by Thinus Ferreira
DStv Premium subscribers - the customer tier that Canal+ Africa's MultiChoice has seen massive problems and a drop in subscriber numbers in - are losing out and getting nothing out of MultiChoice's decision to one-up other DStv subscribers to a higher tier until 2026.
Loath to do it, MultiChoice is also going back to the decoder subsidies well in an attempt to try and juice DStv decoder subscriber numbers in the time it has left before Canal+ has to report on MultiChoice's subscriber numbers.
Until 31 December, MultiChoice is giving only DStv subscribers with a decoder access to the TV channels available on one upper tier.
That's bad news for DStv Premium subscribers who are paying for the top-tier package but getting nothing in addition - adding fuel to the fire of the consumer psychology of why DStv Premium subscribers keep abandoning MultiChoice en masse.
On Monday, MultiChoice sent a press release first to certain website publications, and then later the same press release to others, that it is giving Dstv decoder customers access to the TV channels of one higher-tiered package between 10 November and 31 December.
MultiChoice absolutely abhors DStv decoder subsidies and has told investors and stakeholders for years during annual financial results presentations how the traditional pay-TV operator would tro ty decrease decoder subsidies.
With the massive plunge in DStv subscriber numbers, Canal+ Africa and MultiChoice's latest plan to try and turn around plunging subscriber numbers, is to flood the market with new DStv decoder subsidies.
Canal+ Africa and MultiChoice hope that the lowered DStv decoder prices at the point of sale will be able to stall, and possibly even stabilise or the plunging DStv subscriber base in South Africa as well as across Africa.
The subscriber numbers might even start to rise again due to MultiChoice's latest decoder subsidies which will look bad on the next balance sheet come reporting time, but might stop the bleeding of subscribers on the other side.
MultiChoice has enacted DStv decoder subsidies in South Africa, as well as the Rest of Africa (RoA), which means cheaper physical DStv decoders.
Once bought - cheaper - there is a likelihood that MultiChoice can translate those decoder sales into longer-term and 90-day active DStv subscribers.
MultiChoice says it has cut - meaning a bigger subsidy - DStv decoder prices since 1 November.
MultiChoice was intitially supposed to report half-year numbers this week on 12 November, but due to the Canal+ takeover that requirement from the Johannesburg Stock Exchange (JSE) has now fallen away.
Since MultiChoice doesn't have to reveal DStv subscriber numbers to investors this week, it now looks like MultiChoice and Canal+ are playing for time and using the reprieve to try and boost subscriber uptake over the coming months.
Trying to rake in potential new subs and those who abandoned DStv as churn through cheaper decoders, could help MultiChoice's subscriber numbers look somewhat better or more stabilised when the first reporting time rolls around in 2026.
Byron du Plessis, CEO for pay-TV South Africa at MultiChoice, said the one-upping for November and December is part of MultiChoice's "broader plan to improve customer value" for DStv subscribers.
It's unclear how this broader plan to improve customer value yields better customer value to DStv Premium subscribers - supposedly MultiChoice's most valuable consumers and biggest contributor to ARPU (average revenue per unit).
In fact, it's foreseeable that there might very well be DStv Premium subscribers who decide to cancel their service permanently, or decide to downgrade during November for December and never return to DStv Premium again, when they see that it is only lower-tiered DStv subscriber packages getting upsell-benefits for free.
"What we’re doing with our Upsize campaign is
part of a bigger value reset at DStv," said Byron du Plessis, in a prepared quote in the press release.
"We're focused
on making DStv more accessible and rewarding, with
affordability and customer experience at the heart of our strategy," said Byron du Plessis.
This will also sound bad for DStv Premium subscribers who get no discernible and visible improvement as subscribers in either affordability or customer experience.
MultiChoice apparently had some type of an online store but it's not known how that worked or what was sold through it. MultiChoice says "DStv is relaunching its online store later this month".
According to Byron du Plessis, "DStv
and Canal+'s combined scale makes
it possible to give customers across Africa more choice and better value than ever before".