eBusiness Weekly
Chipo Sabeta
Local banks could be taking advantage of MultiChoice Zimbabwe’s requirement for their services to be paid in foreign currency by demanding an additional “processing” charge of US$10 for all DSTV payments. All DSTV payments are made through the banking system.
The new “processing” charge has seen DSTV customers complaining of exorbitant charges. Previously, banks would charge a nominal fee of around $2 (which could either be paid by transfer or bond notes).
The extra charge seems to be falling squarely on the door of the financial institutions as MultiChoice Zimbabwe has distanced itself from the exorbitant subscription commission being charged by banks for DSTV payments.
The Bankers Association of Zimbabwe (BAZ) refused to comment on behalf of the banks.
MultiChoice Zimbabwe does not accept any form of payment directly from DStv customers and for that reason local subscribers feel banks, as the middlemen are reaping them off.
Of late, banks now require the elusive United States dollar ($10) for “processing” DStv payments for locals as all plastic money payment avenues were closed.
Despite Zimbabwe currently using a multicurrency system, DSTV is only accepting payments in cash US dollars. Local DSTV subscribers feel hard done as they have to pay a 50 percent premium to access foreign currency on the black market.
Asked on why the local MultiChoice operation was charging Zimbabwean subscribers in physical United States dollars when it is operating a local subsidiary in the country while other MultiChoice’s operations in neighbouring countries allow their customers to pay in their local currencies, public relations manager Liz Dziva said they do not have control over payments.
She added that MultiChoice was not involved in the $10 ‘processing’ fee.
But a financial services expert who chose to remain anonymous questioned the arrangement between MultiChoice Zimbabwe and the banks.
“Why do MultiChoice subscribers have to pay at the bank? Why can’t Multichoice open an account or accounts with banks of their choice and then allow subscribers to simply transfer money into their bank account for services? Why does MultiChoice enjoy this privileged status? Who is benefiting?
Dziva said the television services provider’s hands were tied as they cannot intervene when these problems are between the customer and the middleman (ie, banks).
“Skynet (Pvt) Ltd – a MultiChoice Zimbabwe is a wholly owned Zimbabwean company that has continued to deliver services in Zimbabwe. The company operates under a franchise agreement with MultiChoice Africa.
“Unfortunately, MultiChoice Zimbabwe does not accept any form of payment directly from DStv customers. As such, all payments for DStv subscriptions are made to financial institutions and then remitted to MultiChoice Africa. The reason behind this is due to the foreign currency shortage in the country. Most banks have restricted payments for DStv to bank customers only,” she said.
All payments for DStv subscriptions are made to financial institutions and then remitted to MultiChoice Africa. MultiChoice Africa’s cost structure has various input costs which include technical infrastructure costs, satellite lease costs, facility costs and programming costs.
“This has had a negative impact on our ability to provide convenience and accessibility to our valued DStv customers, as we do not have a solution to the Forex issues. We regret the inconvenience this has caused, and are working hard with the relevant organisations and individuals to improve the payment solutions.”
The DStv payment challenges come at time when more viewers are migrating from the country’s sole television station, Zimbabwe TV. The arrival of Kwese TV on the market caused so much hype but the lack of content has forced viewers to confine to DStv.
“As a business operating in Zimbabwe, we are governed by the rules and laws of that country. We are aware of the difficulties our valued customers are experiencing with DStv payments, however as per any foreign currency based entity, we are subject to the current foreign currency shortages and regulated restrictions that are currently being imposed,” she added.
She added, “It must be noted that the channels on DStv are paid for internationally (outside of Zimbabwe), as is the satellite infrastructure required to deliver the services, hence it is necessary for payments to be in US Dollars in order to make the service available.”
“At MultiChoice, our mission is to deliver value to our customers by making great entertainment more accessible. We find and develop the right mix of content and deliver it to millions of people across Africa – anytime, anywhere.
“Whether it’s local telenovelas, the excitement of world-class sport or the latest global blockbusters, our investment in leading edge content and technology systems deliver the shows that people love into their hands and their living rooms.”
