TopTV will soon part ways with one of the major retail chains that supplies the public with its decoders, SA's second pay-television operator confirmed on Friday.
According to Marius Liebenberg, senior vice-president of sales and marketing for TopTV, a “mutual” decision was taken between the operator and Pep Stores to stop selling the devices within Pep's over 1 000 stores nationwide, as of 1 October.
Pep has stocked the devices, currently retailing at R399, including installation, since the pay-TV provider's inception in May 2010. TopTV did not give a reason for the “mutual decision”, but says: “[TopTV's] decoders are available in a wide range of the major retailers throughout SA, with whom the company has established good working partnerships over the past two years.”
TopTV's parent company, On Digital Media (ODM), introduced the pay-TV platform a little over two years ago to address the lower-income market in a bid to increase satellite TV penetration in SA.
While losing Pep - one of SA's most prolific low-cost retail chains - as one of its decoder distribution channels would appear to be a loss for the company and signal poor sales, Liebenberg says there has been a “positive upward trend” of TopTV decoders. “[Sales have shown positive growth] over the past three months specifically.”
Pear-shaped episodes
The pay-TV provider has had its fair share of challenges since it entered the market - held sturdily by MultiChoice's multi-channel digital satellite TV service DSTV.
Amid an entrenched market, TopTV has had to weather a number of storms, including the loss of some of its channels and uncertainty around the sustainability of others, a failed attempt to launch an adult package - which elicited widespread condemnation - customer complaints and billing problems.
In February, TopTV CEO Vino Govender suddenly resigned. At the time, ODM said it was a case of “mutual separation” that both parties believed would benefit the company in its future developments. ODM chairman Eddie Mbalo filled the gap as interim CEO, a provisional position he holds to date.
Mbalo issued a statement soon after Govender's resignation, referring to a “new beginning for TopTV” that saw him personally pledging to turn the pay-TV provider into the dynamic company it was intended to be. “We have big plans for TopTV and we want you to stay with us and enjoy the next stage of our adventure,” he said.
Recently, the scheduled launch of an “exciting initiative” set for early July, was postponed - and is now likely to take place sometime in August.
Liebenberg asserts the operator is on the right path, however. “[TopTV is] confident that the renewed marketing focus and increased advertising spend is starting to pay off and show results.”
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