Following the adoption of the reports and recommendation of the Ad–hoc Committee on Non–Implementation of Pay–As–You–Go and sudden Increment of Tariffs plan by Broadcast Digital Satellite Service Providers, indications are that the pay TV ecosystem is being liberalised with more indigenous players getting on board. Ibrahim Apekhade Yusuf in this report examines the development
The cable satellite operators in the country, especially the indigenous players are upbeat and the reason for this is, is not farfetched: with the democratisation of the space thanks to the bill being pushed by the House of Representatives to consider the pay-per-view, pay-as-you-go and price reduction for DSTV and other cable satellite operators in the country.
Reps mull pay-per-view, price reduction for pay TV
This followed the adoption of the reports and recommendation of the Ad–hoc Committee on Non–Implementation of Pay–As–You–Go and sudden Increment of Tariffs plan by Broadcast Digital Satellite Service Providers.
Rep Unyime Idem, the chairman of the Committee had earlier laid the report before the House and was considered by the House recently.
Idem, who represents Ukanafun/Oruk Anam Federal Constituency, said, the House called on the Federal Government as a matter of urgency to expedite action on implementing the content of the National Broadcasting Code and the Nigeria information Policy of 2014.
The House noted that this would trigger healthy competition in the industry, adding that the entertainment industry had a wider spectrum with limitless opportunities for the teeming youths.
The House stated that the visible absence of competitors in the industry was tacit approval of monopoly of the industry by the present operators.
The House suggested that timely application of government regulatory intervention measures already articulated would revolutionise the industry and meet the people’s yearnings for Pay-as-you-go, Pay-Per-View, and price reduction.
According to the recommendation, our extant laws that moderate operations in the industry is to be fine-tuned to meet the 21st- century regulatory laws of the industry that is dynamic as the entertainment industry.
The House noted that the commission that had the power to license and regulate the activities of service providers must also have the power to moderate in the protection of consumers.
The House stated that there was little or nothing a regulator could do if he was handicapped by laws that were not properly tailored to the needs of the society.
According to the reports, price increase and reduction have always been contentious issues for producers and consumers in the business world.
The House also listed the factors responsible for the hike in subscription fees as the recent increment of VAT by 2.5 per cent by the Financial Amendment Act of Jan. 13, 2020, the fluctuating foreign exchange rate in the country that affects the cost of content.
Others are: broadcast equipment, experienced hire and technical infrastructure, increase in bouquets for a wider choice, inflation on the cost of production, and need to maintain the workforce.
They identified the need of not throwing many young Nigerians, who are gainfully employed by pay-tv into the labour market were some necessary indices for the price hike.
The report noted that the use of Nigerian NigComSat or Nigerian Satellite that is still under-utilised was advocated by the committee.
The House urged the management of NigComSat to embark on the creation of awareness to companies and organisations that made use of satellite facilities.
The House advised satellite infrastructure users to look inwards and patronise the country’s satellite, reduce the cost of production and services and generate income for the Government.
The House stated that all obstacles that make use of NigComSat less attractive to the end-users must be looked into as utilisation of the Satellite was key to resolving the issue.
Endorsement of indigenous players
The adopted report, by the lower chamber of the Nigerian’s National Assembly, was borne out of the corporate initiative of a Nigerian Media brand, Moreplex TV, who recently introduced Pay-per-view as a way of protecting Nigerian Consumers from exploitation and enhance quality life.
Recently, in its bid to further demystify the pay tv industry and to make it’s TV decoder available in every home, Moreplex TV came up with approximately discount on each decoder purchase by customers, the gesture also has the Lease Option package which enables customers to get a Moreplex TV decoder with N1,000 nonrefundable fee and start paying by instalments for the decoder over a period of 12 months at N1,000 per month.
According to the Chief Executive Officer of Moreplex TV, John Okorocha, “Moreplex TV is for us in Nigeria and it must be available for every Nigerian that’s why we are giving discount and also coming up with different customer friendly promo that enable our brand of pay TV decoder gets to every home,” he said.
“The 40% discount on instant purchase of our decoder, enables customers pay N10,000 instead of N16,000 for the decoder, aside this, the customers also get the dish and LND at N4,500 instead of N6,000. We embark on all these to make sure that every Nigerian has access to pay TV.” He explained.
“On our decoder is a free to air sports dedicated channel named Top Sports TV, the sports tv is bringing top matches into Nigeria homes, it has started broadcasting live matches of Brazilian Championship seria A since May 29 and also broadcasted live the just concluded Euro 2020.
Top Sports TV will be broadcasting La Liga and is making arrangements to add English Premier League and Seria A. All these and other live sports events are coming to Nigerian for free as long as they have a Moreplex TV decoder.
Opposition by civil rights group
Some civil society organisations (CSOs) have kicked against an amendment bill seeking to grant the National Broadcasting Commission (NBC) power to fix tariff for digital satellite television services.
The bill aims to empower NBC to “regulate and review, through its broadcasting code, the tariff being charged by the Digital Satellite Television Services and other broadcasting outfits in Nigeria and other subscription policy for subscribers”.
However, some media stakeholders opposed the amendment at a public hearing organised by the house of representatives committee on information, national orientation, ethics and values on recently.
In their joint submission, the International Press Centre (IPC) and the Centre for Media Law and Advocacy argued that giving NBC power to fix tariff will usurp the functions of the Federal Competition and Consumer Protection Commission (FCCPC).
Speaking on behalf of the groups, Lanre Arogundade, executive director of IPC, said the FCCPC act has “adequate provisions to deal with the often contentious issue of competition and pricing in Nigeria”.
Arogundade also said the FCCPC is “technically equipped to handle the kind of matters being dabbled into here, being a specialised agency established for specific purposes”.
“Fixing tariffs arbitrarily could lead to excessive pricing that has the potential of discouraging investment in the sector and the attendant job losses,” he said.
“Giving the NBC the sole right over tariff issues which cannot be interfered with could be interpreted as an ouster clause that arrogates to it arbitrary powers that cannot be challenged even in the court of law.
“The two sub-sections highlighted above should be removed from the proposed amendment bill of the NBC Act.”
“We submit that the amendment goes against the objective of the Federal Competition and Consumer Protection Act to ‘protect and promote the interests and welfare of consumers by providing consumers with wider variety of quality products (and services) at competitive prices’,” he said.
“Even though the Federal Competition and Consumer Protection Act does not define “competitive prices”, it is trite to say that competitive prices are prices determined by market forces in today’s open and free market regime.”
Nigerians have often complained about the subscription rates for pay TV, with some claiming the country has the highest rates in Africa.
Compared DStv subscription rates in Nigeria, Ghana, Kenya, Botswana and Multichoice’s home country, South Africa, and found that the subscription is cheaper in Nigeria than most of its peers across Africa.
Previous investigations
In March, an ad hoc committee, chaired by Mr Idem, investigated MultiChoice, owners of Digital Satellite Television (DSTV) and others for non-implementation of pay-per-view.
NBC was also summoned during the hearing, to address possible regulatory bottlenecks hindering the implementation of pay-per-view.
In September, FCCPC also investigated Multichoice and Startimes TV over possible violation of consumer rights.
Leave a Reply