Following the increase in its operating costs as a result of the fall in the Nigerian naira, Naspers Limited, Africa’s largest company by market value, has made plans to make use of new products and services to attract more customers to its $58-a-month DSTV offering in Nigeria.
The media company which broadcasts English Premier League soccer and international dramas through its Multichoice unit, explained that it pays for some content in dollars and is therefore vulnerable to exchange rate volatility.
According to the chief executive officer of MultiChoice Nigeria, John Ugbe, Cape Town-based Naspers is in talks with telecommunication companies about increasing its mobile-television offering in Nigeria.
“A lot of the content cost is dollar based and there is a need to increase sales. It is for us to continue to make the product better, more affordable and continue to offer options to our subscribers,” he said.
In the past six months, the naira has weakened about 20 per cent against the dollar , the worst performer among 24 African currencies, partly as a result of the falling price of oil which makes up almost all of Nigeria’s exports.
“The economy is going through a bit of a bleak period. That makes business tough, but we’ve been here for 22 years so have been known to survive it,” Ugbe added.