DBS Satellite Services (1998) Ltd. (YES) has announced that it is raising its video-on-demand (VOD) prices by NIS 5 per month to NIS 34.90. The higher price comes into effect from May 1 and customers are already being notified. This is the second consecutive year that Yes has put up VOD prices, having raised them in April 2016, also by NIS 5.
Back in April 2016, Yes's price hike was greeted with angry responses and condemnation by Israel's Council for Cable TV and Satellite Broadcasting. Justifying the latest price hike, Yes said, "The price rise reflects a substantial rise in international procurement costs with broadcasting rights for sports content up hundreds of percentage points as well as major investment and expansion of free content and service over the past year."
Yes's biggest competitor in the Israeli market, HOT Telecommunication Systems Ltd. (TASE: HOT) put up VOD prices by 5% to NIS 34.90 in January and the price of its overall package for some customers by 4%. Hot also blamed the price rise on rising content costs and investment in a statement almost identical to that of Yes.
Over the past year, there has been major friction between Yes and Hot and the Council for Cable TV and Satellite Broadcasting with the differences eventually resolved on the outline of permissible price rises. The only company that has refrained from putting up prices is Cellcom TV.
Published by Globes [online], Israel business news - www.globes-online.com - on April 13, 2017
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