MultiChoice Nigeria, the country’s largest pay-TV provider, is facing significant subscriber losses, with 243,000 customers discontinuing DStv and GOtv services between April and September 2024.
This decline reflects Nigeria’s tough economic landscape, characterized by soaring inflation rates above 30% and currency devaluation, which have sharply reduced household spending power. High food, fuel, and electricity costs are forcing many Nigerians to cut back on non-essential expenses, including pay-TV subscriptions.
This latest subscriber dip follows a tough year for MultiChoice. Earlier in 2024, the company disclosed an 18% drop in its Nigerian customer base, underscoring the continued financial strain on households.
Nigeria’s losses are part of a broader decline across MultiChoice’s “Rest of Africa” division, which saw 566,000 subscribers leave, with Zambia also experiencing a major drop due to drought-related power outages lasting up to 23 hours daily.
MultiChoice’s CEO, Calvo Mawela, described these as some of the most challenging operating conditions the company has faced in its nearly 40-year history. Currency instability across Africa has reduced the company’s earnings by nearly R7 billion. Mawela indicated that MultiChoice is implementing cost-saving measures to offset these financial setbacks and adjust to the shifting landscape.
As traditional pay-TV subscriptions become less affordable, more Nigerians are switching to streaming services that offer flexible pricing and a diverse content library.
MultiChoice is feeling the competition from global streaming giants and has ramped up its investment in Showmax, its own streaming platform, which grew 50% year-over-year. This growth comes as the company invested ZAR1.6 billion into Showmax over the past six months to keep up with competitors.
In a bid to retain paying subscribers, MultiChoice has also launched initiatives to tackle illegal streaming. Working with local authorities, the company is taking steps to curb the unauthorized sharing of its content, which has been a significant revenue drain.
Mawela is hopeful that these efforts will help reduce piracy, making pay-TV and Showmax subscriptions more attractive to consumers.
The ongoing economic challenges and the rise of streaming alternatives are reshaping Nigeria’s entertainment landscape. To stay relevant, traditional pay-TV providers like MultiChoice may need to consider flexible subscription plans and partnerships with telecom providers to offer bundled services.