MultiChoice Delays DStv Price Update
South African pay-TV operator MultiChoice has postponed the announcement of its 2025 DStv subscription fee increases to mid-March due to uncertainty surrounding a possible 2% VAT hike. Traditionally announced in February and implemented in April, the delay comes as the government considers increasing VAT from 15% to 17%, which could significantly impact consumer pricing.
ALSO READ: DSTV Prices for 2025
Why MultiChoice Delayed the Price Announcement
Every year, MultiChoice announces its DStv price adjustments in February, giving customers ample time to budget for the increases before they take effect in April. However, in 2025, the announcement has been delayed until after the national budget speech, which is now scheduled for 12 March 2025.
MultiChoice explained:
“We have deferred our communication timelines in light of the potential VAT adjustment, for which clarity will only be available during the budget speech scheduled for 12 March 2025. We will communicate enhancements and price adjustments when applicable.”
The delay means DStv subscribers will have less than a month’s notice to adjust their budgets for the new pricing before it takes effect in April. This shortened timeline raises concerns about financial planning, debit order adjustments, and household affordability for South Africans who rely on DStv for entertainment.
How the VAT Hike is Affecting MultiChoice’s Pricing Strategy
The South African Minister of Finance, Enoch Godongwana, initially planned to deliver the 2025 budget speech on 19 February. However, due to political resistance from opposition parties and divisions within the ANC, the speech was postponed to 12 March.
At the center of this delay is the controversial proposal to increase VAT by 2%, from 15% to 17%, which could drive up the cost of essential goods, services, and entertainment subscriptions like DStv.
For MultiChoice, this means that:
- The exact VAT rate for April remains uncertain.
- Subscription fees may increase more than usual if VAT is raised.
- Customers could face a higher financial burden with little time to prepare.
Potential Impact on DStv Subscribers
The delay in price adjustments could create several challenges for DStv customers, including:
- Shorter Notification Period – Instead of having two months’ notice, subscribers may only have two weeks to prepare for higher prices.
- Possible Debit Order Issues – Some banks and payment services may struggle to adjust debit orders in time if MultiChoice raises prices in April instead of delaying until May.
- Increased Financial Strain – A 2% VAT hike would further raise costs for households already facing economic pressures like rising fuel and food prices.
Will MultiChoice Postpone the Price Increase to May?
With such a short gap between the price announcement and implementation, MultiChoice may have to consider delaying its new pricing to May 2025 instead of April. However, this could disrupt the company’s financial year planning, which traditionally runs from April to March.
If the 2% VAT hike is enforced, MultiChoice may need to recalculate its pricing models, affecting:
- DStv Premium, Compact, and Access packages
- Streaming services like DStv Stream and Showmax
- Commercial subscriptions for businesses and hotels
The Future of MultiChoice and DStv Pricing
The postponement of the budget speech has placed MultiChoice in a difficult position as it waits for clarity on VAT rates. This delay also comes as the company is in the midst of an aggressive takeover by France’s Canal+, which could lead to further pricing changes and structural adjustments in the coming months.
For now, South African households are left in limbo, unsure of how much more they will have to budget for their entertainment expenses. DStv subscribers are advised to stay updated and prepare for a possible price increase in April or May 2025.
What’s Next?
- 12 March 2025 – The government will confirm whether VAT will rise to 17%.
- Mid-March 2025 – MultiChoice will announce new DStv pricing.
- April 2025 – New prices may take effect, depending on VAT adjustments.
DStv users should monitor DStv price updates from MultiChoice and plan for potential increases in their monthly subscription fees.
