Multichoice Nigeria Faces Mass Subscriber Exodus Amid Economic Strain

Multichoice Group, Africa’s leading Pay-TV operator, has reported a steep decline in its Nigerian subscriber base, highlighting the economic pressures facing consumers in one of its largest markets. According to the group’s audited financial results for the fiscal year ending March 31, 2025, the company lost 1.4 million subscribers in Nigeria over a two-year period, representing 77 percent of the total decline across its Rest of Africa (RoA) operations.

The figures reflect the harsh macroeconomic environment in Nigeria, which has eroded disposable income and altered consumption patterns across various sectors. Nigeria, once a vibrant Pay-TV market, has become a pressure point for the company, with dwindling viewership driven by rising costs, poor infrastructure, and macroeconomic instability.

The Weight of Inflation and Power Woes

Key to the subscriber exodus is Nigeria’s soaring inflation, which has consistently hovered above 30 percent. This spike has significantly reduced household spending power, making services like Pay-TV a lower priority for many consumers. Alongside this, erratic electricity supply remains a persistent barrier. Multichoice customers across Nigeria, as well as in Zambia, Zimbabwe, and Malawi, have found it increasingly difficult to enjoy Pay-TV services amid chronic power outages.

In Nigeria, fuel shortages have compounded the problem, disrupting daily routines and economic activity. As fuel becomes more expensive and scarce, consumers are forced to cut back on non-essential spending, including entertainment subscriptions. The result is a Pay-TV sector in retreat, with millions choosing to unsubscribe in favour of cheaper or more accessible alternatives.

Streaming Surge Amid Subscriber Dip

Despite the significant decline in traditional Pay-TV subscriptions, Multichoice has found new lifelines in its digital and streaming ventures. The company recorded a notable rise in its DStv Internet segment, which grew by 85 percent over the same period. This reflects a growing appetite for internet services and a shift in consumer behaviour towards on-demand content. KingMakers, Multichoice’s digital gaming arm, also posted a 76 percent growth in constant currency, reflecting the rising interest in online gaming across the continent. DStv Stream, the group’s flexible content service, grew by 48 percent, while Showmax, its flagship streaming platform, recorded a 44 percent increase in active paying users.

These gains signal that while legacy platforms struggle, the digital transition may offer a path forward. Multichoice CEO Calvo Mawela noted the dual nature of the company’s performance, describing it as both a reflection of current macroeconomic difficulties and a testament to the resilience and strategic adaptability of its teams.

Currency Woes Deepen Financial Pressures

Adding to Multichoice’s challenges is Nigeria’s volatile exchange rate. The company incurred foreign exchange losses after transferring $133 million from Nigeria at an average rate of ₦1,589 to the dollar, compared to $184 million at ₦1,044 the previous year. This dramatic currency slide has amplified operational costs and impacted repatriation of earnings. The convergence of inflation, fuel scarcity, and currency devaluation has made Nigeria an increasingly tough market to navigate. Yet, the company’s investment in its digital ecosystem presents a promising pivot. While subscriber numbers in traditional services may continue to fall, the future of Pay-TV in Nigeria could very well lie in streaming, affordability, and technological innovation. Multichoice’s ongoing adaptation may determine not only its own survival in Nigeria’s volatile media market but also set the tone for the future of Pay-TV across the African continent.