Pay TV player attributes new rates to increasing operational expenses

The price increase was required for MultiChoice to continue providing the good quality service, in the face of growing costs of acquiring new channels, investing in local content and acquiring rights to international content.

Kampala. DSTV, a pay TV provider owned by MultiChoice, has tagged its recent increase of subscription fees to growing operational costs.

A mobile message sent to DSTV subscribers noted that starting April 1, monthly subscription for three bouquets; premium, Ccompact plus and compact would incerase by two dollars while the other packages maintained their fees.

Increment
In an email to the Daily Monitor, Mr Charles Hamya, the general manager MultiChoice Uganda, said the price increase was necessary for MultiChoice to continue providing the best quality service, a wide range of programming in the face of growing costs of acquiring new channels, investing in local content and acquiring rights to international content.

“These include satellite lease costs, channel costs, content costs, technical infrastructure and operational costs.

Increased costs in many of these areas of our business have made it necessary for us to increase the price of subscriptions,” Mr Hamya said, adding: “MultiChoice takes many factors into account in determining a price increase, including the impact on subscribers, current inflation, and efficiencies affected within the company.

Unfortunately, it is necessary to implement a price increase at this point in time in order to ensure that we continue to deliver the best viewing experience for subscribers.”

Cut-throat competition
However, a broader look at the market reveals that the increment comes at a time when the players are locked in tight battles.

Different players are deploying catchy campaigns including cutting prices for subscriptions or buying decoders, giving out cash prizes, electronics, free decoders and free months long subscriptions rewards to retain the existing clients and lure new ones.

Information obtained from Uganda Communications Commission (UCC), in December last year, showed that StarTimes had taken over as the market leader in terms of subscriber base with about 130,000 subscribers, closely followed by Multichoice (DStv and GOtv) with about 100,000 subscribers altogether. Zuku Tv and MOtv had less than 30,000 subscribers combined.

nkalungi@ug.nationmedia.com