MultiChoice, the parent company of DStv and GOtv, is increasing subscription prices by at least 20%, marking the second price hike in a year. The increase, effective March 1, comes as the company faces a shrinking subscriber base and economic challenges in its key African markets.
According to documents seen by TechCabal and an email sent to customers, the new pricing structure is as follows:
DStv Premium: ₦45,000 (up from ₦37,000)
DStv Compact Plus: ₦35,000 (up from ₦30,000)
DStv Compact: ₦19,000 (up from ₦15,700)
The latest increase follows a turbulent 2024 for MultiChoice, which saw a 9% decline in total active subscribers across Africa.
The company’s fiscal year 2024 report shows that subscriber numbers fell by 13% in Nigeria, Angola, Kenya, and Zambia, driven by currency depreciation and economic downturns. The Nigerian naira’s sharp decline alone had a 32% impact on MultiChoice’s USD revenue, according to the company.
MultiChoice has attributed the new price adjustments to inflation and foreign exchange pressures. To counter these challenges, MultiChoice is implementing a cost-cutting strategy aimed at saving $113 million while introducing “inflationary pricing” to sustain revenue.
The consecutive price hikes raise concerns for consumers already dealing with rising costs of living. Notably, Netflix also raised its prices in 2024, further shifting consumer preferences in Africa’s evolving entertainment market.
So far, there has been no official response from Nigeria’s Consumer Protection Commission or broadcasting regulators. However, past price hikes by MultiChoice have faced backlash from both consumers and lawmakers. The company’s dominant position in pay-TV means its pricing decisions have a widespread impact.
With economic conditions still volatile and consumer spending under pressure, MultiChoice’s ability to retain subscribers amid higher costs remains uncertain.
