Is Pay TV Becoming A Luxury? The Rising Cost Of Subscription In Nigeria

Over the last two years, MultiChoice Nigeria has introduced a series of price hikes, leading many subscribers to question the value they are receiving.

Recently, a major player in the industry announced a tariff increase for its DStv and GOtv packages, which has sparked mixed reactions from both subscribers and stakeholders. While price hikes are popular, the company justifies the move as essential for sustaining its operations and continuing its investments in Nigeria’s creative and entertainment sectors.

However, critics argue that MultiChoice has been slow to innovate and improve its content offerings, leaving subscribers dissatisfied as they feel they are paying more for the same service.

Although the rising operational costs have stirred unrest, the reality is that unless the underlying causes of Nigeria’s high cost of living and doing business are genuinely addressed, the situation may continue to worsen, with Nigerians bearing the brunt of it.

MultiChoice’s Justification for the Price Increase

In defense of the price hike, MultiChoice points to the depreciation of the naira, which has significantly reduced its value, alongside high inflation that has driven up operational expenses. These challenges are not unique to MultiChoice, as many companies both private and government owned are facing similar difficulties.

Currently, Nigeria’s inflation rate is among the highest in Africa, with rising costs for food, transportation, energy, and security, even after the National Bureau of Statistics (NBS) rebased the Consumer Price Index (CPI). Consequently, many small and medium-sized enterprises have been forced to close, exacerbating the country’s unemployment crisis. Numerous businesses that could have contributed to economic growth have been unable to launch due to these harsh conditions.

Prince Shina Bilesanmi, president of the Association of Telephone, Cable TV, and Internet Subscribers of Nigeria (ATCIS), shared his views on the price increase during a morning show with LN247.

He criticized regulatory bodies for their failure to adequately monitor pricing, commending the Federal Competition and Consumer Protection Commission (FCCPC) for its efforts to regulate prices. He also urged President Bola Ahmed Tinubu to closely monitor the Broadcast Media Companies (BMC), as their performance has not been fulfilling expectations.

Competition and Consumer Choice

While MultiChoice asserts its right to adjust prices based on operational costs and market conditions, critics argue that its dominant market position allows it to implement price hikes without facing significant competition. Many consumers feel trapped in a market where a few service providers dictate prices, with affordability becoming an increasing concern.

Legal challenges may prompt further discussions on whether stricter regulations are necessary to ensure fair pricing and quality service, especially in industries prone to monopolistic practices. Although the FCCPC has positioned itself as a watchdog against unfair trade practices, its role in regulating pricing remains a contentious issue.