As the public debate over DSTV subscription fees rages on, consumer protection advocate and economist Appiah Kusi Adomako is flipping the script, arguing that MultiChoice Ghana itself is at risk if it fails to cut prices and adapt to the changing media landscape.
Speaking on Channel One TV’s Point of View, Lawyer Adomako made a case that refusing to reduce prices in a fast-changing market isn’t just anti-consumer, it is against MultiChoice’s own survival.
“I think that it is in the interest of MultiChoice to also operate efficiently in the market,” he insisted.
For years, MultiChoice Ghana, operators of DSTV, has enjoyed near-monopoly control over Ghana’s pay-TV space, setting prices with little competitive pressure.
But that era, Adomako suggests, is coming to a swift and digital end. He warns that high pricing has made the company vulnerable to price-sensitive consumers and potential market entrants with more innovative or affordable offerings.
He reveals that in the event a competitor steps into the market and offers affordable services, MultiChoice may not be able to compete since their prices are exorbitant, hence they may have not exit the market.
“If you are not earning so much monopoly profit and someone comes to the market with a better quality, you may not be able to survive because over the years, your prices were up. Now that you are facing competition, you may not be able to compete and have to exit the market. So their business strategy needs to change if they want to survive in the market,” he explained.
He further indicated that the rise of streaming services, which also offers similar services as MultiChoice is gradually redefining content consumption across Africa. With internet data bundles becoming more accessible, the once unshakable grip of satellite TV is loosening.
“Nowadays, there are also streaming services. Now people are shifting and buying unlimited data. So those who are watching football matches may decide to go towards streaming services. And that alone could also affect them,” he added.
For the West African Regional Director of CUTS International, these conditions mean any delay in adapting to pricing pressures, either from consumer demand or government, risks accelerating its irrelevance in a market where there is high digital agility.
While MultiChoice’s pricing has come under fire from consumers and the Minister of Communications, Appiah Kusi Adomako says the company should see this as a wake-up call, not a threat.
If MultiChoice continues to price aggressively without offering greater flexibility or value, it could create the very opening that new players, or existing digital platforms, need to dethrone it.
