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Multichoice, the most popular PayTV operator in the country, recently announced an increase in its subscription prices by at least 25%. This will require its DSTV premium subscribers to go from paying ₦27,500 ($19.77) to as much as ₦37,400 ($27.10), and the premium GOtv subscription to also go from ₦12,500 to ₦15,700.
The last time the Pay-TV operator increased its prices was in November 2023. They had enacted a 19% increase in subscription prices. The price increase came barely 6 months after they enacted another in July of the same year.
Social media platforms have become flooded with comments from disgruntled customers, many of whom were not just threatening to cancel their Multichoice subscriptions but had indeed done so a while back. These customer responses on social media are symptoms of a larger trend.
A frustrated Nigerian under a social post announcing Multichoice Nigeria’s second price hike in six months said “It’s been over six months since we stopped watching DSTV. I would rather watch internet TV!”
How Multichoice entered the Nigerian market
Multichoice’s entry into the Nigerian market in 1993 marked a significant shift in the entertainment space, offering a wider selection of channels, including international programming, sports, and movies. Initially targeting affluent Nigerians, the company later introduced cheaper packages like GOtv to expand its customer base. Despite adding subscribers, Multichoice faces a decline in its most valuable segments, DStv Premium and DStv Compact Plus subscribers.
The volume of subscriber cancellations and threats following price hikes reveals the price sensitivity of Multichoice’s customer base, indicating a segment prioritizing affordability. With the average Nigerian salary falling between N80,000 and N100,000 ($58-$72), affordability has become a significant concern for many consumers.
Nigerians shift towards streaming alternatives
Consumers are increasingly abandoning traditional pay-TV due to rising costs, opting for streaming alternatives offering on-demand content and personalized viewing experiences. Multichoice’s streaming service, Showmax, accounts for a significant portion of the continent’s streaming market.
The Competition and Consumer Protection Tribunal has ordered MultiChoice Nigeria to suspend its price increases for its DStv and GOtv packages, reflecting growing discontent among consumers. Despite economic challenges in Nigeria, including inflation and foreign exchange issues, Multichoice’s continued price hikes test the limits of subscriber loyalty.
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