How DStv subscribers are becoming less and less valuable

They are still television diamonds – people who like TV so much that they’re willing to pay money for it.

But a big ongoing trend and seismic South African consumer content change is fast reshaping what, and how much, people who pay for television are willing to pay for – which, in the instance of MultiChoice, means that DStv subscribers are becoming less and less valuable.

Gugu Mhlungu speaks to independent television critic, Thinus Ferreira, to find out why and how it’s happening.

They are still the most valuable in the TV industry because these are people who are willing to pay money to watch television. So they are still valuable but are becoming less valuable because people are switching to lower packages.

Thinus Ferreira, Independent television critic

It’s the same as what McDonald’s has 100 people who used to walk in the door and buy a meal and now more and more those 100 are walking in and just buying a drink or some chips.

Thinus Ferreira, Independent television critic

The important thing to look at is abbreviation, an acronym that we call ARPU and it stand for average revenue per user. So if your average consumer walks in the shop and they buy less, you might still have the same number of customers but what they walk out of or what they spend in the basket is becoming cheaper and cheaper or they are buying less items.

Thinus Ferreira, Independent television critic

More and more DStv customers are either cancelling premiums or they are downgrading or they cancel outright and that means that the money that you get from subscribers is decreasing.

Thinus Ferreira, Independent television critic

It does not look as if the (streaming) competitors have done enough [to take consumers from DStv].

Thinus Ferreira, Independent television critic

Listen below for more…

This article first appeared on 702 : How DStv subscribers are becoming less and less valuable