DStv’s parent company, MultiChoice, has begun testing weekly subscription plans in Uganda, a move that could soon extend to Nigeria if the pilot proves successful.
The new model, which has been running for seven weeks, is part of MultiChoice’s strategy to align its pricing with customers' income patterns. “It is a big change, and we think when people are struggling, as we have seen, offering them weekly passes will help, much like how prepaid changed the mobile industry,” said Calvo Mawela, CEO of MultiChoice Group, in an interview with the Sunday Times.
According to Mawela, the pilot will be evaluated over a three to six-month period. He also revealed that the company is considering additional customer-retention strategies, including a base package with the option to add preferred channels individually.
The move comes amid mounting financial pressure on MultiChoice’s core pay-TV business. For the financial year ended March 31, 2025, the group reported a 9% decline in revenue to $2.87 billion (ZAR50.8 billion), driven by an 11% drop in subscription income and currency volatility across key African markets.
Operating profit fell 34% year-on-year to $263.5 million (ZAR4.7 billion), while trading profit dropped nearly 50% to $228.1 million (ZAR4.1 billion). The company has lost 2.8 million active linear TV subscribers over the past two years, with Nigeria alone accounting for 1.4 million of those losses since March 2023. That figure represents 77% of the total churn from its “Rest of Africa” segment, which includes markets like Kenya, Zambia, and Angola.
MultiChoice attributed the steep decline in Nigeria to persistent inflation, which stood at 23.71% as of April 2025. The economic strain has impacted household spending and significantly reduced pay-TV subscriptions. Subscription revenue in Nigeria fell to $197.7 million (ZAR3.5 billion) in the year ending March 2025, down from $355.9 million (ZAR6.3 billion) the previous year.
Despite the setbacks, the company’s digital services are gaining ground. Revenue from DStv Internet grew by 85%, KingMakers by 76% (in constant currency), and DStv Stream by 48%. Showmax, MultiChoice’s streaming platform, also recorded a 44% year-on-year growth in paying users.
“Our strategy is shaped by shifts in technology, consumer behaviour, and broader industry trends, including the rise of piracy, streaming platforms, and social media,” Mawela said.
As consumer habits evolve, weekly DStv subscriptions may offer a more flexible and affordable model for price-sensitive markets like Nigeria.
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