MultiChoice, operator of DStv and GOtV, is reducing prices across its products. In Igbo Nation, when things turn out intense, elders will say “anaghi agwa ochii nti na-agha esula” [you do not tell the man ‘hard’ on hearing that war has started]; for MultiChoice, the game is changing. Yes, there are choices and governments do not even need to beg MultiChoice to reduce prices because market forces are now working.
MultiChoice Africa will be cutting monthly DStv and GOtv subscription fees across East Africa with DStv and GOtv consumers who will be seeing a decrease in the monthly payments in Uganda, Kenya, Tanzania and some Mozambique packages.
MultiChoice East Africa’s decision to lower fees comes after rival StarTimes lowered prices in Kenya in April 2019 and as pay-TV consumers struggle in tough African economies.
After China’s StarTimes Kenya restructured the tiered-offering of its pay-TV services in Africa’s largest pay-TV market in the east of the African continent, MultiChoice is following 5 months later and is now also lowering fees.
With European leagues giving licenses for online streaming, the TV box is no more the only channel to watch sports games. Live games have been the core lock MultiChoice has used on its subscribers for years. And if you check the countries they are reducing prices, they are countries where entrepreneurs have received rights to compete through online streaming via the unbounded and unconstrained distribution channels of the web. Nigeria needs those entrepreneurs and not court order to fight pricing for Nigerians.
Governments went with court orders to force price controls. But MultiChoice overcame through court injunctions. Today, it is reducing prices, not because of court orders, rather due to market forces. Monopolies respond to one thing: new basis of competition. The new basis is the foundation of market disruption. Take it to DStv and prices will come down!
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But Nigeria wasn’t mentioned and I am yet to notice it here. In any case, judges and lawyers don’t run cable business, so it’s counterproductive to engineer price control through them; the company can easily dribble them around.
MTN didn’t change to per second billing or reduce acquisition cost of SIM cards via court orders, another company called Glo forced it to behave!
Customers become kings and queens when there is ultra high competition in the marketplace, it doesn’t happen via court orders. So if you think you can rip off customers today, you will be condemned on the day of reckoning; people don’t easily forget who treated them horribly.
We do not have alternatives yet. Until we do, prices will come down in Nigeria.
I am not happy that DSTV and GOTV did not name Nigeria as one of the possible countries it will reduce price. The business model of monthly payment instead of pay as you Go , used in Nigeria is EVIL. I pay for a month but I do not think I watch more than 24 hours TV in a month. I see this model as exploitation and greed. With the volume of patronage in Nigeria, Nigerians are expected to be paying less than we are paying today. Why should DSTV not be pay as you Go or watch.? Let someone in Government answer this question.
“I am not happy that DSTV and GOTV did not name Nigeria as one of the possible countries it will reduce price.” There is no alternative in Nigeria. Until someone gets a license to stream online in Nigeria, DStv will not have any core competitive reason to reduce cost