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DStv on the ropes?

Publish date: 13 June 2018
Issue Number: 1736
Diary: Legalbrief eLaw
Category: Competition

Business ‘dinosaur’ DStv is about to be replaced by apex predators like Nokia, Mxit, Kodak and Blockbuster. After all, analyst Mangi Tshikomba notes on the BusinessLIVE site that it became arrogant because its customers had no alternatives. ‘Now that subscribers have options, with the advent of video-streaming services, management should listen to what people want, bearing in mind this is an increasingly on-demand world. DStv subscribers are subjected to many programming repeats and mediocre content. In this type of business content is king, which is why Netflix is investing R100bn to generate its own content, including local productions. I don’t see how DStv can match the content quality and budget of Netflix. Many incorrectly assume DStv is not innovating. It has been innovating, but not in a disruptive manner. Its innovation has aimed to retain existing subscribers and increase profits. Dominant incumbents such as DStv focus on existing premium customers and try to milk them as much as possible, avoiding low-margin subscribers.’ Tshikomba points out that efforts are under way to blanket the planet with cheap Internet. ‘SpaceX is planning to send 4 000 internet satellites into space, domestic regulator the Independent Communications Authority of SA is looking into ways to force down high data prices, and new start-ups such as Michael Jordaan’s Rain promise to make access to broadband ubiquitous in time.’

Full analysis on BusinessLIVE site