Digital Satellite Television (DStv), Startimes and other Cable television service providers in Nigeria will be investigated as their subscription plans come under scrutiny again following demand for ‘Pay Per View’ by Nigerian subscribers.
The current monthly subscription plan was criticised by the House of Representatives, as the lawmakers accused MultiChoice’s DSTV of cheating its subscribers by offering prepaid plan rather than the ‘Pay Per View’ subscription plan.
This made the House of Reps resolve to probe the operators of the cable television service providers after unanimously adopting a motion moved by Unyime Idem titled ‘Call on MultiChoice Digital Satellite Television (DSTV) and Other Service Providers to Introduce the Pay as You Go Tariff (PAYG) Plan.’
The House of Reps set up an ad hoc committee which will invite Federal Government agencies regulating the industry, including the Federal Ministry of Communications and Digital Economy over the matter.
Why the clamour for Pay Per View? Nigeria has poor electricity supply, so the prepaid or monthly subscription plan is not fully utilised by subscribers of DStv and StarTimes. In order to enjoy the subscription, subscribers have to spend extra on alternative source of power supply.
The erratic power supply is one of the reasons that have affected the penetration of cable television in Nigeria, struggling to surpass the over 2 million subscribers in a country with about 200 million. In Nigeria, over $14 million is spent on generator and fuel annually.
Also, the likes of DStv charge operators of viewing centres extra for public use and the operators have to depend on generators to run their football viewing centers. Basically, operators of the viewing centres believe they are working for the cable service providers. Pay Per View will limit the cost of subscription, which means subscribers can only be charged for content watched.
More clampdown on cable operators: The Nigerian government has also resolved to strip cable television of exclusive right to content, ensuring content will be available for more than two cable service.
This means the exclusive right to football leagues, sports, foreign dramas and other consumer-driven contents will not be owned by one cable television company.
What Dstv has to say: Nairametrics reached out to Multichoice for comments and a company representative explained that there are misconceptions about what Pay per view really means. Contrary to general belief, the Multichoice representative said pay per view does not necessarily enable customers to match their TV consumption to subscription as it is the case with electricity metering and mobile telephony.
Instead, pay per view only applies to a one-off broadcast of high stakes games such as football, boxing, and wrestling matches, the company spokesperson claimed.
“It is a type of pay television service by which a subscriber of a television service provider can purchase events to view via private broadcast.”
Pay per View service can be purchased via a cable or satellite TV provider as a non-refundable separate package in addition to a pre-existing subscription. An example of pay per view in action was the Mayweather vs. McGregor fight, aptly dubbed ‘The Money Fight’. In this case, subscribers had to each pay up to $100 for the bout in the US, and watch or not, the subscription ended with the 10 round fight.
“We broadcast the same boxing match to our Premium subscribers at no extra cost, and those who have Exploras were able to record the match and re-watch at another time. It is important to state that it is an expensive service to subscribe to. To date, no pay-TV operation globally has a model based solely on a pay as you view, as it is not a viable business model,” she added.
CBN grants Mortgage Refinancing Companies approval to refinance Non-member banks
The CBN has expanded access to mortgage financing by removing restrictions on refinancing mortgages earlier imposed.
The Central Bank of Nigeria (CBN), has granted approval to Mortgage Refinancing Companies (MRC), to re-finance non-member banks.
This is contained in a circular referenced FPR/DIR/GEN/CIR/07/056 and signed by Ibrahim Tukur, the Director of Financial Policy and Regulation Department, CBN.
The circular improved on the earlier provisions contained in section 126.96.36.199 which states that “A mortgage refinance company (MRC) shall not, without the prior approval of the CBN, extend total outstanding credit to any single borrower, which is equal to or more than twenty times the value of the borrower’s shares with the MRC or 25 percent of its shareholders’ funds unimpaired by losses.”
What this means
Based on the provisions contained in the latest circular, MRCs are now free and legally permitted to refinance the qualifying mortgages of banks and all other non-members ( that do not hold equity), subject to meeting all other relevant requirements specified in the framework.
In a nutshell, the restriction on non-member mortgage lenders from refinancing their mortgages with MRCs has been removed.
Why this matters
Prior to the provisions contained in the latest circular, CBN had expressed fears that provisions of section 188.8.131.52 negatively impacts the mortgages sub-sector, as it constrains the MRCS from refinancing the mortgages of non-shareholder banks. Therefore, the new order will help to remove the restrictions already highlighted.
In lieu of this, the latest circular stated that the provision of section 7.3.1 5 is hereby revised to “the MRC shall not, without prior approval of the CBN, extend total outstanding credit to any single borrower, which is equal to or more than 25 percent of its shareholders’ funds unimpaired by losses,” the circular reads.
Nascon Allied Industries Plc: Increase in sale of goods boosts revenues
Nascon Allied Industries Plc recorded a boost from an increase in the sale of goods revenue-generating unit
Nascon Allied Industries Plc recorded a boost from an increase in the sale of goods revenue-generating units, as total revenues increased slightly. The company reported revenues of N21.87 billion in 2020 (9months) – 4.01% increase compared to N21.03 billion in the corresponding period of 2019.
What you should know
Key highlights from 2020 (9months) results
- Revenues increased by 4.01% from N21.03 billion to N21.87 billion YoY.
- Revenues from sale of edible, refined, bulk grade salt; seasoning and vegetable oil, increased to N21.87 billion, +22.53% YoY.
- Other income increased to N12.81 million, +27.43% YoY.
- No revenue was recorded for freight income on the deliveries of salt and seasoning income-generating unit.
- Gross profit increased to N8.96 billion, +74.56% YoY.
- Operating profit increased to N3.64 billion +18.60% YoY.
- Pre-tax profits increased to N3.47 billion, +16.63% YoY.
- Post-tax profits increased to N2.29 billion, +13.27% YoY.
- Earnings Per Share increased to 115 kobo, +12.75% YoY
- Total assets increased to N44.36 billion, +45.79% YoY.
- Total liabilities increased to N32.04 billion, +67.21% YoY.
- Total equity increased to N12.32 billion, +9.35% YoY.
Nascon Allied Industries Plc recorded a boost from increase in sale of goods revenue-generating unit, but no revenue was recorded for its freight income on the deliveries of salt and seasoning revenue generating-unit.
Though companies have generally recorded decreased revenues in the last three quarters, mostly due to COVID-19; Nascon Allied Industries Plc was able to increase its total revenues and pre-tax profits in the period under consideration.
Instagram disables its “Recent” feature
Instagram recently announced it had removed the “recent” tab from hashtag pages on a temporary basis
Instagram disclosed that it would remove the “Recent” tab from its hashtag pages for people in the United States of America.
The social networking and video sharing service stated this on its official Twitter handle. It said it is “doing this to reduce the real-time spread of potentially harmful content that could pop up around the election.”
Starting today, for people in the U.S. we will temporarily remove the “Recent” tab from hashtag pages. We’re doing this to reduce the real-time spread of potentially harmful content that could pop up around the election.
— Instagram Comms (@InstagramComms) October 29, 2020
What you should know
Nairametrics had reported on Instagram’s apology for its algorithm malfunction that led to the flagging of #EndSARS posts as fake.
Instagram has also taken the following measures to ensure a successful November election.
- The registration of 4.4 million votes this year through its flagship platform – Instagram and Messenger.
- Serving as a means of information and tool to people in the US on the electoral process
- The ban of any content that can thwart the success of the election.
(READ MORE:U.S dollar stable amid U.S holiday)
Mark Zuckerberg, the CEO of Facebook, said he was perturbed about the high risks for civil unrest in the US due to the upcoming presidential election.
“I’m worried that with our nation so divided and election results potentially taking days or weeks to be finalized, there is a risk of civil unrest across the country.”
Furthermore, he disclosed on a call while discussing Facebook’s Q3 earnings, that “given this, companies like ours need to go well beyond what we’ve done before.”
Why this matters
The aim of the short-term decision is to decrease the spread of misinformation in the forthcoming US election.