Multichoice has raised the cost of its products in Nigeria just days after posting a $72 million loss in its third-quarter financial report.
Checks on the company’s reviewed price list revealed a 20% increase in all of the company’s packages.
The DStv Premium package climbed by 20.4 percent, from N24,500 to N29,500, with the current price increase. Similarly, the DStv Compact+ package jumped by 19.2%, from N16,600 to N19,800, while the Compact package increased by 19%, from N10,500 to N12,500.
The Comfam package moved up by 19.2 per cent from N6,200 to N7,400. The latest hike made it the second time the company would implement an upward review of prices within a six-month period.
In May, Multichoice had jacked up the prices of its offerings. During this round of price hikes, the DStv Premium package increased by 16.7 per cent (N3,500) from N21,000 to N24,500.
Similarly, the DStv Compact+ package had gone up by 16.5 per cent (N2,350) from N14,250 to N16,600. The DStv Compact package also rose by 16.7 per cent from N9,000 to N10,500. The DStv Confam package, previously priced at N5,300, went up by 17 per cent to N6,200.
Confirming the latest hike, a spokesperson in the company who preferred to speak anonymously blamed the harsh business environment for the hike.
According to the source, the company had to grapple with the devastating consequences of the continued devaluation of the naira, alongside a vast array of challenges including taxation, logistics, among others.
The source said, “Yes. We have increased our rates. We buy content in dollars but earn in naira. If we take off a channel or stop acquiring content that our customers are used to, we will be slammed.
“We buy diesel. We pay taxes. Even before this year, with the dollar and fuel subsidy removal. We pay billions in licensing fees. We operate several offices. We have to pay staff.”
The latest hike comes after Multichoice reported a third consecutive semi-annual loss, attributing its financial challenges to foreign exchange difficulties in Nigeria and persistent power outages in South Africa.