Multichoice Group, the African Pay-TV operator, has attributed an 18 percent decline in DStv active subscribers in Nigeria to the country’s economy downturn.
This was contained in the company’s financial result for the year, which ended March 31, 2024.
The decline in Nigerian subscribers significantly impacted Multichoice’s overall subscriber database, resulting in a 9 percent decrease for the year. Although the exact number of subscribers in Nigeria was not disclosed, it was included in the category labeled ‘Rest of Africa’ (RoA).
It reported that the 18 per cent decline in Nigeria brought the RoA’s total active subscribers down by 13 per cent to 8.1 million from 9.3 million in 2023.
“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 Nigerian economy and consumers faced persistent challenges through FY24. The removal of fuel subsidies, sharp currency depreciation with the official naira halving in value, inflation climbing to over 30%, and higher emigration of the middle and upper class drove an 18% YoY decline in active subscribers,” the company said.
Multichoice added that this also reduced Nigeria’s contribution to the Rest of Africa revenues from 44 per cent to 35 per cent.
It noted, however, that Ghana saw a similar subscriber trend given an inflation rate that is still above 20 per cent.
Multichoice further stated that due to the challenging market dynamics, the short-term focus of its RoA (Nigeria, Angola, Kenya, Ghana, and Zimbabwe) business was shifted from subscriber growth to safeguard profitability and cash flows.
Recall that Ahead of the implementation of Multichoice’s new subscription prices on May 1, a Competition and Consumer Protection Tribunal (CCPT) sitting in Abuja issued an order restraining the company from implementing the new prices based on a case filed by a Nigerian customer.
Multichoice ignored the court order and implemented the new prices which prompted the Tribunal to slam a N150 million fine on the company for challenging the jurisdiction of the court.
The court also ordered Multichoice to give Nigerians a one-month free subscription on DSTV and GOTV.
