Owners Of DStv Justify Price Adjustment
Owners of DStv, Multichoice Ghana Limited, have defended the decision to increase subscription charges by more than 30% following customers’ opposition.
According to the Company’s Managing Director, Alex Okyere, the economic hardship its customers are plunged into was factored into bringing out the announced increment.
In a released statement following calls to boycott their service over the charges yet to take effect, Mr Okyere said the increase will enable it to bring premium quality content to customers.
He also noted that the announced charges are “significantly” below what is required to cover the company’s cost of production.
Price Increment
The sub-Saharan African video entertainment company announced new prices for their products this week.
The prices will take effect on February 15, 2023.
Their packages including Access will be increased from Ghc 50 to 60; Family from Ghc 80 to 110; Compact from Ghc 160 to 220; Compact Plus from Ghc 235 to 265; and Premium from Ghc390 to 510.
Opposition
Following this, the hashtag #boycottdstv began to trend on social media.
The hashtag was initiated by the Fixthecountry group on Twitter.
“If we don’t take action, these companies will just take advantage of us. We don’t have functioning regulatory authorities in Ghana, so we must do this ourselves. Tweet with the hashtag, Retweet the hashtag. The message is one #BoycottDSTV.”
If we don't take action, these companies will just take advantage of us. We don't have functioning regulatory authorities in Ghana, so we must do this ourselves.
Tweet with the hashtag, Retweet the hashtag.
The message is one #BoycottDSTV— #Fixthecountry (@Ghfixthecountry) February 2, 2023
Many DSTv customers vented their anger against the charges which the Consumer Protection Agency said was more than 30%.
In a statement, the Agency called on DStv customers to exercise their 5th right from the World Consumer Right Charter to boycott DSTV products and services.
It described the new charges as “insensitive” to the plight of Ghanaians.
“The recent increases of DSTV subscriptions above 30% can be described as one of the insensitive pricing policy by the service provider to consumers of this country whiles all other countries subscription remain untouched.”
Price Justification
In a press statement on Friday, February 3, 2023, Multichoice Ghana recalled its last price adjustment took place in April 2022 when the cedi was selling at GHC7.5 per dollar, fuel was GHC 9.7 per litre, VAT was 12.5% and electricity tariff rate tallied with the charges then.
Currently, it said, these factors have seen significant surges.
“A significant portions of our content and satellite cost are sourced internationally and paid for in foreign currencies…Our DDT services run from 14 cell sites that significantly use electricity and fuel to power the various equipment used to broadcast our content.”
Additionally, it said its subscription price build-up includes VAT, NHIL, GETFUND, COVID levy and Communication Service Tax.
According to the company, the yet-to-be-implemented adjustment- which it pegs at 19%- is less than what is required to cover its current cost of production.
“With the above considerations, we have had to make an adjustment for our prices and continue to strive to see that the increase faced by customers is as low as possible.”
Source: opemsuo.com/Hajara Fuseini
