By our reporter
Kampala, Uganda – Pay TV subscribers in Uganda are grappling with frequent price adjustments, sparking concerns over the affordability and value of these services.
Doreen Anyijukire, a GOtv subscriber, recently received a message announcing another price increase, just seven months after the previous adjustment.
Her GOtv Supa package will now cost Shs71,000, up from Shs69,000.
“I thought it was another random text,” Anyijukire said. “GOtv needs to stop; subscription rates cannot be adjusting all the time.”
Anyijukire’s sentiments are shared by many subscribers, who have taken to social media to express their frustration.
Sanyu Zimbe, another GOtv subscriber, questioned MultiChoice’s pricing model, citing the frequency of adjustments. Zimbe subscribes to the GOtv Supa Plus package, which was recently increased from Shs90,000 to Shs110,000.
MultiChoice, the parent company of GOtv and DStv, has increased prices across both platforms by an average of 2.8% effective October 1. This follows an average increase of 5.7% in April.
In the last two years, GOtv Supa package prices have risen by Shs16,000, from Shs55,000 in April 2022 to Shs71,000.
Rinaldi Jamugisa, MultiChoice’s Public Relations and Communications Manager, attributed the price adjustments to various commercial, economic, and strategic factors, including satellite and distribution costs, content acquisition, and infrastructure expenses.
“We charge customers the fair value for the channels they receive,” Jamugisa said. “Some channels are superior and carry exclusive, first-run content, which is very expensive.”
Uganda Communications Commission (UCC) regulates the pay TV subsector and approves price adjustments.
Fred Otunnu, UCC’s Corporate Affairs Director, explained that price adjustments are driven by factors such as content acquisition costs, operational expenses, inflation, and exchange rate fluctuations.
“Price adjustments may appear frequent, but they are transparent, comply with consumer protection regulations, and are communicated clearly to subscribers,” Otunnu said.
However, recent data shows a decline in pay TV subscribers, from 1.47 million in March 2024 to 1.4 million in June 2024.
As MultiChoice navigates the delicate balance between pricing and subscriber retention, experts suggest that the company consider the impact of frequent price adjustments on its customer base.
MultiChoice operates in 50 countries across sub-Saharan Africa and has announced price adjustments in several markets, including Kenya.
At the group level, MultiChoice subscribers have been dropping, reducing by 9% to 15.68 million as of March 2024.
The decline in subscribers has raised concerns about the sustainability of the pay TV business model.
UCC attributes the decline to various factors, including pricing challenges and the increasing penetration of the internet.
“The frequency of price adjustments is not unusual in industries where costs fluctuate regularly,” Otunnu said.
Despite the challenges, MultiChoice remains committed to providing quality content to its subscribers.
“We will continue to offer our customers the best content at a fair price,” Jamugisa said.
