South African pay-TV giant MultiChoice Group has revealed that its Nigerian arm, MultiChoice Nigeria, lost a staggering 243,000 subscribers on its DStv and GOtv services between April and September 2024.
This disclosure came in its Interim Financial Results for the period ending September 30, 2024, released on Tuesday.
According to MultiChoice, the sharp decline in subscribers is primarily due to Nigeria’s soaring inflation rate, which has climbed past 30%.
The rising costs of essentials like food, electricity, and fuel have pressured many Nigerians to cut their pay-TV subscriptions to manage expenses.
Back in March 2024, MultiChoice had already reported an 18% drop in its Nigerian subscriber base, indicating a trend of continuous decline.
Across its Rest of Africa operations, the company also saw a drop of 566,000 subscribers over the last six months, with Nigeria and Zambia representing the largest portions of the loss.
“With the Rest of Africa business having seen a decline of 803k subscribers in 2H FY24, this rate of decline slowed to 566k in 1H FY25,” MultiChoice stated.
The recent losses include 298,000 subscribers in Zambia and 243,000 in Nigeria, with other regions experiencing minor reductions.
Extreme inflation and currency volatility have impacted the group’s financial performance.
Addressing these challenges, MultiChoice Group CEO Calvo Mawela said, “We are making good progress in addressing the technical insolvency that resulted from non-cash accounting entries at the end of the last financial year.”
He added that the group’s net equity position is projected to improve by November.
Zambia’s subscriber losses were further fueled by widespread power outages due to drought, with some areas facing up to 23 hours of daily blackouts.
Meanwhile, MultiChoice cited increased competition from streaming platforms and evolving viewer habits as added pressures on its traditional pay-TV business.
In response, the company has pumped an additional ZAR1.6 billion into its streaming service, Showmax, which saw a 50% growth year-over-year.
Mawela highlighted the strategic shift, saying, “Showmax strategically positions the business to actively participate in the streaming revolution as it gains momentum across Africa.”
As inflation and digital disruption reshape the media landscape, MultiChoice is betting on its streaming platform to secure its future in a rapidly changing market.
