I can exclusively break the news that in a blow for the South African pay TV operator, TopTV, PEP Stores is dropping TopTV decoders from its stores.
Insiders told me two weeks ago that TopTV decoders at PEP Stores "are not selling" and I've learnt that PEP Stores will be removing TopTV decoders from its shelves to make space for other merchandise.
This is a blow for On Digital Media (ODM) which operates the TopTV pay TV service and entered the market just over two years ago targeting lower and middle class TV households with an affordable, alternative subscription television service.
TopTV which got access to this market segment through PEP Stores and its 1 100 strong store network across South Africa, managed to quickly sell thousands of TopTV decoders over the first few months of its commercial roll-out when it started in May 2010. PEP Stores sold out its initial batch of thousands of TopTV decoders within the first two days when the pay TV operator started.
Uptake was fuelled by ODM's plan of heavily subsidising TopTV decoder cost and 100% subsidising the installation cost - making free to consumers, especially in this price sensitive bracket, the biggest single hurdle to pay TV uptake.
Since launch TopTV has however been buffered by customer care complaints and erroneous double debit order runs, the lack of adding any significant new TV channels to its family entertainment platform amidst a disastrous attempt to add porn channels, and no roll-out yet of PVR, HD channels or other technological consumer innovation after two years.
"Due to commercial reasons a business decision has been made to stop selling TopTV decoders due to space constraints and the introduction of other exciting products into stores," says PEP Stores in a statement, confirming that TopTV decoders are being dropped from the mass market retailer.
PEP Stores will stop selling TopTV decoders from 1 October 2012.
"PEP has been selling TopTV decoders for the past two years. More than 75 000 decoders have been sold during this time," says PEP. "PEP still has a contract with TopTV and PEP will soon be selling TopTV prepaid vouchers as part of our financial services offering."
When asked for comment about TopTV decoders no longer being available in PEP Stores and the retail chain having terminated selling its decoders on its shelves, TopTV yesterday said in response, "we are available as usual, nothing has changed".
