South African pay-TV giant MultiChoice has revealed a big subscriber drop, with its Nigerian unit losing 243,000 DStv and GOtv users from April to September this year. The company shared this update in its latest financial report for the period ending September 30, 2024.
So, why the sharp drop? MultiChoice says it’s mostly due to skyrocketing inflation in Nigeria, which is now over 30% and driven by high food, electricity, and fuel costs. Many people are simply cutting back on non-essential expenses, including TV subscriptions.
This isn’t the first subscriber hit for MultiChoice Nigeria either. Back in March 2024, the company reported a steep 18% loss in its Nigerian customer base for the previous year, although specific numbers weren’t shared at the time.
Overall, MultiChoice’s “Rest of Africa” division, which includes countries outside of South Africa, has had a tough time, losing 566,000 subscribers in the same period. Nigeria and Zambia were the main drivers of this drop, with Zambia alone losing 298,000 subscribers due to drought-driven power outages, some lasting up to 23 hours a day.
MultiChoice’s CEO, Calvo Mawela, says these are the toughest operating conditions the company has faced in nearly 40 years. To adapt, the company is “right-sizing” to better match today’s economic and industry landscape.
Mawela pointed out that the recent currency instability across Africa has dented their gains by nearly R7 billion, prompting some deep cuts to balance the books.
(Tech Point Africa)
