MultiChoice Nigeria, a subsidiary of MultiChoice Africa is unarguably the leading pay television service company in the country. The company was launched in 1994 as a joint venture between Multichoice Africa and Adewunmi Adesanya, an entrepreneur, to provide subscriber management services to DSTV subscribers in Nigeria.

Before the arrival of Multichoice in Nigeria in 1994, there were smaller cable TV companies but most, if not all, had fallen off the cable TV radar due to a number of socio-economic factors. Since the arrival of MultiChoice and its DSTV, some other companies like HITV, MITV, Startimes, etc. have come on the scene, but not all have stayed the course. Startimes has been on and somehow attempted to get a chunk of the Nigerian market, but Multichoice, through its brands and sponsored programmes, seems dominant.

Their partnerships with Sky Sports for the broadcast of international football leagues, sponsorship of Big Brother Africa (BBA) and Big Brother Nigeria (BBNaija) and partnership with the Nigerian film and entertainment industry, Nollywood/AfricaMagic had made them very popular. It also helps that they now have most Nigerian local TV channels in their bouquets. Their services have been above average in terms of consistency and service delivery across the nooks and crannies of Nigeria.

However, the recent fine by the Competition and Consumer Protection Tribunal on Multichoice Nigeria, of the sum of N150m and to provide its Nigerian customers with one month free subscription to its DStv and GOtv packages for disobeying its orders which restrained the pay-TV company from increasing its monthly subscription pending the determination of the suit brought before it. The suit had been filed by an Abuja-based lawyer, Festus Onifade, who said the eight-day notice given by the company for its price increase was inadequate.

The first increase in DSTV subscription was in 2009 but MultiChoice introduced the low cost bouquet then at N1,500. In 2011, there was another increase to the premium and compact bouquets, leaving the lower ones unchanged. In August 2012, there was a 10% increase across all bouquets. In 2015, there was another 20% increase. In all these, the premium bouquet, which is popular amongst the elites has been increased by 55% in eight years, the access bouquet has attracted 26% increase. The company has about 6.7 million subscribers in both Nigeria and South Africa. However, given the population and economic power of Nigeria, they have a higher percentage of the subscribers.

In a way, MultiChoice enjoys a seeming monopoly of the Nigerian cable TV market. Many Nigerians have criticised the incessant price increases but the management maintains that the increases are neither manipulative nor punitive. They point out that the operating environment continues to change, making it more difficult for the company to maintain a steady price for its services. They always draw attention to the inflationary economy that affects the cost of doing business in Nigeria as it affects every other company.

Paradoxically, MultiChoice Group, has reported a $38 million loss before tax in its financial year ended March 31, 2024, attributing the loss to currency volatility and weak consumer spending. So, the company seems to be impacted by our economic and financial policy issues. However, we believe that when it comes to the law, the company must align with the industry guidelines and make sure that their activities do not breach industry or judicial guidelines and pronouncements.

However, we believe that the Nigerian Broadcasting Commission and other relevant agencies that regulate the industry must do better in putting checks and balances in place to avoid similar matters becoming subjects to be adjudicated on by either regular courts or sectorial tribunals. A diligent and constant checks and balances as stipulated in the rules and guidelines setting up such agencies would keep companies on a straight line and save individuals and groups the task of going back and forth in tribunals or courts.

Nigeria is not the only country that consumes the services of cable TV networks. It therefore follows that the government and its agencies must sit up and be active enough to avoid this kind of scenario. The company is an employer of labour in the country and anything that affects its financial standing will logically impact on the employees as there might be need to downsize by firing some staff. The economy does not grow through such unstable actions.

We however believe that the company has a right to appeal which it has promised to do but more can be done to avoid the seeming monopoly of the cable market. Government must create the enabling environment to give more companies room for competition as is done in other jurisdictions.

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