“MULTICHOICE’S ALARM: 18% OF NIGERIAN SUBSCRIBERS SHUN DSTV”

Multichoice Group, the African Pay-TV operator, has expressed concern over the recent decline in the number of DStv subscribers in Nigeria. In its financial report for the year ending on March 31, 2024, Multichoice attributed the 18% decrease in active DStv subscribers in Nigeria to the country’s economic challenges.

The company highlighted that this decline had a significant impact on the overall subscriber base, resulting in a 9% decrease for the entire year. While specific subscriber numbers for Nigeria were not provided, they were included in the ‘Rest of Africa’ (RoA) category along with other operating units outside South Africa.

Multichoice revealed that the 18% decline in Nigeria contributed to a 13% decrease in the total active subscribers of RoA, reducing the figure to 8.1 million from 9.3 million in 2023. The challenging economic conditions in Nigeria, including the removal of fuel subsidies, currency depreciation, high inflation, and increased emigration, were cited as key factors driving this decline.

As a result of the subscriber decrease in Nigeria, Multichoice noted a decrease in Nigeria’s share of the Rest of Africa revenues from 44% to 35%. Similar subscriber trends were observed in Ghana due to high inflation rates.

Given the difficult market conditions, Multichoice prioritized protecting profitability and cash flow in its RoA operations, including Nigeria, Angola, Kenya, Ghana, and Zimbabwe. Cost-saving initiatives were implemented, such as reducing decoder subsidies and cutting selling, general, and administrative costs.

Despite facing legal challenges, including a court order restraining the implementation of revised subscription prices, Multichoice proceeded with the new prices. This led to a N150 million fine imposed by the Competition and Consumer Protection Tribunal in Abuja. Additionally, Multichoice was required to provide Nigerians with a one-month complimentary subscription to DSTV and GOTV.

These developments underscore the complex landscape Multichoice navigates in Nigeria and across Africa, where economic factors and legal proceedings impact its operations and subscriber base.