MultiChoice Africa Limited said that there will be no price increase for subscribers to its DStv service (direct-to-home satellite television service) in the majority of its African markets.
According to its culture, MultiChoice usually increase its rates around the 1st of April. MultiChoice said most African markets have suffered as a result of commodity and oil price weakness, and because of the significant devaluation of local currencies.
Many of MultiChoice Africa’s costs are incurred in dollars, which forced it to pass through price increases in 2015. Nevertheless, MultiChoice Africa continues to suffer adverse impacts from the economic environment.
Since subscribers are still under severe financial pressure, MultiChoice Africa has decided not to increase subscription prices for DStv in most of its markets in 2016.
Imtiaz Patel CEO of Naspers’s Video entertainment segment said. “We believe MultiChoice Africa is correctly responding to prevailing market conditions. Barring any further external economic shocks, we do not anticipate a price increase in 2016. “
“As a group, we believe in the longer term potential of our markets in Africa. We will therefore provide the necessary financial support to MultiChoice Africa. We are in a position to do this because most of the Naspers group business (65% of revenue) is outside Africa, where times are better and our businesses are in good shape.” said Naspers CEO, Bob Van Dijk.
The decision by the company to make its rate stable is because of its anticipation of negative growth in active subscribers due to the looming economic lull expected across Africa this year.