Multichoice fights off competition with low-end pay TV

Distribution

To protect its flanks from attacks by competitors targeting the middle and low-end consumers of pay-tv services, TV subscription company, Multichoice recently floated a new television company, GOtv.

A product of ‘Details Nigeria’, GOtv offers the consumers a selection of local and international channels some of which runs on Multichoice's DStv such as AfricaMagic, Kids Co, Disney Junior, Discovery World, Sound City, Islam Channel, Al Jazeera, One Gospel, SELECT Sport and Channel O at an affordable price.
Analysts are of the view that the move is Multichoice's response to increasing competition from later entrants which have revolutionized the industry with their offer of affordable TV services.  They noted that although Multichoice was miffed at the threat posed by its competitors who are targeting the hitherto untapped the low-end of the market, the South-African Company would not want to dilute brand equity of its premium brand, DStv.

In the early years of the pay-TV in Nigeria which has DStv as a pioneer, satellite television was a status symbol exclusive to the A and B classes. Then, the market was a duopoly dominated by Multi-choice's DStv and Hitv until it was broken a few years ago with the entrance of Startimes and Infinity TV in 2010.Startimes gained traction in the market within a short period with its offer of affordable television services that won it a sizable chunk of the pay tv market.
GOtv offers two bouquet; GOtv21 channels and GOtv Plus (32 channels) for  N8,000 decoder  and N95,000 respectively. Monthly subscription for GOtv is 1,000 and GOtv Plus, N15,000.

According to company sources, GOtv is deployed on the DVB-T2 technology standard which allows for up to 20 channels per frequency, an improvement on from DVB-T1 technology which only allows for 12 channels per frequency.
The MD of MultiChoice Nigeria, John Ugbe, said that GOtv would give access to pay television services as many households, opening them up to “a world of new and exciting family entertainment at a price everyone can afford.”