Cable TV operator Multichoice Group has cited Nigeria’s economic challenges as the cause of a decline in DStv subscribers.
Multichoice reported an 18 percent reduction in active subscribers in Nigeria in its financial results for the year ending March 31, 2024.
This decline in Nigeria contributed to a nine percent overall decrease in the company’s subscriber base. The specific number of Nigerian subscribers was not provided, as it is included with other units outside South Africa under ‘Rest of Africa’ (RoA).
The 18 percent decline in Nigeria reduced the RoA’s total active subscribers by 13 percent, from 9.3 million in 2023 to 8.1 million.
“The group’s 9% decline in active subscribers was mainly due to a 13% decline in the Rest of Africa business, as mass-market customers in countries like Nigeria had to prioritize basic necessities over entertainment, while the South African business showed more resilience with a 5% decline,” the company stated.
Multichoice cited several challenges in Nigeria, including the removal of fuel subsidies, sharp currency depreciation, inflation exceeding 30%, and increased emigration of the middle and upper class, leading to an 18% year-on-year decline in active subscribers.
This decline also reduced Nigeria’s contribution to the Rest of Africa revenues from 44 percent to 35 percent. Ghana experienced a similar trend, with an inflation rate still above 20 percent.
Due to these challenging market conditions, Multichoice shifted its short-term focus in the RoA (including Nigeria, Angola, Kenya, Ghana, and Zimbabwe) from subscriber growth to safeguarding profitability and cash flows.
Notably, ahead of Multichoice’s implementation of new subscription prices on May 1, the Competition and Consumer Protection Tribunal (CCPT) in Abuja issued an order preventing the company from implementing the new prices based on a case filed by a Nigerian customer.
Despite the court order, Multichoice proceeded with the new prices, leading the Tribunal to impose a N150 million fine on the company for challenging the court’s jurisdiction. The court also ordered Multichoice to provide Nigerians with a one-month free subscription on DStv and GOtv.
