DStv Prices Spark Controversy Across Africa as Nigerians Pay More Than South Africans

Multichoice, the parent company of DStv and GOtv, has recently announced a price increase on its packages across markets, marking the third time in the last 12 months. The increases have been implemented in Ghana, South Africa, and Kenya since April 1, 2024, while the planned increment in Nigeria was suspended by a high court ruling.

Why this matters: The disparity in DStv pricing across African countries raises questions about the fairness and affordability of the service, which could have broader implications for consumers and themedia industry as a whole. As the company continues to implement price increases, it may lead to a decline in subscribers and a shift towards alternative entertainment options.

A comparison of DStv package prices reveals stark differences across the four African countries. For the premium DStv package, South Africans pay $49.36 per month, while Kenyans are charged $78 monthly. Nigerians would pay $26.70 per month under the new suspended prices, and Ghanaians currently pay GHS680 ($49.48)per month.

The DStv Compact Plus package costs $33 per month in South Africa, $48 in Kenya, $18 in Nigeria, and GHS450 ($32.75) in Ghana. For the DStv Compact package, South Africans pay $25 monthly, Kenyans $27, Nigerians would pay $11 under the new prices, and Ghanaians are charged GHS300 ($21.83) per month.

However, these prices must be considered in the context of each country's income levels and tax burdens. South Africa, an upper-middle income country, has an average monthly income of $1,348 as of Q1 2023 and a GDP per capita of $6,766.50 in 2022. Kenya, a lower-middle income country, has an average monthly income of $149 as of 2022 and a GDP per capita of $2,099.30.

Ghana, a lower to middle-income country, has an average income of GHS4,000 ($291) and a GDP per capita of $2,230. Nigeria, also a lower-middle income country, has an average monthly salary ranging from $58 to $72 and a GDP per capita of $2,162.60 in 2022.

The tax burden also varies significantly, with 29% of what MultiChoice charges in Ghana going into taxes, while only 7.5% of the charges in Nigeria are allocated to taxes.

Based on the income levels, Kenyans are paying more for DStv services relative to their income, while rates in South Africa are the cheapest. Notably, Nigerians are paying more than South Africans despite havingsignificantly loweraverage incomes.

The disparity in DStv pricing across African countries has sparked controversy and raised questions about the fairness and affordability of the service for consumers in different markets. As MultiChoice continues to implement price increases, it remains to be seen how subscribers will respond and whether the company will addressthese concerns.

Key Takeaways

• Multichoice increases DStv prices for 3rd time in 12 months in Ghana, South Africa, and Kenya.
• DStv prices vary significantly across African countries, raising fairness and affordability concerns.
• Kenyans pay the most for DStv relative to their income, while South Africans pay the least.
• Nigerians pay more than South Africans despite having lower average incomes.
• Tax burdens also vary, with Ghana paying 29% and Nigeria paying 7.5% of DStv charges in taxes.