By Sekaggya Seka Moses
Kampala, Uganda – Multichoice Uganda, a leading pay-television service provider, has sparked outrage among its subscribers after announcing a 3% price increment across its DStv and GOtv packages, effective October 1.
The price hikes, which follow previous increases in April and last year, have left many subscribers frustrated and disappointed.
Notifications regarding the price changes have already been sent to customers.
New Prices
The affected packages include:
- DStv Compact Plus: Shs175,000 (up from Shs170,000)
- DStv Premium: Shs300,000 (up from Shs290,000)
- GOtv Supa: Shs71,000 (up from Shs69,000)
Subscribers React
Subscribers have taken to social media to express their dissatisfaction and disappointment.
“We’re tired of paying more,” said one subscriber. “Multichoice should prioritize subscriber satisfaction.”
“I’m considering switching to a cheaper option,” added another subscriber. “Multichoice is pricing itself out of the market.”
Financial Struggles
Multichoice’s financial woes are well-documented. The company’s 2023 liabilities exceeded its assets by Shs1.18 trillion ($318 million), with total liabilities standing at Shs9.1 trillion ($2.46 billion).
Foreign Exchange Challenges
Multichoice faces significant foreign exchange challenges in key markets like Nigeria, Angola, Kenya, and Zambia. These challenges were highlighted in the company’s 2023 annual report.
Showmax: A Lifeline?
Multichoice is banking on its Showmax streaming platform to offset losses. Showmax 2.0 has shown promise, with revenues averaging $53 million (Shs195.6 billion). The company expects Showmax to break even by 2027.
Merger with Canal+
Multichoice’s proposed merger with French media giant Canal+ could reduce costs and increase efficiency.
The merged company would have 50 million subscribers (30 million in Africa), making it one of the largest entertainment companies globally.
Canal+ chairman Maxime Saada believes the merged entity can become one of the top-five largest entertainment groups worldwide.
Industry Experts React
“Multichoice’s merger with Canal+ could streamline costs and improve efficiency,” said media analyst Richard Kavuma. “However, subscribers remain concerned about price hikes and service quality.”
“Showmax is a promising venture, but it’s not enough to offset losses,” added Kavuma. “Multichoice must address its financial struggles and prioritize subscriber satisfaction.”
Government Intervention?
The Ugandan government has been urged to regulate the pay-TV industry and protect consumer interests.
“The government should ensure pay-TV providers offer affordable services,” said Hon. Mwine, Member of Parliament.
Multichoice Uganda’s latest price hikes have sparked outrage among subscribers.
As the company navigates financial struggles and a proposed merger with Canal+, subscribers will be watching closely to see how their interests are prioritized.
The merger with Canal+ offers a lifeline, but subscribers remain skeptical. Will Multichoice prioritize their needs, or will the price hikes continue?
Only time will tell.