Multichoice Raises DStv, GOtv Prices for Second Time This Year, Blames Inflation

Multichoice, the company behind popular pay-TV services DStv and GOtv, has announced another price increase for its subscription packages, marking the second hike within a year. The new rates, which will take effect on March 1, 2025, reflect a significant rise of at least 20% across various plans. This decision comes as the company battles economic challenges and a shrinking subscriber base in key African markets.q

According to an email sent to customers, the updated prices are as follows: DStv Premium will now cost ₦45,000, up from ₦37,000; DStv Compact Plus will rise to ₦35,000 from ₦30,000; and DStv Compact will increase to ₦19,000 from ₦15,700. These adjustments have sparked concerns among consumers already grappling with rising living costs.

Multichoice has cited inflation and foreign exchange pressures as the main reasons for the price hikes. The company has faced significant financial strain due to currency depreciation in countries like Nigeria, Angola, Kenya, and Zambia. For instance, the sharp decline of the Nigerian naira alone reduced Multichoice’s revenue in U.S. dollars by 32%. To address these challenges, the company is implementing a cost-cutting strategy aimed at saving $113 million while introducing what it calls “inflationary pricing” to maintain revenue levels.

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QThe increase comes after a difficult 2024 for Multichoice. During that year, the company reported a 9% drop in active subscribers across Africa and a 13% decline in key markets like Nigeria. This was attributed to economic downturns and reduced consumer spending power. Despite these setbacks, Multichoice is doubling down on its pricing strategy to navigate the tough economic environment.

The decision to raise prices again has not gone unnoticed. Consumers have expressed frustration over the repeated hikes, especially as many are already struggling with higher costs of living. While there has been no official response yet from Nigeria’s Consumer Protection Commission or broadcasting regulators, past price increases by Multichoice have faced criticism from both lawmakers and customers. The company’s dominant position in Africa’s pay-TV market means its pricing decisions significantly impact millions of households.

Adding to the pressure on Multichoice is competition from streaming platforms like Netflix, which also raised its prices in 2024. With more affordable alternatives available online, some consumers may reconsider their subscriptions to DStv or GOtv. This shift in consumer preferences poses an additional challenge for Multichoice as it tries to retain its subscriber base amid rising costs.

For now, it remains uncertain how this latest price adjustment will affect Multichoice’s business in the long term. With economic conditions remaining volatile across Africa and household budgets under strain, many are questioning whether customers will continue to stick with Multichoice’s DStv and GOtv services or explore other options. As March 1 approaches, all eyes are on how consumers will respond to yet another increase in their entertainment expenses.

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