MultiChoice: Nigerian regulatory guidelines, consumer protection and blame game over decline in DSTv subscribers

*MultiChoice releases its financial results for the year ended March 31, 2024, stating the 18 percent decline recorded in Nigeria’s market brought the pay TV company RoA’s total active subscribers down by 13 percent to 8.1 million from 9.3 million in the past year

Isola Moses | ConsumerConnect

MultiChoice Group, a major pay TV operator and owner of DSTv and GOTv, has blamed its recent business misfortune on the Nigerian economy as the company’s DSTv active subscribers in the West African country declined by 18 percent in the last financial year.

ConsumerConnect learnt the company stated this in its financial results released Wednesday, June 12, for the year ended March 31, 2024.

However, some Nigerian consumers have disagreed with MultiChoice’s conclusion in its financial books by blaming the West African country’s economy for its misfortune in the pay TV market in the region.

The company had said that the decline in Nigeria affected its overall subscriber database leading to a nine percent decline for the year.

The total subscription figure for Nigeria was not stated as it is lumped with other operating units outside South Africa tagged as ‘Rest of Africa’ (RoA), according to report.

MultiChoice reported that the 18 percent decline in Nigeria brought the RoA’s total active subscribers down by 13% to 8.1 million from 9.3 million in 2023.

It stated: “The group’s 9% decline in active subscribers was mainly due to a 13% decline in the Rest of Africa business as mass-market customers in countries like Nigeria had to prioritise basic necessities over entertainment, while the South African business showed more resilience with a 5% decline.”

However, checks indicated that several Nigerian pay TV consumers have yet disagreed with MultiChoice on its conclusion expressed in the company’s financial statements, that the West African country’s economy was responsible for its business misfortune in the pay TV market in the last financial year.

While some have said the firm was the architect of its own misfortune in the country’s mass market, especially in regard to its continuous and carefree failure to abide by industry guidelines and regulatory orders in the host country.

On MultiChoice’s disrespect for regulatory guidelines on tax, product and service price matters

In a recent decisive move to further protect the interests of pay TV consumers in the same “mass market” (Nigeria) in which the company has operated, made a fortune, and repatriated business proceeds to its home country, South Africa, over the years, the Competition and Consumer Protection Tribunal (CCPT), sitting in Abuja, FCT, few weeks ago slapped N150 million fine on MultiChoice Nigeria Limited for “disputing the court’s jurisdiction” in the West African country.

This is besides the firm’s long-drawn issues of non-compliance and outright contestations with the Federal Inland Revenue Service (FIRS) over accumulated tax debt in the recent past.

ConsumerConnect reports the three-man CCPT, led by Thomas Okusu, which handed down the verdict Friday, June 7, 2024, also ordered the company to provide all Nigerian subscribers with a month’s free subscription.

The verdict was based on a lawsuit instituted by Barr. Festus Onifade, who claimed the eight-day notice the pay TV firm had given for the price increments was inadequate.

Barr. Onifade had sued DSTv, accusing the company of unjustly increasing subscription fees without a month’s notice to consumers, while seeking interim orders.

Prior to the court’s order Friday, counsel for MultiChoice was reported to have argued that previous rulings had settled price regulation issues.

He also contended that Onifade focused on the inadequate notice rather than the price hike itself, prompting the tribunal to affirm its jurisdiction and rule against MultiChoice.

The court subsequently fixed July 3 for a hearing of the plaintiff’s substantive suit.

The Competition and Consumer Protection Tribunal, following the firm’s reported penchant for violating regulatory guidelines in the Nigeria, April 2024 again had ordered MultiChoice Nigeria to not increase its subscription tariffs, as well as costs of products and services, which it had planned to take effect from May 1.

The three-member Tribunal, then presided over by Saratu Shafii, also issued the interim order Monday, April 29 following an ex-parte motion moved by Ejiro Awaritoma, counsel for the applicant, Barr. Onifade.

The CCPT, in a ruling, restrained MultiChoice from actualising the planned price increases, pending the hearing and determination of the motion on notice filed before it.

Shafii also directed all parties in the suit to appear before the tribunal May 7 at 10 a.m. for the hearing and determination of the motion on notice.

The petitioner had dragged MultiChoice Nigeria Limited and the Federal Competition and Consumer Protection Commission (FCCPC) before the tribunal.

Onifade, also a legal practitioner, had sought two orders, including “an order of interim injunction of this honourable tribunal restraining the 1st defendant whether by themselves, her privies, assigns by whatsoever name called from going ahead with impending price increase schedule to take effect from 1st May, 2024, pending the hearing and determination of the motion on notice.

“An order restraining the 1st defendant from taking any step(s) that may negatively affect the rights of the claimant and other consumers in respect of the suit pending the hearing and determination of the motion on notice.”