MultiChoice Halts DStv Service in Malawi After Court Rules Against Price Hike

Multichoice, a pan-African broadcaster, is withdrawing its satellite television service provider, DStv, from Malawi. Malawian lawmakers have rejected DStv's latest pricing increases.

The Malawi Communications Regulatory Authority (MACRA) received a temporary order from the country's High Court at the end of July.

The court order barred Multichoice Malawi from manipulating or adjusting its DSTV pricing. Yesterday, August 8, the high court directed Multichoice to comply with the ruling once more, forcing the broadcaster to discontinue its DStv service in Malawi.

MACRA's injunction was based on the idea that because Multichoice did not directly market the DStv service to the public, it did not have the authority to determine or alter pricing for the service in the country.

According to Multichoice, the court ruling makes doing business difficult. And the company's decision to depart the market was prompted by the consequences of noncompliance, which included detention for its employees.

What the Company Said,

“MCM does not offer the DStv service to the public and therefore cannot set or adjust tariffs for this service, a point repeatedly made to Macra.”

“As a result, the order handed down to MCM is incapable of being implemented by them but carries with it grave consequences for the directors and management of MultiChoice Malawi, including imprisonment.”

“Given the impact on its supplier and an increasingly adverse regulatory environment, MultiChoice Africa is therefore left with no option but to terminate the DStv service indefinitely.”

DStv announced pricing increases for Malawi packages in July, beginning August 1, 2023.

This includes an 18% increase in the monthly pricing of the Premium bouquet from 67,000 Malawian Kwacha (R1,167) to 79,000 Malawian Kwacha (R1,376).

The costs of all other packages were also massively raised, with increases ranging from 5% to 22.5%, as indicated in the table below.

MultiChoice has asked consumers in Malawi to stop paying for DStv subscriptions immediately.

“From Wednesday, 9 August 2023, no new subscriptions or reconnections will be accepted,” the broadcaster stated.

Those who have already paid their most recent membership can utilize the service until the current 30-day viewing cycle finishes on or before September 10, 2023.

MultiChoice appreciated Malawian consumers for their long-term support, and MCM for its professional behaviour in offering services to the larger firm during the same time period.