MultiChoice Nigeria reported a loss of 243,000 DStv and GOtv subscribers between April and September 2024, citing inflation and economic challenges. Facing record-high costs, the company has adjusted its focus toward streaming growth, while also managing legal challenges in Nigeria related to recent subscription price increases.
In a challenging financial period, MultiChoice Nigeria has reported a significant subscriber loss, with 243,000 customers disconnecting their DStv and GOtv services between April and September 2024. This development was disclosed in MultiChoice Group’s interim financial results, attributing the decline largely to Nigeria’s ongoing inflation crisis, which has driven up costs for essentials such as food, electricity, and fuel. The impact of inflation has forced many Nigerian households to make tough financial choices, including canceling subscriptions.
The subscriber drop is part of a broader trend in MultiChoice’s operations across Africa, with Zambia and Nigeria accounting for the majority of the 566,000 customers lost continent-wide in the first half of the fiscal year. According to MultiChoice Group CEO Calvo Mawela, the company is facing “the most challenging operating conditions in almost 40 years.” Mawela cited not only inflation but also currency depreciation across African markets, which has slashed the group’s profits by nearly R7 billion in recent months.
MultiChoice has raised prices on its services multiple times in response to rising costs, which has added pressure to its Nigerian customer base. The company has also faced legal challenges, including fines and injunctions from Nigerian authorities for implementing price increases despite a restraining order.
To adapt, MultiChoice is ramping up investment in its streaming platform, Showmax, which has grown by 50% year-on-year, aiming to tap into the rising demand for streaming services as traditional pay-TV faces increased competition.
