Re: Annual Subscription price increase for DStv
It has come to our attention that there are some queries around the DStv subscription price increase that comes into effect on 1 April, and we would like to ensure that the truth is communicated to you, our valued subscriber. Most of all we would like to reassure you of our best intentions and reaffirm our commitment to Nigeria, which is clearly demonstrated through our continuous investments in the country.
In the last 5 years we have only had one price increase 18 months ago. Since then, despite the high inflation rate averaging around 11.95%, we have not increased subscription prices until now. Our current subscription price increase percentage is well below the inflation average with a 5 to 8% increase on DStv Premium bouquet..
Additionally, we have added a total of 18 new channels over the last 18 months to the DStv bouquets, thus giving you, our subscriber, even more value and choice than ever before. These channels include channels made in Nigeria and showcased in Africa - displaying Nigeria's ingenuity and artistry; these include AfricaMagic Yoruba, AfricaMagic Hausa, NN24 and Sound City. The range of newly launched international channels includes Discovery World, iConcerts and Afro Music.
Over and above this, MultiChoice is the only operating pay TV company that has invested in the latest television technology with High Definition (HD) television and launched the following channels - M-Net HD, SuperSport HD, i-Concerts HD, Discovery Showcase and SuperSport HD Extra - thus ensuring that Nigeria is up there with the best internationally in terms of access to the latest television experience and technology. The introduction of HD channels and the HD PVR decoder has revolutionized the television viewing experience of our subscribers. But that is not the end of our increased offering - in April we intend to add another three exciting new channels; so please keep a look out for these announcements.
There is currently no other pay television company in Nigeria that has made as much investment in the production of local content and infrastructure. Over the last three years the business has invested over $100 million in the coverage of Nigerian sports, including basketball and football; has bought the latest outside broadcast (OB) vans to show live events, built studios and trained technicians. Our investment has not only been in sport, but also in Nigerian productions such as Tinsel, Naija Sings, Jacobs Cross, Comedy Club live in Lagos, Moments with Mo and Jara. We are also excited about the upcoming Big Brother Africa which has made many Nigerian stars!
Our mission is to make pay television accessible to all Nigerians and to offer our subscribers a range of DStv bouquets which deliver both world class Nigerian and international content. We have stuck to this mission and our lowest cost bouquet - DStv Access - currently offers more channels than our nearest rival's premium bouquet for only N1,500.
There has also been propaganda in the market that the price in Nigeria is more expensive than other countries, we would like to point out that Nigeria's subscription of $66 is 21% less than the subscription paid in South Africa which is currently R559 ($80.12) (SA has had annual increases). It is also important to note that the DStv service in Nigeria has the most number of channels, including HD and Nigerian channels.
MultiChoice Nigeria is a Nigerian company and is the only pay television operator that has put significant investments into the upliftment and development of communities - this we have done through our schools projects and support of the Sickle Cell Foundation. We have also helped build sustainable small and medium businesses around the industry with the financing and training of a DStv SuperDealer network which are owned and operated regionally by independent Nigerian entrepreneurs to support the DStv customer experience for you, our valued subscribers.
DStv has been in Nigeria for 15 years and has made massive investments to enable us to provide a world-class home television entertainment experience, we have many exciting new plans for the future to ensure you receive the best possible experience from DStv. In order to ensure the continued viability of our business and a marginal return on the investments that we have made, and are continuing to make, we unfortunately have to increase subscription prices from time to time. As has happened, we have always endeavoured to keep these as low as possible, whilst giving you so much more.
We are most grateful for your continued support and will continue to provide a service that is consistent, efficient, and accessible.
Yours sincerely
Joseph Hundah
Managing Director
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