by Thinus Ferreira
Just three months after promising a 0% price increase for 2023, with "desperate" StarTimes Media SA management saying they have no choice, will suddenly hike StarSat subscription fees in South Africa by up to 9% from mid-June.
In mid-February, China's StarTimes Media SA which runs the StarSat pay-TV service in Southern Africa, announced with glee that a 0% price increase is "the least we can do" after rival MultiChoice announced its annual DStv price hikes which would come into effect from April.
StarTimes Media SA at the time in a press statement said that it would "be increasing its prices by 0% across its pay-TV portfolio" and that it hoped that "these non-adjustments, which are far below the projected inflation rate for 2023, will help its customers continue to enjoy great TV at affordable prices".
On Thursday the Midrand-based pay-TV operator shocked when it suddenly broke its promise and announced that it would be hiking its subscription fees by up to 9% in two weeks, blaming South Africa's deteriorating economy.
From 15 June StarTimes Media SA is hiking its StarSat Special package by 8.3% from R120 to R130 per month for 60 TV channels. The StarSat Super bouquet is increased by 8.6% from R230 to R250 per month for 79 TV channels.
StarTimes Media SA is hiking its top StarSat Max bouquet by 9.1% from R330 to R360 per month for 140 TV channels.
"On 17 February we, in good faith, released a statement to our loyal subscribers announcing a zero-rated price increase for the 2023 financial year - we did so based on reliable market indicators that rand value would maintain a degree of stability for 2023," StarTimes Media SA says in a statement explaining why it's now backtracking on its 0% promise.
"The seismic devaluation of the rand is historic - caused by several factors acting in unison - what some describe as 'the perfect storm'. Such factors include: rise in interest rates due to inflationary pressures, persistent load-shedding, geopolitical events (war in Ukraine, US allegations of SA weapon supply to Russia etc.), all of which has resulted in a drop in investor confidence."
"Despite desperate efforts by StarSat management to maintain bouquet price stability we are left with no choice but to implement marginal price adjustment of between 8% to 9% across each StarSat bouquet."
