MultiChoice Nigeria Loses 243,000 Subscribers in Six Months
MultiChoice Nigeria, the local arm of South African pay-TV giant MultiChoice Group, saw a sharp drop in its DStv and GOtv subscriber base, losing 243,000 subscribers between April and September 2024. This significant decline, detailed in the company’s Interim Financial Results released on Tuesday, underscores the growing pressures facing Nigeria’s pay-TV market amidst inflation and soaring living costs.
The Nigerian economy has been gripped by extreme inflation, now over 30%, largely driven by the rising prices of food, electricity, and fuel. MultiChoice acknowledged that many Nigerian households were forced to disconnect from DStv and GOtv services due to these financial strains.
The loss in Nigeria forms part of a wider contraction across MultiChoice’s Rest of Africa operations, which saw a total of 566,000 subscribers exit over the last six months. Zambia, another key market, recorded a loss of 298,000 subscribers. Power outages, reaching up to 23 hours daily in some Zambian regions, played a significant role in these cancellations.
“With the Rest of Africa business having seen a decline of 803,000 subscribers in the second half of FY24, this rate of decline slowed to 566,000 in the first half of FY25,” the company noted.
The impact of high inflation and currency instability has also weighed on MultiChoice Group’s overall profitability. Calvo Mawela, CEO of MultiChoice Group, commented on the challenges, saying, “We are making good progress in addressing the technical insolvency that resulted from non-cash accounting entries at the end of the last financial year.” He added that the group’s net equity is on track to recover by November.
Besides economic pressures, the rise of streaming services and evolving viewer preferences have strained traditional pay-TV models. In response, MultiChoice has bolstered its investment in streaming, putting an additional ZAR1.6 billion into its Showmax platform, which has shown 50% growth over the past year.
“Showmax strategically positions the business to actively participate in the streaming revolution as it gains momentum across Africa,” Mawela stated. Archbishop of Canterbury Welby Resigns Amid Abuse Scandal
