Wednesday, April 10, 2013

Why MultiChoice is growing the existing DStv family with the new DStv Family bouquet.


MultiChoice now has a new bouquet, DStv Family, available for subscribers. I asked the South African pay-TV platform why it decided to grow the pay-TV family of existing bouquets with a new addition to the family in the form of DStv Family.

MultiChoice says DStv Family will eventually replace the two DStv Select bouquets, that DStv tries to create bouquets which offers the best possible value for money, and explains why the bouquet is called DStv Family.

Why did MultiChoice decide to launch a new bouquet now, and will it eventually replace one of the existing ones or is it expanding to overall range?
MultiChoice is committed to ensure our customers continue to receive great entertainment at good value for money. Over the last few months, we have spoken to many DStv Select customers as part of research into the bouquet. DStv Family is based on feedback from these customers. For now, DStv Family is an addition to our range of packs but over time the DStv Select 1 and DStv Select 2 packs will be phased out.  


In terms of the channels included, how does MultiChoice go about deciding what channels to put into or include into a specific bouquet, for DStv Family, how long did this process take and what are some of the considerations of putting it together?
MultiChoice scans all available premium and niche channels, locally and abroad. We use market research and analysis of the pay-television marketplace to determine the nature and content mix of the channels. Once we have signed licence agreements with channels, we package these into our bouquets.
Our packs are put together to offer our customers the best possible entertainment at good value for money. Over the last few months, we have spoken to many DStv Select customers as part of research into the pack. DStv Family is based on feedback from these customers.


Why is the new bouquet called DStv Family, it’s the only one with a connotation to a social structure. Is the bouquet geared towards family viewing more than some of the other bouquets? How has MultiChoice decided to position this bouquet in terms of its value proposition or offering?
We have now aligned the naming of our packs with our offering in the rest of Africa.


The bouquet seems very close to DStv Select 1 and DStv Select 2 and DStv Compact. DStv Compact is clearly a big winner so DStv Family doesn't seem as if it would be "competition" for that bouquet, but wouldn't DStv Family now be "competition" for DStv Select 1 and DStv Select 2?
MultiChoice research shows there is a market opportunity at the R175/month price point. We believe that DStv Family will lead to strong growth in subscriber numbers at this price point.


Given the price point and channel selection of DStv Family, if one looks as when DStv Lite was introduced, does MultiChoice see this as a new "market segment" (a group of possible consumers who are not yet and could become subscribers? If so, how would you describe this market segment?
Our focus remains on offering all South Africans great entertainment at good value for money. We already have an offering at the R175 price point in DStv Select 1 and DStv Select 2. DStv Family is an enhancement of the offering at this price point, based on the research we conducted amongst DStv Select customers.