Africa has seen remarkable technological advancements and connectivity in recent years, with satellite TV services becoming a prominent player in the media and entertainment landscape. The pricing strategies of satellite TV providers have become a focal point of interest and scrutiny.
Multichoice, the operator of DStv, Gotv, and Showmax, tailors its services to local markets. It is expanding local payment options and implementing localized billing systems to strengthen its presence and gain a competitive edge in Africa’s pay-TV sector.
The majority of Multichoice’s revenue comes from DStv subscriptions in the broader African region. While the company has been at the forefront of cable television in Africa, it has not been without loggerheads with several African governments; with the most recent being in Malawi.
Multichoice is exiting Malawi following a high court ruling preventing the company from invoking further price increases for DSTV service in the country.
The Pan-African broadcaster announced it was pulling its satellite television service provider, DStv, out of Malawi. This followed a decision by Malawian regulators to reject DStv’s latest price hikes.
At the end of July, the Malawi Communications Regulatory Authority (MACRA) obtained an interim injunction from the country’s High Court. The injunction prohibited Multichoice Malawi from changing or modifying DSTV tariffs.
It’s More about Tax
While pay-TV viewership in MultiChoice’s home market of South Africa has been declining, the company has come to rely more on its operations in the rest of Africa to remain profitable.
When Multichoice Nigeria proposed an increase in subscription prices for Nigerian subscribers in April 2023, there was a response from the general population in the country. Economic difficulties and increased corporate expenses were cited as justifications for this choice.
The government of Malawi is concerned about the loss of commerce, entertainment, education, and information for its people as a result of MultiChoice’s withdrawal. Currently, the government is urging the corporation to reach a “win-win” agreement.
MultiChoice’s withdrawal will have a devastating effect on the economy, including the government’s ability to collect taxes, according to Moses Kunkuyu, a spokesman for the Ministry of Information and Government.
MultiChoice said that they were unable to carry out the order given to MCM and preferred to quit rather than continue in the increasingly harsh regulatory climate.
Local cable TV providers in Malawi should be encouraged to expand and thrive as a result of the changing market environment and the legitimate concerns voiced by the local population. If the government’s only focus is on taxation, it might not succeed in fostering an atmosphere that encourages the development of regional enterprises.
However, the government’s stance on the matter begs us to question why the country should solely depend on cable television for information and entertainment. Are there no local cable television companies in Malawi?
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