Multichoice Nigeria has announced another price hike for its DStv and GOtv subscription packages, effective March 1st, 2025. This marks the second price increase within a year, as the pay-TV giant navigates economic challenges and inflationary pressures in its key African markets.
According to the notice sent to customers, the new pricing structure will see DStv Compact rise from ₦15,700 to ₦19,000, Compact Plus to ₦30,000, and the Premium package from ₦37,000 to ₦44,500. Similarly, GOtv packages will also see significant changes, with the Max package now costing ₦8,500, Supa at ₦11,400, and Supa Plus at ₦16,800.
Why the Price Hike?
MultiChoice attributes the increase to inflation and foreign exchange pressures. In a statement titled “Price adjustments for DStv and GOtv packages,” the company explained, “This is to enable us to continue to offer our customers world-class home-grown and international content, delivered through the best technology.”
However, the latest price hike comes amid a shrinking subscriber base and economic downturns. MultiChoice’s fiscal year 2024 report showed a 9% decline in active subscribers across Africa, with a 13% drop in Nigeria, Angola, Kenya, and Zambia. The depreciation of the Nigerian naira alone impacted MultiChoice’s USD revenue by 32%.
A Strategy to Counter Economic Challenges
To address these challenges, MultiChoice is implementing a cost-cutting strategy aimed at saving $113 million while introducing “inflationary pricing” to sustain revenue. The company cites rising operational costs and currency depreciation as significant factors for the price review.
Impact on Consumers and Market Dynamics
The back-to-back price adjustments have raised concerns among consumers who are already grappling with a high cost of living. The increase is expected to influence consumer preferences in Africa’s competitive entertainment market, where streaming platforms like Netflix also raised prices in 2024.
Despite the outcry, there has been no official response from Nigeria’s Consumer Protection Commission or broadcasting regulators. However, past price hikes by MultiChoice have faced backlash from both consumers and lawmakers due to the company’s dominant position in the pay-TV market.
What’s Next for MultiChoice?
With the economic landscape still volatile and consumer spending under pressure, it remains uncertain how MultiChoice will navigate the challenges of subscriber retention amid rising costs.
Stay tuned to Techsoma Africa for more updates on this and other developments in the African tech and entertainment industry.
Comments 1