MultiChoice Kenya’s DStv service has announced fresh subscription price cuts in the latest attempt to respond to increased competition for pay-TV customers from new Internet-based streaming entrants.
DStv, which entered the Kenyan market in 1995, said in a notice to subscribers that it would from September 1 slash its monthly payments by between five and 30 percent.
The company’s move is seen as its latest bid to protect its customer base in the face of increasing competition as home Internet connections from providers such as Wananchi Group and Safaricom push up demand for on-the-go streaming services such as YouTube, Netflix and MultiChoice’s Showmax.
“Our aim is to make great entertainment accessible to more consumers in Kenya and we believe this move will grant more of our customers access to the complete world of exciting entertainment channels at a lower price,” said MultiChoice Kenya in a statement.
Subscribers on the Premium, which is its most expensive tariff plan, will now pay Ksh7,500 ($75) down from Ksh7,900 ($79) per month, reflecting a five per cent drop.
Compact Plus users will now part with Ksh4,500 ($45) a month down from Ksh5,200 ($52) representing a 13.46 per cent cut.
Customers subscribed to the Compact plan will enjoy a Ksh700 ($7) or 21 percent drop in monthly charges from Ksh3,200 ($32) to Ksh2,500 ($25) while those on the Family bouquet will pay Ksh1,200 ($12), from Ksh1,900 ($19) representing a decrease of Ksh700 ($7) or 36.84 per cent.
Subscription fees for the cheapest package, Access, will drop by Ksh50 ($0.5) or five percent to Ksh900 ($9) per month from Ksh950 ($9.5).
DStv’s latest price cuts point to Kenya’s changing pay-TV landscape, where subscribers are increasingly turning to on-demand streaming content online.
Multichoice-linked Video-on-demand company Showmax has been banking on exclusive local content to ward off competition in the Kenyan market by its biggest rival Netflix.
Showmax is owned by Naspers — which is also behind pay-TV company MultiChoice.
Using devices such as Android-based TV boxes — which connect to the Internet, customers have been illegally streaming content such as the English Premier League, eating into MultiChoice Kenya’s dominance locally.