The  MultiChoice’s Only Choice as It Raises Prices on DStv, GOtv

Yes, your DStv price may be going up and watching your European Champions League games may be imperiled in Nigeria. Before you call me names for trying to make a case why Multichoice needs to increase prices, I have to report that DStv and its owner are not having good days: “Broadcasting company Multichoice has jacked up the prices of its offerings in Nigeria days after announcing a $72m loss in its financial statement for the third quarter of the year. Checks on the company’s reviewed price list showed a 20 percent percent hike in the company’s packages across the board.”

Of course, someone will get a court injunction to stop MutiChoice (owner of DStv and GOtv) from increasing prices since watching these sports games is a right enshrined in the Nigerian constitution+ and the judges are doing their jobs protecting citizens from a “monopolist”.

I do not live in Nigeria to care about DStv. But what I know is that DStv’s core product (European football) is a foreign product, created in Europe. If MultiChoice does its agreements every 5 years, there is a likelihood that it paid for its current rights when Naira was going for say N385/$. It paid the Europeans in foreign currency and never in Naira. If that remains the case, and with Naira hovering around N1000/$, if MultiChoice does not increase price, it has to be assessed for running a charity as a for-profit company.

Interestingly, it was assessed and it reported “$72m loss in its financial statement for the third quarter of the year”. Now, it has to come to reality and increase prices. It is a reasonable thing to do if customers want it to live for the future. 

Indeed, MultiChoice offers customers multiple choices, but here, it has only a single choice to remain in business: jack up prices since it cannot return to Europe to renegotiate rates because the Naira has crashed!

Broadcasting company Multichoice has jacked up the prices of its offerings in Nigeria days after announcing a $72m loss in its financial statement for the third quarter of the year.

Checks on the company’s reviewed price list showed a 20 percent percent hike in the company’s packages across the board.

With the latest price hike, the DStv Premium package increased by 20.4 percent from N24,500 to N29,500. Similarly, the DStv Compact+ has gone up by 19.2 percent from N16,600 to N19,800 while the Compact package increased by 19 percent, from N10,500 to N12,500.

Yes, your DStv price may be going up and watching your European Champions League games may be imperiled in Nigeria. Before you call me names for trying to make a case why Multichoice needs to increase prices, I have to report that DStv and its owner are not having good days:… pic.twitter.com/cxof8qiibS

— Ndubuisi Ekekwe (@ndekekwe) December 10, 2023

Comment on Feed

Comment 1: Why focus on only football? Is the offering only in Nigeria?

My Response: Because Nigeria is the only country that lost 60% of the value of its currency in 3 months! They are doing well in other countries if you look at their consolidated annual reports. But when you convert the Naira to USD, they become hopeless.

Good point. PPV is even a terrible business model in Nigeria. People think they will divide N20,000/30 days/24 hours and ask you to pay whatever during Champions League games. They can make Champions League N50,000 per 3 hours and allow you to do PPV. In US, PPV can go for $1,000

— Ndubuisi Ekekwe (@ndekekwe) December 10, 2023

Good point. PPV is even a terrible business model in Nigeria. People think they will divide N20,000/30 days/24 hours and ask you to pay whatever during Champions League games. They can make Champions League N50,000 per 3 hours and allow you to do PPV. In US, PPV can go for $1,000

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