Free To Air Decoder Price In South Africa
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The DStv Explora Ultra will be MultiChoice's first decoder that will give subscribers access to Netflix South Africa with other international video streaming services likely to follow.
Calvo Mawela, MultiChoice CEO, on Friday during the company's investors' call for its financial results for the 6 months until the end of September 2020 gave four reasons for the hefty price tag of the DStv Explora Ultra.
"If you look at it as a set-top box and consider that it does traditional linear TV, it does Catch Up, it does all of the other elements that we used to have in the previous DStv Explora; we have increased the memory, we have built-in Wi-Fi and then we are able to add streaming apps as and when we have agreements with other subscription video-on-demand (SVOD) players coming into the market - that is the basis on which it is priced at that level," he said.
"The other thing we have decided to do with the DStv Explora Ultra decoder is not to introduce any subsidies as yet, and that is why you see the pricing, if you compare with others, it's a little bit out of sync with what you have seen in the past."
Tim Jacobs, MultiChoice chief financial officer (CFO), said that the DStv Explora Ultra decoder is "really targeted at early-adopters and we think that the initial target market is the guys that want to experiment a little bit".
"But like all of our products, we'll start and then we'll look at the market demand and then make judgement calls about whether to introduce pricing differentials [subsidies] later. It's a good starting point to simply introduce the DStv Explora Ultra into the market," he said.
Mr Raisbeck said as with subscriptions, MultiChoice South Africa has a different pricing model to MultiChoice Africa which also subsidises the price of decoders. He also said that since the decoders are manufactured in South Africa, duties and transport costs also have a bearing on the local pricing.
Mr Raisbeck acknowledged that this (importing through unofficial channels), including locals subscribing via MultiChoice South Africa is a concern but there is little that MultiChoice Zimbabwe can do because MultiChoice South Africa runs independently. The fact that MultiChoice South Africa and MultiChoice Zimbabwe run on the same same satellite also means that Zimbabweans can have access to MultiChoice South Africa bouquets that are generally cheaper and offer more channels.
MultiChoice Zimbabwe is MultiChoice Africa franchisee owned by a local company called Skynet (trading as MultiChoice Zimbabwe). MultiChoice Zimbabwe receives a monthly commission from MultiChoice Africa for managing local subscriptions.
I purchased the Explora 2 months ago for R2300 in SA (Specifically Game) and went on to register it that side. Can anyone tell me or justify what pushes the price from a retail price of R2300 ($230) to $445. Interestingly, the same decoder in Cape Town is selling at the same price of R2300 which is far from Joburg than Joburg-Harare. Is it the duty which pushes this price up to this much or its pricing model of Multi Choice Zim. I personally offer to supply the same decoder at $270 cash if anyone is interested
Fair price? hah! You charge what the market will bear. Clearly Multichoice believe that the market is segmented differently in Zim compared to S.A., with the top end of the market being able to bear significantly more. Not that I agree with their thinking, but I can see where they are coming from.
Seriously when will these guys realize that they need to concentrate on connecting people to their services rather than trying to make money off equipment sales. DSTV is becoming outdated and unless they shift the way they think will be a has been in a few years to come when NETFLIX is a reality in the countries they are exploiting.
These comments are a reflection of individuals who have no experience running a corporate entity in Zimbabwe that actually pays all the required taxes, duties and associated costs whenever importing any goods. Comparing an individual who travels across the border and buys a subsidised decoder to a company buying, insuring, shipping and paying duties as the same thing is grossly inaccurate. A small percentage for duty? Really?
rubbish, i have run entities that have and continue to import and retail/distribute since 2000. the only reason your cost of doing business is too high is probably because you or your other shareholders are trying to milk it and get rich quick. people like me will kill your goose that used to lay your golden eggs. keep trying the old way of doing business and see how long you last going forward into 2014!! goodbye and good luck
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TechCentral had a look back at every decoder (excluding GOtv terrestrial boxes sold elsewhere in Africa), from the very first M-Net box to the latest DStv Explora Ultra, and how they have changed over the past 38 years.
M-Net, short for Electronic Media Network, was launched as an analogue channel that used terrestrial broadcasting equipment in the same way that the SABC did at the time (and still mostly does). It was the first private subscription channel in South Africa.
The M-Net Mark 1 soon followed in 1987. This unit boasted a powder-coated steel case with plastic fascia and was manufactured under contract by TEK Electronics in East London and National Panasonic Company in Cape Town (each factory manufactured 50 000 units at a collective rate of 500/day).
The cost savings laid the groundwork for scale, so although only 100 000 Mark 1 units were manufactured, more than 600 000 Mark 2s were built by TEK and NPC. These decoders retailed at R799 and the remote control unit was now manufactured in South Africa by STC Electronics in Boksburg. The Mark 2s were manufactured in both PAL I and PAL B/G broadcast standards to serve the needs in other parts of Africa.
Also notable in this era were the Compact decoder of 1991, which boosted subscription numbers because of its lower R399 selling price (but, weirdly, it sold without a remote), and the 9000 plus, which was sold from 1992 and was the first decoder capable of producing stereo audio output and could store 39 channels instead of the eight that previous decoders were limited to.
Although this was the beginning of a period of unprecedented growth for MultiChoice, it was marred by disaster when a fire broke out and burned down the NPC factory in December 1995. This hampered production of the new Comcrypt decoder, which was originally meant for the European market. Production recommenced less than a month later, however, and Comcrypt production would eventually exceed 1.7 million units, with 116 000 sold locally and even more exported to Europe and other African markets.
In 2003, MultiChoice introduced its first dual-view decoder, allowing customers to watch to different channels, on different TVs within the same home, at the same time. The feature was accompanied by an access fee which would allow dual-view functionality if paid for but keep the decoder working in single-view when not.
The second-generation PVR, released in 2008, improved on its predecessor by upgrading from standard-definition (SD) to high-definition (HD) video quality. Dual-view functionality was removed from this model, but a new XtraView feature made watching multiple channels at the same time a possibility. Recording capacity was also increased due to higher storage capacity.
The Explora Ultra, released in 2020, has Wi-Fi built into the unit and is 4K-capable. The unit also accommodates third-party apps such as Netflix, Disney+ and Prime Video. The Streama, a non-satellite streaming box released in 2022, is a more compact device that supports 4K video with HDR 10 for video and Dolby Atmos virtual surround sound.
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