MultiChoice Raises Nigeria Prices Again as Subscriber Numbers Decline
TLDR
- MultiChoice, the parent company of DStv and GOtv, is raising subscription prices by at least 20%, effective March 1
- This marks the second price hike in a year as the company faces a shrinking subscriber base and economic challenges
- Regulators have yet to respond, but past increases have faced backlash from consumers and lawmakers
MultiChoice, the parent company of DStv and GOtv, is raising subscription prices by at least 20%, effective March 1. This marks the second price hike in a year as the company faces a shrinking subscriber base and economic challenges in key African markets.
The new prices are: DStv Premium: ₦45,000 (up from ₦37,000), DStv Compact Plus: ₦35,000 (up from ₦30,000) and DStv Compact: ₦19,000 (up from ₦15,700). MultiChoice’s fiscal 2024 report shows a 9% drop in total active subscribers across Africa, with a 13% decline in Nigeria, Angola, Kenya, and Zambia. Currency depreciation, particularly the Nigerian naira’s sharp decline, reduced MultiChoice’s USD revenue by 32%.
The company attributes the price hike to inflation and foreign exchange pressures. It is also implementing cost-cutting measures to save $113 million while introducing “inflationary pricing” to sustain revenue. Regulators have yet to respond, but past increases have faced backlash from consumers and lawmakers. MultiChoice’s dominant position in pay-TV means its pricing decisions have a widespread impact.
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Key Takeaways
MultiChoice’s price hike comes as consumers in Africa increasingly explore alternative streaming options. Netflix also raised its prices in 2024, reflecting broader pricing pressures in the entertainment industry. The rising cost of pay-TV may accelerate the shift toward digital streaming services, which offer flexible pricing and on-demand content. While MultiChoice still dominates traditional pay-TV, economic pressures and evolving consumer preferences could challenge its long-term growth. Affordability concerns, particularly in Nigeria and other inflation-hit economies, may force MultiChoice to adjust its pricing strategy further. The company’s ability to retain subscribers amid rising costs remains uncertain in Africa’s competitive entertainment landscape.
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