Ghana’s government has issued a stern ultimatum to MultiChoice Ghana, directing the pay-TV operator to slash its DStv subscription prices by 30% before August 7, or risk having its broadcasting license suspended.
According to a report by Daily Graphic, the directive stems from concerns that MultiChoice’s pricing in Ghana is disproportionately high compared to other African markets, despite recent gains in the local currency.
Minister of Communication, Digital Technology and Innovations, Samuel Nartey George, said the company’s 15% price hike in April was unjustified, particularly as the Ghanaian cedi has significantly strengthened this year.
Multichoice offered steady rates
During negotiations, MultiChoice reportedly offered to keep current subscription rates steady and temporarily halt the repatriation of earnings to its headquarters.
However, the minister rejected that option, insisting on a price adjustment to reflect both currency appreciation and fair regional pricing.
- Ghana’s cedi has been one of the best-performing currencies in 2025, appreciating by 40% against the U.S. dollar, second only to the Russian ruble, according to Bloomberg data.
- George noted that MultiChoice charges $83 for its premium bouquet in Ghana, compared to just $29 in Nigeria for the same content.
- In response, MultiChoice stated that it cannot implement the price cut as demanded by the government.
“It is not tenable to reduce the DStv subscription fees in the manner proposed by the minister,” the company said.
It added that it works to keep prices “as low as possible” without sacrificing content quality or service delivery, despite operating in what it described as a challenging macroeconomic environment.
Legal battle in Nigeria
The Nigerian unit of the Multichoice Group is also facing a legal battle in the country over its latest price hike implemented in March this year, as the country’s consumer watchdog, Federal Competition and Consumer Protection Commission (FCCPC), is challenging the action.
MultiChoice had informed its customers about a planned price increase across its DStv and GOtv packages, set to take effect on March 1, 2025.
- Under the new price regime, the DStv Compact bouquet rose from N15,700 to N19,000, reflecting a 25% increase, while the Compact Plus package would go up from N25,000 to N30,000, marking a 20% hike.
- The DStv Premium plan, the highest-tier package, also saw a 20% increment, increasing from N37,000 to N44,500.
- Similarly, GOtv subscribers were affected by the price hike, with the Supa Plus plan jumping from N15,700 to N16,800, among other adjustments.
- In response to the announcement, FCCPC summoned MultiChoice Nigeria to provide explanations regarding the price review. The Commission directed the company’s Chief Executive Officer to appear for an investigative hearing on February 27, 2025, raising concerns over frequent price hikes, potential market dominance abuse, and anti-competitive practices within the pay-TV industry.
- The FCCPC also issued a stern warning, stating that failure to justify the price adjustment or comply with fair market principles would lead to regulatory sanctions.
However, despite this directive, MultiChoice went ahead with the price increase on March 1, 2025, in direct violation of the Commission’s instructions.
Following this, the FCCPC instituted legal proceedings against MultiChoice and its Chief Executive Officer, John Ugbe, over alleged violations of regulatory directives and obstruction of an ongoing inquiry.
The case is now at the Court of Appeal, Abuja.
(Nairametrics)
