by Thinus Ferreira
DStv subscribers in Nigeria are furious with MultiChoice Nigeria that is following China's StarTimes that hiked its pay-TV subscriber fees by roughly 22% in the country since 1 August, with MultiChoice that is now also hiking DStv subscription fees from September because of increase government tax, rampant inflation and the ongoing currency devaluation of the struggling naira.
Meanhile Nigeria's government wants to prevent both private pay-TV operators to increase their prices, with the government that wants to legislate price increases and determine what companies are allowed to ask customers to pay in the West-African nation's supposed "free market economy".
MultiChoice Nigeria will increase DStv Premium from N16 200 to N18 400 (R807.52) per month from 1 September 2020, while the monthly fee of DStv Compact Plus in Nigeria will increase from N10 925 to N12 400 (R544.20), and DStv Compact subscribers at N6 975 will now pay N7 900 (R346.71).
The monthly subscription fees of MultiChoice's lower-tiered Confam, Yanga and Padi pay-TV packages will remain unchanged.
MultiChoice and StarTimes have been forced to increase prices because of the economic fallout of the Covid-19 pandemic in Nigeria, as well as the decision by Nigeria's federal government to hike value-added tax (VAT) in the country by 2.5% since August 2020.
Nigeria struggles with a worsening economy marked by rampant inflation, the local naira currency that continues to devalue and a government that is seemingly hellbent on making trading conditions as difficult as possible for foreign-based companies in the country and with South Africa's Shoprite the latest casualty of brand devestment that is leaving Nigeria.
MultiChoice Nigeria in a statement says that "In order to provide some relief for customers, MultiChoice Nigeria has absorbed the cost of the increase in VAT for the past 4 months, keeping its products and services at the old 5 percent VAT; however this is no longer possible and the mandated 7.5 percent VAT will be applied accordingly".
In its message to DStv subscribers MultiChoice Nigeria says that "We periodically review our pricing, taking into consideration factors such as inflation and operational costs".
"We acknowledge that the people of Nigeria are living under increased economic pressure and we have made efforts to freeze the subscription prices in the last year, barring any extreme factors such as devaluation of currency and changes to VAT mandated by government."
