As DStv, GOtv rates rise, MultiChoice pressured on 1 year subscription validity

With the increasing price range of subscriptions for DStv and GOtv, which are products of MultiChoice Nigeria Limited (MCN), the Federal Competition and Consumer Protection Commission (FCCPC) recently directed the company to create a feature that allows its users to lock their subscription for a minimum of one year. MultiChoice Nigeria is the Nigerian subsidiary […]

With the increasing price range of subscriptions for DStv and GOtv, which are products of MultiChoice Nigeria Limited (MCN), the Federal Competition and Consumer Protection Commission (FCCPC) recently directed the company to create a feature that allows its users to lock their subscription for a minimum of one year.

MultiChoice Nigeria is the Nigerian subsidiary of MultiChoice Africa, owner of DStv and GOtv.

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On Tuesday, MultiChoice announced an increase in the prices of its DStv and GOtv subscription packages, taking effect from April 1, which is on Friday.

The company, in the statement, noted that the current economic realities in the country necessitated the price review and the adjustment would make it serve customers better.

It stated, “In the light of the rising cost of inflation and business operations, we have had to review the price of our packages to keep delighting our customers with great entertainment, anytime and anywhere.”

The company also stated that it had introduced incentives for customers to cushion the effect of the increase. 

“To cushion the price adjustment, we have made the following concessions: Customers who pay on or before the due date (April 1, 2022) will be eligible to pay the old price.

“If they pay consistently on time (before their due dates) for a period of 12 months, they pay the old price. Customers who pay for 10 months upfront on the new price will get 11th and 12th months free,” it stated.

With the adjustment, premium DStv subscribers will pay N21,000 monthly while Compact + and Compact customers will pay N14,250 and N9,000 respectively. Other new DStv package prices include: DStv Confam N5,300; Yanga N2,950; Padi N2,150; Business N2,669 and Xtraview + PVR access fee N2,900. The new fee for Gotv subscriptions are: GOtv max N4,150, GOtv Jolli N2,800, GOtv Jinja N1,900 and GOtv lite N900.

How DStv, Gotv rates rose 4 times since 2015

With last Tuesday’s price hike announcement, Multichoice has increased rates four times in seven years since 2015, with an average of two-year gap trend.

Multichoice had on August 23, 2020 increased subscription rates effective September 1, raising rates by over N1,000 per month on the DStv Premium bouquets. It conveyed the increment by Short Message Service (SMS) to its subscribers. Other lower bouquet packages were not affected in the price increase, perhaps in consideration of the economic situation, which industry experts say is affecting the lower people more.

It had earlier implemented a federal government increase of 2.5 per cent in Value Added Tax (VAT) from 5 per cent to 7.5 per cent on August 1, 2020, raising the cost across all the bouquets.

In July 2018, MultiChoice raised the subscription rate for the DSty Premium package from N14,700 to N15,800, Compact Plus from N9,900 to N10,650, Compact from N6,300 to N6,800. The Family package went from N3,800 to N4,000, and Access from N1,900 to N2,000, which was implemented from August 1.

In March 2015, DStv announced a 20 per cent increase for all its satellite pay TV bouquets in Nigeria, which took effect from April 1, 2015.

FCCPC moves to change DStv, GOtv rules

Just as MultiChoice was preparing to announce the price change, the FCCPC announced its resolve to contain the excesses of the major pay TV service provider.  

The commission said the order for MultiChoice to allow subscriptions to last for a year instead of one month was part of a resolution reached after an investigation it launched in 2020 on the company over complaints of abuse of dominant position in the pay-per-view subscription networks.

The FCCPC director of legal services, Tam Tamunokonbia, also directed the company to allow subscribers to suspend their subscription four times annually, which it currently offers for a fixed period between seven to 14 days twice yearly.

“It should guarantee a price lock option that allows subscribers to maintain the same subscription fee for a minimum period of one year, subject to a contractual agreement that clearly specifies the applicable terms,” he said.

The commission also urged company to communicate to each subscriber regarding all channels available within their selected bouquet option and a completely toll-free customer service line to be operational 24 hours daily.

It further urged the MultiChoice  to provide the commission with a report on challenges to operate the new guidelines, as well as submit a compliance report demonstrating full compliance orders. 

It warned that a violation of an order of the commission would attract a fine penalty of N5million.

Just after MultiChoice announced the new rates, the FCCPC, on Wednesday said it was engaging the company for clarity on the increased subscription fees.

The executive chairman of the FCCPC, Mr Babatunde Irukera, who spoke in Abuja, said the commission was finding out if the company implemented a change in terms and conditions in line with the commission’s mandated steps announced last week.

Irukera insisted that MultiChoice must comply with the order on allowing subscription to last a year and among other directives.

He said, “Although we cannot, and did not regulate price except in limited circumstances requiring presidential approval and gazetting. As such, our order to MultiChoice did not prevent them from pricing their services in a manner acceptable between them and their subscribers.

“We regulate price gouging. The nature of gouging is post-fact, meaning that when a price movement occurs, we can investigate to determine if it is excessive, exploitative, unrestored or manifestly unjust.

“Such is a very intricate investigation, and the fact of the existence of any increase is not the entire evidence. There is a method to analyse the increase and other circumstances leading to it.

“For now, the first check with MultiChoice is whether they implement or intend to, a material change in terms and conditions (of which price is one) without the steps the commission has mandated as conditions precedent,” Irukera noted.

How lawmakers pushed for pay per view 

This is not the first time the South African pay television firm has been tackled over the rising subscription rates in Nigeria. In June 2021, the House of Representatives considered the pay-per-view, pay-as-you-go and price reduction for DSTV and other cable satellite operators in the country.

That came after the adoption of the reports and recommendation of the ad-hoc committee on non-implementation of pay-as-you-go and sudden increment of tariffs plan by Broadcast Digital Satellite Service Providers.

Rep Unyime Idem, the chairman of the committee had earlier laid the report before the House, where it called on the federal government to quickly implement the content of the national broadcasting code and the Nigeria information policy of 2014.