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.
Broadcasting
3 Nigerian Born NFL Stars Grace Glo-sponsored African Voices Changemakers
This week, three top football players of Nigerian origin who have played in the National Football League (NFL), also known as the American Professional Football League, will be guests on the Glo sponsored Cable News Network magazine show, African Voices Changemakers.
Three football players, Christian Emeka Okoye, Kenneth Odumegwu, and Haggai Chisom Ndubuisi, are featuring in the personality interview program.
Okoye was born on August 16, 1961, and was known as “the Nigerian Nightmare” while he was a fullback for the Kansas City Chiefs of the NFL from 1987 to 1992.
He had an NFL rushing champion title in 1989, first-team All-Pro honours in 1989 and second-team All-Pro honours in 1991, two Pro Bowl appearances in 1989 and 1991, and three post-season appearances during his successful six-season NFL career. He was well-known for his explosive running abilities and ability to break tackles.
He mentored Ndubuisi and Odumegwu, among others, and is credited with helping to shape the future of many professional American football stars. In 2000, he was admitted to the Kansas City Chiefs Hall of Fame.
Odumegwu, on the other hand, is a Nigerian professional linebacker who plays defensive end for the Seattle Seahawks of the NFL. He was born in Lagos on November 29, 2000.
Before attempting American football in 2022, he played basketball and soccer while attending the National Open University of Nigeria.
He started his professional career with the Green Bay Packers in 2023 as a member of the NFL’s International Player Pathway Program (IPPP).
Ndubuisi, the NFL’s defensive lineman for the Washington Commanders, turned 24 on October 15.
He joined the NFL through the International Player Pathway (IPP) program and has played for the San Antonio Brahmas of the United Football League (UFL), the Denver Broncos, and the Arizona Cardinals.
Scouting for gifted athletes to teach American football skills, the NFL’s International Player Pathway Program has been at the forefront.
The programme airs on Saturday 8.30a.m. on CNN Channel 401 with repeats at 12.00p.m. same day; Sunday 4.30a.m., 7.00p.m and Monday 4.00a.m. The same edition will be repeated on Saturday 8.30a.m., 12 noon and on Sunday at 4.30a.m., 7.00p.m. and 4.00a.m. on Monday.
Broadcasting
Halilu’s Next One Year in Office: NASENI to Upscale Commercialization of Technologies, Products
By Chinyere Obiora-Ekwuazi, Henry Ukwadia, Hadiza Abdul Abubakar
The National Agency for Science and Engineering Infrastructure (NASENI) was strategically established in 1992 as the only purpose-built intervention agency of the Federal Government, having the mandate of nurturing an appropriate and dynamic science and engineering infrastructure base for achieving home-initiated and home-sustained industrialization of Nigeria.
Without the application of Science, Technology and Innovation (STI), it is difficult for any nation to optimize the benefits of her possession of both human and material resources. Against this background, NASENI has continued to make giant strides in Nigeria’s technological landscape through its eleven (11) Development Institutes, each contributing to the development of STI for economic development of the nation. Nevertheless this is not without some attendant challenges ranging from funding to human capacity building and development.
However, the Agency heaved a sigh of relief when in September 2023, President Bola Ahmed Tinubu appointed a young, energetic technopreneur, Mr. Khalil Suleiman Halilu who has brought to bear his wealth of experience from the private sector to administer NASENI, giving it a new result-based orientation with market in focus.
On assumption of office, he set his goal of transforming the Agency, saying he would make it a central player in Nigeria’s technology revolution by adopting, adapting and domesticating cutting-edge technologies. To build a national brand, going forward, every household in Nigeria will have one NASENI product or the other.
Today, NASENI stands as hope for Nigeria’s indigenous technological advancement, aligning with its core mission of fostering needed dynamic science and engineering Infrastructure for national progress. The Agency under Halilu has articulated a bold vision and promoted shared management-staff philosophy hinged on 3Cs principles of Creation, Collaboration and Commercialization to fuel Nigeria’s innovation and sustainable future.
This approach has indeed opened more doors to result-oriented NASENI partnerships with both national and international corporate communities to foster EVC/CEO’s commitment toward the commercialization of NASENI’s products. In just one year, KSH as he is fondly called, spearheaded unprecedented collaborations cutting across many sectors with local and international partners in both public and private sectors, resulting in numerous groundbreaking agreements, making his vision for viable commercialization and rolling out innovative products for public consumption.
Briefing newsmen recently in Abuja, in commemoration of his one year in office, Mr. Halilu reiterated his resolve to make NASENI “the number One Technology Transfer Agency in the country.” This stems from his earlier promise in 2023 to take NASENI products from the shelves to the market. So far, not less than 36 products from NASENI are already in the corporate market.
During the media briefing, he disclosed the plans to have a showroom where people can walk in and buy NASENI products in retail, explaining that there are already plans to this effect. Halilu further noted that all the products of the Agency developed in the last one year are products of collaborations with strategic partners and Original Equipment Manufacturers (OEMs) with local content inputs.
The Agency has in the past one year introduced about 36 market-ready products which includes Solar Irrigation pumps, electric cars (EV), Android Smartphone, Solar Home System, Smart Prepaid Meters, Power Stove, Hatchbox, Pick-Up vehicle, Power Storage, Car Battery, Laptop, CCTV, Solar Street Lamp, Solar Wall Light, Electric Tricycle, Mobile Science kit, amongst others.
In addition, NASENI has established one of Nigeria’s largest CNG reverse engineering centre at Utako in Abuja to help Nigeria save cost on fuel products as well as cut fossil fuel emission in line with the SDGs on renewable energy. Also, under one year in office, the NASENI EVC/CEO made sure that the Agency carried out several administrative reform initiatives, such as Rebranding the Agency’s vision; introduced a new vision for NASENI’s brand identity, reposition NASENI with the 3Cs, increased NASENI’s valued investments to USD3.25 billion and launched the accelerated Technology Transfer Framework.
The initiatives also included the development of the Agency’s 2023-2027 strategic launchpad, reformed NASENI’s governance structure, enhanced staff welfare, established an Innovative Hub at NASENI HQ, launched Hatch Box for STEM education, digitalized Agency services and operations and positioned the Agency as Nigeria’s technology transfer agency, provided policy recommendations and contributing to economic growth, reduced dependency on imports and promoted domestic production.
Having attained these milestones, NASENI now is focusing on innovations and homegrown solutions that will contribute to the Agency’s job creation drive and the growth of the economy. Hence the mandate of NASENI to support the diversification of the Nigerian economy and strengthen the Agency’s position in the global technology and manufacturing landscape remain viable options through its accelerated technology transfer initiatives.
Moreso, NASENI has mapped out strategic plans that will upscale commercialization of the Agency’s technologies and products and drive the Nigeria economy in 2025. Some of these upcoming projects include; NASENI Renewable Industrial Park, MTS (spare parts support), NASENI Holding Company, NASENI Technologies Limited, NASENI Asset Recovery, CGIWC – Land awarded, Lekki FTZ Partnership, Vehicles refurbishment, Small arms assembly, Ammunition production, NASENI Innovation Hub, NASENI Xceler8, Future-Makers by NASENI – 2025, NASENI Public Challenge – 2025, Global Return Programme – 2025, DELT-Her v2.0 – 2025, NASENI Governing Council and NASENI Campus. All these are geared towards economic growth, job and wealth creation for Nigerians.
Broadcasting
Multichoice Writes Off N31.6Bn with liquidated Heritage Bank
Multichoice Group, South African Pay-TV operator, has announced that it has written off N31.6 billion ($21 million) in cash that was held with the recently liquidated Heritage Bank.
A write-off is the decision decision by a company or government to accept that they will never recover a debt or an amount of money that has been spent on something.
The company made this disclosure in its financial results for the six months ending September 30, 2024.
Earlier, in its FY 2024 annual report released in June, the group had reported a deposit of N33.7 billion with the bank as of March 31, 2024, the end of the fiscal year.
However, following cash remittances made before the bank’s liquidation on June 3, 2024, the balance was adjusted to N31.6 billion.
“Following the revocation of Heritage Bank’s banking licence by the Central Bank of Nigeria on 3 June 2024 and its subsequent liquidation, the group wrote off its receivable relating to the cash held with the bank,” Multichoice stated in a note to the $21 million listed as part of its operating losses for the half-year under review.
The Group reported that the continued depreciation of the naira against the US dollar led to additional foreign exchange losses on non-quasi equity loans, particularly on the USD-denominated intergroup loan from MultiChoice Africa Holdings B.V. to MultiChoice Nigeria Limited.
Despite these challenges, the Group successfully repatriated some funds from its Nigerian operations to its headquarters, although the amount was lower compared to the previous year.
“The group extracted USD65 million from Nigeria in the period (1H FY24: USD91 million) at an average rate of NGN1,516:USD (1H FY24: NGN794:USD), incurring extraction losses of USD1 million or ZAR20 million (1H FY24: USD28 million or ZAR518m) in the process.
“The group held USD11 million in cash in Nigeria at period-end, down from USD39 million at end FY24, a consequence of consistent focus on remitting cash, the impact of translating the balance at the weaker naira and the write-off of the USD21 million receivable relating to the cash held with Heritage Bank before its license was revoked and the bank was liquidated,” it stated.
After the Central Bank of Nigeria (CBN), revoked Heritage Bank’s banking license on June 3, 2024, the Nigeria Deposit Insurance Corporation (NDIC), was appointed as the liquidator.
The NDIC has since begun paying insured deposits, with a maximum coverage of N5 million per depositor.
While Multichoice initially stated in June that it would work with the NDIC to ensure a reasonable outcome regarding its funds in the liquidated bank, its deposit exceeds the maximum amount insured by the NDIC.
Recently, the NDIC announced that it is actively working to ensure that depositors with amounts exceeding the N5 million insurance limit are compensated through liquidation dividends generated from the sale of the defunct bank’s assets.
The Corporation also confirmed that it has begun efforts to recover debts and liquidate investments and physical assets from the bank to facilitate timely reimbursement for uninsured depositors.
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