MultiChoice Africa and Malawi cut ties after the High Court issued an injunction to MultiChoice Malawi in Lilongwe.
The injunction prohibits the pay-television operator, through its subsidiary, MultiChoice Malawi, from implementing price increases for DStv in the Southern African country.
In a statement earlier this week, MultiChoice Africa said, “MultiChoice Malawi (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.”
Speaking to TechCentral, Corporate affairs and stakeholder relations executive for MultiChoice Africa Holdings keabetswe Modimoeng said MCM is the only licensed operator for GOtv in Malawi. MCM needs to get approval from Macra if they want to increase tariffs for GOtv.
Through MultiChoice Africa, DStv is able to offer its subscription services in Malawi with Multichoice Malawi. “This means that although DStv customers interface with MultiChoice Malawi, MCM does not own DStv, MultiChoice Africa Holdings does – and that business “is not a licensee” of Macra,” according to TechCentral.
“The regulator wants to exercise power over a service it does not have control over,” said Modimoeng. DStv subscribers, meanwhile, are left with no choice but to say goodbye to their favourite shows.
“Customers are hereby, and with immediate effect, requested to halt payment for the DStv service. Customers who have already paid their new subscription for the DStv service will have those services honoured until the current 30-day viewing cycle ends on or before 10 September. From Wednesday, 9 August, no new subscriptions or reconnections will be accepted,” said MultiChoice.
DStv announced its price increase for packages in Malawi with effect from 1 August 2023. With its premium bouquet going up by 18% from 67,000 Malawian Kwacha (R1,167) to 79,000 Malawian Kwacha (R1,376).