Pay TV firm Multichoice increases DStv rates

Pay TV provider Multichoice has increased the monthly subscription rates for its DStv brand, citing increased programming cost and high inflation.

Subscribers of the premium bouquet will now pay Sh6,997($82 according to current exchange rates) per month, up from Sh6,827.2 ($80), while Compact Plus bouquet subscribers will pay Sh4,437($52) compared with the current Sh4,267 ($50).

The new rate for Compact bouquet subscribers is $32 per month up from $30 while the rest remain unchanged.

In an email sent to all DStv subscribers, the company said the increment follows the conclusion of the annual price review and will become effective on April 1, 2013.

“In determining a price increase MultiChoice takes into account many factors including, and amongst others, the impact on the subscriber, current inflation, satellite lease costs, programming costs and efficiencies effected within the company,” the company said in a statement.

Coming at a time when competition in the local pay tv market has reached peak following the entrance of StarTimes, the Chinese low cost pay television providers, the increment is likely have an impact on the DStv’s market share.

But yesterday, Multichoice said it must operate sustainably despite pressure from increasing competition.

“The business has to sustain certain input costs. These include satellite lease costs, channel costs, content cost, technical infrastructure and operational costs. Increased costs in many of these areas of our business have made it necessary for the brand to increase the price of subscriptions,” Multichoice Kenya general manager Danny Muchira said.

A study by Deloitte on behalf of Communications Commission of Kenya last year indicates that the monthly pay TV subscription fees remains high in Kenya compared to other developing nations, a factor that could be locking out many from accessing the service.