Home Business Economist Supports DSTV Price Cuts, Blasts Pay-TV Monopoly

Economist Supports DSTV Price Cuts, Blasts Pay-TV Monopoly

by Radarr Africa
Economist Supports DSTV Price Cuts, Blasts Pay-TV Monopoly

A respected Ghanaian economist, Mr. Appiah Kusi Adomako, has thrown his weight behind Communications Minister Sam George’s demand for a reduction in DSTV subscription prices, calling out MultiChoice Ghana for what he described as “monopoly pricing” in the pay-TV sector.

Mr. Adomako, who serves as the West Africa Director for CUTS International, a consumer rights advocacy group, said MultiChoice’s dominance in the television subscription space has created a pricing system that is not fair to ordinary Ghanaians.

He made the comments during a live interview on Channel One TV, where he noted that despite Ghana’s free market structure, the current conditions in the pay-TV market warrant state intervention. According to him, the market is failing to regulate itself due to the lack of viable competition for MultiChoice, which operates DSTV and GOtv in Ghana.

“Just because we operate a free-market economy does not mean we allow monopolies to exploit consumers unchecked. This is textbook market failure,” Mr. Adomako explained.

He further referenced the recent appreciation of the Ghanaian cedi against the US dollar, saying this should have brought about a natural reduction in subscription fees, which were previously increased due to currency depreciation.

“The cedi has appreciated by 42.6% in recent months, yet DSTV prices have not moved. If they were quick to increase fees when the currency weakened, why are they not reducing them now that the currency has gained strength?” he queried.

Mr. Adomako argued that the failure to adjust prices in line with the improved exchange rate exposes the exploitative nature of MultiChoice’s pricing strategy, which leaves consumers with no cheaper alternatives due to the absence of competitors in the market.

He said even advanced economies such as the United States have had to intervene in markets to protect citizens, citing the 2008 financial crisis bailouts and recent efforts to control prescription drug prices as examples of justified state involvement in capitalist economies.

“I believe in free markets. But where a sector has high entry barriers and consumers are suffering due to lack of competition, temporary government regulation is necessary,” he stressed.

The issue has drawn significant public attention since Minister Sam George, who also serves as the Member of Parliament for Ningo-Prampram, set a deadline of August 7 for MultiChoice to reduce its prices or face possible sanctions.

The Minister accused the company of ignoring the economic realities of Ghanaians and failing to adjust its billing structure to reflect changes in the economy.

“The people of Ghana cannot continue to be at the mercy of a private monopoly,” Mr. George said during a recent media briefing, adding that the government would explore regulatory tools to ensure fairness.

Mr. Adomako’s endorsement of the Minister’s stance adds further pressure on MultiChoice, as public sentiment appears to support more affordable pay-TV options, especially in the face of economic challenges that continue to affect households.

Consumer groups and social media users have also weighed in, with many calling on the company to offer more flexible packages, introduce per-view billing, or provide significant discounts in line with the stronger local currency.

Meanwhile, MultiChoice Ghana is yet to issue an official response to the calls for a price cut or address the deadline issued by the government.

Industry analysts say the outcome of this standoff could set a precedent for how monopolistic companies operating in essential consumer sectors are regulated, especially in markets where competition is weak or nonexistent.

The situation has also exposed regulatory lapses in the pay-TV sector, with stakeholders now calling for the establishment of a more robust consumer protection framework that includes regular pricing reviews, market competition monitoring, and stronger oversight.

Mr. Adomako concluded by saying that government action is not always against market principles. “In cases like this, asking MultiChoice to reduce prices isn’t anti-market—it’s anti-exploitation. We must protect consumers from unfair practices,” he said.

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