DSTV Nigeria increases subscription rates by 5%

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For the second time within a calendar year, DSTV Nigeria, a Naspers Limited company has announced a new set of subscription rate hikes for all its bouquet.

A statement signed by the Managing Director of the company in Nigeria, John Ugbe, the company said:

“Dear DStv customer, due to a price adjustment, your Premium package fee changed from N13,980 to N14,700, effective May”

 “For, GOtv Value and GOtv Lite bouquets, the new rates are N1,300 and N450, against the current rates of N1,200 and N400, respectively”.

“We announced last year that we would do everything possible to hold the price barring any extreme factors. However, all our content is purchased in dollars and although we have done everything possible to hold the prices even with the prices of everything else going up, we are now left with no choice but to adjust our subscription prices from May 1.

“Our key priority is to put subscribers’ needs at the heart of everything we do and, therefore, in determining the price adjustment, we took into account many factors, including the impact on the customer; current inflation, which stands at 19 per cent; programming costs; and efficiencies within the company.”

“The DStv Premium, DStv Compact+, DStv Compact, DStv Family and DStv Access packages will continue to be available at varying pricing points to allow subscribers flexibility in price and choice without compromising quality or variety. We thank our customers for their support during the past year,” the statement said.

Although DSTV usually carry out a periodic rate increase at the end of every first quarter, customers are outraged by the new rate hike.

The company has the majority share of the premium and middle class market share in the payTV business. The rate hike is not going to benefit its competitors as DSTV already has deals with all the major sporting events by FIFA for Russia 2018 as well as some content providers.

The company competes with StarTimes, ConSat and other fringe competitors who are having the shot end of the stick due to their lack of preferred and popular content.

DSTV has the exclusive rights to the English Premier League, the most popular and regular content watched by Nigerian men and young adult males. Analysts argue that because mostly men pay for payTV subscriptions at home and plus  the patronage of viewing centres and leisure outfits, DSTV will continue to lead the market.

In its last disclosure to advertising agencies, DSTV said about 40%  of its 11 million subscribers across Africa are in Nigeria. This makes Nigeria its most important market.

Naspers its parent company will be disclosing its full year 2016 result, it will reveal how much the company is impacted by the low demand and inflation in Nigeria.