MultiChoice, the parent company of DStv and a leading entertainment provider in Africa, has reported a drastic loss of nearly 4 million subscribers. The company's customer base has shrunk from over 23 million to 19.3 million within the past two years, primarily due to economic challenges in key markets like Nigeria.
According to MultiChoice, more than 84% of the lost subscribers were from outside South Africa, with Nigeria being the hardest hit. The company attributed this decline to the persistent inflation crisis in Nigeria, which has remained above 30% for over a year, as well as severe power disruptions in Zambia.
“The loss in the rest of Africa has been primarily due to the significant consumer pressure in Nigeria, where inflation has remained above 30% for the majority of the last 12 months and, more recently, due to extreme power disruptions in Zambia,” the company stated.
In addition to financial struggles, MultiChoice is facing increased regulatory scrutiny in Nigeria. The Federal Competition and Consumer Protection Commission (FCCPC) has filed charges against the company over alleged violations of local regulations, adding to the pressure on the embattled pay-TV giant.
With subscribers dropping and economic conditions worsening, MultiChoice now faces one of its biggest challenges in recent years.
