A consumer rights group has raised concerns over the disparity in subscription fees between MultiChoice customers in Nigeria and South Africa.
The criticism comes as the entertainment giant, which operates DStv and GOTV faces financial struggles amid a shrinking subscriber base.
MultiChoice recently informed its shareholders to prepare for tougher times, citing a difficult consumer environment. The company has seen its subscriber count drop from over 23 million to 19.3 million in less than two years, with most losses occurring outside South Africa.
In a statement, the company attributed the decline to economic challenges in Nigeria, where inflation has remained above 30% for the past year. Additionally, extreme power disruptions in Zambia have contributed to reduced subscriptions, affecting overall revenue growth.
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Despite its dominant position in the African market, MultiChoice continues to struggle with financial constraints. In its latest operational update, the company stated that it is preparing its financial results for the year ending March 31,while acknowledging the impact of economic difficulties on its operations.
The consumer group opposing the pricing disparity argues that Nigerian customers pay higher fees compared to South African subscribers, despite facing tougher economic conditions. They are calling for a review of pricing structures to reflect the financial realities of each market.
As MultiChoice battles subscriber losses and financial pressures, stakeholders are keenly watching how the company navigates these challenges. The growing dissatisfaction among Nigerian consumers could push the entertainment giant to reconsider its pricing policies in the region.
Agency report
