Bad News For Multichoice Subscribers On DSTV & GOTV

It is bad news for Multichoice subscribers, especially users of its pay-to-watch channels on DSTV and GOTV.

This is because it has increased the costs to access its services in Nigeria.

Report by The Nation observes that this is coming on the heels of disclosing a $72 million deficit in its third-quarter financial report.

So, the new hike, is it a way of recouping what it may have lost in the quarter under reference or routine move to ensure profitability going forward,

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It is difficult to say for now, but either way, it is truly bad news for Multichoice subscribers, as the latest development, which is a hike in access fees by 20% on its bouquets.

The DStv Premium bundle had a 20.4 percent price increase, going from N24,500 to N29,500, with the most recent increase. Comparably, the Compact package jumped by 19%, from N10,500 to N12,500, while the DStv Compact+ climbed by 19.2%, from N16,600 to N19,800.

The Comfam package increased from N6,200 to N7,400, a 19.2% increase. With this most recent increase, the business has now reviewed pricing upward twice in as many months.

Multichoice had increased the cost of its products in May. In this round of price increases, the N3,500 rise from N21,000 to N24,500 represents a 16.7% increase in the DStv Premium package.

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Similarly, the DStv Compact+ package went up by 16.5 percent (N2,350) from N14,250 to N16,600. The DStv Compact package also increased by 16.7 percent from N9,000 to N10,500. The DStv Confam package, previously priced at N5,300, went up by 17 percent to N6,200.

The report quotes an inside source as claiming that in addition to dealing with a wide range of issues like taxes and logistics, the company also had to deal with the disastrous effects of the naira’s ongoing devaluation.

The source said: “Yes. We have increased our rates. We buy content in dollars but earn in naira. If we take off a channel or stop acquiring content that our customers are used to, we will be slammed.

“We buy diesel. We pay taxes. Even before this year, with the dollar and fuel subsidy removal. We pay billions in licensing fees. We operate several offices. We have to pay staff.”

The most recent increase follows Multichoice’s announcement of a third straight semi-annual loss, which it attributed to ongoing power shortages in South Africa and problems with foreign exchange in Nigeria. In a situation where millions of Nigerians have been hard hit by harsh economic realities, the price hike is certainly a Bad News For Multichoice Subscribers.