Report from south Africa says MultiChoice and DStv has lost over 100000 subscribers to Netflix. The company which recently launched its own stream service to take on Netflix revealed this during the Icasa’s public hearings in South Africa.
The Chief executive of the MultiChoice SA Calvo Mawela stated that over 100000 DStv Premium subscribers where lost to streaming services like Netflix in its last financial year. The hearing was aim at address MultiChoice’s “market dominance in the pay per view TV business in Africa.
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While Netflix allows subscribers to pick the channels they love to watch, DSTV says it will not allow that. Speaking during the hearing, Calvo Mawela said;
We aren’t open to doing that (allowing subscribers to pick channels) at all. It’s the model we’ve chosen to adopt as a company, and this is how we’ve chosen to do business.
Mawela said allowing subscribers to choose their own DStv channels in a bid to boost subscribers wasn’t viable.
These proposals that people make are based on not knowing what’s happening,” said Mawela. “We package channels, and when you package channels, you try to capture a wider audience in terms of your packaging. In that way, you’re able to attract a number of wider viewers, so that viewership cost comes down because we are targeting a higher audience.
The MultiChioce Boss revealed that Netflix route actually makes no sense, According to him;
Once you start giving subscribers the option to choose certain channels, the cost increases. If we only have 1000 people choosing to watch the PSL, we have to divide the cost among the 1000 subscribers, so it works out at much more.
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He gave example where others have tried and failed. Mr Mawela revealed that Canada Pay TV attempt to offer a package where consumers only pay for what they want to watch but later cancelled that option.
They introduced the a la carte option where subscribers were given the choice of choosing specific channels. After realising they were paying more for the a la carte option the subscribers cancelled that option and went back to the traditional packages.
Many subscribers complained that lack of variety and repeats of program was the reason for cancelling their subscription. The MultiChoice boss however refute the claims saying;
When new content comes in you try to look at opportunities for different viewers to be able to get it. You can’t just show it once and then bring new stuff in all the time. When you try to package it in such a (repeats) way there are opportunities for people who missed that first run to be able to catch up on it at a different time.
The company says it had been working hard to keep up with the likes of Netflix, but it was difficult due to over-the-top (OTT) internet streaming services lack of regulation.