MultiChoice, the parent company of GOtv, is grappling with significant challenges in Nigeria, including a sharp decline in its subscriber base and a recent order from the Competition Consumer Tribunal (CCT) mandating price reductions. The company, which plans to contest the tribunal’s order, reported a loss of over a million subscribers in Nigeria.
Old vs New GOtv Prices
GOtv subscribers will see their subscription rates revert to previous levels following the court’s decision:
- GOtv Super+: Reduced from N15,700 to N12,500
- GOtv Super: Reduced from N9,600 to N7,600
- GOtv Max: Reduced from N5,700 to N3,950
- GOtv Joli: Reduced from N3,950 to N2,700
- GOtv Jinja: Reduced from N3,300 to N2,700
The court also ordered a month-free subscription for users, though it remains unclear if MultiChoice will comply. The company has yet to officially confirm these changes, as officials have not commented on the matter.
Price Hike Context
MultiChoice had previously increased its subscription prices to align with market realities, citing high inflation and the devaluation of the naira as primary reasons. These economic pressures have significantly impacted consumer spending power, contributing to the loss of subscribers.
Financial Challenges
Compounding MultiChoice’s difficulties, the company disclosed in its annual report that N31.6 billion is trapped in Heritage Bank, which had its license revoked by the Central Bank of Nigeria on June 3, 2024. Initially, MultiChoice had a deposit of N33.7 billion with the bank as of March 31, 2024, which was reduced due to remittances before the revocation.
MultiChoice’s current predicament underscores the broader economic challenges facing businesses in Nigeria. As the company navigates these turbulent waters, the outcome of its appeal against the CCT order and its ability to stabilize its subscriber base will be closely watched by industry observers and consumers alike.
