Multichoice Nigeria recently announced another price hike on DStv and GOtv packages, marking the third time in the last 12 months.
While many Nigerians reject the latest increase, the company justified its action by citing the economic situation in the country.
Multichoice blames the rising cost of running the business and points to currency devaluation, with the naira depreciating significantly and inflation soaring to 33.2% from March 2024.
But the price hike, which has now become an annual ritual, did not happen only in Nigeria. Earlier in March, the PayTV provider had announced a price hike in its home country of South Africa and Kenya, with the new prices taking effect from April 1, 2024.
As in Nigeria, the company also blames the vagaries of the economy for adjusting prices in the other two markets.
Although the Competition and Consumer Protection Tribunal (CCPT) which sat in Abuja on Monday barred Multichoice Nigeria from implementing the DStv and GOtv price increase, which is expected to take effect on Wednesday, May 1, 2024, a comparative analysis of prices in Multichoice’s major markets became appropriate.
Prices compared
Nairametrics took a look at what the company charges in other markets, specifically, based on recent price hikes, and here’s what we found:
In South Africa, Multichoice’s highest package, DStv Premium currently costs R929 ($49.36) per month, while in Kenya, the same package costs Sh10,500 ($78) per month. In Nigeria, DStv Premium will cost N37,000 ($26.7), based on the new price announced recently.
The DStv Compact Plus package in South Africa is currently at R619 ($33) per month, while the same package costs N25,000 ($18) in Nigeria. Kenyans currently pay Sh6,500 ($48) for the same package.
The third package common to the three markets is DStv Compact. Multichoice South Africa currently charges R469 ($25) for the Compact package per month. In Nigeria, the new price announced for the DStv Compact is N15,700 ($11), while in Kenya, the same package currently goes for Sh3,700 ($27).
Income level in comparison
It is important to note that the income levels in each of these countries differ and this also plays a role in how the fees for purchases are determined. This also helps to understand who is paying more relative to their income level.
- According to Stats SA in its quarterly employment survey (QES), the average income in South Africa is R25,304 ($1,348) per month from Q1 2023. The World Bank puts the country’s GDP per capita at 6,766, 5 dollars from 2022. South Africa is an upper-middle income country according to the Bank.
- Figures from the Kenya National Bureau of Statistics (KNBS) show that the average monthly income for Kenyans rose to Sh20,123 ($149) in 2022. According to the World Bank, the country’s GDP per capita was $2,099.3 a 2022. The country is categorized by the Bank as a low-middle income country.
- The average monthly salary in Nigeria is estimated to be between N80,000 and N100,000 which is about $58 to $72. This number represents the median level, meaning that half of the working population earns less than this amount, while the other half earns more. However, World Bank data shows that Nigeria’s GDP per capita was $2,162.6 in 2022. Nigeria is also classified as a lower-middle income country.
Conclusion
Based on income levels, it is safe to say that Kenyans pay more for DStv services than the three countries. On the other hand, prices in South Africa are the cheapest according to their average income. This shows that Nigerians pay more than South Africans.