By Moyosore Salami

On March 1, 2025, MultiChoice Nigeria, the operator of DStv and GOtv, announced a price adjustment for its subscription packages, citing inflation and rising operational costs as primary drivers. This move has sparked a legal dispute with the Federal Competition and Consumer Protection Commission (FCCPC), which is now before the Federal High Court in Abuja and Lagos.

The FCCPC alleges that MultiChoice’s price adjustment is exploitative, while MultiChoice argues the increase is essential for business continuity due to severe economic headwinds, maintaining that without these adjustments, sustaining their service quality and content investment would be impossible.

Their key argument is that these external economic factors necessitate the price adjustment to ensure continued operations, investment in content, and service delivery.The FCCPC’s scrutiny of MultiChoice is not new. Over the years, the FCCPC has issued several orders and conducted investigations into MultiChoice’s business practices. These include directives to implement a “pay-per-view” model (which MultiChoice did not comply with, as the FCCPC acknowledged it cannot statutorily regulate prices), improve customer service, review unfair contract clauses, and allow independent access to free-to-air channels.

In response to these orders, MultiChoice implemented various customer service initiatives, such as placing customer accounts on hold during holidays, introducing toll-free lines, and certifying authorised installers. The FCCPC has also conducted investigations into allegations of abuse of dominance, but in 2022, it did not find evidence that MultiChoice abused its dominant position in the DTT and DTH Pay TV industry.

The economic challenges facing the media industry are not unique to Nigeria. MultiChoice Nigeria, like many other businesses in the country, is grappling with a series of macroeconomic challenges, including the volatility of the Naira, rising inflation, and increasing energy costs.

These factors have significantly impacted the cost of doing business, with the media and entertainment industry facing growing financial pressures. The cost of acquiring local and international content, maintaining broadcast operations, and managing day-to-day expenses have all surged in recent times, making it increasingly difficult to sustain the same pricing model.

The volatility of the naira, in particular, has created instability in currency exchange rates, which directly affects MultiChoice’s ability to acquire content at stable rates. Due to these external economic factors, MultiChoice found it necessary to adjust its subscription prices to ensure continued operations, investment in content, and service delivery.

Beyond the financials, MultiChoice has been a key player in the development of Nigeria’s creative industries, particularly in film, music, sports, and fashion. Through investments in content, skills development, and initiatives such as the MultiChoice Talent Factory and the AMVCAs (Africa Magic Viewers’ Choice Awards), the company has helped amplify Nigerian voices on a global stage.

MultiChoice’s support for Nollywood and local storytelling has been invaluable, funding productions and providing platforms for actors, directors, and producers to showcase their talents. The platform has enabled Nigerian creatives to reach wider audiences, contributing to the growth of the local entertainment industry and increasing its influence both in Africa and internationally.

The Nigerian media landscape is facing significant challenges due to the economic environment. Many organisations, both local and international, are scaling back or leaving the country. Global streaming giants like Netflix and Prime Video have reduced their investments in Nigeria, citing difficulties in maintaining operations.

In contrast, MultiChoice is making substantial investments through Africa Magic and Showmax, producing Nigerian originals and increasing its commitment to local content creation.

The increasing costs of content licensing, operational overheads, and the instability of the local economy have forced many players in the media and entertainment sector to reconsider their business models.

While some international players are retreating, MultiChoice’s decision to continue investing demonstrates their belief in Nigeria’s potential as a key market in Africa.

To ease the impact of the price increase on its subscribers, MultiChoice has introduced several mitigation measures, including the continuation of its Price Lock feature and the Step Up offer. The Price Lock allows subscribers to renew their packages before the expiry date, thereby locking in old rates. The Step Up offer enables subscribers to upgrade to a higher package upon renewal, allowing them to enjoy more content for less.

These measures provide flexibility for subscribers, offering them an opportunity to manage their costs while continuing to enjoy premium entertainment. MultiChoice’s strategy aims to strike a balance between maintaining service quality and mitigating the burden of the price adjustment on its customer base.

MultiChoice Nigeria’s contributions to the Nigerian economy extend far beyond its subscription services. The company has directly and indirectly employed over 28,000 people and provided business opportunities for over 20,000 SME vendors across the country. MultiChoice’s investments in various sectors, including healthcare, education, and sports, have impacted thousands of lives and helped build the country’s infrastructure. In terms of tax contributions, MultiChoice has paid over $469 million in direct and indirect taxes, demonstrating its significant role in supporting Nigeria’s economy.

Additionally, the company’s contributions to the broadcast industry, including capacity building and infrastructure development, further illustrate its commitment to the growth of the sector.

It’s crucial to acknowledge the current economic realities in Nigeria, where consumer purchasing power has significantly declined. This decline understandably fuels the uproar that accompanies any price adjustment, including MultiChoice’s recent increase.

Nigerians value DStv’s offerings, which explains the strong reactions. While not an essential commodity like food or utilities, DStv provides a form of entertainment and connection that many rely on.

This consumer reaction mirrors similar frustrations experienced across various sectors when tariffs increase. Just as seen with telecommunications companies after their tariff adjustments, the anger and frustration are not peculiar to DStv. Consumers express similar sentiments towards increases in the cost of power, fuel, and internet data.

This underscores how critical MultiChoice has become to the media and entertainment landscape in Nigeria.

As Nigeria continues to navigate the complexities of inflation, currency instability, and rising operational costs, companies like MultiChoice must adapt to ensure their survival and continued contribution to the economy. The price adjustment, while contentious, is an essential step in securing the future of the company and its role in Nigeria’s entertainment and media landscape.

This increment provides MultiChoice with an opportunity to reinvest in its offerings. The increased revenue should be strategically allocated to address consumer desires for fresher content and more diverse options. By enhancing its services, MultiChoice can demonstrate a commitment to its subscribers and reinforce its value proposition.

It is also crucial for regulators like the FCCPC and the NBC to adopt a collaborative and empathetic approach to the challenges faced by businesses. Instead of being perceived as anti-business through combative actions that can frustrate free market enterprise, these entities should engage in constructive dialogue to find solutions that support both businesses and consumers.

The FCCPC should strive to understand the economic realities faced by companies like MultiChoice, while the NBC should focus on fostering an environment that encourages investment and innovation in the broadcasting sector. By working together, regulators and businesses can navigate the current economic challenges and ensure a sustainable future for Nigeria’s media and entertainment industry.