South African broadcasting giant Multichoice has once again jolted subscribers by implementing a 20% price increase across all its packages.
This marks the third price surge this year, following a 16.7% spike in May and another in November. The company’s recent third-quarter financial statement reveals a staggering $72 million in losses, signaling a concerning trend.
The DStv Premium package, a favorite among subscribers, has seen a substantial 20.4% increase from N24,500 to N29,500, adding strain to the wallets of loyal viewers. The DStv Compact+ and Compact packages were not spared, experiencing hikes of 19.2% and 19%, respectively.
A source within Multichoice sheds light on the rationale behind the move, citing Nigeria’s challenging business environment. The continuous devaluation of the naira, taxation, and logistical hurdles are identified as key factors.
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The source emphasizes the dilemma faced by the company: “We buy content in dollars but earn in naira. If we take off a channel or stop acquiring content that our customers are used to, we will be slammed. We buy diesel. We pay taxes. We operate several offices. We have to pay staff.”
The persistent power outages in South Africa is also blamed for the woes of Multichoice.