Days after disclosing a $72 million deficit in its third-quarter financial report, Multichoice has increased the cost of its products in Nigeria.
A 20 -per cent increase in the company’s packages overall was discovered through an examination of the new price list.
The DStv Premium bundle had a 20.4 per cent price increase, going from N24,500 to N29,500, with the most recent increase. Comparably, the Compact package jumped by 19 per cent, from N10,500 to N12,500, while the DStv Compact+ climbed by 19.2 per cent, from N16,600 to N19,800.
The Confam package increased from N6,200 to N7,400, a 19.2 per cent increase. With this most recent increase, the business has now reviewed pricing upward twice in as many months.
Multichoice had increased the cost of its products in May. In this round of price increases, the N3,500 rise from N21,000 to N24,500 represents a 16.7 per cent increase in the DStv Premium package.
Similarly, the DStv Compact+ package went up by 16.5 per cent (N2,350) from N14,250 to N16,600. The DStv Compact package also increased by 16.7 per cent from N9,000 to N10,500. The DStv Confam package, previously priced at N5,300, went up by 17 per cent to N6,200.
An inside source claimed that in addition to dealing with a wide range of issues like taxes and logistics, the company also had to deal with the disastrous effects of the naira’s ongoing devaluation.
The source said: “Yes. We have increased our rates. We buy content in dollars but earn 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 most recent increase follows Multichoice’s announcement of a third straight semi-annual loss, which it attributed to ongoing power shortages in South Africa and problems with foreign exchange in Nigeria.