MultiChoice Proceeds with Price Hike Despite Federal Opposition in Nigeria

MultiChoice has implemented a price increase for its DStv and GOtv offerings despite the FCCPC calling it unacceptable. The company’s CEO has been summoned for a hearing regarding this decision, which follows a significant loss of subscribers and revenue in Nigeria due to unfavorable economic conditions.

MultiChoice has faced pushback from Nigeria’s Federal Competition and Consumer Protection Commission (FCCPC) regarding its recent price increase for DStv and GOtv subscribers. Despite the FCCPC deeming the price hike unacceptable, MultiChoice decided to proceed with the increase initially announced on February 27th, which came into effect on March 1st. The FCCPC has since summoned MultiChoice’s CEO to address the situation during a rescheduled hearing on March 6, 2025, requiring comprehensive explanations from the company.

In November 2024, MultiChoice reported that approximately 243,000 Nigerians refrained from renewing their subscriptions from April to September 2024 due to economic downturns affecting the market. This subscriber attrition has impacted the company significantly, leading to a reported 30.77% decline in subscriber income from Nigeria for the fiscal year concluding in March 2024. The ongoing financial challenges are likely to be central topics during the impending discussions with the FCCPC.

In summary, MultiChoice has defied a ruling from the FCCPC by raising subscription fees for its pay-TV services, despite the commission’s objections. The company is now required to justify its actions at a hearing, as it faces declining subscriber numbers and a drop in revenue from the Nigerian market. The situation highlights ongoing market challenges for MultiChoice in Nigeria.

Original Source: www.advanced-television.com