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.
Multichoice’s Comfam package increased by 19.2%, from N6,200 to N7,400. The most recent increase marked the company’s second price increase in a six-month period.
Multichoice raised the cost of its products in May. The DStv Premium package climbed by 16.7 percent (N3,500) during this round of pricing increases, from N21,000 to N24,500.
Similarly, the DStv Compact+ bundle had increased by 16.5% (N2,350) from N14,250 to N16,600. The DStv Compact bundle increased by 16.7%, from N9,000 to N10,500. The DStv Confam package, which was originally priced at N5,300, has been increased by 17% to N6,200.
According to the insider, the company had to deal with the catastrophic implications of the naira’s continuing depreciation, as well as a slew of other issues such as taxation and logistics.
The source said, “Yes. We have increased our rates. We buy content in dollars but earn it 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 new increase comes as Multichoice announced a third consecutive semi-annual loss, blaming its financial woes on foreign exchange issues in Nigeria and ongoing power disruptions in South Africa.