Ghafla Exclusive: Multichoice CEO Tim Jacobs Explains Why DSTV has revised Prices in Kenya

9400 Kenyan shillings just to watch sponge bob lay butt naked on the beach catching up on Huddah Monroe’s latest escapades on instagram? That’s the predicament currently facing DSTV subscribers after Multichoice Africa increased their rates for premium subscription to an all time high of Ksh 9400 from 8200.

Of course Kenyans being Kenyans, they were not bound to take this lightly so they started an online onslaught in an aim to get to the bottom of the matter. Some even started a petition which is intended to stop the so claimed ‘exorbitant’ prices.

Before you buy into  the hype however- you loyal DSTV subscriber, before you get into the murky waters of TROLLING and rebuke, take a step back, ignore the mercenaries who are not even DSTV Premium subscribers and get to the bottom of the matter. As a matter of fact, let me do that for you.

I happened to have a lengthy discussion with the MultiChoice CEO Tim Jacobs and this is what he had to say about the revised rates.

Firstly it is not entirely Multichoice’s fault that the prices have gone up, if it were up to them, they would love that you have an endless supply of the latest music videos and EPL matches. In case you haven’t noticed, the shilling has depreciated greatly in the last few months so it’s only healthy that a business adjusts to the situation on the ground, which is what Multichoice has done. Actually according to Tim, they have struggled with the decision for months hoping things would lighten up but this has not been forthcoming.

He insisted that DSTV was intent on providing a wholesome experience in video entertainment which cuts across pricing and great content and thus the various bouquets (Premium, Compact +, Compact, Family & Asccess) to ensure everyone is catered for. There exists a variety of bouquets to ensure flexibility in price and choice without compromising quality or variety.

Plus as a value add to the revised prices, all premium subscribers are entitled to video on demand services which go a long way to offer quality and choice and can be accessed on any devise including mobile phones and tablets. And unlike other pay per view services, you actually don’t need an internet connection to access this content. Come on, we all know internet speeds are not exactly commendable in Kenya. It also doesn’t make economic sense to watch LIVE TV using a modem. The data charges would be astronomical. The content ranges from SuperSport live which gives you the opportunity to view live sports over the internet to Box office which gives you a broad range of the latest movies.

I was still not convinced so I delved further as to why there is still a huge pricing margin between Kenya and other markets, with the most notable being South Africa and as I came to find out,it’s a whole different ball game in that part of the country. Again it’s not Multichoice’s fault, scale actually plays a big role in bringing the prices down. If you have millions of subs in one region, the cost isn’t the same with a region with only a few hundreds.

And what about having a dedicated sports bouquet? According to Tim, it’s not as easy as it looks as the way the bouquets are arranged form the intricate part of the company’s business model and the price deferential wouldn’t be as much as people like to see it. The pay TV business is modeled like that of a newsroom where content is sold as a whole. You can never buy sports pages alone. The same applies to TV. In any case, pay per view models like HBO for boxing cost over $100 for a single boxing match like the recent Floyd Mayweather – Manny Pacquiao duel.

However, Tim was categorical that price would reduce if the shilling appreciates in the near term.

All in all, they were surely getting round to it. So there you have it, all the facts laid down on the table!