Broadcasting
Why Nigerians, Others Pay More for Pay-TV
By Justus E. Fashedemi
Who do you think pays the eye-watering salaries earned by players in England’s Premier League, the Spanish LaLiga or Italian Serie A? It is not the clubs, but fans in those countries and around the world.
Wondering how? Here is it. The Premier League, the world’s favourite football league, for example, is broadcast in 212 countries to an estimated 4.7 billion people.
The 2016/17 season was the first in the current three-year broadcasting deal, which gives the Premier League £8.3 billion in television rights, with £5.41 billion of that coming from two UK broadcasters, Sky and BT.
It means clubs have larger sums to spend on players, who are earning bigger wages, and are less dependent match day income.
To cover the cost of the sum paid for the deal with the Premier League, Sky and BT jacked up prices by about 10% in 2016, meaning that the cost to the subscriber went up.
The two broadcasters were simply responding to the 71% jump over what was paid for the previous television deal. So, whatever commercial progress the clubs are making is at a cost, which is eventually passed on to fans around the world by television companies broadcasting matches of the Premier League everywhere in the world.
Being a red-hot property, a jewel in the Pay TV crown, rights to air Premier League matches are unlikely to attract lower sums when next they are up for renewal.
In fact, they will attract higher sums. Live sport, in general, is hot, hot property. The cut-throat competition for the acquisition of rights to broadcast or redistribute live sport content is unsurprisingly accompanied by stratospheric hikes prices demanded by content owners.
It is the same for content in other genres- movies, general entertainment, documentaries, kiddies’ content et al.
Being part of the global Pay TV landscape, operators in Nigeria are similarly victims of tough negotiations and astronomical content prices as operators in Europe, the US and Asia.
A big portion of the monthly subscription the consumer pays is comprises costs that Pay TV companies, which are essentially distributors or vendors, are required to pay to content creators or those that package Pay TV channels.
It means that for every household receiving that package, whether or not anyone in the household watches the channel, Pay TV providers pay a fee.
Content rebroadcast agreements usually contain clear and stringent rules on how content owners want their television shows and channels should be sold to viewers.
Content owners determine, for example, what packages can contain their channels. With content costs almost always denominated in the US dollar, Euro and the British pound, it is not possible for Pay TV subscription in Nigeria to remain the same for long, especially with the volatility of the exchange rate of the Naira to the aforementioned international currencies.
Even then, Pay TV prices in Nigeria are not anywhere near the steepest in the world as many often suggest. A look at the recent price adjustments made by MultiChoice on its DStv platform provides a confirmation. Under the company’s new price regime, the DStv Premium package, which currently costs N14, 700 will from 1 August rise to N15, 800.
Price of the DStv Compact Plus package has also been slightly bumped up from to N10, 650 from N9, 900. The Compact package, which currently costs N6, 500, will rise to N6, 800.
Prices of the Family and Access packages will equally go up to N4, 000 and N2, 000 respectively from the N3, 800 and N1, 900 currently being paid. Compared to the company’s new rates in Ghana, MultiChoice subscribers in Nigeria can have few complaints.
The West African country’s Premium subscribers will henceforth pay GH 365 (N27, 360.75), while those on Compact plus will pay GH 245 (N18, 365.44). Compact and Family subscribers in Ghana will pay GH 149 (N11, 169.18) and GH 85 (N6, 961.60) respectively.
South African subscribers of the company, erroneously viewed as sacred cows, will pay R809 (N21, 728.47) for Premium, R509 (N13, 670) for Compact Plus, R385 (N10, 340.49) for Compact, R249 (N6, 687.75) for Family and R99 (N2, 656.98) for Access respectively.
Similarly in Europe and the Americas, Pay TV subscribers pay more than Nigerians. In the US, Pay TV operator, Direct TV’s two biggest packages cost $110 (N38, 710) and $60 (N21, 660) respectively. For its third biggest package, Xtra, Direct TV charges $55 (N19, 855).
Its other packages cost $40 (N14, 440), $45 (N16, 245) and $35 (N12, 635). United Kingdom’s premier operator, Sky TV, charges £79.95 (N38, 167.33) for its fullest package and £47.50 (N22, 572.97) for that next to it. The third package attracts £40 (N19, 008.82), while the three below it cost £30 (N14, 256.61), £25 (N11, 731.54) and £20 (N9, 504.41) respectively.
In Mexico, where the provider offers four packages, the costs are higher than what is paid by subscribers in Nigeria. In the Central American country, Sky TV’s topmost package costs MXN 1039 (N19, 798.52). The three others cost MXN 829 (N15, 796. 52), MXN 649 (N12, 366.93) and MXN 569 (N10, 842.50).
Contrary to the widespread belief that Pay TV prices around the world are as stable as rock in a windstorm, the fact is they rise yearly.
Analysts reckon that programming costs have risen by eight to 10 percent in each of the past four years-driven by competition for content and other economic conditions, reducing Pay TV operators’ margins and compelling them to keep hike prices to remain afloat.
Competition has been made fiercer by the rise of streaming services, which are also in the game for compelling programming, offering another outlet to content owners. When this is added to global economic conditions, prices are unlikely to stay the same.
A 2013 research by Robert Gessner of America’s Masillon Cable TV Inc., warned subscribers to expect large increases in prices.
“Wholesale costs for the lowest level of TV service will increase by 11.5% in 2014; expected to increase 400% by 2020. Wholesale costs for Basic TV will increase by 11.7% in 2014 and double by 2020. Anticipated 2020 out-of-pocket Basic Cable program cost will exceed $80/month, more than $100 retail with no equipment, premium services, Internet or phone service,” wrote Gessner.
US website, consumerreports.org, also reported that most US Pay TV operators hiked their prices in 2018, with some introducing hidden fees, with operators blaming the development on the rise in costs paid for programming.
Industry watchers also posit that addition of new features and functions to services, leading to improved subscriber experience, also contributes to the rise in Pay TV prices.
Except the astronomical programming costs miraculously slide-appreciably, too-there is no chance of Pay TV prices remaining the same for a long time.
––Fashedemi, a public affairs analyst, writes from Lagos
Broadcasting Organization of Nigeria (BON) has established six committees to help strengthen and modernize the country’s broadcasting industry.
The committees will focus on content creation, skills development, digital transformation, sustainability, policy and commercial opportunities
The initiative aims to support industry growth and improve collaboration between broadcasters, regulators and media experts
The official launch recently, was led by Tony Akiotu, president, BON and attended by media professionals, program directors, former journalists and heads of specialized media organizations.
The event brought together several prominent figures in Nigeria’s media industry, including veteran broadcaster and trainer Bimbo Oloyede, Tony Uyah of M4S TV, Kingsley Uranta of Channels Television, Ismael Sani of Platinum TV and Ibrahim Shehu of Trust TV.
Together, they are expected to help drive innovation and support the growth of Nigeria’s broadcasting sector.
According to Akiotu, the committees are intended both to help shape industry policy and to provide a forum for dialogue between BON and broadcasting experts.
Akiotu said the ad hoc committees were intended to strengthen BON’s work and ensure that the umbrella body for Nigeria’s broadcasters played a more direct and meaningful role in developing the country’s broadcasting sector.
The six committees reflect the sector’s main priorities. The first focuses on collaboration and innovation to promote content creation.
The second is dedicated to training and talent development, while the third focuses on industry sustainability by improving the sector’s long-term financial viability.
A fourth committee will focus on digital transformation and work with the National Broadcasting Commission (NBC) on regulatory issues.
The remaining two committees will oversee public policy advocacy and the development of sports and commercial rights to help broadcasters increase revenue and attract more investment. Together, the committees are expected to guide BON’s efforts to modernize and strengthen Nigeria’s broadcasting industry.
The committees, chaired by members of BON’s General Assembly and supported by the organization’s Secretariat, have an initial 12-month mandate that may be renewed if necessary.
They are required to submit a progress report within three months and implement approved recommendations within the following six months.
The arrangement is intended to ensure close oversight and the timely implementation of their work.
Akiotu also reminded committee members that Nigeria pioneered television broadcasting in Africa and urged them to carry out their work with greater effectiveness and efficiency.
Nigerian Education Loan Fund (NELFUND) says it is investigating about 34 tertiary institutions over allegations that they failed to refund students whose tuition fees were paid twice under the Federal Government’s student loan scheme.
The Managing Director of NELFUND, Mr Akintunde Sawyerr, disclosed this during an interview on Arise Television.
Sawyerr said the agency had deployed a five-member investigative team, including operatives of the Economic and Financial Crimes Commission (EFCC) and internal auditors, to examine the allegations.
According to him, the investigation was prompted by numerous complaints received from affected students.
“As of right now, there are 34 institutions that we are looking at closely with respect to this issue,” he said.
Sawyerr explained that the double payment issue arose because President Bola Tinubu directed that the student loan scheme commence in the middle of an academic session instead of at the beginning.
He said the decision compelled many students to pay their tuition fees to meet registration deadlines while awaiting approval of their loan applications.
“What happened is that a lot of schools got double payment; some from the students and some from us,” he said.
“The refund process is entirely out of our hands. It is the recipient of the double payments that is obliged to make refunds to the students.”
The NELFUND boss noted that many students had borrowed money from family members, friends and other sources to pay their tuition with the expectation of receiving refunds once the loans were disbursed.
He said while some institutions had promptly refunded affected students, others had failed to do so.
“Some have been very good at this. Others haven’t been so good at it,” Sawyerr said.
“I reserve judgement on the intentionality around it because, for some of them, they just didn’t have the process to make refunds.”
Sawyerr disclosed that NELFUND was exploring a tokenised payment system that would enable students to authorise tuition payments directly to their institutions, thereby reducing the likelihood of duplicate payments.
He said the agency deliberately chose not to disburse tuition loans directly to students to minimise the risk of fund diversion.
“Paying the funds to the students could really lead to the temptation for them to divert and do other things,” he said.
The managing director, however, acknowledged that NELFUND lacked the statutory powers to compel institutions to refund students or prosecute officials found culpable.
He added that many frustrated students had submitted complaints not only to NELFUND but also to anti-corruption agencies, including the EFCC and the Independent Corrupt Practices and Other Related Offences Commission (ICPC).
Sawyerr also expressed concern over increases in tuition fees by some institutions following the introduction of the student loan scheme.
He said NELFUND had declined to pay institutions that increased their tuition fees beyond acceptable levels.
“Some schools, because they get paid easily, started to put up their fees. We refused, point blank, to pay institutions who had hiked their fees beyond a certain level,” he said.
He reaffirmed the agency’s commitment to investigating every reported irregularity and strengthening the implementation of the student loan programme through continuous monitoring and internal reviews.
Xora Finance, Fintech Firm Refuses to Hire Nigerians over Alleged Dishonesty
FG Secures Fresh $208.3m World Bank Loan for Cash Transfer
How Ponzi Scheme Victims can Seek Legal Remedies — Lawyers
SERAP Sues INEC over Alleged N800Bn 2027 Tinubu Campaign Fund
Kaigama,Catholic Archbishop of Abuja Warns against Misuse of AI
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
Telecom3 days agoDStv, GOtv Owner MultiChoice Officially Joins Canal+ Group
News2 days agoPolice Busts Syndicate Who Allegedly Stole N3Bn from Financial Institution
Telecom2 days agoMTN Accelerates Network Expansion to Meet Surging Telecom Demand
Telecom3 days agoAirtel Africa to Connect 5,000 Schools to Free Internet by 2027
E-Financial3 days agoSEC Unveils Plans to Enforce Mandatory ESG Reporting for Large Firms Next Year
Broadcasting3 days agoFrom Scarcity to Scale: What Africa Can Learn from India’s Agricultural Transformation
E-Business3 days agoTeKnowledge, Equinix Partner to Advance Nigerian Digital Infrastructure
General News3 days agoNSIB Faults Runway Identification, Reveals Cockpit Disagreement in Asaba Jet Incident