MultiChoice Blames Economy as DStv Subscribers in Nigeria Decline 18%

MultiChoice, the parent company of DStv in Nigeria, has attributed the 18% decline in DStv subscribers in the country to the challenging economic situation. In a statement released on Thursday, MultiChoice Nigeria said the decline was due to factors such as the rising cost of living, inflation, and a general decline in consumer spending. “The economic downturn has made it increasingly difficult for many Nigerians to afford pay-TV services,” the company said. “We understand that this is a challenging time for our customers, and we are committed to working with them to find affordable solutions.” MultiChoice Nigeria noted that despite the decline in subscribers, DStv remained the leading pay-TV provider in the country. The company said it was confident that the economy would recover and that DStv subscribers would return in the future. The decline in DStv subscribers is a blow to MultiChoice, which has been facing increasing competition from streaming services and other pay-TV providers in Nigeria. The company has been investing heavily in its streaming services in recent years in an effort to offset the decline in satellite subscribers. Analysts say the decline in DStv subscribers is a reflection of the broader economic challenges facing Nigeria. The country is currently facing high inflation, unemployment, and a weak currency. The Central Bank of Nigeria has raised interest rates in an effort to curb inflation, but this has made it more expensive for businesses and consumers to borrow money. The economic downturn is expected to continue in the near term, which could lead to further declines in DStv subscribers. MultiChoice will need to find ways to become more affordable for customers and to compete with streaming services if it wants to maintain its market share in Nigeria.Multichoice Blames Nigeria’s Economy for DStv Subscriber Decline

Multichoice Blames Nigeria’s Economy for DStv Subscriber Decline

African pay-TV operator Multichoice Group has attributed declining DStv subscribers in Nigeria to the country’s challenging economic situation. In its financial results for the year ended March 31, 2024, Multichoice reported a 18% decline in active DStv subscribers in Nigeria, resulting in a 9% decline in overall subscriber numbers.

Economic Challenges Impact Nigeria’s Subscribers

Multichoice blamed the Nigerian economy, which has been facing persistent challenges, for the decline in subscribers. These challenges include the removal of fuel subsidies, sharp currency depreciation, high inflation, and increased emigration. As a result, the company reported a decrease of 18% in active subscribers in Nigeria, reducing its contribution to the rest of Africa’s income from 44% to 35%.

Cost-Cutting Measures

To mitigate the impact of declining subscribers, Multichoice has implemented cost-saving initiatives, including reducing set-top box subsidies and cutting administrative costs. These interventions have helped the company increase trading profits.

Subscriber Decline in South Africa

The subscriber decline was not limited to Nigeria, with Multichoice also reporting a 5% decrease in South Africa. The company attributed this decline to prolonged power outages, which discouraged potential subscribers who lacked backup power.

Price Increases and Legal Challenges

Despite the subscriber decline, Multichoice has implemented multiple price increases for its DStv and GOtv packages over the past year. However, these increases have been met with legal challenges, including a court order prohibiting their implementation.

Multichoice’s Response

Multichoice has ignored the court order and implemented the new prices, leading to a fine of N150 million for challenging the court’s jurisdiction. The company has not yet responded to the verdict but has promised to appeal the ruling.MultiChoice, the parent company of DStv, has attributed the 18% decline in its Nigerian subscriber base to the challenging economic climate in the country. The company, in a statement, said that the decline in subscribers was a result of “the economic challenges faced by consumers in Nigeria, which have impacted their disposable income.” MultiChoice added that it is “committed to providing affordable and high-quality entertainment to our customers, and we continue to explore ways to make our services more accessible.” The company said that it is “actively monitoring the situation and will make adjustments to our business as necessary.” The decline in DStv subscribers in Nigeria is a reflection of the broader economic challenges facing the country. The Nigerian economy has been hit hard by the COVID-19 pandemic, and the country is currently facing rising inflation and unemployment. The decline in DStv subscribers is also a blow to MultiChoice, which has been struggling to grow its subscriber base in recent years. The company has been facing increasing competition from streaming services such as Netflix and Amazon Prime Video.