African pay-TV company Multichoice Group has attributed the drop in DStv subscribers to Nigeria’s economic woes. Multichoice reports that the number of active subscribers in the nation has dropped by 18%.
The company disclosed this in its financial result for the year, which ended March 31, 2024.
According to Multichoice, the decline in Nigeria affected its overall subscriber base leading to a nine per cent decline for the year.
Since Nigeria is included with other operating units outside of South Africa and labeled as “Rest of Africa,” the total subscription amount for Nigeria was not disclosed (RoA).
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According to the report, the reduction of 18% in Nigeria resulted in a 13% decrease in the overall active subscribers of the RoA, which dropped from 9.3 million in 2023 to 8.1 million.
“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.
As noted by Multichoice, this also caused Nigeria’s revenue share in the Rest of Africa to drop from 44% to 35%. It did point out, though, that given an inflation rate that is still more than 20%, Ghana had a similar subscriber trend.
Multichoice went on to say that its RoA (Redemption, Africa, Ghana, Kenya, and Zimbabwe) business has to refocus its short-term priorities from subscriber development to cash flow protection and profitability due to the difficult market conditions. Recall that based on a complaint brought by a Nigerian customer, the Competition and Consumer Protection Tribunal (CCPT) in Abuja issued an injunction blocking the firm from implementing the new prices prior to Multichoice’s increased subscription prices going into effect on May 1.
It was discovered that Multichoice had implemented the new tariffs in defiance of the court’s ruling, and as a result, the Tribunal had fined the business N150 million for contesting the court’s jurisdiction. Additionally, Multichoice was mandated by the court to provide free one-month subscriptions to DSTV and GOTV to Nigerians. African pay-TV provider Multichoice Group has attributed the drop in DStv subscribers to Nigeria’s economic woes.
The declaration by MultiChoice that the drop in Nigerian subscribers was partly caused by economic difficulties is indicative of larger patterns in consumer behavior and market dynamics. Businesses in the Pay-TV sector need to modify their tactics in order to stay flexible and competitive as long as the economy is unstable. Opportunities for innovation, teamwork, and customer-centric strategies that put value and affordability first are presented by the changing landscape. In a competitive and dynamic industry, MultiChoice and other Pay-TV operators can continue to provide high-quality entertainment experiences while navigating obstacles by comprehending and catering to the needs of Nigerian consumers.
