Multichoice Points To Nigeria’s Economic Conditions As Reason For Reduction In DStv Subscriptions

The Pay-TV company, Multichoice Group, pointed to Nigeria’s economy as the reason for the 18% drop in active DStv subscribers in the country.

This information was disclosed in the financial report for the year ending March 31, 2024, released on Wednesday. The decrease in subscribers in Nigeria had a knock-on effect on the company’s total subscriber base, resulting in a 9% decline for the year.

The specific subscription numbers for Nigeria were not detailed as they are combined with other operational units outside South Africa under the category ‘Rest of Africa’ (RoA).

Multichoice mentioned that since the total subscription number for Nigeria is combined with other operating units outside South Africa under ‘Rest of Africa’ (RoA), the specific figure for Nigeria wasn’t provided.

They also stated that the 18% decrease in Nigeria contributed to a 13% drop in RoA’s total active subscribers, bringing the number down to 8.1 million from 9.3 million in 2023.

The group saw a 9% decrease in active subscribers primarily due to a 13% drop in the Rest of Africa segment. Countries like Nigeria had mass-market customers prioritizing essentials over entertainment, while the South African business demonstrated more resilience with a 5% decline.

The company said that throughout the Fiscal year 24  Nigerian economy and consumers faced ongoing challenges. These included the removal of fuel subsidies, a significant currency devaluation resulting in the official naira value being halved, inflation surpassing 30%, and increased emigration of the middle and upper classes, leading to an 18% year-on-year decrease in active subscribers.

Multichoice also mentioned that this shift reduced Nigeria’s share of the Rest of Africa revenues from 44% to 35%. They highlighted that Ghana experienced a comparable subscriber trend due to an inflation rate that remains above 20%.

In response to the challenging market conditions, Multichoice redirected the short-term strategy of its Rest of Africa business (covering Nigeria, Angola, Kenya, Ghana, and Zimbabwe) from focusing on subscriber growth to prioritizing the protection of profitability and cash flows.

It was recalled that before Multichoice’s new subscription prices were set to take effect on May 1, there was a situation where a Competition and Consumer Protection Tribunal (CCPT) in Abuja issued an order preventing the company from implementing the new prices following a case brought by a Nigerian customer.

LEADERSHIP reported that despite the court order, Multichoice went ahead and applied the new prices, leading the Tribunal to impose a N150 million fine on the company for contesting the court’s jurisdiction.

The ruling delivered by a panel of three, with Thomas Okosu at the helm, also mandated Multichoice to offer Nigerians a one-month complimentary subscription on DSTV and GOTV.