DStv under scrutiny: Price hikes spark customer exodus. As subscribers seek alternative entertainment options, will the popular pay-TV service lose its grip on the market?
KAMPALA, UGANDA – Multichoice Uganda has announced a 3% price increment across most of its DStv and GOtv packages, effective October. This marks the second price hike in less than six months, sparking outrage among subscribers.
The price adjustments affect various packages, including the popular Compact Plus plan, which will increase from Shs170,000 to Shs175,000. The Premium package, offering over 170 channels, will rise from Shs290,000 to Shs300,000. GOtv’s Supa subscription will also increase from Shs69,000 to Shs71,000.
Subscribers have expressed concerns about the repeated price increases, questioning the value of the service. Some have threatened to cancel their subscriptions and appealed to regulators, such as the Uganda Communications Commission, to intervene.
Rinaldi Jamugisa, MultiChoice Uganda’s communications manager, attributed the price hike to rising content production costs and increased competition from streaming services like Netflix. “Producing and acquiring high-quality content comes at a significant cost,” he stated.
Despite the price increases, MultiChoice emphasizes the value of its packages, including exclusive local and international content, live sports, and streaming capabilities.
The company’s financial struggles are well-documented. Its 2023 financial statements revealed liabilities exceeding assets by Shs180 billion. MultiChoice is grappling with foreign exchange woes in key markets, including Nigeria, Angola, Kenya, and Zambia.
However, the company is banking on its Showmax streaming platform, which has shown revenue growth. French media giant Canal+ has expressed interest in acquiring MultiChoice, valuing the company at R125 per share.
Industry experts believe the potential merger could reduce costs through streamlined technology spending, content production, and acquisitions. The combined entity would boast 50 million subscribers, making it one of the largest entertainment companies globally.
As MultiChoice navigates its financial challenges, subscribers remain wary of further price increases. The company’s strategy will be closely watched as it seeks to balance costs with market competition.