Business

MultiChoice's Repeated DStv Price Hikes Spark Subscriber Outrage in Nigeria

In April 2024, MultiChoice Nigeria announced a significant increase in subscription fees for its DStv and GOtv packages, with hikes ranging from approximately 17% to 26%, effective May 1, 2024. This marked the fourth price adjustment in three years, following previous increases in March 2022, April 2023, and December 2023.

 

The company attributed these frequent hikes to escalating operational costs amid Nigeria's challenging economic environment, including high inflation rates exceeding 30%.

 

Subscribers have expressed their dissatisfaction with the recurrent price increases, citing concerns over affordability and the perceived lack of corresponding improvements in service quality. Many have taken to social media to voice their frustrations, with some suggesting a boycott of the service and others highlighting the availability of alternative viewing options.

 

The backlash has had tangible effects on MultiChoice's subscriber base. In the six months leading up to September 2024, the company reported a loss of 243,000 DStv and GOtv subscribers in Nigeria. This decline was primarily attributed to the country's high inflation rate, which has strained consumers' purchasing power.

 

In response to the outcry, some industry observers have defended MultiChoice's position, pointing out the economic realities of operating in Nigeria. They note that the company pays for content rights in foreign currencies, making it susceptible to exchange rate fluctuations and necessitating price adjustments to maintain service quality.

 

Despite these explanations, the discontent among subscribers highlights the growing tension between service providers and consumers in Nigeria's challenging economic climate.