Socialize

Facebook

What Should You Do About DSTV?

A lot of people in Zambia are pissed off at DSTV for the obvious reason; they have raised prices on consumers again. Of course the excuses are the same; the price increase is only taking into account currency movements with the weaker Kwacha. The cost of content has increased and so they have to ‘increase’ prices etc. The bottom-line though, is that DSTV is a de facto monopoly and can therefore increase prices whenever it wants with little consequence even without the option of pay per view (PPV) where you only have to pay for channels you want. And of course instituting price controls does nothing to actually grow the local TV industry besides it is a free market economy. If anything it will probably harm it. Boycotting DSTV will make them feel that they are on top and you can’t do without them

It is very unlikely that DSTV will witness strong, large-scale competition as the pay TV giants are masters of their art. Perhaps the most often said phrase in media and content related businesses, the ‘content is king’ phrase tells a major part of the story of DSTV’s dominance. This could be vindicated by the superciliousness of Multi Choice Zambia Managing Director Simon Bota who remarked that the company doesn’t force anyone to pay for DSTV rates. Crucially, the pay TV business is driven not just by content, but at the top end, by the quality of such content. In this regard, DSTV have continually executed a stunning strategy of signing multi-year, pan-African content licensing deals that enables them not only offer premium content to subscribers, but to also keep this content largely exclusive and off the hands of would-be competitors. With a stronghold of such premium content, DSTV holds the aces in determining prices and with the absence of credible competition in major operating markets, the advantage is further increased. In essence, DSTV’s monopoly of the market is occasioned by a more significant monopoly of content.

The approach to dealing with monopolies is to force some kind of competition. To get a DStv Premium, which offers about 55 television channels and 40 CD-quality audio channels, will set you back K710 a month. For PVR and dual view, you’ll have to pay a monthly access fee of K90. DStv Compact is the cheaper option, which gives you about 16 channels will be costing K330 a month. Alternatively, the Zambia government should create a favourable environment by attracting investors to invest in cable TV business instead of boycotting DSTV. For example, government in liaison with MTN Zambia can lure would-be potential DStv competitors like MaxTV with MTN & ABSA as shareholders which had applied for commercial satellite and cable subscription broadcasting licence for 80 video, 50 audio and five data channels. It intended to provide 10 video channels as minimum package for K40 a month though their application was rejected by Independent Communications of South Africa. Further, Star TV of China (operating in South Africa), Zuku of East Africa (Tanzania & Kenya), Airtel Digital TV of India, Canal +Afrique of Francophone Africa (African French), Sky Digital & Virgin Media of UK, Movie channel & Hustler TV of USA are some of multi-channel pay TV monsters who can make DSTV cry for customers. Remember what happened to DSTV when G-TV came on the scene comparatively overtaking them.

Conversely, Muvi TV or Prime TV even our very own ZNBC which is boutta to go digital can capitalise on this & make DSTV run for their money by choosing to stream let’s say 40 channels with a minimum package of may be 10 quality channels for a predetermined duration of time. According to Wikipedia the regular pricing for premium channels ranges from $10 to $25 (K74 to K187) per month per suite (package), although other channels such as sports & adult networks may go up to $50 (K372). In fact in other countries Pay TV goes with bundles for internet & phone.

In essence regulators like the Independent Broadcasting Authority (IBA) positioned to protect Zambians from these arbitrary actions can force a market structure where consumers pay satellite providers (DSTV and co) for delivering content and then pay the content producers for the channels they want. This should result in more competition amongst satellite and alternative content delivery platforms which is good. It should result in more competition and larger revenues for content creators which are also good. Finally it should result in lower total bills for consumers. Lower bills because you will actually only pay for channels you want where services are similar to subscription-based pay television services in that customers must pay to have the broadcast decrypted for viewing through pay-per-view (PPV).Just like one using the phone is billed based on the time spent on talking, the same should be applied to the cable TVs.

Of course others will argue that this is democracy and free market economy. This kind of regulatory move will be politically difficult of course. Anyone who has been following the net neutrality debates knows how political it can get. But it can work. There is nothing technically preventing it from happening. Just the will to make it happen. The prize of course is a much larger content creation industry and a much larger TV content delivery industry. And happier customers!!!

By John Shumba aka $hooz

Related Posts Plugin for WordPress, Blogger...
Posted by on March 18, 2015. Filed under LATEST NEWS. You can follow any responses to this entry through the RSS 2.0. Both comments and pings are currently closed.

37 Responses to What Should You Do About DSTV?

  1. kimba

    March 19, 2015 at 12:03 am

    Do not pay for april, my kids use PS4 ,so no more DSTV

    • Chalo

      March 19, 2015 at 6:49 am

      This is the answer, Zambians. Remember that you had life before DSTV came to Zambia. Show Multi-Choice that you can unite against them if need be. Remember that it is YOU Zambians who have the money and these guys won’t survive without your money. So you can call the shots if you resolve to!

      • Gudaz

        March 19, 2015 at 8:56 am

        Zambians lets unite by not paying and prove a point to this toddler(Bota) that we are united

  2. New Educated Zambia©

    March 19, 2015 at 12:09 am

    Pf especially please get your priorities right. Am in bed with my woman. I will give a full comment tomorrow. Good night bane

    • New Educated Zambia©

      March 19, 2015 at 1:28 am

      I chika…111a by the name of NEZ have stoppped vomitting umulembwee and chisense on the social media.

  3. kamvudula

    March 19, 2015 at 1:21 am

    mafi mafi atase……

  4. Chitutuma

    March 19, 2015 at 1:33 am

    Problem with successive Zambian governments is their inability to listen to, accommodate and implement what the people are demanding. How often have been the cries from citizens for more mobile phone providers, other than just the current three, to be allowed on the scene? The response, over the years, has always been a deafening silence!

  5. future me

    March 19, 2015 at 1:46 am

    what zambia needs is good access to fast yet cheap internet then they can watch movies,series and what ever entertainment they want online…dstv is only a factor in zambia or africa because we lack access to good internet…if you go abroad DSTV or other companies like that are not even a factor…nobody pays for such.the right cry is for great access to the net once you get that dstv will be on its knees begging you people to use their products and to be honest their programming is not even good there are alot of free movie sites that are absolutely amazing and compared to them its a 1000
    to one

    • ray-ray

      March 19, 2015 at 4:50 am

      You are right my friend. all these problems are just due to lack of internet, so viewers have no choice but to watch all those channels denying them the choice to choose which movie to watch at what hour as everything is scheduled..ine i have internet and all those series i watch whenever i want..where i am, DSTV is 1000 kwacha per year at first subscription and additional 299 kwacha a year after that..why? internet has wiped out demand for such..Multi-choice zambia is not bad, its just demand and supply. had we had internet or 5 other service providers you think they would be foolish enough to hike prices??

  6. kakolwe

    March 19, 2015 at 6:10 am

    Govt interest protection is what is killing Zambians. We cried for Vodacom, but since some greedy swines in govt (since the 90s) have shares in Airtel, they thwart the Introduction of Vidacom, coz their tuntemba suppliers may drown. Even now, ZNBC is going digital, with a chance of selling up to a 100 channels. But no one seems ready to snatch the millions of frustrated DSTV slaves. Wake up Zambia! Let this Bota idiota know that it is him who can ‘hung up’ his business. Chances are, that we may just live better & enriching lives.

    • FuManchu

      March 19, 2015 at 7:07 am

      Agreed and the same vices extend to fuel!

  7. mk

    March 19, 2015 at 7:12 am

    the guy is arogant (bota).he can’t even try to be polite/soft towards his customers sure.i think monopoly is the problem here,if we can have atleast one competiter the better or else they(mult choice) will continue capitalising on us.it’s sad indeed.

  8. wapya aisa

    March 19, 2015 at 7:28 am

    i totally agree with you my friend@kakolwe,there are just few selfish idiots who hav made zambians to cry for years.take for exmple znbc is baging for 30% from multichoice when it can be getting 100% if they where to improve there services.there is anothing special about dstv that znbc cant do now that they hav quality pictures.us for me i hav bought alot of tom and jerry cds for my kids ,EPL ku bar, for telemundo wil be acting ku bed na madam chapwa no dstv nemo

    • kakolwe

      March 19, 2015 at 8:39 am

      Ahahaha! Telemundo ku bedi!!!!! Hahahaha! Ubikeko na Zee TV!! My lady is hooked but am getting her a tablet naka bandle ka 180. She will be just fine. Zambians, let us not be docile & not let Multi-choice tell us to bend over when ever they feel like phucking asss!! Right now, the money is in our wallets. Command that nothing extra goes to dstv after April 15th. Infact, you have an alternative with East African channels on a C band lnb. Capital TV is good.

  9. Bongobongo

    March 19, 2015 at 7:49 am

    Most of the sentiments and suggestions that come out on this one and other similar fora are progressive and if only the so called “powers that be” could read between the lines and put into practice the good ideas that come through, Zambians would have been living in total bliss by now. The major problem of course is the political canker worm called greed. It has been eating at the very core of poor Zambians. It’s a big shame that after 50years of independence, Zambians are still suffering all because selfish politicians.

  10. Isaac

    March 19, 2015 at 7:52 am

    Its something too flabbergasting indeed!

  11. kwa george

    March 19, 2015 at 8:15 am

    AM GOING TO PAY PREMIUM.
    THE AXIS OF THIS IS THE DOLLAR.
    TOLD YOU TO VOTE WISELY FOR THE SAKE OF YOURSELVES YOUR FINTU IS PF SO LIVE WITH IT.

    • Max

      March 19, 2015 at 12:02 pm

      I will also pay premium plus pvr. Those who cant manage, stay home and keep quiet. Why should a normal person cry their lungs out over expensive tv when school, meali meal,books,transport, food, fuel(when found) etc. ZAMBIANS ARE FOOLS.

  12. shikulu

    March 19, 2015 at 8:25 am

    Surely, this is a test for ZNBC and the minister combined. Kambwili is known for not failing….. COME ON BATATA BA KAMBWILI swaaaaaaaaaaaaaaaaaa

  13. kakolwe

    March 19, 2015 at 8:49 am

    Kambwili Chishimba, please read through these posts and flex your fat (since tawakwatako muscle yakucita flex). Let Bota feel your weight (literary) and move his assets (as in ballls) to RSA. Am sure the millions of subscribers he is going to lose in Zambia, shall be regained with equal new subscribers in SA. Now, that is some dream.
    Kambwili, I challenge you to move your neck & see how other nations have dealt with broadcasting.

  14. Tizaona

    March 19, 2015 at 9:00 am

    Get a life!

  15. Judge Joe Bidden

    March 19, 2015 at 10:00 am

    “What Should You Do About DSTV?”

    Well, we can re-arrange the letters, say STD-V, TDS-V, SDTV etc etc. Its all about permutation and combination with frequency intervals.

  16. NEWMAN

    March 19, 2015 at 11:14 am

    ba upnd are behaving as if you are in a different mwaba if colour

  17. Judge Joe Bidden

    March 19, 2015 at 11:32 am

    I got a DSTV decoder a smaller version from South Africa, installed – Use 1 dish 1 LNB input for PVR (One that comes out with 2 cables), feeds into a 6-way spliter – 4 cables goes for the PVR HD, 1 cable goes to the ‘South African Decoder’ in another room, so I subscribe to both Zambian and South African (with extra on SABC 1,2,3 etc) problem you need someone in Mzanzi to be paying it for you then you send money at your own times. So if Multichoice increase here well I still watch THEIR SA multi-choice. Balanced.

  18. afcon phiri

    March 19, 2015 at 12:37 pm

    BOTA MUST LISTEN AND BE REASONABLE.

    1USD = 12.4 RANDS
    1USD = 7.4 ZMW
    1RAND = 0.6 ZMW.

    PREMIUM BOUQUET IN SA = 625 RANDS = 369 ZMW.

    BOTA WANTS TO SUBSIDISE SA VIEWERS BY MAKING ZAMBIANS PAY TWICE THE VALUE. NONSENSE.

  19. FREDRICK CHISHA MULENGA

    March 19, 2015 at 3:52 pm

    I have never known our information minister to be a failure in what ever he embarks on.Let us give him a bit of time he will surely fix this Bota man.

  20. Mwana we nyoka ni mwana we nyoka

    March 19, 2015 at 6:28 pm

    John Shumba you are right. Zambian business needs to get together and offer competition. Where can I meet you so I can leave South Africa and come and establish such a company with you in Lusaka?

    • New Educated Zambia©

      March 19, 2015 at 9:21 pm

      The idiots are those in power who are making it hard for locals to setup businesses. Vote upnd to ensure policies and support for people like you. Our leader is business minded and will u understand your needs.

  21. Kwati like so

    March 19, 2015 at 7:18 pm

    Wil help establish pay tv with a premium service to b @ k200. Bigger problem has been the government. These things r cheaper

  22. Kwati like so

    March 19, 2015 at 7:22 pm

    Wil b coming to Zambia for dis project

  23. ANNACONDA

    March 19, 2015 at 7:39 pm

    Ifintu ni Lungu futi ifintu ni bota! So ati shaani apo? Pabwatooooooo wina azalila! Ini zi muchikona

  24. Keen Follower

    March 19, 2015 at 7:42 pm

    Please, DSTV, let me know when you increase again, when the dollar go up, so that I can quickly pay!!!

  25. club zero

    March 19, 2015 at 8:41 pm

    Better I go to england for the games,I’m so disapointed wit lungu

    • Judge Joe Bidden

      March 19, 2015 at 10:32 pm

      Ifintu fyaLUNGUla! Most PFs are now realising that they blundered. Problem their mistake is now affecting every Zambian

    • New Educated Zambia©

      March 19, 2015 at 10:36 pm

      We will welcome you to the UPND club zero. I was also a pf supporter once. I realised that those guys were a bus on high speed without a driver headed for disaster.

  26. mr cool

    March 19, 2015 at 10:06 pm

    let dis dstv hv competitors we as comstumers we are ready to leave these idiots.thy cant be our masters of our monies thy should be beging for cumstomers ad not making to dance to their tunes over our money.fellow zambians let us make dstv surfer by not subscribing when they hike.instead of them reducing to atract more clients but their are hiking for what?

  27. Huck Finn

    March 20, 2015 at 6:08 am

    Be ready to ‘dump’ dstv, a new kid on the block is heading our way