MultiChoice, the South African media conglomerate that operates DStv and GOtv, recently announced an increase in subscription rates…
MultiChoice, the South African media conglomerate that operates DStv and GOtv, recently announced an increase in subscription rates for its Nigerian audience. The increase is set to take effect from the 1st of May 2023.
Although the growth in the subscription rate is not specific to Nigeria, it does seem higher compared to other African nations, with up to a 16% increase. Several African nations, like Kenya and South Africa, have seen their own uptick, according to MultiChoice. For instance, the business announced a 5% rise in DStv subscription prices in Kenya and a 3–10% increase in South Africa.
Although the company has given several reasons for the increase, including economic challenges, the rising cost of content acquisition, and inflation, this new increment has received mixed reactions from Nigerian subscribers. Social media platforms have featured many expressing their dissatisfaction and disappointment.
Many people have voiced their complaints on social media, and some have even called for a boycott of the company’s services. According to others, the increase is unjustifiable, considering the nation’s current economic predicament. Many Nigerians struggle to make ends meet due to high prices, a depreciating currency, and increased unemployment.
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A comparison between Nigeria, South Africa, and Kenya
For Nigerian subscribers
| DStv Packages | Nigeria old price | Nigeria new price | Price difference |
| Premium | ₦21,000 | ₦24,500 | ₦3,500 |
| Compact + | ₦14,250 | ₦16,600 | ₦2,350 |
| Compact | ₦9,000 | ₦10,500 | ₦1,500 |
| Confam | ₦5,300 | ₦6,200 | ₦900 |
| Yanga | ₦2,950 | ₦3,500 | ₦550 |
| Padi | ₦2,150 | ₦2,500 | ₦350 |
For South African subscribers
| DStv Packages | South Africa’s old price | South Africa’s new price | Price difference |
| Premium | R839 (₦20,963) | R879 (₦21,962) | R40 (₦1,000) |
| Compact + | R549 (₦13,717) | R579 (₦14,467) | R30 (₦750) |
| Compact | R429 (₦10,719) | R449 (₦11,218) | R20 (₦500) |
| Family | R309 (₦7,720) | R319 (₦7,970) | R10 (₦250) |
| Access | R120 (₦2,998) | R129 (₦3,223) | R9 (₦225) |
| Easy View | R29 (₦724) | R29 (₦724) | 0 |
For Kenyan subscribers
| DStv Packages | Kenya’s old price | Kenya’s new price | Price difference |
| Premium | 8,900 KES (₦30,165) | 9,500 KES (₦32,199) | 600 KES (₦2,034) |
| Compact + | 5,500 KES (₦18,641) | 5,900 KES (₦19,997) | 400 KES (₦1,356) |
| Compact | 3,000 KES (₦10,168) | 3,300 KES (₦11,184) | 300 KES (₦1,016) |
| Family | 1,600 KES (₦5,423) | 1,750 KES (₦5,931) | 150 KES (₦508) |
| Access | 1,150 KES (₦3,897) | 1,250 KES (₦4,236) | 100 KES (₦339) |
When the three tables are compared, it becomes clear that even though Kenya appears to be paying more when converted to naira, the Nigerian audience is more severely affected by the increased rate plans for all of its services. For South Africa, being the home to the multimedia company, its increased tariff charges are still the lowest among the three.
There are several reasons that could have affected the disproportionate dispersion of subscription charges among the three countries but does it still mean that the new charges should be this high in Nigeria?
Apart from the general reasons MultiChoice has given over the years, here are some reasons why the subscription fee varies
Cost of living: Given that Kenya is undoubtedly more expensive than Nigeria, Kenya’s average cost of living ($653) is lower than Nigeria’s average cost of living ($1019). However, Nigeria is cheaper than South Africa. Compared to Nigeria’s minimum wage of ₦30,000, Kenyan’s minimum wage is roughly 15120.00 KES (more than ₦50,000). For South Africa, the minimum wage is 23.19 per hour and if calculated with 40 hr/wk, the monthly minimum wage will be at ZAR 3,680 (more than ₦92,000).
Local Market Competition: South Africa might just be on the lucky side with this one as there is stiff competition in the country. However, in Nigeria, apart from the international streaming platforms, there is little to no competition for MultiChoice. Hence, in countries with a lot of competition, subscription fees may be lower to attract more customers.
Taxes/Regulations and currency exchange: Taxes and regulations also vary between countries, and companies may need to adjust their prices to comply with local tax laws and regulations. Also, companies may adjust their prices to compensate for fluctuations in exchange rates.
Content Licensing: The cost of acquiring content licenses may vary between countries, depending on the availability and popularity of the content in each market. Companies may adjust their subscription fees to reflect the cost of content licensing.
MultiChoice Nigeria increasing its subscription service charge
MultiChoice started its operations in Nigeria as a joint venture via a single analogue bouquet of six channels in the 1990s. It was and has been the window to the world of sports, film, and music for many Nigerians, providing a variety of content offerings via DStv and GOtv, two of the most popular pay-TV services in Nigeria.
The journey of MultiChoice in Nigeria has not been without difficulties. Established firms like NTA and HITV presented the corporation with fierce competition when it first entered the Nigerian industry. MultiChoice, however, was able to set itself apart by providing a greater selection of channels and higher picture quality.
However, MultiChoice has increased its subscription rates several times in Nigeria over the years. The first major increase came in 2015 when the company announced a 20% increase in subscription rates across all its packages. The move was met with mixed reactions from subscribers and a court lawsuit.
In 2018, MultiChoice announced another increase in subscription rates, this time by 5%. The company cited the rising cost of content acquisition and inflation as the reasons for the increase. Once again, the move was met with mixed reactions from subscribers, with many expressing their disappointment.
In 2020, the South African streaming service announced a new increase this time, citing the increase in Value Added Tax (VAT) rate as the reason for the price increment.
In April 2022, MultiChoice announced yet another increase in subscription rates, citing several factors for the increase, including the economic realities in the country. This increase has even led to numerous interactions between the South African company and the Federal Competition and Consumer Protection Commission (FCCPC) in an effort to find a workable solution to the problem.
However, despite the criticism, MultiChoice subscribers are still growing in numbers across the country. The company has even launched its DStv Now app, which allows subscribers to stream live TV and on-demand content on their mobile devices.
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