Broadcasting company MultiChoice has hiked the prices of its programs in Nigeria, days after announcing a $72 million loss in its financial statements for the third quarter of this year.
A review of the company’s revised price list shows that its packages have increased prices by 20 percent across the board.
With the latest price hike, the DStv Premium package has increased by 20.4% from N24,500 to N29,500. Similarly, the DStv Compact+ increased in price by 19.2 percent from N16,600 to N19,800, while the Compact package increased by 19 percent from N10,500 to N12,500.
Comfam packages increased in price by 19.2% from 6,200 Naira to 7,400 Naira. The latest price increase marks the second time the company has revised its prices upward within six months.
In May, MultiChoice raised the prices of its products. During this series of price increases, the DStv Premium package increased in price by 16.7% (3,500 Naira) from 21,000 Naira to 24,500 Naira.
Similarly, the DStv Compact+ package increased in price by 16.5% (2,350 Naira) from 14,250 Naira to 16,600 Naira. The DStv compact package also increased in price by 16.7% from N9,000 to N10,500. The price of the DStv Confam package, which was previously priced at N5,300, has increased by 17% to N6,200.
A company spokesperson, who requested anonymity, confirmed the price increase to The Punch and said the difficult business environment was the reason for the increase.
Sources said the company had to deal with the devastating consequences of the continued devaluation of the naira, as well as huge tax and logistics challenges.
The official said: We have increased our prices. We buy content in dollars, but our income is in naira. If we unchannel or stop getting the content that our customers are accustomed to, we will be criticized.
“We buy diesel. We pay taxes. Even before this year, there were dollars and the removal of fuel subsidies. We pay billions of dollars in license fees. We operate multiple offices. We have to pay our staff.”
The hike comes after MultiChoice reported its third consecutive half-year loss, citing financial difficulties caused by currency issues in Nigeria and persistent power outages in South Africa.