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    Possible reasons why DStv, GOtv prices keep increasing

    Multichoice, the parent company of DStv and lower tier GOtv, has been increasing its pricing for DStv subscriptions every year for several years. The most recent announcement came in advance of the 1st April date, which will see an up to 22% increase in the Pay-TV service provider prices.

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    This has led many customers to question why the company keeps raising its prices and whether it’s still worth subscribing to the service.

    What are the new DStv Uganda prices?

    The new DStv package pricing effective 1st April 2023 is as follows:

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    DStv PackageCurrent Price (UGX)New Price (UGX)
    Premium225,000275,000
    Compact Plus150,000160,000
    Compact Plus95,000104,000
    Family59,00064,000
    Access39,00043,000
    Lumba15,00016,000
    Xtra View/PVR Access Fees46,00050,000

    What are the new GOtv Uganda prices?

    The new GOtv package pricing effective 1st April 2023 is as follows:

    GOtv PackageCurrent Price (UGX)New Price (UGX)
    Supa58,00065,000
    Max45,00049,000
    Plus31,00033,000
    Value19,00021,000
    Lite14,00015,000

    What is the reason for the price increase?

    Multichoice cites the tough economic times as the basis of the decision. The changes are not only taking effect in Uganda. It cuts across all the markets in which the group operates.

    A statement from the company stated: “MultiChoice is aware that its customers, are subject to pressure. In this regard, MultiChoice has endeavoured to ensure that price increases are as low as possible, while ensuring that we offer our customers the best quality service. MultiChoice will continue to provide unparalleled access to entertainment that is accessible to the greatest possible number of Africans, presenting content of the best possible quality anywhere, anytime, and at the most affordable price.

    DStv and GOtv operate in many African countries, including South Africa, Nigeria, Kenya, Uganda, Tanzania, Ghana, Zimbabwe, among others. In many of these countries, Multichoice has a dominant market share, while in others, it faces stiff competition from other pay TV providers.

    Factors that Determine Pricing

    The pricing for pay TV services like DStv and GOtv is determined by several factors.

    One of the primary factors that determine pricing is the cost of content acquisition. Pay TV providers have to pay significant amounts of money to acquire the rights to broadcast popular TV shows, movies, and sports events. The costs can vary depending on the popularity of the content and the exclusivity of the broadcasting rights. For example, broadcasting rights for live sports events like the English Premier League can cost millions of dollars.

    Another factor that determines pricing is the cost of providing the service. Pay TV providers like DStv have to invest in infrastructure, such as satellite transmission systems and customer service centers. These investments come with significant costs, including maintenance and repair costs, as well as electricity and rent. Additionally, they have to pay for marketing and advertising to attract new customers and retain existing ones, which can be expensive.

    In addition to the costs associated with providing the service, competition in the market is also a significant factor in determining pricing. As more pay TV providers enter the market, they compete for market share by offering more attractive pricing and better service quality. This competition can lead to lower pricing for consumers, but it can also result in higher pricing for providers as they try to remain competitive while maintaining their profit margins.

    Furthermore, pay TV providers must also consider exchange rates and inflation rates in the countries where they operate. Fluctuations in exchange rates can increase or decrease the costs associated with content acquisition and service provision, which in turn can impact pricing. Similarly, inflation rates can increase the cost of providing the service and may result in higher pricing for consumers.

    Competition in the Pay TV Market

    Competition is becoming increasingly stiff in the pay TV market, as more players enter the market and existing players expand their offerings.

    Streaming services like Netflix and Amazon Prime Video are becoming more popular in Africa, offering an alternative to traditional pay TV services like DStv. These services often offer lower-priced packages and more flexibility in terms of content selection and viewing options.

    Moreover, local pay TV providers are also emerging, offering competitive pricing and more localized content offerings that appeal to customers in specific regions or language groups.

    Possible Alternatives

    If someone finds DStv or even GOtv expensive, there are several alternatives available.

    One option is to consider local pay TV providers that offer more localized content at lower prices. Another option is to consider streaming services like Netflix or Amazon Prime Video, which offer a broad range of international and local content at lower prices.

    Additionally, free-to-air TV channels and digital terrestrial TV (DTT) services are becoming more widely available, offering access to a range of local and international channels at no cost or low cost.

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    Kikonyogo Douglas Albert
    Kikonyogo Douglas Albert
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