FG directs Multichoice to suspend planned increase tariff in DStv, Gotv

The Federal Government has ordered South African company, Multichoice, to suspend its planned increase in tariff which was to take effect from September 1.

The government said the increase is “hostile to Nigerians who are currently going through harsh economic conditions.

The government further said the company did not consult with it before the decision was made, stressing that it only read about the increase in the media like every other Nigerians.

It will be recalled that Multichoice had last week  announced increment in the prices of DSTV and GOTV subscriptions for the second time in less than four months.

The company in a statement to subscribers said that from Tuesday, September 1, 2020, MultiChoice will effect its new price regime which is as follows: DSTV Premium will move from N16, 200 to N18,400, Compact Plus from N10,925 to N12,400, Compact from 6,975 to 7,900 and for users of GOtv Max, they will have to pay the sum N3,600 from 3,280.

One of the texts read: “Dear Customer, please be advised of a price adjustment on your DStv Premium package from September 1. Your new monthly subscription will be N18, 400.”

The development has, however, drew irk of Nigerians both on social media and on the streets who blame the government for allowing the South African-owned company manipulate them.

Recall that MultiChoice Nigeria, the country’s leading Pay TV operator recently notified customers of an increase in the subscription price of its DStv and GOtv packages which becomes effective from September 1, 2020.

In their reactions the Pay tv operators in the country have citied inflation, naira devaluation, valued added tax (VAT) increase and a host of other factors as reasons for the recent hikes in their subscription fees.

The adjustments, according to the operator of MultiChoice, would only affect the packages in the upper tiered premium, compact plus and compact packages with about 13 per cent change, while the prices of other packages Confam, Yanga and Padi in the lower cadre remain unchanged.

According to Multichoice, the high cost of operating its business in Nigeria has increased significantly in recent times due to several unfavourable economic factors which include: naira devaluation, the effects of COVID-19, inflation at 12.82 per cent and increase in VAT to 7.5 per cent.

“We periodically review our pricing, taking into consideration factors such as inflation and operational costs. We acknowledge that the people of Nigeria are living under increased economic pressure and we have made efforts to freeze the subscription prices in the last year, barring any extreme factors such as devaluation of currency and changes to VAT mandated by the government,” the company said in a message to customers,” he explained.

Similarly, Startimes, the nation’s second biggest Pay TV operator, also raised prices of its subscription plans by an average of 22 per cent effective August 1, 2020.

In explaining the price increase, Viki Liu, Startimes brand and marketing manager, said it was due to increased value-added tax (VAT) from five per cent to 7.5 per cent, as well as the foreign exchange rate which has impacted its cost of operation.

“Our business is not exempted from the effect of the naira depreciation affecting all businesses in the country. All of our foreign content is bought in dollars and to continually serve our subscribers the best content, the subscription price has to be reviewed upwards,” Liu added.