Multichoice Group, the South African-based Pay-TV operator, has reported a significant decline in its Nigerian subscriber base, losing 243,000 customers across its DStv and GOtv platforms during the first half of 2024. The company attributed this loss to the challenging economic conditions in Nigeria, particularly the impact of soaring inflation, which has been hovering above 30%.
The figures were disclosed in Multichoice’s Interim Financial Results for the six months ending 30 September 2024, released on Tuesday. The company cited the rising costs of living, including food, electricity, and fuel, as key factors driving many Nigerians to abandon their Pay-TV subscriptions. The economic hardship has led consumers to reconsider non-essential services, with the loss of 243,000 subscribers marking a significant downturn for Multichoice in the region.
This loss adds to a larger trend seen in the company’s earlier financial report for the year ending March 2024, where Multichoice revealed it had already lost 18% of its Nigerian customer base. However, the 243,000 subscriber drop represents the most recent data and underscores the ongoing financial pressure on the company’s Nigerian operations.
In its broader report, Multichoice also noted a continued decline in its Rest of Africa segment. Over the six-month period, the company’s operations outside of South Africa saw a combined loss of 566,000 subscribers, a decrease from the 803,000 subscribers lost during the previous half-year. Of the 566,000, Nigeria and Zambia accounted for the majority of the subscriber drop, with 243,000 losses in Nigeria and 298,000 in Zambia.
The company attributed Zambia’s significant subscriber loss to severe droughts that led to power outages of up to 23 hours a day, affecting the ability of consumers to access television services. Meanwhile, the loss in Nigeria was attributed to the challenging economic environment, which has placed a strain on household budgets.
Despite these challenges, Multichoice reported that other markets across the continent showed only a marginal decline, with a loss of 25,000 subscribers. This suggests that the economic pressures are not as pronounced in some of the other African markets where the company operates.
As Multichoice navigates these economic hurdles, the company will likely need to adapt its strategy to retain customers and minimize future subscriber losses, particularly in its key markets of Nigeria and Zambia, which have been most affected by inflation and power shortages.
