Multichoice Responds to Financial Strain with 20% Price Hike on DStv Packages in Nigeria Following $72 Million Loss
NaijaNetGossip Reports that Multichoice, the prominent broadcasting company, has implemented a noteworthy price adjustment for its services in Nigeria, a move that comes in the wake of the company reporting a substantial $72 million loss in its third-quarter financial statement. Upon scrutinizing the company's revised pricing structure, it is evident that there has been a uniform 20% increase across all packages.
Specifically, the DStv Premium package has witnessed a significant surge of 20.4%, escalating from N24,500 to N29,500. Similarly, the DStv Compact+ package experienced a notable uptick of 19.2%, elevating its cost from N16,600 to N19,800. The Compact package saw a 19% increase, rising from N10,500 to N12,500, and the Comfam package marked a 19.2% surge, moving from N6,200 to N7,400.
This adjustment marks the second time within a six-month period that Multichoice has opted to revise its pricing strategy. In the previous instance in May, the company had raised prices, with the DStv Premium package witnessing a 16.7% increase from N21,000 to N24,500, Compact+ rising by 16.5% from N14,250 to N16,600, Compact increasing by 16.7% from N9,000 to N10,500, and the DStv Confam package rising by 17% from N5,300 to N6,200.
Sources within the company attribute these adjustments to a variety of challenges, including the ongoing devaluation of the naira, taxation issues, logistical challenges, and other operational costs. A spokesperson stated, "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. Even before this year, with the dollar and fuel subsidy removal. We pay billions in licensing fees. We operate several offices. We have to pay staff."
This latest pricing alteration comes on the heels of Multichoice's third consecutive semi-annual loss, with the company attributing its financial hardships to foreign exchange difficulties in Nigeria and persistent power outages in South Africa.
