MultiChoice Kenya recently announced its plans to implement a second price adjustment for its DStv and GOtv subscribers in Kenya, starting from August 1, according to a report in the Business Daily. This move comes at a challenging time when consumers are already facing increasing costs of living, putting additional financial strain on subscribers.
The Price Adjustments
The price adjustments will affect all DStv and GOtv bouquets, with the exception of GOtv Lite, Value, and Plus. Subscribers to GOtv Max and Supa will experience a price increase of Ksh 100 and Ksh 150, respectively. On the other hand, DStv subscribers will face varying rate changes across their bouquets:
Reasons Behind the Price Adjustments
MultiChoice attributes the price adjustments to the weakening shilling, which has affected the company’s cost structures. The fluctuation in currency value has made it necessary for MultiChoice to adjust its prices to maintain profitability. However, these changes are being implemented during a challenging time for consumers, as prices are rising across various sectors, causing financial strain.
Impact on Subscribers
The price hikes by MultiChoice Kenya may prompt some subscribers to consider downgrading to cheaper bouquets or even discontinuing their TV subscriptions altogether. With the rising cost of living, households are looking for ways to manage their expenses, and entertainment subscriptions are often one of the areas where they can make adjustments to their budget.
In contrast to MultiChoice’s price adjustments, earlier this year, Netflix reduced its subscription rates in Kenya by up to 50%, making its services more affordable for consumers 2. This move by Netflix stands in stark contrast to the price hikes by MultiChoice. The pay TV provider has also faced criticism for its lack of innovation and failure to adapt to market trends, especially when compared to Netflix and illegal streaming alternatives.
The Need for Innovation and Adaptation
To remain competitive and attract new users, MultiChoice needs to embrace market changes and adjust its product offerings accordingly. One of MultiChoice’s products, Showmax, stands out as a good alternative to Netflix. Showmax offers a diverse and appealing content selection, providing viewers with an attractive option for alternative entertainment choices.
Also Read: How to transfer Netflix profiles before you’re charged extra
However, in the rapidly evolving digital landscape, MultiChoice must ensure that its products are more appealing, well-priced, and in line with the preferences of today’s viewers. By taking cues from Netflix’s approach and focusing on innovation and adaptability, MultiChoice can position itself as a forward-thinking player in the industry.
Conclusion
MultiChoice Kenya’s decision to raise subscription charges for DStv and GOtv subscribers has sparked concerns among consumers already grappling with the increasing costs of living. The price adjustments, although attributed to the weakening shilling, may lead to some subscribers downgrading or discontinuing their subscriptions. To stay competitive, MultiChoice needs to embrace market changes, innovate, and adapt its product offerings to cater to the evolving preferences of viewers.
With alternatives like Netflix reducing subscription rates and offering more affordable options, MultiChoice must prioritize customer satisfaction by providing attractive content and competitive pricing. By doing so, MultiChoice can solidify its position in the market and ensure its long-term success in the face of growing competition.
