Nigerians are currently facing a multitude of financial challenges, and the latest announcement from Multichoice, the company behind DStv and GOtv, is likely to add to their woes. The company has revealed its plans to implement a new price increase for its services starting from November 6. This announcement comes at a time when Nigerians are grappling with a series of economic hardships, making it a cause for concern.
One of the major issues that has been affecting the average Nigerian is the removal of fuel subsidies, which has led to a surge in fuel prices. This, in turn, has had a ripple effect on the cost of living, making it difficult for many to afford essential items, including food. Inflation has been on the rise, eroding the purchasing power of the Nigerian Naira. Furthermore, there have been ongoing forex crises, contributing to the weakening of the Naira. Insecurity is another significant concern, with many Nigerians feeling the impact of this on a daily basis.
Multichoice’s decision to implement a price hike, which would be the third such increase in 2023, adds to the burden faced by consumers. The proposed increase is estimated to be around 20%. In a letter dated November 1 and addressed to partners, the company cited the rising cost of business operations as the primary reason for this decision. While acknowledging the difficulties this would pose for their valued customers and partners, they reaffirmed their commitment to delivering high-quality content and top-notch service.
The new price adjustments are significant, affecting a range of DStv and GOtv packages. For instance, the Premium bouquet on DStv will see its price increase from N24,500 to N29,500. The Compact+ package will go from N16,600 to N19,800, the Compact package from N10,500 to N12,500, and the Confam package from N6,200 to N7,400, among others. GOtv users will also experience price increases, with Supa+ moving from N10,500 to N12,500, Supa from N6,400 to N7,600, Max from N4,850 to N5,700, and Jolli from N3,300 to N3,950, among others.
While an official from Multichoice neither confirmed nor denied the planned tariff hike, some subscribers have reported receiving SMS notifications about the impending subscription fee increases. The timing of this announcement is particularly challenging, as it coincides with the country’s economic struggles.
Multichoice’s financial performance in 2023, with reported revenue of N277 billion (ZAR9.1 billion) in subscriptions, indicates a 29% growth compared to the previous year. This contributed significantly to the Multichoice Group’s overall revenue growth of seven percent, amounting to ZAR59.1 billion. Despite liquidity constraints in Nigeria, the group managed to extract $235 million during the year. However, the cash holdings in Nigeria remained exposed to weaker currencies.
In its yearly results for 2022, the Multichoice Group added 900,000 90-day active subscribers, closing the year with 21.8 million subscribers. This represented a five percent year-on-year increase, with a majority of subscribers in the Rest of Africa and the remaining in South Africa.
Conclusion: Multichioce
In response to the price hikes, the President of the Association of Telephone, Cable TV, and Internet Subscribers of Nigeria (ATCIS), Sina Bilesanmi, has called for a boycott of DStv and GOtv services. He characterized the increases as exploitative and expressed disbelief that these hikes were occurring in such challenging economic times. Bilesanmi also called on political leaders, including President Tinubu and the National Assembly, to step in and address what he sees as exploitation by Multichoice. The association has been advocating for a Pay Per View option for customers, having sent about 20 letters to Multichoice on various industry-related issues since 2020, with little response from the company.
