MultiChoice, the parent company of DStv and GOtv, has announced a significant price hike for its subscription services, effective March 1. The increase, which ranges from 20% to 32% depending on the package, comes as the company faces a shrinking subscriber base and economic challenges in its key African markets.

According to documents seen by TechCabal and an email sent to customers, the new pricing structure is as follows: DStv Premium will now cost ₦45,000 (up from ₦37,000), DStv Compact Plus will cost ₦35,000 (up from ₦30,000), and DStv Compact will cost ₦19,000 (up from ₦15,700).

The latest price increase follows a turbulent 2024 for MultiChoice, which saw a 9% decline in total active subscribers across Africa. The company's fiscal year 2024 report shows that subscriber numbers fell by 13% in Nigeria, Angola, Kenya, and Zambia, driven by currency depreciation and economic downturns. The Nigerian naira's sharp decline alone had a 32% impact on MultiChoice's USD revenue, according to the company.

MultiChoice has attributed the new price adjustments to inflation and foreign exchange pressures. To counter these challenges, MultiChoice is implementing a cost-cutting strategy aimed at saving $113 million while introducing "inflationary pricing" to sustain revenue. The company's ability to retain subscribers amid higher costs remains uncertain, especially considering the rising costs of living and the evolving entertainment market in Africa.

Notably, Netflix also raised its prices in 2024, further shifting consumer preferences in the region. The consecutive price hikes by MultiChoice raise concerns for consumers, who are already dealing with rising costs of living. So far, there has been no official response from Nigeria's Consumer Protection Commission or broadcasting regulators. However, past price hikes by MultiChoice have faced backlash from both consumers and lawmakers.

MultiChoice's dominant position in pay-TV means its pricing decisions have a widespread impact on the market. The company's ability to balance its revenue goals with consumer affordability will be crucial in retaining subscribers and maintaining its market share in the face of growing competition from global streaming services.

As economic conditions remain volatile and consumer spending remains under pressure, the outcome of MultiChoice's pricing strategy will be closely watched. The company's success in navigating these challenges will have significant implications for the entertainment industry in Africa and beyond.