DStv subscription charges to go up by 15pc from next month
MultiChoice said the depreciating shilling had impacted negatively on its business. PHOTO | FILE
What you need to know:
MultiChoice, which bills its customers in dollars, attributed the increase of between 13 per cent and 15 per cent to the depreciating shilling.
The firm will now charge Sh1,050 a month for its lowest-priced tariff plan, up from Sh980.
Subscribers to MultiChoice Kenya’s DStv service will pay up to Sh112,800 per annum to access the pay-TV firm’s broadcasts after the South African firm effected a price increase effective next month.
MultiChoice, which bills its customers in dollars, attributed the increase of between 13 per cent and 15 per cent to the depreciating shilling.
Subscribers on the Premium (most expensive) tariff plan will pay Sh9,400 per month from the previous Sh8,200, reflecting a 14.6 per cent increase or an equivalent of 112,800 per annum.
The price increase comes about six months after another monthly subscription raise in March. MultiChoice said the depreciating shilling had impacted negatively on its business.
The firm will now charge Sh1,050 a month for its lowest-priced tariff plan, up from Sh980. The “Compact Plus” tariff plan goes up to Sh6,400 from Sh5,550.
Those on the “Compact” tariff will now pay Sh3,750 up from Sh3,250, while those on the “Family” plan will pay Sh2,150 up from Sh1,890. “Access” tariff subscribers will pay Sh1,050 from Sh890.
“For months, MultiChoice has held off passing through this price increase to subscribers and has absorbed the foreign exchange losses. However, it is no longer possible to avoid a price adjustment on DStv subscriptions,” MultiChoice Kenya said in a statement.
“The increase is necessitated by foreign exchange rate changes—similar to other imported services where costs are originated in US dollars.”
MultiChoice Kenya announced a 48 per cent price reduction of its DStv HD decoder, seeking to attract more subscribers to its service. The price cut meant the decoder would cost Sh2,499 down from Sh4,800.
MultiChoice Kenya’s pay TV rival, StarTimes Media, in April cut monthly subscription fees on its “Super bouquet” tariff plan to Sh1,799 from Sh2,499, while those on the “Smart bouquet” rate pay Sh899 down from Sh1,799.
The subscription fees on its Chinese and India tariff plans remained unchanged at Sh1,799 and Sh899 respectively.
In February the Communications Authority of Kenya (CA) put DStv’s subscribers in Kenya at 600,000 and those of StarTimes at 272,594.
DStv has tightened its grip on the Kenyan pay- TV market, aided mainly by its exclusive English Premier League football show and other exclusive content.
The broadcaster is, however, expected to face stiff competition as the industry regulator licences more pay TV providers with the transition from analogue to digital broadcasting.
The entry of Wananchi with its Zuku pay TV brand and StarTimes in the past three years has pushed the competition a notch higher, forcing DStv to roll out payment plans for low-income earners.
Zuku’s Premium tariff plan retails at Sh3,999 after a 25 per cent cut in August last year.
StarTimes’ Alex Mwaura said the broadcaster does not intend to increase its monthly subscription even with depreciation of the shilling.
“We don’t have any plans as for now to adjust our prices upwards, instead we are increasing our packages.”
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