The Federal Government’s stance to break the monopoly of MultiChoice Nigeria on pay-as-you-go billing is yielding fruit with the official launch of an indigenous Nigerian satellite television, Silver Lake Television (SLTV), in Abuja.
Straightnews gathered from reports that the Nigerian Broadcasting Commission (NBC) is mulling pay-as-go-view billing for viewers in the country.
Speaking to reporters at the launch, the Director General and Chief Executive Officer of the Nigerian Broadcasting Commission (NBC), Charles Ebuebu, stated that the commission would consider the call by Nigerian pay satellite television subscribers for the introduction of pay-per-view options.
MultiChoice is a South African company operating DStv, a major satellite television service in Sub-Saharan Africa, and GOtv, a minor service operating in over nine countries of the continent and Showmax service.
It offers a wide range of products and services including DStv, GOtv, Showmax, M-Net, SuperSport, Irdeto, and KingMakers.
Also read
- As FG Plans To Break Monopoly, NBC Orders DSTV To Suspend New Tariffs
- Court Says Order Stopping DSTV’s Increase Of Subscription Fees Still Subsisting
- Again, UNIPORT Becomes overall winner at 2022 NUGA Games
But, the Federal Government on Thursday said that the establishment and launch of a new satellite pay television outfit is in line with the desire of Nigerians to “reap from the bountiful harvest awaiting investors in the Nigerian economy.”
Speaking at the launch, Senator George Akume, Secretary to the Government of the Federation, said that the new satellite pay television would serve as a veritable alternative that would respond to yearning of Nigerians by giving them value for their money.
While commending the management of Metrodigital Limited (owners of the firm) for what he said was their patriotic step in setting up the satellite television, he said the firm recognises the fact that the Federal Government has demonstrated an unwavering commitment through robust policies and legal frameworks to promote free competitive and responsible broadcasting service in Nigeria.
According to him, “It is becoming very clear that we are on the right path to our collective recovery and prosperity. This is our country; the only one we can truly call our own and we must fix it by ourselves.
“In recent times, Nigerians have been yearning for alternatives to Satellite Pay Tv that can serve as an alternative to the existing ones. SLTV has responded very loud and clear, and from the information made available to me, they are willing to give their fellow compatriot real value for their money in terms of service quality and affordability.
“It is gladdening that Metrodigital recognises the fact that the Federal Government has demonstrated an unwavering commitment through robust policies and legal frameworks to promote free competitive and responsible broadcasting service in Nigeria, devoid of any form of monopoly and unfair market practices in the broadcast industry in line with the determination of the administration of President Bola Tinubu, to turn the Nigerian economy around.”
“Since his ascendancy as the president of Africa’s most populous nation, the President has made enormous policy changes in his quest for economic recovery, one of the results being the reason that we have gathered here today.”
“Nigeria is an opportunity that is impossible to replicate or find elsewhere in any part of the world. The Federal Government wishes to assure the Management of SLTV of her full backing as they continue to do legitimate business in the broadcast industry of Nigeria.”
The Managing Director of Metrodigital Limited, Dr. Ifeanyi Nwafor, lamented that the growth of pay TV in Nigeria had been hampered by policies and legal frameworks that encouraged monopoly.
Nwafor said his firm was however, encouraged to invest because the government had started to take positive steps to address the issue.
“The pay TV industry in Nigeria has not actually witnessed a robust and accelerated growth since inception as witnessed in other places. The reason is as a result of the policies and legal frameworks that shape the practice and attitude of the industry participants.
‘‘This allowed the dominant players to introduce monopolistic practices that over the years prevented innovation, growth and led to poor quality of service delivery.
“It is however gratifying that in the last few years, the Federal Government of Nigeria took the bull by the horn and addressed some of these underlying problems,” he stated.
MultiChoice’s stance against pay-as-you-go billing
In October 2020, John Ugbe, the chief executive officer of MultiChoice Nigeria, owners of DSTV, argued that the pay-as-you-go billing model for pay-TV, clamoured for by Nigerians, was not viable commercially and technically.
Ugbe told the House of Representatives ad-hoc committee investigating the non-implementation of the pay-as-you-go tariff model by satellite broadcast service providers that DSTV does not have the technology to pause and resume payment plans.
“On the pay-as-you-go model, there is a misconception of the telecommunications industry and the TV industry, it is not a concept that is available in the broadcast industry,” the DSTV chief said.
“If you look at some of the international organisations offering some of those services online, it is a two-way communication. You will see that their billing method is still fixed.
“Telecommunications companies can offer you an option where you can stop and restart but unfortunately that is not the model in the broadcast industry.
“You must also note that you have to buy these services and repackage and sell – you cannot be selling different from what you buy. We don’t have the technology to support that service where if you switch off the TV it stops or restart the service at 12 and stop it at 1pm. That technology is not available to us,” he reasoned.
Ugbe noted that the pay-per-view option is usually misconstrued as pay-as-you-go, saying the latter is a metered service that enables consumers to be billed for the service they enjoy alone, not for a fixed period.
“A subscriber who wants to watch an event on PPV is required to pay an additional fee besides his subscription.
“A typical example would be the Mayweather and Pacquiao, and Wilder and Fury II boxing bouts which were retailed on PPV in the United States for $100 and $79.99 respectively.
“The Mayweather/Pacquiao bout, which was shown on DStv premium bouquet, would cost N38,000, which would far exceed the cost of any of the DStv bouquets.”
Ugbe went further to say that the recent upward review in DSTV subscriptions was sparked by government’s increase of Value Added Tax and poor electricity supply, forcing the firm to resort to alternative sources of power.
“When we did the price adjustment, it was in response to the new finance bill and if you look at it you could see that we were even late in making those changes.”
