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Independent AfricaSouth African pay TV provider exits Malawi over regulatory prohibition on increasing...

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South African pay TV provider exits Malawi over regulatory prohibition on increasing prices

Multichoice, a South African entertainment business that owns and runs the satellite pay TV service DSTV, has left Malawi after a court ruled that its local franchise was not allowed to raise costs.

The business said that it will only continue to provide services to customers who had valid subscriptions through September 10 and that “no new subscriptions or reconnections will be accepted.”

The termination of services in Malawi signifies the culmination of a strained relationship between Multichoice and the regulatory authority.

In the previous month, Multichoice Malawi had unveiled plans to raise DSTV prices, but the Malawi Communications Regulatory Authority (Macra) secured a temporary court injunction to halt the proposed increase.

In response, MultiChoice Malawi managed to secure a temporary suspension of the injunction.

Earlier in January, Macra imposed a fine of 10 million kwacha ($9,220; £8,400) on MultiChoice and instructed the company to reimburse subscribers for the additional charges incurred due to MultiChoice’s unauthorized increase in DSTV prices.

MultiChoice Malawi contended that it was merely collecting subscription fees on behalf of MultiChoice Africa, the entity responsible for setting and adjusting prices.

Renowned as Africa’s premier entertainment platform, MultiChoice caters to 23.5 million households across 16 countries in sub-Saharan Africa.

Although DSTV offers a range of entertainment services, it is particularly recognized for its live sports event streaming, notably football.

In recent months, MultiChoice Africa has raised subscription fees for TV services in several markets, including South Africa, Nigeria, and Kenya.

The company has addressed criticisms from users in these nations by explaining that the price hikes are a consequence of inflation and the subsequent escalation in operating costs.

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