Connect with us

Broadcasting

Why Nigerians, Others Pay More for Pay-TV

Published

on

Spread the love

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.

startimes.jpg

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.

gotv.jpg

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

Nigeria CommunicationsWeek believes that technology makes life more exciting and helps improve the lives of people around Nigeria and indeed the world. So since 2007, we have devoted our energy to independent reportage of technology and how they affect lives.

Continue Reading
Advertisement
Comments

Broadcasting

Landlords Petition NBC, Want FM Station Relocated

Published

on

Spread the love

Landlords of Alagbaka/Police headquarters area of Akure, the Ondo State capital, have petitioned the National Broadcasting Commission (NBC) for siting a Frequency Modulation (FM) station within their domain without recourse to laws guiding its establishment.

 

A petition written by residents in the area and signed by Tunde Atere, their lawyer, said it was worrisome to them to notice the springing up of a structure and high mast/tower in the neighbourhood without any prior knowledge of landlords in the area.

 

The area, they said, was originally designed purely as residential, but now having a commercial outlook.

 

According to Victor Adejimola and Mrs. Veronica Titus, representatives of the Landlords’ Association,  all efforts by the community to know those behind the FM station failed, until the intervention of police.

 

Residents noticed that the consultant handling the project has not done what he was expected to do before commencing the project, stressing that all procedures were jettisoned even as the project has reached 65 per cent completion.

 

The landlords said at the public review on the project, the panel’s chairman, Prof. Ayo Olajuyigbe of the Federal University of Technology Akure, (FUTA) faulted the Environmental Impact Assessment document presented by the consultant.

 

Olajuyigbe and officials of the Ministry of Environment described the documents presented by the consultant as very defective and called for re-presentation.

 

The landlords said they were not against developmental plans for the community, but maintained that their welfare should be paramount and above individual pecuniary benefits.

 

They noted that the whole process of the project was faulty, while the consultant handling the project failed to do proper job to prevent future hazards.

 

The landlords also expressed concern that some affluent individuals were threatening the landlords with ethnic sentiments without considering safety of humankind in the society.

 

Continue Reading

Broadcasting

Goldberg Unveils Olamide As Brand Ambassador

Published

on

Spread the love

Leading Nigerian music sensation, Olamide has been unveiled as the new brand ambassador for Goldberg Lager. The announcement was made during a media event at the Raddison Blu Hotel, Ikeja on Saturday, the 20th of April, 2019.

The announcement marks the beginning of a new era for Goldberg, as the beer brand seeks to appeal to people who celebrate tradition and culture as its way of shaping the future.

L-R: Brand Manager, Goldberg, Olufunmilayo Ogunbodede, Regional Business Manager, Nigerian Breweries, Bukola, Portfolio Manager, Mainstream Brands, Nigerian Breweries, Omotunde Adenusi, Goldberg Brand Ambassador, Olamide Adedeji, Goldberg Brand Ambassador, Odunlade Adekola, Senior Brand, Goldberg and Life, Maria Shadeko, Portfolio Manager, Mainstream Brands, Sarah Agha and Corporate Affairs and Brand PR Manager, Patrick Olowookere at the Official Announcement of Olamide as Brand Ambassador for Goldberg.
Olamide is a perfect example of this, as he is industrious, traditional, open minded and outgoing making him a perfect fit for the brand. He has become one of the most sought after Nigerian entertainers, all whilst remaining authentic and true to his roots.As part of the unveil, Olamide will headline his first concert of 2019 themed “The Takeover” tonight. The concert which is a special edition of the experiential platform by Goldberg called Unlimited Faaji, will feature Olamide alongside other musical acts such as Zlatan Ibile and Mayorkun while Dj Kaywise will be on the wheels of steel. Set to be hosted by fellow brand ambassador, Odunlade Adekola the concert will see thousands of beer lovers and residents take to the Ikeja City Mall for the groundbreaking event.

Olamide joins actor, Odunlade Adekola, on the brand’s portfolio as the brand eludes to big plans in the coming months.Speaking on the announcement, the Portfolio Manager, Omotunde Adenusi said,

“We’re excited to welcome Olamide to the family, as we look to the big plans we have for the rest of the year. Goldberg is using this announcement to give its consumers a taste of what is to come in the coming months even as we re-establish its role in bringing its consumers closer to their roots yet keeping them in touch with the trends.”

Over the years, Your Excellency, Goldberg has consistently pushed the bar in excellence, continually providing fans and consumers with remarkable enjoyable experiences that dial up the culture and traditions of the people, whilst also appreciating modern social conventions. This perfect blend of both worlds has made Goldberg one of the most authentic consumer brands in the country.

 L-R: Brand Manager, Goldberg, Olufunmilayo Ogunbodede, Senior Brand, Goldberg and Life, Maria Shadeko, Goldberg Brand Ambassador, Olamide Adedeji and Portfolio Manager, Mainstream Brands, Nigerian Breweries, Omotunde Adenusi at the Official Announcement of Olamide as Brand Ambassador for Goldberg.

Continue Reading

Broadcasting

All You Need to Know About Nigerian Breweries’ Easter Carnival

Published

on

Spread the love

The picturesque moment in Easter celebrations that Nigerians had been waiting for began with an explosive opening night at the 2019 Easter Carnival in ten select cities nationwide on the 19th of April, 2019.

 

It was a fun filled day for a medley of music anthems, fitness and family-centric activities, games, giveaways, live streaming, singalongs, selfies and ice-cold beverages such as Goldberg, Heineken, Star Lager Beer, 33 Export, Maltina and Amstel Malta. Ground-shaking vibes from Nigeria’s popular musicians rented the air which was a mixture of excitement, frenzy and glamour. From the drones to the turn-tables, the Easter fever was palpable.

 

Uyo, Abeokuta, Abuja, Onitsha, Enugu, Makurdi, Aba, Lagos, Ibadan and Benin recorded massive turnout of excitement buffs who arrived in droves to witness the opening night of this epic Easter experience.

 

DJs dazzled gyrating feet with fast-paced mixes between performances which were staged against Nigerian Breweries branded psychedelic backdrops. Converging floodlights created the ambience for entertainment’s most elaborate Easter music treat in the ten cities.

 

“I had a great time today. I can’t wait for day 2 & 3! I’m definitely coming with all my friends and family tomorrow and next,” said Maduegwu Okey, a resident of Enugu, at the Easter Carnival.

 

The Easter Carnival which has as theme, “Dreamland of Enjoyment“, runs till April 21st as music fans relish each night with their favourite music stars.

 

The carnival is headlined by top-notch performers such as Burna Boy, Phyno, MI, Flavour, Reekado Banks, Slimcase, Orezi, Harrysong, Wande Coal, KCEE, Humblesmith, Obesere, Timaya, MC Galaxy amongst others.

 

The Easter Carnival is designed as an unparalleled fun filled experience to project Nigeria’s passion for celebrations and showcase Nigeria’s rich music heritage spread across the different zones.

 

Nigeria is a multi-cultural nation with over 250 known ethnicities and over 300 languages. With a soaring record of huge music talents, Nigeria boasts of some of the finest contemporary musicians in the continent. Thus, music has become one of Nigeria’s authentic symbols of unity and identity.

 

With this Easter Carnival, the best influencers in popular music culture across the language barriers to speak the universal language of music, while reiterating the Nigerian Breweries’ commitment to promoting Nigerians’ love for celebrations and festivities.

 

Speaking further on the Easter Carnival, the Senior Trade-Marketing Manager: Strategic Programs, Nigerian Breweries Plc., Abayomi Abidakun said, “We at Nigerian Breweries pay attention to the needs and interests of our consumers.

 

“This has berthed iconic ideas like the Easter Carnival and we’re determined to every year bring together Nigerians across the country, uniting them in their love for celebrations availing them with exciting experiences to last a lifetime.”

 

The foremost brewer, Nigerian Breweries Plc has played a pivotal role in activating rich entertainment for people of diverse backgrounds to unite in unlimited enjoyment.

 

Nigerian Breweries Plc is notable for activating cultural and music festivals in Nigeria including Ojude Oba festival, Nigeria Beer Festival, Live Your Music, Hi-Life Fest and many more.

 

Continue Reading

Trending

Copyright © 2017 Communication Week Media Limited.