Over the past three years, MultiChoice, the prominent broadcasting company in Nigeria, has progressively increased the prices of its DStv and GOtv packages, citing rising operational costs and inflationary pressures. The latest price hike was announced on Wednesday, marking the third increment in a year and pushing the cost of various packages significantly higher.
Starting from May 1, 2024, the price for the DStv Premium package will see an increase from N29,500 to N37,000. This follows a pattern of substantial price adjustments across all their offerings. For instance, the DStv Compact+ package will jump from N19,800 to N25,000, and the Compact package from N12,500 to N15,700. More affordable options have not been spared; the Comfam package will rise from N7,400 to N9,300, and the Yanga package from N4,200 to N5,100, with the Padi package increasing to N3,600 from N2,950.
GOtv packages are also experiencing similar hikes, with the GOtv Supa+ and Supa packages going up to N15,700 and N9,600 respectively. Even the lowest tier, the Smallie package, will increase from N1,300 to N1,575.
These frequent price adjustments began with an increase in March 2022, when MultiChoice cited inflation and rising business costs as the reasons for the upward revision of its subscription fees. Premium packages then were adjusted from N21,000 to higher rates, with subsequent increases following a similar trend. By April 2023, another price hike was announced through customer communications, ensuring subscribers that despite another increment—this time by 17 percent—the rates would be applicable from May 1, 2023.
Most recently, in December 2023, MultiChoice faced a significant $72 million loss as reported in its financial statements for the third quarter of the year. Shortly thereafter, it implemented another 20 percent hike across its packages. This pattern of increases reflects the company’s struggle with maintaining operational viability amidst economic pressures.
The continuous rise in prices can be attributed to several factors. The company has been transparent about the financial challenges it faces, particularly with the fluctuating costs of content, which is often priced in foreign currencies. As the naira has depreciated, the cost of maintaining an international standard of service has evidently increased. Moreover, operational costs in Nigeria have been escalating due to inflation, which affects everything from energy costs to staff salaries.
MultiChoice’s strategy seems to focus on ensuring sustainability in a tough economic environment. However, this has led to concerns among subscribers who feel the pinch of rising costs, as customers evaluate the cost versus the quality and variety of content provided.
