Multichoice Group, the African pay-TV operator, has reported a notable decline in the number of DStv subscribers in Nigeria. According to the company’s financial report for the year ending March 31, 2024, there was an 18% reduction in active DStv subscribers in Nigeria, which the company attributes to the challenging economic conditions in the country.
The decline in Nigeria significantly impacted MultiChoice’s overall subscriber base, resulting in a 9% decrease in active subscribers across the entire group for the year. While specific subscription numbers for Nigeria were not disclosed, the data was combined with other regions outside South Africa under the category of ‘Rest of Africa’ (RoA).
Multichoice revealed that the 18% drop in Nigeria led to a 13% decrease in total active subscribers within the RoA, reducing the figure from 9.3 million in 2023 to 8.1 million in 2024.
“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. Meanwhile, the South African business showed more resilience with a 5% decline,” the company stated.
The report highlighted several factors contributing to the decline in Nigeria, including the removal of fuel subsidies, sharp currency depreciation, inflation rising above 30%, and increased emigration of the middle and upper class. These economic challenges resulted in an 18% year-on-year decrease in active subscribers.
Additionally, Multichoice noted that Nigeria’s share of the Rest of Africa revenues fell from 44% to 35%. Similar subscriber trends were observed in Ghana, where the inflation rate remains above 20%.
Due to the difficult market conditions, Multichoice shifted its immediate priority for its RoA operations, which include Nigeria, Angola, Kenya, Ghana, and Zimbabwe, from increasing subscribers to protecting profitability and cash flow. Several cost-saving initiatives were implemented, including a significant reduction in decoder subsidies (-46% year-on-year or ZAR1.3 billion) and a decrease in selling, general, and administrative (SG&A) costs by ZAR500 million. These measures enabled the Rest of Africa business to increase trading profit by 48% year-on-year to ZAR1.3 billion.
It is noteworthy that before Multichoice’s revised subscription prices took effect on May 1, the Competition and Consumer Protection Tribunal (CCPT) in Abuja issued an order prohibiting the company from implementing the new prices. This order followed a case filed by a Nigerian customer. Despite this, Multichoice ignored the court order and went ahead with the price changes, leading the Tribunal to impose a N150 million fine on the company for defying the court’s jurisdiction.
The verdict delivered by a three-member panel, led by Thomas Okosu, also mandated Multichoice to provide Nigerians with a one-month complimentary subscription to DStv and GOtv.
