DStv Premium vs Netflix Premium: A Detailed Comparison of Prices and Content in South Africa

The South African market for video entertainment has seen a significant rivalry between DStv, the traditional satellite service, and Netflix, the global streaming giant. Over the years, both platforms have taken divergent paths in their pricing and content offerings, reflecting different business models and market strategies. To keep consumers informed, a comprehensive comparison of the two services provides insights into what subscribers get for their money and how prices have evolved since Netflix's entrance into South Africa.

MultiChoice's DStv, particularly its Premium package, has followed a predictable pattern of annual price increases that typically roll out in April. This pricing strategy allows the company to stabilize budget forecasts, buoyed by some customers' willingness to enter into long-term contracts. This solid customer base has historically provided MultiChoice with a certain degree of financial surety.

Despite these increments, which saw a jump from R759 to R879 since 2016, DStv argues that these are essential for sustainable growth, enabling the delivery of quality content. Interestingly, the price hike equaled an approximate 15.8% rise, considerably below the general inflation rate of 40% over the same period.

Netflix, conversely, utilizes a month-to-month operational model. This flexibility offers users the freedom to unsubscribe at any time but also presents Netflix with revenue predictability challenges. As reported in Spain, a sudden loss of one million subscribers following a password-sharing crackdown exemplifies the volatility Netflix can face. In the United States, Netflix has implemented several price revisions; for example, the Premium subscription saw a $11 increase, bringing it to $22.99 – more than double what South African customers are currently charged.

In the South African context, Netflix began with a price of $11.99 (approximately R176) in January 2016 and later introduced rand-based pricing in August 2018, which set the Premium subscription at R169. After the last price revision in early 2022, the cost was R199, representing a modest R23 increment from its launch price, notwithstanding the substantial enrichment of its content offerings.

The South African catalog featured only 678 titles at the outset but has now expanded to 6,442 titles as per JustWatch. This growth in selection contrasts with DStv Premium, which has seen a decrement in channel offerings. Over the last five years, the platform has dropped 18 channels, adding only nine, suggesting a reduction in the breadth of content available to its customers and an increased price-per-channel ratio.

MultiChoice's Chief Financial Officer, Tim Jacobs, signals further price augmentations ahead for DStv subscribers, as content costs continue to climb. Meanwhile, Netflix’s pricing approach reflects its investment in licensing and expanding its service features. Subscribers thus face a choice: opt for DStv's traditional model with its fixed pricing and shrinking on-screen variety, or choose Netflix's dynamic, content-rich streaming service, despite its unpredictable pricing.

In conclusion, the disparity in the expansion of content libraries and pricing models reflects the ongoing competition between DStv and Netflix in South Africa. This deep dive offers subscribers the requisite information to make informed decisions based on their preferences for content availability and pricing stability.