By Princewill Ekwujuru
Multichoice Nigeria, owner of the Digital Satellite Television (DSTV), said  subscription fee across some bouguet on it’s  platform will increase with effect from April 1st,  2011.

Addressing Newsmen, Mr. Joseph Hundah, Managing Director of Multichoice, said the increase is occasioned by inflation which is now two digits, content development and purchase, and other invests made in equipments to boost the company’s services.

Justifying the increase, the Managing Director said, “the price of commodities have been increasing across board, if you look at Nigeria’s inflationary measure in the last two to three years, it’s been hovering above 10 percent, and in the last six years we have only put price increase twice, including this one, the last time we had an increase was in September 2009, which is more than 18 months ago, before that, the last increase was in 2005.

So, we really have not been increasing our price along with inflation, despite the fact that cost has been increasing to a certain inflationary rate, over and  above that, we also have the cost of additional content and right  which obviously pushes the prices of providing content, but the biggest contributor to the price increase is really more  inflationary than anything else.”

The Managing Director who agreed that inflation had been in the country some years back, could increase price until it came to a point now that the company could not cover it’s cost as a result of its income, because if your expenses are growing and you revenue is not increasing along with it you start making loss and would not be able to run the company at all.

So it is a simply  fact that our cost has been increasing, we now have to make up some of those increasing cost with the price increase, but the price increase in the last six year.