Managing Director, MultiChoice Nigeria, John Ugbe in an interview with journalists explained the rationale behind the recent increase in subscription costs of the Multichoice pay TV service popularly known as DSTV.
When told by reporters that the hike in subscription costs had hit Nigerians hard especially coming at the time when the economy was already harsh on the people Mr John stated that while price increases are always painful they are sometimes necessary for businesses to be able to manage providing the services to consumers as well as returning value to the shareholders.
On the demand by some section of consumers for a pay as you use type of subscription (which they alleged is used in some countries like South Africa) Mr Ugbe reiterated that there is no where the DSTV service is used on a pay as you watch service. He said, “People often confuse ‘Pay as you watch’ model with ‘Pay Per view”’, where essentially, subscribers pay specifically for big ticket events in addition to their monthly subscriptions. This effectively even makes the subscriptions more expensive.
He also debunked statements that the subscription increase was only effected in Nigeria confirming that increase has been effected across the continent.
You can read up on the entire interview here.