the last couple of years.
The company went further ahead to say, “In determining a price increase, MultiChoice takes into account many factors including the impact on the subscriber, current inflation and efficiencies effected within the company that may offset the necessity for a price increase.”
As you will see from the table below, the price increase for DStv’s packages has been gradual but significant the last few years. What is surprising is that MultiChoice still attracts new customers and retains the existing ones even with increased competition.
If you do the math for the DStv premium package, you will realize that its price has increased by about 20% between 2012 and 2015. This is not a small increase and am left wondering if the explanation MultiChoice is offering is enough.
Check out the prices for the other packages over the years.
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With the price increase, MultiChoice has been adding new channels and features to its services so the price increase is slightly justified.