Multichoice Group, Africa’s leading pay-TV provider, announced on Wednesday, June 5, 2025, that its Nigerian operations lost 1.4 million subscribers over the past two years, even after three separate subscription price hikes during the same period. The company, in its audited financial results for the fiscal year ending March 31, 2025, attributed the sharp decline to several compounding factors, including high inflation, chronic fuel shortages, and persistent power grid failures.

Nigeria Drives Majority of Subscriber Losses Across Multichoice’s African Markets

According to the report, Nigeria alone accounted for 77% of total subscriber losses across Multichoice’s Rest of Africa (RoA) segment between 2023 and 2025. The RoA lost 1.8 million subscribers, dropping from 9.3 million in 2023 to 7.5 million in 2025. Notably, Nigeria’s contribution to that drop underscores the extent of the challenges Multichoice faces in its largest African market outside of South Africa.

Although subscriber losses reached their peak in the 2024 financial year, when the RoA shed 1.2 million subscribers, the pace of attrition slowed in 2025. The 2024 figures reflected a 13% year-on-year decline, reducing the subscriber base to 8.1 million. However, by the end of the 2025 fiscal year, subscribers further declined by 7%, amounting to 600,000 fewer customers, which brought the total down to 7.5 million.

High Inflation and Energy Shortages Severely Disrupt Subscriber Retention

In its earnings report, Multichoice clearly explained the reasons behind the dwindling numbers. The company pointed out that average inflation across key markets remained alarmingly high—hovering around 20%, with Nigeria and Angola surpassing 30%. This sustained economic pressure significantly reduced disposable income, forcing many customers to prioritize essentials over entertainment subscriptions.

Additionally, frequent power outages in Zambia, Zimbabwe, and Malawi, coupled with ongoing electricity and fuel crises in Nigeria, crippled service accessibility for many users. The situation worsened with civil unrest in Mozambique, which also disrupted service in that market.

As a direct result of these challenges, the company experienced a 7% year-on-year drop in active users, with Nigeria alone responsible for over half of that decline.

Multichoice Nigeria Hiked Subscription Prices Three Times in 12 Months

Amid these mounting challenges, Multichoice Nigeria implemented three price hikes for its DStv and GOtv services within a 12-month span. The first occurred in April 2023, followed by another increase in November 2023. The third price adjustment took effect on May 1, 2024, after being announced in April 2024.

While these increases were likely aimed at mitigating rising operational costs and currency devaluation, they further alienated consumers already battling economic hardship. As inflation surged and the naira weakened, many households could no longer afford pay-TV services, even at the basic tier. Consequently, more customers chose to unsubscribe.

Multichoice Group Sees Sharp Revenue and Profit Decline in 2025

Beyond Nigeria, the wider Multichoice Group also faced a difficult year. The company acknowledged that the past two fiscal years brought significant financial disruption across sub-Saharan Africa. A combination of macroeconomic instability and fundamental changes in the video entertainment landscape—such as increased piracy, competition from global streaming platforms, and widespread adoption of social media—contributed to declining performance.

In the 2025 financial year alone, Group revenue dropped by ZAR5.2 billion, representing a 9% year-on-year decline, down to ZAR50.8 billion. This drop mainly stemmed from an 11% decline in subscription revenue, which Multichoice attributed to foreign exchange losses and dwindling customer numbers.

At the same time, trading profit fell by ZAR3.8 billion, or 49% year-on-year, leaving the Group with ZAR4.0 billion in profit. The company explained that this significant decline was driven by:

• A ZAR2.3 billion increase in Showmax trading losses, showing the strain of investing in streaming amid fierce competition.

• A ZAR5.2 billion loss from foreign currency devaluation, which drastically impacted revenues earned outside South Africa.

Future Price Hike Uncertain as Multichoice Faces Market Pressure

With customers already abandoning services in large numbers, it remains unclear whether Multichoice Nigeria will announce another subscription price increase in the near future. Historically, the company has leaned on periodic price adjustments to offset rising operational costs. However, continuing this strategy while the subscriber base continues to shrink may prove counterproductive.

As inflation persists and energy issues remain unresolved, another price hike could risk accelerating customer attrition. Multichoice has not yet confirmed any new adjustments for 2025, but given the economic climate, such a move cannot be entirely ruled out.

Implications for Multichoice and the Nigerian Entertainment Market

Multichoice’s latest figures highlight the urgent need for a strategic rethink in its African operations—especially in Nigeria. As consumers shift toward more affordable, flexible digital entertainment options, the traditional pay-TV model appears increasingly vulnerable.

To remain competitive and recover lost ground, Multichoice must consider the following:

• Introducing cost-effective subscription tiers tailored to low-income households.

• Investing in mobile-first and data-friendly streaming services that can run efficiently even with limited bandwidth.

• Enhancing local content offerings to maintain cultural relevance and viewer loyalty.

• Improving customer support and service reliability, especially during power outages or technical disruptions.

Ultimately, Multichoice must adapt swiftly to changing economic realities and evolving viewer preferences if it hopes to reclaim its market position in Nigeria and across the rest of Africa. Without bold innovation and responsive pricing, the company risks losing even more ground to digital disruptors.