The parent company of DStv and GOtv, MultiChoice, has announced a subscription price increase of at least 20%, marking its second hike within a year. This adjustment, effective March 1, comes amidst challenges such as a shrinking subscriber base and economic difficulties in key African markets.
Based on information obtained by TechCabal and customer emails, the new pricing structure includes:
– DStv Premium: ₦45,000 (previously ₦37,000)
– DStv Compact Plus: ₦35,000 (previously ₦30,000)
– DStv Compact: ₦19,000 (previously ₦15,700)
The latest increase follows a challenging year for MultiChoice in 2024, with a 9% decline in total active subscribers across Africa. The company’s fiscal report for 2024 indicates a 13% drop in subscriber numbers in key markets like Nigeria, Angola, Kenya, and Zambia, attributed to currency devaluation and economic downturns.
MultiChoice has explained that the price adjustments are a response to inflation and foreign exchange challenges. To mitigate these issues, MultiChoice is implementing cost-cutting measures to save $113 million while introducing “inflationary pricing” to maintain revenue.
These back-to-back price hikes raise concerns for consumers already facing increasing living costs. Additionally, Netflix also raised its prices in 2024, influencing consumer choices in Africa’s changing entertainment landscape.
While there has been no official response from Nigeria’s Consumer Protection Commission or broadcasting regulators yet, past price increases by MultiChoice have sparked criticism from both consumers and lawmakers due to the company’s significant impact on the pay-TV sector.
With economic uncertainties and consumer budgets stretched, MultiChoice’s ability to retain subscribers amid higher costs remains uncertain.