By Oyinkansayo Wole-Bodunde.
The media and entertainment industry has been affected with the economic hardship, which has led to companies like MultiChoice Nigeria, the operator of DStv and GOtv, reconsidering their pricing strategies.
The inflation rate in Nigeria has increased dramatically from 8.5% in 2013 to approximately 34.8% in 2024. This has resulted in increased costs for businesses, including rising energy costs, fluctuating currency rates, and higher expenses for content acquisition and production. Many companies have been forced to adjust their pricing to maintain viability.
Despite the controversy surrounding the price increase, MultiChoice remains committed to enhancing the Nigerian entertainment landscape. The company has invested heavily in local content, talent development, and infrastructure. Initiatives like the MultiChoice Talent Factory aim to nurture aspiring filmmakers and creatives, while partnerships with local producers help generate engaging stories that resonate with audiences.
MultiChoice argues that the price increase is necessary to ensure the sustainability of its services. The company claims that its new pricing remains competitive, particularly when compared to other sectors experiencing even higher price hikes. According to a report from SBM Intelligence, MultiChoice’s price adjustments are lower than those seen in many other industries affected by similar economic pressures.
To reduce the impact of the price changes on consumers, MultiChoice has introduced measures such as the Price Lock feature and the Step Up offer. The Price Lock feature allows subscribers to renew at their current rates before expiration, while the Step Up offer enables customers to upgrade to a higher package at a reduced cost during renewal.
The challenges faced by the entertainment sector are further illustrated by the departure of platforms like the MTV Africa Music Awards (MAMAs) and various entertainment shows that exited the country due to escalating operational costs. Additionally, numerous Netflix Originals and Prime Video projects have been suspended or canceled due to rising production expenses.
Despite these challenges, MultiChoice’s subscription rates remain among the lowest in Africa. The company’s pricing structure is designed to balance quality service and competitive value, even in a difficult economic context. A comparison of DStv and GOtv prices in Nigeria and other African countries reveals that MultiChoice’s packages are significantly more affordable.
