Broadcasting
Pay-Per-View: Cases For, Against DStv & Multichoice
By peter oluka
Multichoice has received a lot of tongue-lashing from the Nigerian subscribers, chiefly for DStv and GOtv’s inability to offer per-pay-view subscription to them over the years.
The cries have reached high heavens since TSTV, the new ‘beautiful bride’ in town, launched into the market promising a per-pay-consume subscription plan.
But, Multichoice has at different fora explained that Nigeria’s economy is not ripe for pay-per-view, because it is an expensive form of payment to the customers
Damilola Faustino, a freelance content developer in an article titled, ‘Breaking DSTV’s monopoly on PayTv in Nigeria’, once argued that a monopoly many Nigerians have struggled to understand or entrepreneurs have battled to break is that of DSTV. “It has, so far, defied nearly all competitions to dominate the PayTv industry in Nigeria.
“We can all recall how HiTV made a cameo attempt at shattering the monopoly. HiTV came like a thief in night, wrestle the rights to broadcast not only the English Premier League (EPL), which has a fanatical following in Nigeria, but also, the English FA, the UEFA champions League, and Europa Cup but in the morning; HiTv had crashed. HiTv which signed to air these matches for 4 years between 2007 and 2011; could not sustain the payment and competition, thus, lost the rights and was liquidated. Sad”, he wrote.
Faustino continues, “In the interim, the loss of the right to broadcast these matches jilted DSTV. It seemed like they went to restrategize and when it was time, they regained the rights to broadcast matches in Europe’s top leagues.
“It must be stated that regardless of the fact that DSTV lost the rights to broadcast the EPL, many Nigerians didn’t dispose-off their decoders. This is because DSTV has other interesting content besides football.
“This has been the trend since DSTV’s entry 22 years ago. It has won every competition. Take the entry of Startimes into Nigeria. It slashed the price of PayTv to make it affordable to especially low-income earners. There is no doubt that PayTv from China has their own market-share”.
But, DSTV responded by rolling out GOtv in 2011. The undeniable truth is that if you cannot afford DSTV, you can buy GOtv and still enjoy the same programming. Other PayTv that didn’t bother to take on DSTV include-DaarSat, Continental Satellite Limited Consat, and MyTV among others. They are arguably satisfied with their little share of the market.
Nevertheless, it is wrong if we describe DSTV’s domination of the PayTv industry in Nigeria as a monopoly. This is because the PayTv market has been made a level playing field since the deregulation of the broadcast industry in 1992. Hence, anyone can venture into the business. DSTV shouldn’t be faulted if they turn out to be the best and almost every Nigerian patronize them.
“This said”, Faustino opined “DSTV’s monopoly has made the PayTv channel somewhat arrogant especially when it comes to its subscriptions. Nigerians have complained about DSTV’s price regime and others have gone to court to challenge it. There are some services like access to Showmax by DSTV PVR subscribers enjoyed in South Africa, the home country of DSTV but, nothing has changed so far. Nigeria is a free market economy. No court nor regulatory body can tell DSTV how to run its business.
“Therefore, instead of focusing on the narrative of breaking DSTV’s monopoly, prospective entrepreneurs should simply pay attention to how to better DSTV in terms of content, and subscription.
“In addition, their efforts will be futile if they don’t hijack the rights to air the matches of major European leagues.
“It should strike a strong cord that the only time DSTV’s market dominance was threatened was when HiTv usurped the broadcast rights of the EPL. It was unexpected and within months, the number of households who own HiTv jumped significantly.
“Currently, DSTV has the right to broadcast the EPL between 2016 and 2019. This right cost the PayTv Company a whopping sum of 296 million pounds to show live EPL matches across Nigeria and sub-Saharan Africa. For the 2013 to 2016 season, DSTV paid 205 million pounds. This means to win the rights, your pocket must be deep and have some powerful investors. Obviously, we can probably conclude that it will be difficult to break DSTV’s.
“However, if we dwell on this, prospective entrepreneurs may not be interested in the PayTv industry in Nigeria.
“DSTV should not be too comfortable as internet penetration continues to grow in Nigeria. Many Nigerians now own mobile phones and if data prices become more affordable, Nigerians will be able to watch live European matches on the internet. There will be less reliance on DSTV for watching the EPL”.
Now Enters TSTV
TSTV which stands for Telcom Satellite TV, is here in Nigeria to battle with DSTV. It launched last Sunday in Abuja with a promise to offer ‘Pay-As-You-Consume’ plan “which every other operator said was not possible in Nigeria before now.
“Pay-As-You-Consume” plan already praised for its simplicity will allow subscribers of TSTV pay for only programmes watched.
Bright Echefu, managing director of TSTV, during the signing of the multi-transponder agreement with their ABS partner disclosed that their services would offer viewers the experience of HD and SD video, internet services, broadband, TV and radio at a very affordable rate.
Hear him, “what makes the project unique is that it would start with 100 channels of local, regional and international in Yoruba, Igbo Hausa, Ghanaian, Sierra Leonean, Liberian Languages among others. It would also provide news, entertainment, education content”.
He argued that TSTV has the right content and premium product to satisfy the growing demand of Nigeria. “It would assist ABS take Nollywood and Sport to great height. Their sport channels is the bomb! EPL, La liga and Champion League is amazing!”
What Does Multichoice Think About All this
Multichoice strongly holds the view that Nigeria’s economy is not ripe for pay-per-view. Well, our stand is that we are not going to offer pay-per-view. One of the reasons we are not going to do it is because it is an expensive form of payment to the customers.
Speaking to Nigeria CommunicationsWeek recently, Mr. Martin Mabutho, general manager, Marketing and Sales, MultiChoice Nigeria explained how it works: “pay-per-view is normally used when a special event is being broadcast. I will give you example of the boxing bout of Floyd Mayweather vs Conor McGregor; that we viewed to our subscribers at no additional cost.
“In America where pay-per-view facility is being offered, people paid $100, only for the fight. The next day if you don’t have subscription, you don’t see anything. For that reason, we don’t think it is a viable thing for us to do. We don’t believe that our market and can handle that”.
Warning:
While the price war is ragging, both DSTV/GOtv and TSTV should not be too comfortable as internet penetration continues to grow in Nigeria. Many Nigerians now own mobile phones and if data prices become more affordable, Nigerians will be able to watch live European matches on the internet. There will be less reliance on pay tv for watching the EPL.
A multimedia and live streaming platform pushing this frontier is Kwese sports owned by Econet Wireless. It signed a deal to broadcast the EPL across sub-Saharan Africa on a Free-To-Air basis for three seasons beginning from the 2016/2017 season. With this, Nigerians can watch the EPL for free as far as they have access to the internet.
Why it is generally believed DSTV has ‘monopolized’ the market due to its awesome content and owning the EPL right, however, TSTV with its drive to break the monopoly should not go the HiTv way. Perhaps, the best way to go now is live streaming which is becoming popular by the day.
National Broadcasting Commission (NBC) has said that Nigerians will no longer pay annual Digital Access Fees under the renewed Digital Switch Over (DSO) project.
Charles Ebuebu, director-general, NBC, disclosed this in an exclusive interview with the News Agency of Nigeria (NAN) on Wednesday in Abuja,
Ebuebu said viewers only need to purchase an approved decoder and satellite dish which cost below N20,000 to enjoy free television permanently.
“Previously, users paid an annual digital access fee of about N1,500, described as an administrative charge.
“The new system removes that annual fee. It provides free access to free-to-air television channels without any payment.
“Premium channels will be introduced later. Viewers who want those additional channels will be able to access them through paid services.
“Nigerian content on free-to-air channels remains free to watch. Unlike Pay TV, this platform does not require monthly subscriptions for its basic service,” he said
Ebuebu said approved decoders for the FreeTV will cost less than N20,000 and authorised sales outlets will soon be announced.
He urged Nigerians to wait for official information on approved dealers for the DSO decoders, warning that unauthorised sellers are exploiting growing public demand.
He reiterated that people only need a free-to-air decoder, along with a satellite dish instead of the old antenna system to receive the DSO signal.
“Once the equipment is installed, viewers can access all available channels across the country without paying any subscription fees,” he stressed
The DG dismissed claims by some retailers that there are different categories of decoders sold at varying prices, stressing that such sellers are not authorised by the commission.
According to him, the NBC will soon publish the list of approved dealers, official prices, and locations where genuine decoder boxes and accessories can be purchased.
The NBC boss said the DSO project is designed not only to improve television broadcasting but also to stimulate economic growth by creating jobs, attracting investment, and opening up opportunities for businesses that support the broadcasting industry.
Ebuebu noted that content producers and broadcasters stand to benefit significantly from the nationwide reach of the DSO platform.
Unlike the previous system, where many stations had limited regional audiences, he said the new platform will make their channels available to viewers across Nigeria.
He added that the introduction of audience measurement technology will provide scientific and reliable data on television viewership.
Ebuebu added that audience measurement technology will give advertisers greater confidence in placing adverts and enable broadcasters to demonstrate the true size and reach of their audiences nationwide.
Uchenna Mbunabo, Nigerian filmmaker, has raised concerns over the alleged unauthorised broadcast of Nollywood films by some Ghanaian television stations, calling on Ghana’s National Film Authority (NFA) to strengthen the enforcement of copyright laws.
Uchenna Mbunabo, Nigerian filmmaker
Mbunabo made the remarks during a conversation with James Gardiner, deputy CEO of the National Film Authority (NFA) of Ghana.
He questioned whether it was permissible for television stations in Ghana to download Nigerian movies from YouTube and air them without obtaining permission from the producers.
“I noticed that Ghanaian TV stations, the way they are stealing our films and showing them for free with impunity. Is it legalised in your country for TV stations to go on YouTube, download people’s sweat and show it for free?”
According to Mbunabo, some Ghanaian television stations have been downloading newly released Nollywood films from YouTube and broadcasting them without authorisation, depriving producers of revenue generated through the platform.
He also stated that he had not witnessed Nigerian television stations engaging in similar practices and questioned what measures Ghana was taking to protect filmmakers’ intellectual property.
Responding to the concerns, Gardiner acknowledged that the issue exists and said the National Film Authority had begun engaging relevant stakeholders to address it.
He disclosed that the NFA has held discussions with the Ministry of Communications, the National Communications Authority (NCA) and the National Media Commission (NMC) on improving copyright enforcement.
Gardiner explained that while Ghana has copyright laws, enforcement remains challenging because many television stations now operate digitally and may not have physical offices within the country.
“There are copyright laws, but they are not effective because a lot of the TV stations don’t have offices. Most of them are now digital, so they operate from anywhere. They can even have a Ghanaian TV station but be operating from Austria simply because it is digital.”
He added that authorities are considering a new licensing framework that would require broadcasters to undergo a fresh licensing process to improve monitoring and enforcement.
According to Gardiner, television stations found guilty of illegally broadcasting copyrighted content would be required to compensate affected producers through fines.
He added that repeat offenders could face suspension of their broadcasting licences, while a third violation could result in the revocation of their licences.
Although he did not provide a specific timeline, Gardiner said the reforms were already underway and expressed hope that significant progress would be seen next year.
Mbunabo welcomed the proposed measures but urged the National Film Authority to expedite the process, stating that unauthorised broadcasts continue to affect filmmakers’ ability to recover production costs through legitimate distribution channels such as YouTube.
He also stressed that his comments were not directed at Ghana’s film industry, noting that he has worked with several Ghanaian actors over the years and supports collaborations between Nollywood and Ghallywood.
FAAN to Replace Physical ID Check with V-Pass Biometric Verification
World Bank Says 79 Percent of Nigerians Still Trapped in Poverty despite Reforms
SEC Begins Drive to Recover Unclaimed Dividends
ntel Plays Down Calls and Data Services, Moves to BET Agenda
Nigeria Facing Rising Cybercrime Losses – Report
NRC, Ponzi Scheme Collapses Resulting Loss of Billions of Naira
Nigeria Launches FreeTV Nationwide
NASENI Moves to Digitize CCB’s 5m Assets Declaration and Operations
Lebara Nigeria Launches Lebara Play, Africa’s First Telecom-Owned Micro-Drama Platform
CANAL+ Partners Samsung to Pre-Load DStv Stream on New Samsung TVs In Nigeria, Other African Countries
E-Business2 days agoTD Africa Sponsors Check Point Secure 360 Summit to Boost Cybersecurity in Nigeria
Telecom2 days agoMTN Foundation, MUSON Celebrate Emerging Music Talents at 2026 Graduation Ceremony
Telecom2 days agoNITDA Calls for Digital Infrastructure Expansion to Drive Nigeria’s Industrialisation
E-Financial2 days agoNext Currency Crisis May Turn $300Bn in Stablecoins into National Currencies
News2 days agoGuinness Rolls Out Nationwide Consumer Rewards Promotion
General News2 days agoFirst Trustees Advocates Estate Planning as an Essential Tool in Every Wealth Creation Strategy
E-Financial2 days agoGigbanc Nigerian Fintech Startup Closes Shop after 3 Years
Broadcasting2 days agoMbunabo, Nigerian Filmmaker Accuses Ghana TV Stations of Pirating Nollywood Films