Big DSTV price hike is expected in April
DStv’s new prices will be announced at the end of February and will come into effect on April 1
The weakening of the rand is having a big impact on MultiChoice and DStv.
“We purchase most of our international programming in foreign currency – exchange rates therefore have a big impact on our business,” the company told MyBroadband.
The rand’s decline accelerated in December when President Jacob Zuma decided to remove finance minister Nhlanhla Nene and replace him with David van Rooyen.
Unless our local currency strengthens dramatically, it could spell bad news for DStv subscribers.
The company spent R12 billion on content during its April – March 2015/16 financial year, and another R5.8 billion in the six months between April and September 2015.
MultiChoice announces DStv price adjustments annually, with the increase in fees of its DStv Premium package usually remaining below the Consumer Price Index. With inflation expected to be around 7% and the Rand devaluing by more than 30% in the past year, keeping DStv’s 2016 price increase in check will be no easy task, MyBroadBand reported.
“While we continue to ensure that we minimise the impact on our customers, we are constantly reviewing the situation,” said MultiChoice about a potential larger-than-normal increase in 2016.
DStv’s new prices will be announced at the end of February and will come into effect on April 1.
