Multichoice to raise DStv, Gotv charges by up to 6% in October

Kampala, Uganda | THE INDEPENDENT | Pay TV firm, MultiChoice Uganda is set to increase its pay TV subscription fees by up to 6%, effective October 1, 2024. The price adjustment will affect both DStv and GOtv customers, with tariff increases ranging between 2.9% and 6%.

Although no specific reason was provided for the price hikes, this marks the second time the company has raised prices within six months.

Customers on the DStv Premium plan, which offers over 170 channels, including award-winning series, major sports events, and the latest films, will now pay Shs 300,000, up from Shs 290,000, reflecting a 3.4% increase.

DStv Compact Plus subscribers, a popular option among sports enthusiasts for its coverage of the Champions League, UFC, and NBA, will see a 2.9% rise in fees, from Shs 170,000 to Shs 175,000. The package also includes documentaries, international shows, and movies.

For GOtv subscribers, customers on the GOtv Supa plan will face a 2.8% increase, with prices moving from Shs 69,000 to Shs 71,000. GOtv Plus customers will experience a 6% hike, increasing their subscription fee from Shs 33,000 to Shs 35,000.

Rinaldi Jamugisa, Communications Manager at MultiChoice Uganda, explained to local media that rising operational costs are a key factor in the decision.

“The production and acquisition of high-quality content comes with significant expenses. This includes investments in original programming, exclusive shows, live sports broadcasts, and international content. Economic conditions, which are beyond our control, also play a role in the price adjustments,” he said.

The pay-TV industry in Uganda faces increasing competition from online streaming platforms like YouTube and Netflix, as more customers shift towards internet-based viewing options.

Last year, Multichoice Uganda’s parent company, Multichoice Group, reported a pre-tax loss of 706 million rand (US$ 40. 5million) for the financial year ending March 2024, owed to a 9% drop in subscribers to 15.68 million as mass-market customers in several countries scaled back on subscriptions.

This compares to a pre-tax profit of 921 million rand (US$ 52.8million) recorded in the previous year. As such, Multichoice announced plans to accelerate its cost-saving initiatives, aiming to achieve savings of 2 billion rand (US$114.7million) in the new financial year.

Operating across 50 countries in sub-Saharan Africa, the company also revealed its strategy to reduce capital expenditure and focus on retaining customers amid challenging market conditions.