Multichoice losses a large chunk of its subscribers to the recent price increment on its services
Multichoice, the South African-owned pay-TV giant, has seen a significant loss of subscribers. In its Interim Financial Results for the period ending September 30, 2024, the company revealed a drop of 243,000 subscribers across its DStv and GOtv services. This loss was attributed to rising economic hardship in key markets, especially Nigeria, where inflation rates have surpassed 30%. Many Nigerians, struggling with high costs of food, electricity, and fuel, found it increasingly difficult to afford pay-TV subscriptions. As a result, many chose to unsubscribe.
Impact of price increases on subscribers
The company also reported a 566,000-subscriber loss in the Rest of Africa, with Zambia and Nigeria contributing the largest share. Multichoice had increased subscription prices in several African countries, including Nigeria, which played a role in the subscriber decline. On May 1, 2024, Multichoice raised the prices of both DStv and GOtv packages. The price hikes sparked outrage, especially in Nigeria, where many felt the increases were unreasonable given the country’s economic crisis.
The company’s move to increase prices, while facing consumer dissatisfaction, has led to a dramatic loss of subscribers. For example, the premium DStv subscription price went up to 25,700 NGN, which many Nigerians found unaffordable. With the growing availability of internet-based streaming services and smart TVs, many subscribers felt they no longer needed to rely on traditional pay-TV.
Social media reactions to Multichoice losses
The price increases and the ongoing economic struggles led many Nigerians to express their frustration on social media. Some users criticized Multichoice for failing to adapt to changing consumer needs. One user, @cashoggy, pointed out that internet and smart TVs have made DStv less attractive, given that people can now access content online for less money.
Another user, @gentle_t, questioned why people would continue to pay for expensive subscriptions when they can easily watch content on their phones. The common sentiment among many subscribers was that Multichoice’s price hikes were out of touch with the realities of the average Nigerian consumer, who is battling daily financial struggles.
The real cause of Multichoice losses in Nigeria
Many Nigerians believe that Multichoice inflicted the losses on itself. A Twitter user, @realbl, commented, “Multichoice lost 243,000 subscribers because there is multi-hunger in Nigeria.” The high costs, coupled with poor service, led many consumers to seek alternatives. With streaming services gaining traction, and mobile phones providing easier access to content, traditional pay-TV services like DStv and GOtv were no longer as appealing.
The problem wasn’t just the price increase; it was the lack of innovation and content improvement. @NdubuisiNC expressed frustration over the company’s failure to improve content over the years.
A shift from traditional tv
A growing number of consumers are turning to alternative platforms for their entertainment needs. As @Jatiti_O pointed out, people are no longer interested in watching TV as much, given the rising cost of living and the time required to earn money. For many, it simply made more sense to rely on mobile devices for their entertainment.
Some users, like @ribaduabubakar2, shared their experiences of switching to cheaper platforms. Others, like @ekoh, highlighted that Multichoice could bounce back if it reduced its subscription fees or adopted a more flexible pay-as-you-go model. However, with the ongoing financial strain and the competition from cheaper, more flexible services, Multichoice’s losses could continue to grow.
This subscriber loss comes just eight months after a series of legal battles over price hikes. In 2023, the Competition and Consumer Protection Tribunal (CCPT) ordered Multichoice Nigeria to suspend further tariff increases. However, the company went ahead with its price adjustment plans on May 1, 2024.
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