MultiChoice Nigeria Reports Loss of 243,000 Subscribers Amid Economic Strain, As More People Embrace Streaming

MultiChoice Nigeria, the pay-TV parent company behind DStv and GOtv, has revealed a significant reduction of its subscriber base, reporting a loss of 243,000 users between April and September 2024. As economic pressures mount, inflation and currency devaluation are stretching household budgets thin, prompting consumers to look out for more cost-effective entertainment options.

Economic Struggles and Evolving Consumer Behaviour

Prompted by current economic realities, MultiChoice’s pricing adjustments have contributed to the subscriber exodus. A price hike in May 2024 saw subscription costs rise by up to 26% across its packages. Consequently, Nigerian consumers have begun pivoting towards alternative streaming platforms that provide flexibility and affordability.

This growing trend shows how much has changed in a short time around the country’s entertainment consumption habits. Data from Statista reveals a 10.27% projected growth in Nigeria’s subscription video-on-demand (SVoD) market from 2024 to 2027, with expected revenue reaching $1.22 billion by 2027. This growth predicts a significant shift to on-demand content that balances cost with convenience.

Local streaming platforms are capitalizing on this demand by catering to cultural preferences and producing Nollywood-focused content. Platforms like IROKOtv and NdaniTV, for example, attract viewers with localized content suited to Nigerian audiences.

The Surge in Streaming Services

As international streaming platforms like Netflix, YouTube, Amazon Prime Video and Showmax—which is owned by MultiChoice—gain traction in Nigeria, they offer content packed libraries at competitive prices, appealing to a range of consumers. In addition, the rise of over-the-top (OTT) services allows viewers to enjoy their favorite shows without the rigid costs and schedules associated with traditional pay-TV. As more consumers transition to these on-demand options, the traditional pay-TV model faces challenges in retaining its audience.

Impact on Nigeria’s Pay-TV Landscape

MultiChoice’s recent losses shows a growing need for pay-TV providers to adjust to shifting market realities. Traditional providers might need to rethink their strategies, adopt more flexible subscription models, expand streaming options, and improve local content to survive the landscape. Collaborative efforts with telecom companies could also help by bundling services and improving consumer value, potentially slowing the move towards standalone streaming.

Combating Illegal Streaming

Beyond economic pressures, illegal streaming has also affected MultiChoice’s subscriber count. In October 2024, the company launched a campaign to combat unauthorized streaming, which has further strained revenue. By partnering with local authorities and utilizing digital rights management, MultiChoice aims to deter non-subscribers who might otherwise access premium content illegally, hoping to recover lost viewers by promoting legitimate subscription options.