MultiChoice has defied a Nigerian ruling prohibiting increases in subscription fees for DStv and GOtv, as a recent hike took effect. The FCCPC has summoned the company’s CEO for a hearing on March 6, 2025, to discuss these changes. As of 2024, MultiChoice reported a substantial decline in subscriber numbers and revenue in Nigeria, attributed to economic hardships faced by consumers.
MultiChoice has proceeded to increase its subscription fees for DStv and GOtv, disregarding a ruling by Nigeria’s Federal Competition and Consumer Protection Commission (FCCPC) that deemed such a price hike unacceptable. Although the company had previously sought to retain the old subscription prices while engaging in discussions with the FCCPC, this negotiation process has been superseded by the immediate implementation of the new rates, which were announced on February 27th and took effect on March 1st.
In response to these developments, the FCCPC has summoned MultiChoice’s Chief Executive Officer to appear before the commission to address the recent price increases. Ondaje Ijagwu, the FCCPC Director of Corporate Affairs, indicated that the agency had granted MultiChoice’s request for a postponement of its initial hearing but has since required the company to attend a rescheduled investigative session set for March 6th, 2025, alongside pertinent officers and a comprehensive explanation regarding the increases.
MultiChoice has faced difficulties in maintaining subscriber retention, revealing that approximately 243,000 Nigerians chose not to renew their subscriptions between April and September 2024, attributing this decline to adverse changes in the macroeconomic climate and the consumer environment in Nigeria. Furthermore, MultiChoice Group reported a significant 30.77 percent decrease in subscriber revenue from Nigeria for the full fiscal year that concluded in March 2024.
In summary, MultiChoice’s decision to increase subscription fees despite the FCCPC’s ruling has sparked controversy and led to a mandatory hearing. The commission’s efforts to regulate pricing practices highlight the pressing economic challenges faced by subscribers and the industry alike. As MultiChoice navigates this enforcement of its new rates, the outcome of the upcoming hearing could significantly impact the company’s operations in Nigeria.
Original Source: www.advanced-television.com
