DSTV is costing you financial freedom

DSTV recently announced their annual price increases. In 2017 you will now be paying a heavy R789 per month for the premium DSTV package.This isn’t the first time they have increased price either, in fact they have steadily increased prices over the last 16 years as seen in the graph below courtesy of my broadband


So I have a bone to pick – this is a CRAZY price to be paying for TV. Not only that but it is such a monopoly in this country that we have no choice in the channel we do and don’t want. We are paying for every single channel regardless of whether we watch them or not. Yes there are select packages but even still those are a pre-determined bunch of channels in which no one watches half of them. A cost per channel system if implemented from the start would not have DSTV in the difficult situation that they are in, consistently struggling to grow they subscribers in the last few years. This current system is the pure essence of “lifestyle waste” (it’s all there but do you actually use it) which I so try to avoid.

Before just saying something is too expensive and therefore not for me it is always wise to first decide on how it will affect your quality of life. There are many things I will always be happy to pay for which give me true enjoyment and happiness. This is not one of those things. In fact not having it is more likely to have a positive impact on me and my productivity.

Like most guys I am only really interested in watching sport on TV and to be able to watch my cricket, rugby and tennis and I would need DSTV premium. But there is no chance I will pay R789 a month or just under R10 000 per year in order to do this. 

If we look at this cost over 20 years with an annual price increase of 7.5%, we will be spending over R400 000 on this crazy thing:

Cost of DSTV over 20 years
Year
Cost per month
Cost per year
1
R789
R9 468
2
R848
R10 176
3
R912
R10 944
4
R980
R11 760
5
R1 054
R12 648
6
R1 133
R13 596
7
R1 218
R14 616
8
R1 309
R15 708
9
R1 407
R16 884
10
R1 513
R18 156
11
R1 626
R19 512
12
R1 748
R20 976
13
R1 879
R22 548
14
R2 020
R24 240
15
R2 172
R26 064
16
R2 335
R28 020
17
R2 510
R30 120
18
R2 698
R32 376
19
R2 900
R34 800
20
R3 118
R37 416
R410 028





























If we do the maths and invest this money instead over the same 20 year period we will be millionaires, see the below investment calculator:


As much as people love having their DSTV, these are the two ways I would rather make better use of that money:
  • Invest it and become a millionaire – R1,3 million after 20 years sounds fairly useful
  • Use some of that saving to travel every other year – spend it on experiences which you will remember for the rest of your life
Do you have DSTV? I would be very interested to hear from you, and if you feel you are getting your moneys worth.

Comments

Popular posts from this blog

Shares, Shares and more Shares

The Investment Journey

Rent vs Buy: The bigger picture of your portfolio and why your default position should not always be to buy