Multichoice Group, the African Pay-TV operator, has reported a significant decline in DStv subscribers, attributing this downturn to Nigeria’s ongoing economic challenges. In its financial results for the year ending March 31, 2024, Multichoice noted an 18% reduction in active subscribers specifically in Nigeria, which has had a broader impact on its overall subscriber base, contributing to a 9% decline across the group.
The company highlighted that economic difficulties in Nigeria have led consumers to prioritize necessities over entertainment, particularly impacting mass-market customers. This shift in consumer behaviour has resulted in a decrease in active subscribers from 9.3 million to 8.1 million in the Rest of Africa segment, which includes Nigeria.
Multichoice explained that factors such as the removal of fuel subsidies, currency depreciation, inflation surpassing 30%, and increased emigration among the middle and upper class have collectively contributed to the subscriber decline. These economic pressures have also reduced Nigeria’s contribution to the Rest of Africa revenues from 44% to 35%.
Ghana has similarly experienced subscriber challenges due to an inflation rate above 20%. Consequently, Multichoice has adjusted its strategy in the Rest of Africa markets, focusing on safeguarding profitability and cash flows rather than aggressive subscriber growth in the short term.
Earlier, Multichoice faced legal challenges in Nigeria related to its subscription pricing, resulting in a court order to halt the implementation of new prices. Despite this, Multichoice proceeded with the price adjustments, leading to a fine and an order to provide Nigerian subscribers with one month of free DStv and GOtv services.
