Nigerians are grappling with tough decisions as Multichoice, the parent company of popular pay-TV services DStv and GOtv, announced another price hike for its subscription packages.
This comes at a time when telecom operators have just increased data costs, leaving many Nigerians with tough choices as entertainment and internet services become more expensive.
The latest price adjustment, which takes effect from March 1, 2025, saw DStv and GOtv packages increase by an average of 20% and this came as the third price increment by Multichoice Nigeria in the last 15 months.
For instance, the DStv Premium package now costs N44,500, up from N37,000, while the Compact Plus package rose to N30,000 from N25,000.
Similarly, GOtv packages also experienced significant increases, with the GOtv Max package now priced at N8,500, up from N7,200.
Nigerians weigh options
For many Nigerians, the price hike is a heavy blow to their already strained budgets. Lagos-based entrepreneur Israel Ajayi shared his frustration, saying:
“I’ve been a DStv subscriber for over five years, but this latest increase is the last straw.
“I can’t justify spending N44,500 monthly on a TV subscription when I still have to pay for data, electricity, and other essentials. I’m considering switching to free-to-air channels or exploring streaming platforms.”
Another subscriber, Sandra Okeke, a teacher in Lagos, expressed similar concerns.
“I use GOtv because it’s more affordable, but even the GOtv Max package is becoming too expensive. With data costs also going up, I’m thinking of canceling my subscription altogether and relying on YouTube and other free platforms for entertainment,” she said.
For Samuel Ibiwunmi, the double impact of rising pay-TV and data costs means he would have to drop one and manage himself with one service.
“It’s getting harder to keep up. I rely on both cable TV and internet services for my business and personal entertainment, but with these hikes, I will have to cut one-off,” he said.
Experts weigh in on the situation
While acknowledging the financial burden on many Nigerians with the rising costs of all goods and services in the country, a digital marketing specialist, Mr. Henry Olugbenga, advised Nigerians to explore alternative entertainment options.
“Streaming platforms like Netflix, Showmax, and Amazon Prime Video offer more flexibility and competitive pricing.
“While data costs are a concern, many of these platforms allow users to download content for offline viewing, which can help manage data usage,” he said.
- Olugbenga also suggested that Nigerians consider shared subscriptions.
- According to him, some streaming services allow multiple users to share an account, which can significantly reduce costs.
“For example, a family or group of friends can split the cost of a Netflix or Showmax subscription,” he added.
- A financial analyst, Mr Emmanuel Ajuzie, however, shared a different perspective on the matter.
- According to him, Nigerians would need to prioritize their expenses during this period and spend their resources on things that are essential.
- Ajuzie also recommended exploring free or low-cost alternatives, noting that there are numerous free streaming platforms and apps that offer quality content.
“Entertainment is important, but it’s a discretionary expense. In times like this, it’s crucial to focus on needs over wants. Nigerians should consider downgrading their pay-TV packages or canceling them entirely if they’re not essential,” he advised.
Will there be a respite for Nigerians?
While Nigerians are already adjusting to the new price and seeking alternatives, an intervention from the country’s consumer watchdog, the Federal Competition and Consumer Protection Commission (FCCPC) raises hope that the latest price increment by Multichoice will not go unchallenged.
The FCCPC on Tuesday summoned MultiChoice Nigeria to come and explain its proposed subscription price increase.
- According to the Commission, the failure of Multichoice to provide satisfactory explanations on the latest price increment would lead to sanctions.
- The Commission directed the Chief Executive Officer of MultiChoice Nigeria to attend an investigative hearing at its headquarters on Thursday, February 27, 2025.
- FCCPC noted that in summoning the company, it is exercising its mandate under Sections 32 and 33 of the Federal Competition and Consumer Protection Act (FCCPA).
What you should know
The latest price increment comes despite the huge loss of subscribers by the Pay-tv company the previous year due to multiple price increments.
Beyond its usual annual price increment, Multichoice had increased its prices twice in 2023, one in April and another in November of the same year.
- Last year, the company implemented another price increment on May 1, which sparked outrage from customers and was even challenged at the Consumer Protection Tribunal (CPT) by aggrieved subscribers.
- As of September 2024, Multichoice Group reported that its Nigerian operation lost 243,000 subscribers across its DStv and GOtv services in the six months covering April to September.
- The company, however, blamed the loss of subscribers on the high inflation in Nigeria at over 30% at that time, driven by the high cost of food, electricity, and fuel.
- According to Multichoice, this forced many of its customers to ditch their decoders.
